The Buying Process of a property in France

 
Property Taxes, Purchase Fees and Stamp Duty in France (my-french-house.com)
https://www.my-french-house.com/blog/article/75294/property-taxes-purchase-fees-stamp-duty


Property Taxes, Purchase Fees and Stamp Duty in France 
Property Taxes, Purchase Fees and Stamp Duty In France

Our comprehensive specialist French property website is packed with expert advice and money saving tips. But one of the questions that keeps coming up is the subject of taxes and purchasing fees. That’s why the team got together to produce this small article which is aimed at shedding some light on what the different property taxes and fees are when buying a property in France.

The Buying Process
About the buying process; the system is different in France to what you are used to back home, but it’s very straight forward and safe as it is geared towards protecting the buyer. The process starts once you’ve visited a property and made an offer on that dream property you’ve had your eyes on for such a long time.

Once your offer has been accepted, the property will come off the market and the agent will liaise with you and the notaire. The compulsory searches are at the charge of the seller and are carried out at this stage. Note that structural surveys are not common practice in France, you’ll need to get one arranged at your expense if you want one.

The Property Taxes
You would have been informed about (both) the property taxes and legal fees.  There are two different taxes for property owners in France; the first one is the taxe FONCIERE (or land tax), the second one is the taxe d’HABITATION (council tax) which is provided for guidance only as it is means tested.

The “taxe FONCIERE” is the LAND tax that is imposed on a property owner on the 1st of January each year, the price for this depends on the region you live, the amount of land owned and what the local rental values are. It is usually much cheaper that in the UK.

The “taxe d’HABITATION” is paid by whoever lives in the property, if rented out it would be the responsibility of the tenants to pay, similar to council tax in the UK. The price, again, varies depending on the location of the property. Towns are generally more expensive than villages, and properties in the countryside are also cheaper.

Paying the Deposit
The ‘compromis de vente’ is drawn fairly early and you have a 10 day cooling off period from the signature date before you are legally committed. At this stage you still haven’t paid the deposit, only when you have returned the compromis de vente duly signed to the notaire in France.

The deposit is usually around 10% of the total amount, the balance is paid on completion to the notaire. From signing to completion, you can expect approx 3 months, this longer will typically be longer when finance/mortgage are required. It’s worth researching currency transfers and the options to secure the exact rate that you want to secure.  

The Legal Fees
The legal fees are called ‘frais de Notaires’ or notary fees, they are usually around 6-7% of the net selling price, and include the stamp duty. You can easily estimate the notaire fees will be with our handy legal fees calculator.

The Agency Fees
These are called ‘frais d’agence’ in french, and remember that the estate agency fee is included in the listed price on the website. They can sometimes be listed as FAI or HAI on some french immobiliers websites. There’s nothing extra to pay to work with us or any of the real estate agents in our network.

House & Content Insurance
It’s worth noting that house insurance (content & liability) is compulsory on completion. This means that the notaire or agent will not give you the keys of your dream house if it doesn’t have a suitable insurance cover when you have signed on the dotted line. Take a look at our French insurance services.

About Wealth Tax
For our investors and chateau buyers, from 1st January 2018, the scope of wealth tax is limited to real estate assets only, thus, any savings or investments, including life insurance policies, are exempt from wealth tax. The previous threshold of €1,300,000 remains and the scale rates of wealth tax remain the same as before.

French Tax Experts
Our UK based French tax and law experts specialise in French/UK private client issues, including taxation, wealth tax, succession, real estate, trust, probate, disputes, etc. They have  extensive knowledge of French tax and law can also assist with UK litigation, corporate and real estate. Visit this page for more details.

For more information about buying in France search our blog, visit our buying guide pages or contact us with your wish list and questions.

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• Phone : 0845 123 5885 (UK local rate) 
• Phone : +44 (0) 113 216 4066
• Email : bonjour@my-french-house.com

French property legal advice will always be provided by your Notaire. However, if your French is not good and you are not familiar with French legislation regulating French property transactions you may find it helpful to use an English speaking law firm familiar with French property law.

French property law is fairly straightforward and very well regulated so you should not expect to encounter any difficulties with your purchase. In our experience, going back to 2004, the three most common, albeit very infrequent, problems arise from bad practice or lack of due diligence on the part of the estate agent. They are:

1.  Estate agents attempting to sell properties for which they have no seller’s mandat. This is illegal in all circumstances.
2. Estate agents attempting to retain the purchase deposits of buyers who have exercised their right to withdraw from the purchase transaction. This is sharp practice and is most common where the agent does not hold a French Carte Professional but is a commission only sales agent.
3. A badly drafted Compromis de Vente which gives rise to eventual ambiguity over what is and what is not included in the property sale.

When buying a French property using a French mortgage there are some specific areas of French property legal advice where it may be wise to look for help.

Whatever type of property you buy (villa, apartment, barn to renovate or off plan construction) you will eventually be asked to sign a purchase agreement (compromis de vente) later followed by the completion contract (acte). Both are substantial documents, both in size and import, and it is vital that you understand what you are signing because you will be putting a considerable sum of money at risk. If you have any doubts as to the detailed significance of the documents you are being asked to sign we would recommend you seek professional guidance.

Property transfer, where the property is held on a French mortgage, can be surprisingly difficult. The difficulties typically arise from one of two causes, a reluctance on the part of the bank to release the outgoing borrower and unexpected tax implications of the transfer. If you are not entirely sure of the law surrounding the transfer of ownership we would recommend that you seek French property legal advice at an early stage.

Though the above sections cover the majority of the French law you will need to consider in the context of a French mortgage product, there will be many areas where French property legal advice may be needed. Examples include, French Wills, Estate Planning, Disputes, Litigation, Debt Recovery and Probate. If you are not domiciled in France or if you are unfamiliar with French law seeking impartial expert advice may save you time and money.

The lawyers on this site are independent, French or dual qualified lawyers, with considerable experience in property law, particularly for foreign clients, whether companies or private individuals.

All our advice and assistance can be provided in English.

As well as providing legal advice and assistance across the full range of property matters, our lawyers also:

• advise and assist in sales and purchases of property (including property for sale at Property Auctions)
• act as agents for the purchase and sale of real estate, as authorised under the rules of professional conduct governing lawyers in France (this service includes property searches).

Our lawyers provide the full range of legal services in property matters, giving advice in non-contentious matters and also representing clients in disputes involving property.

Please note that our lawyers are able to deal with cases throughout France. In cases where it is necessary to have a lawyer of a local bar on the record in court proceedings, our lawyers instruct appropriate local lawyers for procedural matters but retain complete control over the management of the case, draft the written arguments and argue the case at final hearing.

Areas of practice include :

• commercial and residential property
• retail, leisure and hotels,
• lakes, forests
• advising on appropriate mechanisms for sales, purchases and management of property for tax purposes
• public law, including planning an expropriation
• development and construction
• property matters relating to family and divorce
• forced sales and mortgage foreclosure
• charges and freezing orders over real estate

Recent changes in the professional conduct rules for French avocats allow members of the various bars in France French to act as agents for the purchase and sale of real estate, under certain conditions.

All our lawyers are authorised to act as an agent for real estate transactions, both for the purchase and sale of real estate.

In addition, they are active members of the AAMTI (Association des Avocats Mandataires en Transactions Immobilières - Association of Avocats Agents for Real Estate Transactions), which assists lawyers in providing these services within the appropriate legal framework ensuring compliance with the professional conduct rules governing avocats.

If you are buying a property in any part of France, we can help you throughout the legal process of French property purchase from the initial contract to completion.

Although you may be tempted to do as much as possible yourself, particularly in terms of negotiation, it is often advisable to obtain assistance at a very early stage in order to obtain the best deal in terms of price and also in order to spot any problems which may make the purchase inadvisable.

Buying a French property at auction can be a way of acquiring a property cheaply but it does involve hidden expenses and it is therefore important to understand how the system works. Our lawyers are able to assist you through throughout the process: see the section Property Auctions.

• We liaise with any French estate agent involved.
• We assist you in negotiations, including negotiations on price with the seller.
• Although final conveyances of land in France require the intervention of a Notary (notaire), our lawyers are usually substantially involved in reviewing and drafting all documents to be used in the process, from the initial agreement to sell, up to the final conveyance, particularly where the sale forms part of a wider commercial transaction or raises other issues.
• We advise on how and when to apply for mortgage finance and how to protect yourself if you fail to obtain finance for your purchase.
• We will provide you with written reports at all stages.

Although there are many agency and other websites advertising French properties the sale, which can give you a good feel for the French property market, our lawyers are able to provide a property search service, acting as agents within the legal framework ensuring compliance with the professional conduct rules governing avocats.

We can provide details of service on request.

The service involves discussing your project with you, in terms of the sort property you are looking for, how you intend to use the property, your budget and the area of France you are interested in.

We are then able to look for suitable properties either through our own sources or through estate agents. We can then assist you during the negotiation process and throughout the process of purchase, down to final completion.

In accordance with the professional conduct rules for French avocats, all our lawyers are authorised to act as agents for real estate transactions, both for the purchase and sale of real estate.

• You can instruct us to sell your property. Our commission will also include all legal fees for accompanying you during the sale process (excluding the fees of the Notary) and will not be higher than those of an estate agent.
• We will advise you regarding tax issues.
• We will help you regarding all documentation you need to provide to the French Notary (surveys, proof of ownership, proof of identity…).
• If you have to sell your property as a consequence of a divorce we do not have to be instructed by both parties in order to find buyers.
• If you are selling an apartment we will help you to obtain all necessary authorisations from the assembly of the co-owners.
• We will help you from the initial contract to completion and until you have received the net proceeds of sale.

vivre le rêve ~ living the dream

 Homepage - French Property Legal Services - Page d'accueil (fplservices.co.uk) 

French Property Legal Services Ltd is a niche practice which specialises in all aspects of French property Law.

French Property Legal Services Ltd is a niche UK based practice of bilingual lawyers, which specialises in all aspect of French property Law. With over 20 years’ experience of helping British nationals on all aspect of French property Law regarding:

A property purchase or sale;

French estate planning;

French Wills;

French probate;

And more. . . . . .

We provide a personal and professional service, with our in depth specialist expertise in giving our clients legal advice on all aspect of French property Law. With our fixed fee services we offer highly competitive packages.

The purchase of a French property differs greatly from the English process and thus it is important to receive the right legal advice as early as possible to ensure a smooth stress free transaction. This would avoid you going through the unpleasant experiences of some of our clients, whom having signed documents at the estate agent’s office, and then having contact us, discovered that they had signed the preliminary binding contract and so agreeing to purchase a property!

The process of the purchase of a French property is significantly different to the British system and thus can be very confusing for British buyers. Our technical expertise will help ensure you make the right decisions, and provide peace of mind, safe in the knowledge that you are legally protected.

We will assist you in your French property purchase from the moment you identify the property you want to purchase until completion, providing peace of mind on your purchase.

We help clients to ensure a smooth and stress-free French property transaction, whether it is for a purchase, a sale, a gift, a transfer of ownership following a divorce or following a death (probate/succession).

Please click here for additional information on purchasing a property in France.

Our services are not limited to providing assistance and advice on the legal side of a French purchase or a French property sale, we provide legal advice on a wide range of French property matters.

We provide legal advice on:

• The purchase of a French property, which includes French estate planning advice. To find out more, click Here.
• The sale of a French property, including advice on French Capital Gains tax. Read more Here.
• French inheritance Law and French estate planning advice outside a purchase. To find out more, click Here.
• Drafting French Wills. More about this on the page Here.
• French probate. Read more Here.
• Transfer of the ownership of property, following a divorce. See Here for more information.
• Gift/Donation of your French property to your spouse, children or other third party. Further details Here.

For the above services, we provide highly competitive fixed fee packages so that you know your budget more accurately.

Please do contact us so that we can discuss your need and provide you with detailed information on the services we provide and how this would assist you.

For all the above services, we provide highly competitive fixed fee packages allowing for you to budget more accurately. Please do not hesitate to contact us so that we can provide you detailed information on the services we provide and our fees.

For further information, of if you have any questions about our services, please use the contact form here, or email us on the link below:

BLM@FPLServices.co.uk

The France Home Finance team is passionate about three things : living in France, investing in France, and taking excellent care of our clients.

Experience - Expertise - Excellence

We understand that concerning your personal finances, you want the best deal on the market with the best service.

The buying process in France is straightforward and well regulated, but it is important that you understand it.

What does a French notaire do?

A Notaire is the most qualified solicitor (lawyer) in the French legal system, studying seven years to obtain their degree. The notaire is both a Public Officer and a legal counselor in specific areas of the law, including real estate, family, tax and corporate law.

The notaire has the power to authenticate certain agreements, such as real estate sales, which cannot be enforced by any other means. French law imposes a broad personal liability on the notaire to ensure that transactions are executed correctly and legally.

Notaires also subscribe to a common insurance, which provides an immediate financial guarantee to the client in case of an error. Thus you have the security of working with a specialized lawyer to ensure that your transaction is properly completed.

Do note that the French notaire does not ordinarily provide proactive legal advice on the transaction. Rather, their role is to ensure the legal act is correctly carried out and to answer your specific questions.

France Home Finance will be happy to put you in contact with an English speaking notaire in France that has received a positive recommendation from our clients.

All of the intermediaries we will introduce you to have been tested and recommended by previous France Home Finance clients.

Find the best interest rates available on the market for your French mortgage here:

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Check the latest Euribor and other key French mortgage rate indices here:

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Here are the changes you need to know about:

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Leigh-Alexandra Basha, international solicitor specilized in France, explains the latest tax, legal and accounting evolutions in French real estate :

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Leigh-Alexandra Basha, international solicitor and expert on French property acquisition, explains what you need to know:

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