A Simple Explanation of the Purchase Process:
- 1.
- Once you find a property for sale that you think you might like to buy you will need to make an offer to the owner. This is normally done through the agent that introduced you to the property. It is quite usual in France for the seller to appoint multiple agents, so be prepared for more than one buyer, represented by different agents, to be bidding for the property you are interested in.
- 2.
- It is quite normal for the offer/response process to work its way towards a mutually acceptable final position and until an offer has been finalised other bidders can make an offer for the property.
- 3.
- Once you and the vendor have agreed a price with the vendor a provisional sales agreement, the ‘compromis de vente’ (promise to sell), is signed between the two parties with the Notaire. This is a legally binding agreement and you should not sign this lightly or if you are at all unsure that you want to proceed.
- 4.
- The ‘compromis’ covers all aspects of the sale and purchase and sets out in some detail what the parties have both agreed to. Once the ‘compromis’ is signed, both parties are legally obliged to complete the sale as agreed – unless it includes ‘suspensive clauses’ (get-out clauses) that are not fulfilled. It is worth adding in these clauses if there is anything you are worried about with the property because it means if this issue is not resolved then you will not lose your deposit.
- 5.
- The ‘compromis’ can either be prepared and signed at the office of the notaire or in some cases it is prepared by the estate agent and can be signed at his office.
- 6.
- On signing the ‘compromise’ you will be asked to pay a deposit – usually between 5% and 10% of the sale price including agents fees but excluding the notaire’s fees. This will be lodged with the notaire and is not passed to the vendor until the sale is completed. After signing and paying the deposit you have a 7 day cooling off period during which you can still withdraw and receive a full re-fund (but the vendor cannot withdraw).
- 7.
- Be careful once you have paid this deposit and the 7 days have elapsed because you are unlikely to get your money back unless you can show that the vendor failed to meet one of the suspensive clauses you put into the agreement.
- 8.
- You will also need to be able to show how you intend to fund the completion of the purchase at this stage and if it involves a mortgage who will be providing this.
- 9.
- Following the signing of the ‘Compromis de Vente’ the notaire will conduct all of his searches and checks. It is his job to ensure that the seller has the legal right to sell the property as it is described in the ‘compromis’, that it is not subject to any outstanding mortgages or other property related debt. He will also check the legality of the location with local plans and the national property register etc, he will also check that the building has the appropriate ‘certificate de conformity’ from the local Marie and national department.
- 10.
- This process normally takes between 2 and 4 months so be prepared to wait. It is a fact that French administration is not to be hurried. You will need to have finalised all the details of the funding before you can complete the purchase – so this is the time to do this.
- 11.
- The final step in completing your transaction is the signing of the final deed (Acte de vente). This is done at the office of the notaire and you (or your legal representative) will need to be present for the deed to be completed.
- 12.
- Your final payment (the sale price and agent’s fees and the notaire’s costs less the deposit you have already paid) is made and the estate agent is paid by the notaire and the final deed is signed by all those involved in the sale and purchase.
- 13.
- You are now the proud owner of a property in France.
- 14.
- The final ‘acte de vente’ papers are sent to the new owners around six months later.