French property buying process in 7 steps
Buying and Selling
Written by Callum Holmes ,
Thursday, 27 May 2021
If you are buying a property in France for the first time you might have questions about the process. We can help!
- Making an offer
When you have viewed a property that ticks all your boxes, let your Beaux Villages property consultant know as soon as possible that you are considering an offer. The market in France is hotting up and properties can sell quickly. Your agent will put the offer forward to the vendor and get the negotiation process started. The price you agree will include agency fees and exclude the Notaire’s fees. Notaire’s fees vary according to the sale price of the property; you might budget around 8% of the total purchase price, but be aware that it will be proportionately more for very low priced properties and/or if finance is involved. We can get you a quote from the Notaire if this is a precise budgetary requirement. - Offer agreed - buyer and seller sign a Letter of Intention
Once the vendor is happy to accept the offer, this is when the details of the deal are established, including desired completion dates and any specific requirements on either side. A pre-contract Letter of Intention to Purchase is prepared by the estate agent and signed by the buyer and seller. It is clearly stated how the price net to the seller and the agency fee are broken down. The buyer is responsible for the total, plus the notaire’s fees. At BVI, from this point, our desk based legal team will assemble all the necessary information (names, address, marital status, copy of passport etc) for preparing the initial contract (Compromis de Vente). Your property consultant will still be on hand and available to you and active in protecting your interests. - Legally required property checks
The sellers will need to arrange, and pay for, checks to be made on the property by an independent and regulated professional: lead, asbestos, electrics, drainage, termites, natural risk etc. along with a drainage report if applicable. The reports are annexed to the contract and we can give a verbal overview of the (detailed and technical) content if required. If an additional building or structural survey is required this is paid for by the buyer. The buyer contracts directly with their chosen surveyor. - The initial contract – Compromis de Vente (CdV)
This is the equivalent of the ‘exchange of contracts’ in the UK and is signed by the buyer and vendor committing you to the purchase. It is drawn up by either the notaire or the estate agent and signed as quickly as possible - usually within 2-4 weeks of the agreed deal. This signing can be done in person at either the notaire’s office or the Beaux Villages office. Alternatively, it can be witnessed (the notaire will specify this) and posted, or the parties can sign a power of attorney allowing the notaire’s clerk to sign on one or both party’s behalf. If the signing is at the notaire’s office, a bilingual member of our team will attend. Otherwise, BVI will give a verbal translation by telephone. If any party needs an accredited translator, then this is at cost to the buyer or seller as required. - Finance arranged and deposit paid
It is ideal that a mortgage ‘offer-in-principle’ is in place before the signing of the first contract but a clause can be added to the contract stating that the completion is dependent on obtaining appropriate finance. Conditions apply and must be discussed and understood. To convert a verbal mortgage offer to a written offer, the lender will require the CdV signed by both/all parties. There follows a 10-day period of reflection during which time the buyer (but not the seller) can cancel the contract. There is a simple but prescribed process for cancelling an offer that must be followed. This can be done through the estate agent. At the end of the 10 days the deposit is requested by and sent to the notaire. All funds are held by the notaire in escrow accounts and the seller has no access before final completion. The legal default is 10% of the total purchase price, though the amount paid at this point may vary by negotiation. In certain circumstances the agency fee may also be payable. - Countdown to final completion
On average a sale/purchase will complete within 4 months of the original agreed deal. Purchases without finance may be quicker. Delayed completion may suit all parties and can be negotiated by the estate agent. Around 1 week before completion the balance of the funds need to be deposited with the notaire. These will include the notaire’s fees and be net of any deposit paid. Where buyer and seller use different notaires, the notaires share the fee. If any party engages further legal representation or advice, then this is at their additional cost. Immediately before completion the estate agent and/or the buyer will re-inspect the property. It must be as it was at the time the offer was made, and with all agreed inclusions and exclusions. Property in France is ‘sold as seen’ with little recourse. A key exception is where it can be proven that the seller knowingly hid a serious defect. At this time we will agree meter readings in preparation for transfer of utilities, and agree any inventories made earlier. Insurance should be in place for completion. If there is a mortgage it will be required. We can help.
The final signing - Acte de Vente
The final stage is the signing of this second contract, the Acte de Vente. If a power of attorney has been signed the notaire can do this on either party’s behalf, however this needs to be arranged well in advance. In this instance the notaire will satisfy themselves that nothing has materially changed since the first contract and that the buyer and seller understand all detail. Again, if signing with the notaire, a member of the Beaux Villages team will attend. In all matters, the document (Acte de Vente) prepared by the notaire(s) and signed by buyer and seller is the governing contract. Property details and adverts and private arrangements form no part. After the completion comes the exchange of keys and you become the legal owner of your new french home. You will be given an “Attestation’ to prove this as the final deeds can take some time to be sent though.
If you’re looking to buy in France, our team would be delighted to guide you through the whole process. Please get in touch to find out more.
