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How the buying process works Paperwork Before you view, you will be required to sign a bon de visite (a visit coupon). This is required under French law to prove that we have shown you the properties indicated on the form. It does not commit you to buying them. Nor does it commit you to paying the asking price. You are still free to negotiate with the seller through us. If you do however purchase one of the properties, it does commit you to do so through us, and pay the agreed and declared commission, which is quoted as part of the sale price. We will also advise you to sign a mandat de recherche (a buyers' mandate) which authorises us to search out properties on your behalf. It does not commit you to buying one. However, if you do, you will only pay the notaire's charges of 7% on the part of the purchase price that represents the sum paid to the seller, rather than on the total price including our commission. Signing this mandat definitely costs you nothing, and can in fact save you money. Capital Gains tax If the property you are purchasing will not be your permanent main residence, any profit you make upon selling will be liable to capital gains tax in France. This is calculated at 27% on the profit made for French tax residents, or 17% for non residents, with a 10% allowance for every year you hold onto the property beyond 5 years, until the entire profit is written off after a period of 15 years. You can claim relief for works carried out by legally registered craftsmen in France (keep invoices as proof), but no longer for materials purchased by yourself or for your own labour. You can also claim relief on purchase costs such as notaire's fees and agency fees. Your notaire can advise you on the best way to proceed taking your particular circumstances into account. Buying a House When you find your ideal French home, we may ask you to sign an offer document with the owner(s) stating the purchase price, agency commission and the deposit payable. This is to your advantage because once you and the seller have agreed in writing, you have effectively secured your new home, and it will be taken off the market. The sale is then placed in the hands of a notaire. Notaires do not represent the seller or buyer, but are regulated by the government to adjudicate and advise without prejudice to either side. The seller may already have a notaire, who holds all the documents for the property. You are free to select another notaire if you wish (at no extra cost - the notaires share the fees). The notaire designated by the seller will then draw up a compromis de vente or sous seing privé (a private sale agreement) outlining who is selling, who is buying and what is being sold. It will also give a deadline date for the acte de vente (sale completion) which will normally be about 3 months away. Clauses suspensives (suspensive clauses) can be inserted into this contract as long as all parties agree. Examples of such clauses are the successful acquisition of a mortgage loan. You will benefit from a 7 day cooling off period after signing this contract. You formally acknowledge this by signing for a copy of the contract that you have signed. This will normally be done by registered letter if you don’t sign at the notaire’s office. Between signing the compromis and completion, the notaire will ensure that the property is transferred to your name(s), and that there are no legal reasons why it cannot be sold - such as an existing legal charge against it. He will also do a search to check that it is not subject to a hidden threat - for example due for demolition by a new autoroute. If you cannot be present to sign a compromis or an acte this can be done without the need to be here in France, but it will lengthen the procedure. You can nominate someone to sign contracts on your behalf if you wish. The balance due on the transaction is paid to the notaire on the day when the acte is signed you (or your representative) and the sellers(s). You will then be the proud owner(s) of your own French home. Bienvenue en France! |
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