Sue Elliott
24140 Queyssac
France
Tel / Fax: 0033 (0)5 53 61 91 89
E-mail: sueimmorama@wanadoo.fr

Sue Elliott
PURCHASING A PROPERTY IN FRANCE: TERMS and PROCEDURES
Information supplied by Sue Elliott, Immorama Aquitaine, 24140 Queyssac, based on her experience in estate agency over the last 6 years - the law does change, however, as the government invents new ways to create paperwork and taxes, so this should not be taken as being ‘written in stone’ – it is just a general guide and for anything involving inheritance, planning, surveys etc you should enquire of the agent at the time of purchase

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 Most purchases are straightforward and it is unlikely you will need an English Solicitor to help you but this is your choice at the end of the day – there is both good and bad advice and it is all costly in the UK, whereas a good Notaire and Agent in France who understands the British client can offer the same advice for free!
NOTAIRE: The title of the lawyer who deals with the entire purchase from Sous-Seing to Acte.
DEPOT DE GARANTIE:The deposit (no more than 10% of the net Purchase price) which is payable on the day of signing the initial contract or ......within a set period (to be decided by the notaire with the agreement of the vendor/buyer) ie this is often 10 days, which allows you to get home and arrange the inter-bank transfer TO THE NOTAIRES BANK ACCOUNT – the Notaire will supply you with his bank details and Swift International Transfer Address (the whole thing is known as a RIB (relevé d’identité bancaire)
When you get your own French cheque book you’ll find a couple of these as detachable pages in the back of your cheque book – use them for arranging direct debits etc
A BANKERS DRAFT FROM ANY BANK OTHER THAN A FRENCH ONE IS NOT ACCEPTABLE ANY MORE.
SOUS-SEING or COMPROMIS DE VENTE:This is the initial contract which you will either sign there in France with the Notaire or if you cannot be present this will be sent to you by post to date, sign and return. You are allowed an 8-day cooling off period, if you wish to cancel your purchase after you have signed you will need to get a registered letter off to the Notaire to arrive before that date – or if you have not yet paid the deposit the non-payment will automatically annul the contract.
THIS INITIAL CONTRACT IS BINDING ON BOTH SIDES – subject to various let-out clauses eg
  1. if it is ESSENTIAL that you get a bank loan then this is noted in the Sous-Seing and if subsequently this is refused then you get your deposit back
  2. if the property is found to have LIVING termites then you have the option to have your money back, or get the price reduced by the cost of treatment – the choice is yours.

    There are other reasons why the sale may not go through eg
  3. the village Mayor may decide to take up the option to purchase, or...
  4. SAFER (a govt organisation which manages the countryside) may decide to purchase

    BUT items 3 and 4 ARE RARE SO DO NOT WORRY – THEY MOSTLY AFFECT PROPERTIES WITH MANY HECTARES OF GOOD FARMING LAND.

    The other get out is
  5. if you NEED planning permission for something (eg conversion of a barn, opening a campsite, creating a lake etc and it is refused.
IN ALL THESE CASES YOU GET YOUR DEPOSIT BACK FROM THE NOTAIRE IN FULL.

YOU CANNOT SIMPLY CHANGE YOUR MIND – YOU LOSE YOUR DEPOSIT
HOWEVER SHOULD THE VENDOR CHANGE THEIR MIND THEY WILL HAVE TO PAY YOU TWICE THE AMOUNT OF THE DEPOSIT - SO THIS RARELY HAPPENS!
From the time of the Sous-Seing to the date of the final contract – known as L’ACTE DE VENTE is about 3 months, for town or village properties it can be reduced to about 2 months but it is normally 3 -4 months for anything rural.

DURING THIS TIME THE NOTAIRE UNDERTAKES THE SEARCHES, CHECKS THERE ARE NO OUTSTANDING DEBTS/MORTGAGES ON THE PROPERTY, AND ANY APPLICATION FOR PLANNING PERMISSION ETC IS UNDERTAKEN (this is what often holds up the final sale as the Planning Departments are all overworked and inefficient!)
The Planning Application is nowadays undertaken by a GEOMETRE (land surveyor) and will cost approx 250 EUROS. The same GEOMETRE can verify the boundaries if necessary for an extra fee.
About TWO WEEKS BEFORE THE ACTE DE VENTE you will be sent a bill for the monies owing which also have to be transferred to the Notaire’s bank account. When the funds arrive with the Notaire you will be asked to attend at his office to sign the final contract with the vendors and be given the keys. You will need to insure the house and buildings and ensure this includes Public Liability which is obligatory in France.

If you cannot be present to sign the final contract you will need to sign a PROCURATION (Power of Attorney) witnessed by a Notary Public in your country of residence (or the French Embassy)- which is then posted to the Notaire who signs on your behalf.

A good estate agent will help you through all this procedure so that you should have no worries – it is simple and designed to protect your interests.