Buyer's Guide to France

In France the purchase of a property is a regulated process. Once a price has been agreed with the vendor both parties will sign a preliminary contract, most usually a �Compromis de Vente', and make a deposit of 10% of the purchase price (except in the case of new constructions where this deposit is usually 5%). The estate agent or French solicitor, known as the "notaire", will hold these funds and the contract is then binding for both vendor & purchaser.

If you intend to raise finance for the purchase you should ensure that this sales agreement has a �clause suspensive', which is a clause confirming that you will be seeking a mortgage and that the sales agreement is subject to a successful mortgage application. If the mortgage is subsequently declined you will not forfeit your deposit.

The balance of the purchase price and all fees will be payable on completion to the notaire and both vendor & purchaser will sign the �Acte de Vente', the definitive contract equivalent to the Deeds of the property.

The notaire in France is actually a government official responsible for the conveyancing and represents both the vendor and buyer. It is therefore advisable to have your own solicitor to protect your own interests.

Taxes & Other Costs

There are two Property Taxes which are both based on the average rental value according to the local land registry:

Taxe fonci�re - payable by the owners of the property (roughly equivalent to the rate system).

Taxe d'habitation - payable by whoever resides in the property on the 1st January.

When buying in France the Notary Fees payable are approx. 7% - 8% although new properties are less than this, typically around 4%-5%. If you take out a French mortgage a further cost will be passed on to you by your notaire for registering the charge of the lender with the land registry.

Valuations are carried out by the lenders and the cost is covered by the arrangement fee payable to the lender only on receipt of a loan offer. The arrangement fees vary from bank to bank and are upwards of 1% of the loan amount.