What about the buying process in France

Posted by admin in Property Investment | September 12th 2005

This page will provide a general outline as to the procedures involved in buying a property in France … and give you an idea of what to expect and who you will meet along the way … The first stage is to identify the property that suits your investment and personal needs, and thereafter …

Compromis de vente – is signed. At this stage you will be obliged to pay a deposit of 10% of the purchase price that will be held by the notaire

The “compromis de vente” or “Agreement of Sale” is an agreement between the buyer

By law the buyer has an seven-day “cooling off” period after signature of the agreement in which one is entitled to withdraw without penalty. However, after the “cooling off” period you will loose your deposit, which will be paid to the seller if for any reason, apart from being refused finance, you pull out.

At this stage the notaires responsibities kick in, and title will be checked and enquiries made regarding items that might affect the property. Also the notaire acts for the Morgages lender (where applicable) and deals with the legal formalities, normally charging a fee of 1% of the value of the loan. In the case of our Investment clients we take car of that process in house for no fee

Taxes and fees – Excluding agency fees, which are normally levied to the seller, you should expect to pay 7 – 8 % of the purchase price in Fees and taxes, varying slightly according to finance needs and so on. This percentage should generally serve to cover purchase taxes, Notaires fees and other minor incurrable charges

Completion – The parties attend in person at the notaire’s office to go through the documents which are all in French, before the transfer document is signed and the balance of the purchase price is transacted, plus the taxes and notariares fees. You will receive a document confirming your purchase plus the keys to what is now your property. Later you will receive an exemplified copy of the purchase deed but the original is always held by the notaire

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