We hope the following brief information will help you in purchasing a property. In many ways it is easier than buying property in England but be warned you are competing in an 'International Market'!
It is best to make an appointment in advance as estate agents always accompany clients to view (very few properties have signs up for sale). The purchase price for properties is only sometimes negotiable.
When a suitable property has been found and the price agreed, the estate agent would ask the purchaser to sign a contract called a 'Compromis de Vente' or 'Offre de'Achat' (preliminary contract) and to pay a deposit, normally 10% of the purchase price. In most cases, the deposit is non-refundable if the purchaser withdraws from the transaction. A signed contract, in effect, commits both parties to complete. The sale prices quoted are inclusive of agents' fees, which are paid by the seller. After the Contract has been signed, the Notaire, a Government Employee who acts for both parties, will conduct various formalities, including a search. After 6 to 10 weeks the balance of the purchase price, plus the legal expenses are called for by the Notaire, to complete the transaction. It is usual for both the purchaser and vendor to attend the Notaire's office for completion and the final 'Acte de Vente'. However, a Power of Attorney can be provided allowing either or both parties to be represented by a clerk or other named person. The Power of Attorney, 'Procuration', would have to be signed in front of a solicitor and returned to the Notaire's office in advance of the agreed date. In France a clause 'Droit Pre-emption', allows the Commune (the local council) to buy the property at the contract price 28 days from first contract signing.
(buildings projected or in the process of being built) 'Contract de Reservation' is a standard agreement to reserve the property at a fixed price which includes VAT on payment of a deposit (usually 2-5%). It has all the relevant details of the site, property specifications, etc. The plans will be attached and it will have the stage payments listed and the date of completion. This is signed by you and the Agent or developer, and initialled on every page in triplicate. At the end you write, "Lu et approuve" (read and understood!). You retain one copy. You will be given the Notaire's bank. All payments must be made this way to show that the money has come from abroad and can therefore be re-exported, should exchange controls be reintroduced, at a later date if and when you sell. (We have an English translation on request).
For new developments or property under 5 years old the Notaire's fees are approximately 2.5-3%. Property over 5 years old the fees are approximately 6.5%-7% (including stamp duty and tax). Purchase of land fees are 4.8%+1.5% (unless purchased by a 'Company').
If you require a loan the amount must be written into the preliminary contract, usually 28 days are allowed for a loan application.
All monies must be paid to the Notaire's bank and can be by UK bank transfer/Swift.
For a mortgage from a French source it will be necessary to open a French bank account to service the loan.
This can be done whilst you are in France or can be arranged by us on your return.
On return to England, as a condition of FOPDAC (our Federation) we recommend you take legal advice.
The Agents we work with understand short inspections and it is usually possible to take an 'option' & have a contract emailed to us in the UK for confirmation, explanation & signing.
However, there is a shortage of quality properties for sale & some are duplicated in agencies.
Alpine Apartments Agency cannot accept any legal responsibility for any errors, omissions, loss or damage to any person or property