Page 15 - Expat Living Spring 2018

FRANCE
Buying
The property buying system in France is better regulated
than in many countries, making a purchase safer, but
more expensive. Agents charge the seller around 5-7% of
the price, which is usually included in the advertised price.
On top of the purchase price, allow for 7-10% in fees and
taxes, including the notaire’s fees of around 1%.
It is best to ensure you use licensed agents (immobilier)
who have a Carte Professionnelle and will be professionally
insured and work under the Loi Hoguet, their code of
conduct. They will generally be in a professional body such
as the FNAIM, with its own additional rules.
Mortgages of up to 85% loan-to-value are available from
the big French banks, some international banks such as
HSBC and Barclays, the French post office (La Poste) and
‘mutual’ banks such as Crédit Agricole and Crédit Mutuel,
with interest rates historically lower than in the UK.
If you are looking for property in a specific area of a city you
can look for A Vendre signs or use a portal such as www.
seloger.fr or one of the British-run portals such as www.1st-
for-french-property.co.uk. In rural areas it can be difficult to
find properties and an estate agent can be essential.
Even a verbal offer is generally regarded as binding, but
it is best to make the offer in writing. Many French buyers
will not use a lawyer, but as an expat it is safer to have an
independent lawyer or at the very least your own notaire.
Don’t forget, the agent is working for the seller, not the buyer.
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Before the sale proceeds the seller will have to pay for
certain tests – the Dossier de Diagnostic Technique
(DDT) – covering such concerns as asbestos, energy
efficiency and termite infestations.
Most sellers will wait to receive an offer before doing
these, which often replaces a survey when locals buy
from each other. Many non-French buyers, however, will
want a proper structural survey.
With the offer accepted and tests completed, you will
be asked to sign the compromis de vente, drafted by the
agent or notaire, and pay a 5-10% deposit to the agent
or notaire. The compromis will be binding subject to
agreed conditions, such as a mortgage being secured or
planning approval. After signing you have a seven-day
cooling-off period during which you can withdraw via a
registered letter and get your deposit back.
Around 8-12 weeks later the acte de vente, completion,
should be ready. You will sign this at the notaire’s office,
having transferred the remainder of the purchase price and
insured the property. On signing you are given the keys.
Off-plan and new-build buyers are also well
protected, with bank guarantees in place for each new
development to ensure it will be completed even if the
developer or builder goes bust. Buyers also have a ten-
year guarantee. Fees are 2.5-4% for new build property
but VAT is 20%.
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