Buying property in France
Although purchasing a house in France can
seem like a long drawn out bureaucratic process it is in fact a much surer
and structured procedure than in many other european countries. One is nearly
always compelled to use the services of a state-appointed notaire (public Notary)
who works for a fixed fee and more or less guarantees a fraud-free transaction.
(The notaire is not necessary if the property is owned by a property company
(a société civile immobilière - SCI) and the purchaser is buying the company).
The first stage is to find and visit the property. A second visit should be
more thorough, in the company of a knowledgeable builder if possible. Surveyors
are thin on the ground in France: builders usually give advice on the state
of a house and will, if necessary, call on an 'expert' for technical advice.
The vendor must pay an expert to certify the absence of termites, asbestos,
radon gas etc before he can sell. Once you have agreed on a price (now that
prices are on the turn you should seriously negotiate: offer up to 50% less than the asking price if you think the vendor
is not sure of his ground) the next step is a 'compromis
de vente' or 'sous-seing
privé'. This is drawn up by the notaire and signed in his presence - accompanied by the purchaser paying a 10% deposit.
This is an extremely important document: it is in fact the final sales
contract which outlines the whole transaction and the duties and obligations
of the two parties. In general, before the contract can be concluded the State
(and the vendor) must carry out a number of searches and controls: is a motorway
planned to run through the property? Has the neighbouring farmer rights on
the land for agricultural use? (possible if more than a hectare of land), has
asbestos been used in the construction? etc. For his part, the purchaser should
write into this document his 'clauses suspensives', the most important being
the raising of a mortgage. Without such a clause the purchaser will be expected
to conclude the deal just as soon as the official searches are finished.
The
importance of this 'mortgage' clause cannot be over-stated. Even if you haven't envisaged a mortgage for the property you should seriously consider putting
in such a clause - even for a small amount - as it is your ticket to getting
out of the contract should you need to in the three months or so following
the initial agreement. It works like this: the notaire will meet with you and
the vendor is his office: he will ask you if you intend paying cash or will
be applying for a mortgage. Normally one will opt for a mortgage of, say, 80%
of the total cost (less fees). You can name a specific bank or just leave it
open. The notaire will then suggest a date upon which the contract will take
effect - usually two or three months ahead. This can be negotiated. Your first
action should be to fire out a dozen or so official requests for a mortgage
so that you have at least one official 'refusal' if you ever want to get out
of the contract. Without a written refusal - on headed notepaper, signed and
translated into french by a recognized translator - you could lose your 10%
deposit. Finally the big day arrives, the notaire summons both parties to his office, checks the results of the different 'searches' and proceeds to read the whole contract aloud. Then both parties sign .. and you become - instantly - the owner with full powers of possession. Assuming, of course, that you have made arrangements for the balance of the monies to arrive at the notaire's office in good time. No money = no deal and you lose your deposit. Be warned!
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