The steps to buying a property in France
A Step-by-Step Guide to Buying Property in France
Buying property in France is a dream for many, whether you're looking for a holiday home, a permanent residence, or an investment. France’s charming countryside, picturesque villages, and vibrant cities offer a variety of options, but the process of purchasing real estate can be complex, especially for foreigners. This guide will walk you through the essential steps to buying property in France.
1. Determine Your Budget and Financing
Before you even start browsing properties, it’s crucial to establish a budget. Consider your financial situation and what you can afford, including the purchase price and additional costs. The total cost of buying property in France includes:
Property price
Notary fees (approximately 7-8% for older properties and around 2-3% for new builds)
Agency fees (if applicable, typically 3-10%)
Mortgage costs (if you plan to finance the purchase with a loan)
If you need financing, it’s a good idea to get pre-approved for a mortgage. While non-residents can generally obtain loans, the terms and conditions might vary depending on your financial situation, the property type, and your residency status.
2. Start Property Search
The next step is finding the property. There are numerous ways to search for properties in France:
Online portals: Websites like Le Bon Coin, SeLoger, and PAP are popular for browsing listings.
Real estate agents: Hiring an agent is common, especially if you’re unfamiliar with the local market. An agent can also help you navigate legal aspects.
Newspaper listings and auctions: In some cases, you can find good deals through auctions or local newspapers.
It’s essential to clearly define your criteria: location, property type, size, and budget. French property can range from countryside estates to chic Parisian apartments or beachside villas.
3. View Properties
Once you’ve found potential properties, it’s time to view them. If you’re buying a property abroad, it’s advisable to visit in person, though some buyers may opt for virtual tours if distance is a concern. When viewing properties:
Pay attention to the condition of the property.
Consider additional costs such as repairs or renovation.
Ask about property taxes, utility costs, and any planned developments in the area.
Make sure you understand the property's legal status (e.g., zoning laws, any restrictions).
4. Make an Offer
In France, submitting an offer on a property is typically a straightforward process; however, it is essential to recognize the cultural nuances involved in negotiation. We observed that real estate agents tend to be quite occupied, and unless there is a strong indication that your inquiry may lead to a sale, receiving timely responses can be challenging. As a result, I found it necessary to clearly articulate our offer amount alongside any pertinent questions regarding the property. Once the agents understood our serious intent to purchase, we began to receive the desired responses.
Upon identifying the appropriate property, you may submit an offer either through the estate agent or directly to the seller. Offers can be made subject to contract, and upon acceptance, you will advance to the necessary formalities. In our situation, the offer was drafted by the agent representing the property. We received a copy of the primary offer document in both French and English. However, numerous related documents, such as body corporate expenses, minutes, and property reports, were exclusively in French. It is advisable to become proficient in utilizing programs like Adobe that can facilitate the translation of PDFs into English.
It is noteworthy that the practice of instigating bidding wars among potential buyers is not common in France. Sellers are mandated to accept offers that are equivalent to the asking price. The procedure for making an offer is formal and includes various components typical of a sales contract in Australia, such as the offered price, property specifics, and any terms of sale. Once both parties have signed the offer, a notary is appointed to manage the transaction, and most subsequent interactions will occur with the notary.
5. Sign a Preliminary Contract (Compromis de Vente)
If the seller accepts your offer, the next step is to sign a compromis de vente (preliminary contract). This legally binding agreement outlines:
The agreed-upon purchase price
Conditions of the sale
Deadline for final payment and transfer of ownership
Any contingencies (e.g., obtaining financing, survey results)
The compromis de vente is often signed in front of a notary, though it can also be signed directly between the buyer and seller. At this point, you will typically be required to pay a deposit, usually around 10% of the purchase price.
Our Compromise de Vente was prepared by the Notary, be prepared there were a lot of documents to review, most in French. There are a lot of documents that you are sent that are not provided when buying a property in Australia.
Diagnostic reports: Reports on the property's condition regarding aspects like asbestos, lead, termites, and energy performance.
Building surveys: Detailed inspections of the property's structure and condition, often conducted by a professional surveyor.
Proof of identity: Passport or other government-issued ID
Bank statements: Recent bank statements demonstrating financial stability
Mortgage application documents: If financing is required, documents related to the mortgage application
Title search report: A legal document verifying the property's ownership and any encumbrances
Given we were not in France but home in Australia the proof of identify process was quite extensive.
France is making significant strides in energy efficiency through comprehensive documentation and strategic plans, we were provided with a very large document on the energy efficiency of both the building and our apartment alongside the plan the body corporate had in place to improve energy efficiency and proposed costs over time. This was quite key to understanding the ongoing maintenance costs for the property.
6. Due Diligence (Cooling-Off Period & Property Checks)
After signing the compromis de vente, there’s a 10-day cooling-off period during which you can back out of the sale without penalty (unless you’ve already finalized your financing).
During this time, you’ll also want to conduct due diligence, which includes:
Property surveys: Ensure there are no hidden issues with the property. You might want to hire a surveyor to inspect the property for structural or technical problems.
Verify ownership: The notary will verify that the seller is the rightful owner and that there are no legal disputes attached to the property.
We didnt actually undertake any property surveys as the ones we were provided with were quite extensive.
7. Finalizing the Sale (Acte de Vente)
Once due diligence is complete, the final contract, known as the acte de vente, is signed. This can take place at the notary's office, and the final payment is made. You will then receive the keys to your new property.
During this step, the notary will:
Ensure the legal formalities are complete.
Register the property in your name.
Transfer the funds from your bank account to the seller.
The buyer and seller usually split the notary fees, and the transaction is official once the acte de vente is signed and the funds are transferred.
In our case the seller was responsible for the Agents fees and we were responsible for paying the notary fees. Like in Australia we were provided with a detailed statement of funds required and where they were to be paid. We paid the total amount as well as deposit into the notaries trust account.
Given that we were not planning to be present for the final signing we signed a power of attorney with the notary to do this on our behalf. This itself was a quite a detailed document which articulated the details of the property we were buying and they were signing for on our behalf.
For us this stage is scheduled for the end of January.
8. Pay Taxes and Fees
In addition to the notary fees and property costs, as the new property owner, you will need to pay:
Property taxes: These vary depending on the location and size of the property. Taxes include taxe foncière (land tax) and taxe d'habitation (residence tax).
Local registration fees: These are usually handled by the notary and are part of the transaction.
9. Take Possession of the Property
Once all payments are processed, and the sale is officially completed, you can take possession of your new French property. You’re free to move in, start renovations, or use it as you wish. Don’t forget to update your utility accounts and register with local authorities if needed.
10. Ongoing Property Ownership
After purchasing your property, it’s important to stay informed about your rights and responsibilities as a property owner in France. This includes maintaining the property, paying taxes, and complying with any local laws and regulations.
Additionally, if you’re a foreigner and plan to rent the property, you’ll need to understand local laws related to rental income and property management.
Final Thoughts
Buying property in France can be a rewarding experience, but it requires careful planning and understanding of the local processes and legalities. From determining your budget and conducting due diligence to signing contracts and paying taxes, the journey to property ownership involves multiple steps. By familiarizing yourself with these stages and seeking the right professional guidance, you can navigate the French real estate market with confidence.