Residential Real Estate Purchase in France

France, the largest country in Western Europe, and one of the most popular tourist destinations in Europe, it is economically and politically secure. France is a country with picturesque lakes, mountains, beaches and spectacular countryside, providing a considerable choice of appealing environments to choose from when considering acquiring real estate. It is a stone’s throw away from the UK.

Ushma Mahinda, an associate,  commented “the legal process of property purchase in France is fairly straightforward but you will require the correct legal guidance for the conveyance and  the land registration system is secure” Ushma further commented “. Our French real estate lawyers  speak English and can explain the process and will protect your legal interests and provide you with expert advice on the entire process from start to finish.”

There are different types of French sale or purchase property contracts (promesse de vente or a compromis de vente) as well as different forms of ownership of French property, whether en indivision, or en tontine, or through a property company called a Société Civile Immobilière (SCI) as each has important implications in French inheritance law,

When an offer to buy a property is made by the potential purchaser to a seller (even a verbal offer) once the seller accepts it, then, provided the main terms of the transaction are clear, a contractual commitment arises. You may be asked by an estate agent or seller to make a formal written offer, called an offre d’achat.  In France a sale ‘subject to contract’ does not arise, as is the case in the UK.

A deposit is handed over at the same time you sign the sale and purchase agreement.

The different types of French sale or purchase contracts relating to property (promesse de vente or a compromis de vente, in practical terms have little to choose between them However, one major difference lies in the process, in that a promesse can only take place through a notaire (Notary) whereas a compromis can be conducted directly between the parties or via an estate agent.

Under the contract the owner of the property agrees to sell to the purchaser and the purchaser in turn agrees to buy from the owner, subject to the conditions stipulated in the contract.

Once the sale and purchase contract has been prepared, one of your main safeguards is that French law grants a buyer a ten-day cooling off period, during which you can withdraw from the contract without penalty.

If you are purchasing with the assistance of an estate agent through a compromis an estate agent with a carte professionelle (which includes the words de transactions sur immeubles et fonds de commerce) is authorised to act as an intermediary and may provide pre-printed sale and purchase contracts for you to sign.

Estate agents do not charge a fee for dealing with this part of the process and it is common for sale agreements to be signed in this manner.

It has been possible for a power of attorney to be granted electronically since November 2020. Neither party is required to be physically present in the notarial offices.  However, the rule does not apply to contracts signed through an estate agent.

The same rule applies on signing of the deed of sale.

A notaire is competent to do the legal drafting of the clauses. If required formal 'search' enquiries are made by the notaire, and only occur after signing of the sale and purchase contract.  It should be noted that they are by no means as extensive as the pre-contract enquiries that occur with the sale and purchase of property in the United Kingdom, between solicitors acting for seller and buyer.

Unless specifically asked to do so, notaries are not obliged to initiate a private consultation to provide you with due diligence about your transaction, in the way that a solicitor would advise.

Fees for conveyancing work are fixed; notaires do not work on an hourly basis for this activity.

One document that you should view at an early stage is a copy of the plan cadastral in respect to  the property you are proposing to purchase. This document shows the boundary lines of each property and is the official public register of property ownership. A copy should be provided by the notaire at the time you sign the sale and purchase agreement.

Generally, you will need to consider a budget of five to ten per cent of the purchase price to cover additional costs outside of the purchase price

Ushma Mahindra is a qualified Advocat based in the Lyon office.Ushma focuses on private client services and has can assist her clients with all aspects of real estate, wills, probate and inheritance matters, such as wills and trusts and succession law. Ushma has extensive experience in immigration matters and is tenacious in resolving complicated issues.She gained considerable insight whilst working in the legal department of the Portuguese Ministry for Foreign Affairs in the UK and in France. Her collective expertise enables Ushma to bring a perceptive seasoned approach to complex matters, resulting in an outstanding level of achievement.

If you would like to know more about buying property in France please contact Ushma's clerk or pleae click here