The Buying Process.
At some point you’ll find a house that ticks some if not all your boxes and you’ll be able to imagine yourself sitting on that very terrace, glass in hand, watching the sunset. When this happens, you’ll know it’s the house for you!
Now’s the time to embark on the process of actually buying the house. There are many helpful articles and entire books written on this subject – not to mention a few scare stories – so I don’t intend to tackle this topic in depth here. However, there is also much misinformation about the house buying process in France (often written by those with a vested interest). I have seen many clients over the years who do not have a clear understanding of the practical side of buying a house in France, despite clutching the latest book on the subject. On the contrary, many are confused and seek a lot of explanation and reassurance at every step of the way. It can seem daunting to buy in a foreign country, especially if one is not familiar with the procedure or the language (yes the average notaire does speak very fast – and usually not in English!).
The following summary is intended to reassure you that the purchasing process in France is simple and safe, and to highlight the very active role that a good estate agent should play in ensuring the process runs smoothly from beginning to end.
The first stage is to make an offer.
A few words about offers. Many vendors will be open to a sensible offer, the exception being those properties that are new to the market. Notice the word sensible. Consider long and hard this tiny but significant word, for this is the key. An insultingly low offer will almost certainly lead the vendor to assume that you are not a serious buyer, and can in some cases lead to a breakdown in relations that sours a better offer later on, and could result in you paying more than you might have. My job is to negotiate with the owner on your behalf, and having a reasonable starting point is more likely to ensure a positive result for you.
Promesse d’Achat – Purchase Offer
As soon as a mutually agreeable price has been agreed, I will normally ask both the vendors and buyers to sign a simple two-page form called a Promesse d’Achat (A Purchase Offer or Promise to Buy). In signing this form, the buyer shows serious intent to buy and commits to a specified date to sign the Compromis de Vente (Preliminary Contract) at the notaire – usually within 5-10 working days from having agreed the offer. In countersigning this form, the vendor agrees to accept your offer price and not accept any other offers they may receive before the Compromis de Vente is signed at the notaire. Gazumping is therefore avoided, and you know that the house is blocked/secured for you right from the moment your offer has been accepted.
Compromis de Vente – Preliminary Contract
Once a price has been agreed and your offer accepted, I will make an appointment with a notaire to sign the Compromis de Vente (Preliminary Contract). It is usual in France for one notaire to act for both the buyer and seller; the notaire’s fees are fixed by the state and depend on the price of the property, thus the notaire has equal interest to serve both vendor and buyer. It is possible to involve a second notaire but this usually slows the sale down dramatically and can cause unnecessary problems.
The compromis de vente is the outline of the final sales contract and will contain any conditions of sale, such as the sale being subject to a mortgage or planning permission. I will of course attend this meeting with you and I will translate each section into English as we go, ensuring that you have a complete understanding of the process. You can of course elect to sign the compromis de vente by giving power of attorney to the notary clerk, but in my experience this is the most important meeting to attend in the entire buying process as the compromis de vente signing is your opportunity to ask any relevant questions and clear up any queries that you might have. You may also want to discuss with the notaire the best way of purchasing the house to ensure that French inheritance law acts in the way that best serves your needs and your personal circumstances. Clients often say how much they appreciate the opportunity to meet and deal with the vendors and the notaire in this way; it often helps to build a level of trust between all parties that is seldom known in the UK.
Surveys.
Vendors in France are legally obliged to commission and pay for a number of surveys to be carried out on their property before the compromis de vente is signed. This way the results of these surveys are reviewed at the notaire’s office at the same time as the compromis de vente is signed.
The obligatory surveys check for the presence of asbestos, lead in the paintwork, termites (for properties based in the Aude), they also check that electrical and gas supplies are safe, and there is a test to rate the property’s overall energy efficiency.
Vendors in France are not required to carry out a full building survey, but if you wish to commission a building survey yourself (especially if you are buying an old stone property), then I can put you in contact with a couple of English qualified chartered building surveyors, registered and working in France, who usually offer a range of building surveys to suit your needs and budget.
7-day cooling-off period
Once the compromis de vente has been signed, the buyer is protected by a seven day cooling off period when you can change your mind without incurring any penalty. If you decide to pull out of the sale, you will need to send a registered letter addressed to the notaire within the 7 days. Assuming you wish to continue with the purchase, you will be expected to transfer a deposit of between 5-10% of the agreed property price to the notaire’s bank account. This deposit will obviously be deducted from the total price prior to completion.
You will only forfeit your deposit if all the conditions of sale are met and you decide to pull out of the sale after the 7-day cooling-off period has elapsed.
Acte de Vente - Title deeds
The time delay between the compromis de vente and the signing of the Acte de Vente is usually two to three months, or rarely longer if there are complicated conditions of sale. Conveyancy can only be carried out by the notaire, who is bound by strict regulations. The Acte de Vente will be signed at a mutually convenient date and time and prior to this meeting the balance (which will be confirmed by the notaire) must have been transferred to the notaire’s bank account. Do not leave this too late! Although many UK banks will tell you that a payment can be transferred in two to three days, what they omit to say (or possibly don’t know) is that it can take a further 5 working days for the money to clear and be credited to the notaire’s account at this end. To be safe I always recommend ordering the transfer at least TWO WEEKS prior to the date of the Acte de Vente.
Just prior to Acte de Vente I will help you to arrange house and contents insurance as this has to be in place PRIOR to the meeting, and of course I will be at the meeting with you.
After the Acte, I will help to transfer the utilities into your name – and voila – Congratulations! – You now own your dream home in France.
Go To The Purchase Time Frame