The first thing we'd say is 'do your own research'. Do not trust what one person, whether this be an agent, a notaire or a lawyer indicates even if he is a friend or the most professional person you've ever met. Always get a second opinion. Although we take pride in the accurate advice we provide you are strongly advised read up on the subject. The information below is accurate but for your own piece of mind do not use it as your soul resource.

The Estate Agent

French Estate Agents are subject to strict regulations which are enshrined by law. An agent must be professionally qualified and must have the following documents in their office :

1. Their signed professional charter
2. Financial guarantee : each agent must display a financial guarantee for at least FF 500,000

The local authority will issue an agent with a carte professionnelle when satisfied that he has a bond or guarantee for financial deposits receivable from purchasers.

Many agents are part of national chains. As in the UK, their competence and reliability varies. At France Property Sale.co.uk we are very particular about the properties we advertise. We only advertise properties from a few selected reputable estate agents.

Each house taken on by an agent requires a contract, a mandat de vente, from the seller, which may or may not give exclusivity. If you want to visit a house, you will be asked to sign a bon de visite, stating that the agent has introduced you to the seller. This protects the agent and it does not commit you in any way to buy the property you visit but having signed this form you cannot make a private deal with the seller to avoid the agent's fee.

The prices in the website include the estate agent's fee which is never more than 8% of the value of the property.

Some points about conveyancy in France

The French legal system is very different from the English system and the formalities when purchasing a house in France are totally different from those in England. For instance, it is common practice to instruct only one notary who will prepare the title deed for both seller and buyer. This means that the procedure is simplified and since the notary will have all the documents concerning the transaction, delays are less frequent.

Who is the notary ?

The notary is a public official who is there to prepare title deeds relating to the sale and purchase of land and to put on the public record the fact that the deed has been signed in his presence and understood by the parties concerned. They enjoy a very privileged position in French society. They are the only people permitted under French law to transfer property. The notary will make various title checks about the property and carry out certain other tasks related to the transfer of title such as checking outstanding mortgages or charges on the property, planning permissions and asbestos, termite and lead checks. A good notary can give good legal advice but he is not there to protect either your interests or the interests of the seller.

The notary's fees are set by the state and include the French equivalent of stamp duty and all other disbursements. Fees are on a sliding scale, but usually range between 7 and 10% of the purchase price, of which typically 1% is the notary's remuneration. If the purchaser requires a French mortgage, the notary's fees are on a higher scale and include the cost of registering the lender's charge. Notary's fees can be reduced for properties less than 5 years old.

The notary's main role is to make sure the contracts are valid and that taxes due to the state are paid. If a dispute arises, he must refer both parties to their own advocats. Traditionally, one notary acts for both parties, but it is possible and often wise for the purchaser to appoint his own notary.

The notary is also the person who holds the purchaser's deposit and later the balance - which will be paid to the seller on completion.

Law and tax

You should be fully aware of the implications of the French and English legal systems on buying a house in France. The interaction of UK and French law, particularly with regard to taxation and inheritance rights, calls for careful consideration. This is especially so as the cost of rectifying a wrong initial decision is often as much as the whole expense of the purchase in the first place.

There are a number of ways to purchase a property:

" In your name only
" In joint names
" In your children's names or in the names of somebody who will eventually inherit the property
" In the name of a ltd company
" In the name of an SCI

Each method has its own advantages and disadvantages. Everything depends on your own personal situation. Careful attention should be applied due to the potential tax saving at a later stage. These tax savings arise in part because of the French system of inheritance tax under which gifts on death may well attract significant taxation. To venture further into tax and inheritance issues is beyond the scope of this website but further advice could be obtained by contacting a specialist lawyer.

Get an offer of mortgage

If you want to borrow money to finance your purchase, it is better to get clearance before you start looking at property so that the project is realistic and that you are not rushing about afterwards. There are now many French banks who specialise in offering French euro mortgages to the foreign market. Mortgages in France are governed by very protective consumer laws. Banks have their own lending criteria and will make sure that the level of your income is sufficient to consider an investment over a long period. Therefore, they will focus on the stability of your income and on provision of sufficient employment history in the same position. Alternatively, finance from your home country may be more appropriate.

Planning issues

A buyer should make enquiries regarding the chosen location in respect of planning issues as any searches will only be related to the immediate vicinity of the house and will not therefore reveal any proposed motorway schemes which may affect the property. Further to planning, applications or consents for development of nearby property will be revealed by the notary's searches and purchasers are advised to make their own enquiries locally.

And what about surveys?

The French themselves seldom bother to have a survey. This is due not only to their wonderful laissez-faire attitude to life but also because there are very few French professionals geared-up to undertake surveys - at least as we know them in the UK. Some French architects offer to do expertises, but their inspections are usually brief, their reports normally verbal, and invariably in French.

It is a fact that the law in France now requires every vendor to provide a report on lead and a report on asbestos. However, the lead report covers only painted surfaces that are likely to contain lead paint, and the asbestos report has to cover only the interior of the building, and has to say only whether certain materials are likely to contain asbestos. So neither report may be quite as useful as you had thought. In some, but not all, areas of France the law also requires every vendor to provide a report on whether termites have been found in the property: More than 50 départements are now infested with termites yet arrêtés, requiring certification, apply in only about 25% of them.

Do I have to be in France to complete the transaction?

The person buying the house may attend in person before the notary, but if this is inconvenient, arrangements can be made for a power of attorney to be granted enabling another person to attend on their behalf.

La loi Carrez

Since 1996, most preliminary agreements relating to the purchase of a property must state the exact square meters of the property being sold. This measurement is calculated in a national law, "loi Carrez", which defines what is liveable surface and what is not. For example, space under a ceiling (180 cm), typical in roof top apartments, cannot be measured as liveable space. To measure a property, a real estate agent or a certified expert is required. If there is a difference between the stated surface in the contract and the actual surface of the property, the buyer has up to one year to contest. In this case the seller is legally bound to pay the difference in purchase price.

What is the cost of real estate ownership taxes ?
Being a real estate owner in France requires the annual payment of several taxes:
Real estate tax (Taxe foncière) - It has to be paid by all owners whether they are private individuals or companies.
Residential tax (Taxe d'habitation) - It is paid by whoever lives in the property.

These costs vary depending on the commune, situation and size of the property.

The contracts

The preliminary sales contract

Once you have reached the stage where you have found your ideal property, you will be provided with the preliminary sales contract from Imogroup Centre Var. We have the legal right to do this because we have the carte professionelle. The preliminary contract is called the "compromis de vente" or "promesse synallagmatique" (Bilateral agreement to sell/buy). This is a firm binding contract that contains all the key conditions required in the final purchase deed. Care needs to be taken here to include clauses as these cannot be included at a later date. The final deed is only a replica of the preliminary contract for registration purposes. On drawing up the contract we will request various papers from you such as your passport. You then have a 7 day cooling off period on reception of the paper during which you can pull out of the sale at no cost what so ever to your self. The 7 day cooling off period starts when the contract has been signed for by the recipient from the postman, having been mailed by recorded delivery to your address. The 7 day cooling off period does not allow you to renegotiate the contract to put in clauses you should have had from the start.

We can supply you with a translation of the standard contracts into English but please note that the French version is the legally binding one.

Acte de vente or deed of sale

No matter who has prepared the preliminary contract, it is the notary who completes the work and prepares the deed of sale incorporating the terms of the preliminary contract. First, they fulfil all the conditions imposed on them by law (see above), then they draw up the final contract which can also be known as the acte authentique. Time between signing the first contract and completion is normally 2 to 3 months, but can be longer. The description in the acte de vente takes precedence over anything else. So it is vital these details be correct

The completion document contains information as to whether the purchase is to be done through cash or a loan.

The day of the acte de vente

At the point of the deed of sale, you will have to make certain payments in Euros.
These include :
1- Transaction charges
These are the fees charged by Imogroup Centre Var for the purchase, and represent not more than 8% of the net purchase price. Sometimes, these fees are included in the purchase price and are paid by the vendor.
2- Legal Fees
These fees will include not only notary fees which are fixed by law but also disbursements, taxes and various duties. In addition, VAT may be payable for properties under 5 years old where there has been no previous sale. The notary's fees are high in comparison to many other countries, and will range from 7% to 10% of the purchase price. If you are taking a French euro mortgage, the notary fee will be slightly higher.
3- Buildings & Contents Insurance
Buildings insurance should be arranged to take effect at completion. You must ensure the vendor's policy is cancelled if you do not want to take it over.

The notary will let you have in advance a detailed statement of the amount of money required for completion and before completion can take place, the notary must have cleared funds for the balance due in his bank account. International bank transfers can be the subject of extensive delays so it is normally recommended to send the sum 7 working days prior to completion. Alternatively, you should arrange a banker's draft drawn on a French bank for the amount due.

When the deed of sale has been signed the transaction is complete. The purchaser and the vendor attend the notary's office; the documents are read to them, they sign, the documents are witnessed and the transaction is recorded. The notary will register transfer at the land registry. The original deed will remain with the notary who will give a certified copy to the buyer.

It will be your responsibility to continue or cancel the existing service contracts relating to water, gas and electricity.

Warning : if you do not proceed with the purchase you will lose your deposit and you also risk having to pay to the vendor compensation for his other losses and expenses as a result of the sale having fallen through as well as any penalty clause.

French banking

A few points

France has more than 300 banks regulated by the Bank of France. The French banking system is strongly regulated. All banks operate under the control of the Bank of France, which was set up by Napoleon in 1800. The Bank of France provides services through central files on material credits to companies, dishonoured cheques and repayment problems on loans to individuals.

In order to participate in money laundering deterrence schemes, you will be asked by French banks to provide certain information or documents when opening an account. In particular, banks must be mindful about your identity, the origin of your income and the reasons for opening an account with them.

To open an account, you can do this face to face or from abroad. You will be asked to present certain papers and the completion of an account opening form.

With your account open, you will be provided with a RIB which contains your account details. With this, you can benefit from direct debits.

For a current account, a bank statement will be sent once a month. It is important that the contents are verified quickly as you have one month from the date of receipt to contest transactions.

Concerning cheques, there is no cheque guarantee scheme in France and you will be often required to provide ID when writing a cheque. Banks will not accept third party cheques. You must be sure you have sufficient funds in your current account before writing a cheque. It is illegal in France to issue a cheque when there are insufficient funds.

Bank cards are issued either through the Visa or Mastercard networks. Basic cheque accounts come with withdrawal and payment cards which are connected to your current account. With these cards, you will have access to 35,000 ATMs, 47,000 bank branches and 720,000 merchants.