Ellisium Partners, the luxury property network in the South of France give an introduction and information on buying a property on the French Riviera (or in fact, all of France) and the process and legal terms involved.
It is quite simple to get an idea of what type of luxury property is available and at what cost before you actually start your search. Information is widely available on the internet and in magazines and newspapers advertising luxury properties for sale in France. But does this information tell you everything? Think carefully about where you want to buy and what type of property. Will it be your main residence? or a holiday home to be let out on occasion? perhaps you want a property to be let as an investment for the future? Make a list of the elements that are most important to you such as - The price, the overall size and number of rooms, the area, access to the sea or the airport or perhaps schools, is a cellar or garage essential? Would you prefer a garden, terrace or balcony? These considerations will keep you on the right track to find your ideal property.
Ellisiums property search partner, Home Hunts, can help you to narrow down your search based on your requirements. Home Hunts are a fully registered French immobilier but they act for the buyer rather than the seller. They have a wide range of property for sale directly but they also work with all of the best selling agents in the South of France and can search the whole property market for you making sure that you don`t waste time and money looking at properties which are simply not suitable.
Once you have found the luxury French property you wish to buy, negotiations will start to secure the property at a price agreed by you and the seller. When your offer has been accepted by the seller, you will be required to sign a sales contract, the Compromis de Vente. The notaire can draft the Compromis de Vente which will be written in French but you may have an English translation.
It is important at this stage to take some mortgage advice and perhaps to also speak to a tax specialist. The way you structure the purchase of your French property is important. It can save you a lot of time and money in the long run.
THE NOTAIRE:
The notaire is a public official who is highly qualified in the French legal system and is able to advise about French property, family and succession, and corporate laws. Empowered by the government to legalise the French property purchase, the notaire is a public official who provides security to the contracts and is liable for their professional acts. A notaire is responsible for the conveyancing, preparing the various documents and confirming the seller’s title to the property. They also check that there are no other mortgages on the property etc. The notaire has indemnity assurance, which provides a financial guarantee to the buyer.
The purchaser is free to choose their own notaire, but can use the same notaire as the vendor as notaire fees are fixed and include the French equivalent of stamp duty. The fees usually range somewhere between 6% and 8% of the purchase price of the property (and this includes the buying taxes). As these are fixed by law, it does not matter which notary you appoint as the price will be the same. Using two different notaires will not increase the total fees; the fees are split between the two notaires.
COMPROMIS DE VENTE
The Compromis de Vente is a legal contract, you will go through it with your notaire and they will make sure that you are happy and that the conditions are correct. The Compromis contains information such as:
• Details and identities of the seller and yourself (the purchaser)
• A full description of the property
• The surface area of the property and land
• The purchase price, the breakdown of fees and who will pay each fee
• Details of the notaire and sales agent
• Details of any fixtures and fittings included in the sale
• Results of reports on asbestos, lead and termites
• Details of your mortgage, the date of when you should have your mortgage offer and the date of completion ~
• Any let-out clauses (clauses suspensives) and the penalties that will be incurred by you or the vendor if completion does not take place .
For you, the purchaser, the clauses suspensives protect the deposit you gave to the notaire or agent as part of your agreement to purchase the property. The most usual is a clause stating that your agreement to purchase is subject to you obtaining mortgage finance. Other clauses can be inserted, such as the vendor having to carry out necessary repairs or subject to the dimensions of the property corresponding to what is detailed in the Compromis de Vente, and this is where expert legal advice is useful in the negotiation of these clauses.
Once you sign the Compromis de Vente you will be required to pay your deposit (normally 10%) to the notaire which remains in an Escrow account until completition. Once you have signed the Compromis de Vente, the clock starts ticking. There is now a set date by when you should complete on the purchase. You are given a 7 day cooling off to retract from the purchase.
SURVEY
Unlike in England the French do not tend to have building surveys done to their houses. There are a number of British chartered surveyors based in France and they can do a variety of services from a small survey to a full structural.
Many overseas buyers do consider taking a survey on their property for their own peace of mind.
AFTER SIGNING THE COMPROMIS
The Notaire will now carry out the required searches and conveyancing, they will check records and documentation concerning the property. The buyer needs certain certificates from the notaire showing that surveys have been carried out to verify any existence of Lead, Asbestos or termites. It is important to remember that the notaire is totally impartial and works for the French legal system. They will be meticulous to ensure that the sale conforms to French law. This part of the process usually takes two to three months. It is therefore important to keep in touch with your notaire to find out how the process is going so you have an exact idea of the completition date.
COMPLETION
Once the mortgage offer is sent out and the notaire has completed all of the legal aspects of the sale, a mutual time and date for completion will be arranged. It is your responsibility to instruct the notaire to request the mortgage funds from the lender (Ellisiums mortgage partner – The Spectrum Group would take care of this for you).
Once you know the completion date, you will need to make sure your French bank account is open. Funds must be transferred into it, giving enough time for the completion date and the buildings insurance must be valid from the date of completion. You will need to provide details of the insurance policy at the notaires office. (again, our financial partners will assist you here).
The final deed of sale which is signed on completion is known as the Acte de Vente (projet d’acte). It will contain much of the same information as in the original Compromis de Vente, but check it through carefully; usually a translator will be requested for you if your French is not fluent.
It will state the date that you may move into the property. You will be asked to produce your birth certificate(s) and passport(s) together with marriage certificate/divorce decree if applicable. If you think you may be unable to attend the meeting to sign the Acte de Vente (final deed of sale) you can give a trusted person or friend as a power of attorney (procuration) which authorizes them to sign on your behalf.
The Acte de Vente is signed by you, the seller and one notaire. If both you and the seller have different notaires, only one needs to witness the Acte de Vente. Once the Acte de Vente has been signed and witnessed, the notaire has to pay all the taxes, settle all the accounts of the purchase/sale and register the deeds and mortgage. A few months later you will receive a certificate/document informing you that the title has been registered. The original title deed is kept by the notaire, but he is able to make authorized copies. Also he will give you a one sheet document called an ‘attestation’ which proves you are now the legal owner which is very useful in France and maybe asked for on occasions.
The French Buying Process is extremely well structured and the buyer is very well protected – careful guidance and commitment by dedicated property search experts such as Homehunts will ensure that every step of the process is fully explained to you. All of the members of Ellisium partners are customer focussed and are specialists in their field. Whether you wish to buy or sell a home or if you have a property you wish to finance, improve or rent out, we can help you.
For anymore questions on this or to talk to someone about the type of luxury property you are looking for in France: contact info@luxurypropertypartners.com
.jpg "Monaco")
