Buying property in France may appear to be a complex and daunting task, particularly if you do not speak the language and do not have knowledge of how the French legal system works. At Ascendant our aim is to take the stress and strain out of the buying process, by offering a professional and comprehensive service from the moment you make contact with us through to the day you are handed your keys.
As a French estate agent we are paid commission upon the completion of a sale, there are no extra charges for our services.
In order to offer you some initial help and guidance we have outlined some of the main points to be aware of when buying property in France. We are also very happy to explain the purchasing process for both resale and off-plan properties in more detail when we meet you face-to-face.
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As soon as you have contacted us to express an interest in viewing one of our properties we will spend time talking to you to identify your requirements in more detail. The type of information which is helpful to us is as follows:
- Is this a holiday home or main residence?
- If your purchase is to be a main residence will you be working, if so where?
- If your purchase is to be a holiday home are you looking for somewhere to use in both winter and summer or one season only?
- If this purchase is to a holiday home, what are your intended hobbies whilst you’re here – skiing, walking, cycling, swimming, paragliding and so on?
- Have you pin-pointed an area or are you flexible?
- How often do you intend to visit your property and how critical is fast access?
- How many people does the property need to sleep?
- Are you prepared to undertake any renovation work or are you seeking something ready-to-move-into?
- What type of property are you looking for – a chalet for family and friends or perhaps a low-maintenance apartment?
- What style of property do you like – are you a fan of traditional alpine design or is a more contemporary style more to your taste?
- Have you visited the area before or is this your first time?
- What is your total budget – bearing in mind that you will need to pay taxes and notaire’s fees as well as the sale price of any property purchase?
- Are your finances in place – is your cash deposit in place, have you spoken to your bank or a French lender about a mortgage or is this a cash purchase?
- Do you need your alpine property to generate a rental income – is this purely an investment purchase or business combined with pleasure?
- Have you previously visited alpine properties with a view to purchase?
Once we have discussed your search criteria we will have built up a comprehensive view of the type of property and locations that are most likely to suit your needs. This will allow us to propose a range of suitable properties which could include properties or areas that you have not previously considered. As well searching our own portfolio we are also able to contact our local French estate agency partners to identify whether any properties in their portfolios fit your criteria. Our aim is to ensure that we spend constructive time together to find you the perfect property for you.
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The best approach to any viewings is to keep an open mind and be flexible. Before you leave the UK we will arrange somewhere to meet for our appointment. This will either be at our offices in the centre of Haute-Savoie, in the resort where you are staying, or in the resort where our viewings will commence depending on which is the most convenient for you.
We will always accompany you to viewings. Where possible we will travel with you in your car to talk you through the areas that we are visiting and to help direct you to the next property. It also provides an opportunity to ask any questions which may arise during the course of your visit.
Many businesses based in the UK will simply make appointments for you with a number of different French estate agents. This sounds fairly straightforward in principle but it does mean that you have no opportunity to speak to the person conducting the visits before your arrival. It also means that you have to ensure that you find your way to different estate agencies in different resorts on your own and on time to keep your appointments. Often the UK arm of the business has not passed on your exact requirements to their French associates, so you do not see appropriate properties when you arrive. At Ascendant we believe that you should be able to rely on your estate agent as a trusted partner, who is there to take the headache out of buying property in France.
Depending on the number of properties to be viewed and the driving distances involved, your appointment with us could take the majority of a day or just a half day. Once we have planned your viewings we will let you know the agenda for the appointment and if you need regular breaks or have special requirements we can factor this in to our time together.
On some occasions the vendors will be present during viewings and on others we will have the keys to access the properties. It is always best to expect that someone may be home and try to avoid bringing any non-buying passengers with you.
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If you decide that you would like to buy one of the properties we have viewed together, the first step is to put your offer in writing, regardless of whether it at the full asking price or a negotiated price.
If you would like to negotiate on the price we will be able to let you know whether we believe this will be possible, based on our knowledge of the vendor and whether they are prepared to consider offers. There is no hard and fast rule concerning negotiation in this part of France and certainly no standard decrease to be applied to the property sale price. We will always provide guidance to help secure you the property at a price that both buyer and vendor feel is fair.
Once your offer has been accepted the vendor will countersign your offer letter and we will instruct a local notaire (French notary) to handle the sale. However until the vendor has signed the first sales contract or compromis de vente, they are not bound to sell you the property. If another buyer appears with a better offer before the vendor has signed, he or she is able to accept that offer. If a buyer offers the vendor the full asking price of the property the vendor has to sell to that buyer, even if he or she receives an offer over the asking price from another client.
Therefore the safest way to secure your property is to ensure that you in a position to move quickly with your deposit and paperwork before you come to France.
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A notaire is a public official acting on the behalf of the French government. He or she is tasked with drawing up contracts, checking documents and ensuring that the sale proceeds legally and without error. The notaire is also responsible for ensuring that all relevant taxes are paid to the French government. They act entirely impartially and represent the interests of both the buyer and the vendor. They are there to ensure that no costly mistakes are made and the buyer and vendor perform the purchase or sale without risk.
In general the vendor will request the notaire that they bought the property from to handle the sale. This does make sense as the notaire will have prior knowledge of the property. As a buyer you have the right to request your own notaire at no extra cost, although two notaires involved in the same sale can complicate the process. During our time working in the region we have handled sales with a number of highly professional and trustworthy notaires who speak excellent English. If you buy a property through Ascendant we would always suggest that one of our known bilingual contacts handles the sale.
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Once the notaire has been selected the first sales contract, or compromis de vente, will be drawn up. This is the first stage of the sale and the point at which you will lay down your deposit. As soon as the vendor signs this agreement they are bound to sell you the property at the agreed price. Buyers are not immediately committed to the sale upon signing and have a 7-day “cooling off” period to withdraw from the purchase without penalty. The 7 days will only start once both buyer and vendor have signed the compromis de vente and you have been officially notified of the start of the cooling off period.
This system works extremely well and prevents a “sale chain” from building up. Once the vendor has signed the contract they are unable to accept a better offer from another buyer, so the problem of gazumping does not occur. Likewise, the vendor is protected because the buyer has committed to the sale and cannot attempt to renegotiate the price closer to the time of purchase.
Your deposit is likely to be 5-10% of the sale price of the property, therefore before coming out to France on a buying trip you should ensure that you have this money readily available. The deposit will be held by the notaire until the sale is complete. If you choose to withdraw from the sale without a pre-agreed or valid reason beyond your 7-day cooling off period the deposit will not be returned to you. You should never pay the deposit directly to the vendor of the property.
The compromis de vente will set out the terms of your agreement with the vendor and will cover the following type of information:
- The personal details of the buyer and the vendor
- The exact address and a detailed description of the property, including ski lockers or private cellars and parking spaces
- Statements confirming whether or not there is any asbestos or lead piping in the building (see “reports” information below)
- In the case of apartments, a statement confirming the exact surface area in m2 (see “reports” information below)
- Whether the sale is to be funded by a loan, the proposed loan terms and timings for the loan application
- The agreed sale price of the property
- The notaires fees and taxes to be paid
- If a loan is to be used to fund the purchase, the estimated loan registration costs
- Any additional costs to be paid, such as outstanding building or monthly charges in the case of an apartment
- The value of the deposit required
- The presence of any servitudes or rights of way which may affect your decision to buy the property
- Any get-out clauses “clauses suspensives”, which enable the buyer or vendor to withdraw from the sale without penalty e.g. the sale is dependant on planning permission being granted or a loan application being approved
- A provisional completion date and the latest date the sale can complete
Additionally a number of reports will be attached to the contract. The vendor is responsible for organising an independent expert to check the property and provide signed reports to cover the following:
- The presence or otherwise of asbestos in the property
- The presence or not of lead in the pipes (older properties only)
- Exact square metre surface area of the property (in apartments only)
- A local “risk report”, which shows the risk to the property of natural hazards such as avalanche, flooding, earthquake and so on
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Once both parties have signed the first sales contract the notaire will verify all the details and draw up the “Acte Authentique de Vente”, or final deed of sale.
This process takes 2-3 months to complete. If you are funding your sale with a French mortgage then it will most likely to take a full 3 months, due to the timings of your mortgage application and loan approval process.
The notaire spends this seemingly quiet time performing the following type of searches:
- Confirmation that the vendor is indeed the legal owner of the property and entitled to sell
- Confirmation that all the existing property owners have given permission to sell the property (in the case of husband and wife, siblings or family members and so on)
- Searches to confirm the land boundaries and check any rights of way or servitudes
- Where extensive works have been carried out on the property, searches to ensure that full and correct planning permission was obtained from the local authorities and that the works completed conform with local building regulations
- Confirmation that the local authorities have waived any priority rights on the sale
- In the case of a property with tenants, confirmation that the existing tenant has waived his or her priority rights on the sale
- In the case of a purchase using a loan, the notaire will liaise with the bank to confirm their approval for loan and timings for the release of funds
During this period it is important that you discuss your inheritance requirements with the notaire. Your personal family situation will govern the nature of the final deed of sale and your requirements will be taken into account. We deal with a number of local English-speaking notaires to handle our sales and you will be able to discuss your inheritance wishes directly with the person drawing up the final agreement.
Once all the searches are complete the notaire will be able to issue the final deed of sale and propose a firm date for the signing. Both buyer and vendor are entitled to receive a copy of the agreement before the meeting, which will be set for a mutually convenient time (as long as the date of the final signing falls within the time limits set in the compromis de vente).
At this point the notaire will also confirm the final balance due in order for the sale to complete, so that buyers can organise any money transfers to arrive in time for the signing.
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Before attending the final signing it is always a good idea to visit the property, to ensure that it is in the same condition as when you agreed the purchase and to check off any items that are being left behind. Your contact at Ascendant will accompany you on this visit and it is a useful time to meet the vendor and run through how any equipment or the utilities work.
The signing will take place at the notaire’s office. The notaire will read through the deed and explain the meaning of its contents. Any clarifications required will be raised at this point. We work with many excellent bilingual notaires who are able to explain and address any queries in English during the final signing. Your bilingual contact at Ascendant will also attend the final signing with you.
Most of our clients like to come to France for the final signing however it is not always possible, in which case you can grant the notaire, a parent or a friend power of attorney to sign the final deed of sale on your behalf. You should let us know well in advance if you would like to complete by power of attorney, as additional paperwork will need to be drawn up.
Before the signing you should ensure that the final balance has arrived with the notaire, otherwise the sale cannot complete. Funds can be transferred to the notaire’s bank account by international transfer and we are able to recommend currency transfer specialists if the balance is being sent from a non-euro account.
Once both parties have signed the agreement the notaire will issue the buyer with a certificate of sale as proof that you are the legal owner of the property. Then it’s time for the vendor to hand over the keys - and to celebrate!
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Before you receive your full copy of the deed of sale the notaire must register and publish it with the authorities. This can take 6 months to complete. In the meantime the certificate of sale given to you at the end of the final signing will enable you to provide proof of purchase when required. Once the purchase is fully registered the original sales deed will be held by the notaire and you will be sent a copy for your records.
If you are buying a property in a co-ownership (e.g. an apartment) the notaire will information the management agent of your identify and contact details.
Once the final signing is completed the vendor will terminate their insurance policy on the property. You will need to take out a policy to cover you from the same date. Your Ascendant contact will be able to recommend an English-speaking insurance partner and arrange a quote for you well in advance.
Buyers are liable for local taxes and usually there is a pro-rata refund to the vendor on the day of the final signing. The notaire generally communicates the refund with the final balance, although sometimes the tax refund takes places after the final signing. The details are communicated to you through the notaire.
It is sensible to open a French bank account to pay for utilities and local taxes. If you are funding your purchase using a local French mortgage provider your contact will be able to help you set up an account with a local bank. Alternatively your contact at Ascendant will be able to help.
Once the final signing is complete we will inform the relevant utility companies of the change of ownership and provide the final meter readings as well as your contact details for future correspondence.
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Buying new build property
If you are buying a new build or “off-plan” property the purchasing process is different to that for resale homes. A new build property is usually a property in a development which has not yet been constructed. It can also be part of an extensive renovation project being undertaken on an existing building – for example, converting a large hotel into apartments.
New build homes are generally bought off-plan because they are on sale before any construction work has started. Sometimes the developer will want to sell all or part of the development before they proceed with any work. Therefore it takes longer for the purchase to complete than with resale, as you will have to wait for the construction work to finish. The upside of this delay is that you are able to plan your finances whilst waiting for the project to commence and of course you will be moving into a property that does not require any renovation work.
In France new build and extensive renovation work must be covered by a 10 year builder’s construction guarantee, so in the unlikely event that you find a snag with your new property you are covered for any repairs necessary. New properties also benefit from a tax break, which applies to any property aged 5 years or less. Rather than paying the usual 6-7% notaires fees and taxes you are required to pay 2-3% instead.
It is not always necessary to come out and view a new build site before making a purchase, it really depends on whether you are comfortable with the idea of buying off-plan, whether the purchase is purely for investment or whether this is to be a holiday home that you will frequently visit.
At Ascendant we work with well-known and reliable developers who have
been operating in Haute-Savoie for many years. We have all
the details concerning the development and we will have
visited the site to be able to confirm the exact location.
We will regularly speak directly to the developer running
the project and we will be able to liaise with them on your
behalf regarding internal finish, plans and so on. A company
based in the UK is not always in a position to do this and
all too often they are happy to take a commission without
following through with the detailed work and on-site visits.
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The
new build sale process
New build properties in the Alps sell very quickly and so it is important that you have funds available to secure your property whilst the paperwork is being drawn up.
Initially you can state that you would like to purchase the property and the developer will place it on “option” (off the market) for you for a limited time, ranging from 24 hours to a few days. At the end of the option period the developer will expect you to have transferred your refundable 5% reservation deposit to the notaire handling the sale; otherwise they may release your property for sale.
The next stage is to sign the reservation contract. This document lays out the terms of your agreement with the developer, including whether you are funding your purchase with a French loan. It will also detail the payment schedule of the project. French banks are very used to dealing with new build projects and the staged payments that are involved. If you intend to purchase your property using a UK mortgage it will be viewed as a cash purchase, so it is always worth exploring a French mortgage before making any decisions. Once you have laid down your initial 5% deposit there will usually be no further payments due for the property until work has commenced. Following the start of work there will be a series of staged payments to be made leading up to the point when you are able to take possession of your new home.
As well as the reservation contract you will be asked to sign the finalised plans of the property and a technical description. It is sometimes possible to have the plans amended before signing them, for example, to add in a second bathroom, remove a bedroom etc. The technical description details the fixtures and fittings to be used in the property, the finish of the property and any communal areas, the materials to be used and the quality or brand of any equipment being installed and so on. When both you and the developer have signed the paperwork you will be sent a copy by the notaire with the notification of your 7-day cooling off period. As with resale properties this protection is in place for buyers and works in exactly the same way.
Once your 7-day cooling off period has passed you will be bound to the sale and the notaire will commence work on the next stage. As with the purchase of a resale property you should discuss inheritance options at this stage, to ensure that the final paperwork reflects your wishes.
When the searches are complete and the paperwork is drawn up the notaire will issue the final contract with confirmation of the balance due at this stage and a date for the signing. The final signing will take place in France at the notaire’s office. You will usually complete on the purchase before taking possession of the property, as the sale process takes 2-3 months and the build time can take a year or more in some cases. If work has not started by this point you will not be required to pay the full balance on the property. Once work begins the staged payments detailed in the reservation contract will commence.
Once your property is ready to go we will contact you to let you know that you should come out to view and to collect your keys. We will accompany you to the development to meet the developer or a representative at the site. We complete a walk around of the property together and you collect your keys - and celebrate!
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Before travelling out to France you will need to have a good idea of your available budget. You should have finances in place to fund a deposit of 5-10% of the sale price of a property. The deposit is paid once the first sales contract, or compromis de vente, has been signed by both the buyer and vendor. This should be anticipated to be due within 2 weeks of your agreement to purchase the property.
As well as the sale price of the property you should take into account notaires fees and taxes when calculating your budget. In the case of resale properties, notaires fees and taxes generally amount to 6-7% of the sale price of the property. They are calculated on an official published scale which is used by all the notaires in France. The notaire generally retains 1% of the fees and the remainder is passed to the French government. The notaires fees and taxes are not due to be paid until the sale completes and they are confirmed by the notaire at the same time as the final balance. In the case of new-build or “off-plan” properties, there is a tax break which reduces the fees and taxes to 2-3% of the sale price of the property. This is also applicable for any properties that are aged 5 years or less. Please note that if you sell your new build property within 5 years you may be required to refund the initial tax break you received.
If you are funding your purchase with a French mortgage there will be a mortgage registration fee. This varies according to how the French loan is secured. The company supplying your mortgage will confirm this fee to you before you agree to the mortgage. Overseas buyers can expect to borrow up to 80% of the value of the property through a French mortgage. Most banks will not lend on more than 80% unless you are making a full time move to France. Some banks or mortgage lenders will also lend on the notaires fees and some will provide buy-to-let loans. French mortgages are generally more competitive than those obtained in the UK, with lower interest rates. Overseas buyers can now borrow over longer periods, so it is always worth comparing the cost of a French mortgage to an offer from any UK lender.
Mortgage brokers can help you research the right mortgage; however you should ensure that you are aware of the fees they charge for their services. Frequently the intermediary at the brokers does not provide the personalised service you require and delays and mistakes arise. When you are using a mortgage to fund your purchase timings are important. The first sales agreement (compromis de vente) will list an agreed schedule for the mortgage application and if you do not meet the dates in the contract the sale and your deposit are at risk. By dealing with a local mortgage representative you can be reassured that they are in contact directly with the notaire handling your sale as well as your estate agent to ensure that the application proceeds smoothly. It is also useful to deal with a contact who knows and understands the local property market.
We have a number of partnerships with local
banks and mortgage contacts, who are able to discuss these
options with our clients. Our partners all speak fluent
English and are able to provide all the relevant mortgage
paperwork in English. They are happy to meet you whilst
you are in the region to discuss the details face to face,
alternatively they can also liaise via the telephone or
email if you have already returned to the UK. Please visit
the Resources
section of the website for more details.
Once you have made the decision to purchase
a property you may need to buy and transfer money between
the UK and France. You can use your local bank, although
with the commissions and transfer fees charged this is generally
seen as an expensive way to do it. We would recommend that
you speak to a foreign exchange specialist to handle the
transfers, as they are able to advise on the best times
to buy currency and some charge no fees, commissions or
transfer costs for their services. If you need to make regular
payments, to cover French mortgage repayments for example,
a currency specialist will be able to fix a euro exchange
rate over a 12 month period so you know exactly what your
sterling payments will be regardless of any market fluctuations.
We are able to recommend foreign exchange specialists who
have regularly worked with our clients, please visit the
Resources
section of the website for more details.
To help you calculate which sums are due and when, we have detailed a timings example below:
Based on the purchase of a resale
property
Sale price of 100,000 euros to be funded by a mortgage of
80,000 euros
Mortgage registration fee of 1,100 euros
Notaires fees of 7,250 euros
| Day 1 |
| You agree to buy the property |
Nothing is due |
| Within 2 weeks |
| Compromis de vente is signed |
|
| 7 day cooling off period passes |
|
| 5-10% of the sale price of the property
is due |
10,000 euros |
| Total cash due |
10,000 euros |
| 3 months pass |
| Acte Authentique de Vente is
ready for signature |
|
| The mortgage is released to the notaire
(80,000 euros) |
|
| Mortgage registration fee (example) |
1,100 euros |
| 20% of the sale price of the property
is due in cash, minus the deposit already paid |
20,000 - 10,000 euros
= 10,000 euros |
| Notaires fees and taxes are
due to be paid |
7,250 euros |
| Total cash due |
18,350 euros |
| Total cash |
28,350 euros |
| Total mortgage |
80,000 euros |
| Cost of property |
108,350 euros |
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