BUYING A PROPERTY IN FRANCE

Here we offer a step-by-step guide through the different stages of buying a home in France, from finding the right property to arranging a mortgage loan. We also explain the legal process, taxes and insurance.

A number of international relocation agencies offer services to support individuals and families moving to France. They take care of everything from finding you a home, to helping you with all aspects of French administration. If you are moving to France without the support of an agency, careful research and preparation will make for a smoother move.

FINDING A PROPERTY

Housing prices have increased dramatically across France in recent years, but they still vary greatly from region to region.

To find the right property in your chosen area, you can consult the thousands of offers in newspapers and on the Internet. There are also weekly property magazines, such as De Particulier à Particulier, which you can search online.

See where to look for an idea of where to begin your search, as well as our list of French property descriptions and Useful French terms for buying a property.

Even if you are buying from a private seller, it is recommended to consult with a real estate agent (agent immobilier). They are usually a reliable source of accurate market prices and basic legal advice. Please note that agents tend to represent the interests of the seller.

Agency commissions are generally 4-8% of the sale price. Always check if the commission is included in the price. You do not have to pay the commission if the sale falls through.

If you are particularly brave and experienced, you can also find deals though public auctions (vente aux enchères). In many cases, though, final sales prices end up matching the market average.

Another option in France is the viager sale, which entails buying below the market price on the condition that the current owner, usually elderly, can continue to occupy the house until their death. Be warned that you are taking a gamble on the life expectancy of the current residents and it has been known for sellers to outlive their buyers.

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THE PRELIMINARY CONTRACT

Once you have found the property of your dreams, you and the seller must sign a preliminary contract called either a promesse de vente or the increasingly common compromis de vente. The promesse sets a price, a timeframe and any other conditions. The compromis includes the same terms but does not need to be registered; it is, however, a legally binding agreement for both parties.

Once the preliminary contract is signed, the seller is committed, whereas the buyer retains the right to retract within a 7-day period following receipt of a copy of the signed contract. If the buyer does retract within the 7-day period, the deposit must be returned within 21 days of retraction.

Before signing either a promesse or a compromis, make sure the contract specifies the exact boundaries of the property and any additional structures (dépendences), furniture, fixtures and/or appliances to be included in the sale. It should also include any other conditions (conditions suspensives) of the sale, such as obtaining a loan or insurance.

As the buyer, you or your agent must arrange for an inspection report that will determine the presence of termites, lead and asbestos. You also have the right to carry out any structural inspections.

It is also a good idea to consult with the local town hall (mairie) as to any development plans for the area, the local property taxes, and the exact property delineation as listed in the property roll (cadastre).

For apartments, legislation (loi Carrez) requires that the initial agreement specify the exact living surface. The calculation excludes stairs, terraces, balconies, separating walls and floor space with a ceiling lower than 1.8 metres. Be aware that this may not match the advertised surface area.

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THE NOTAIRE

All sales in France are handled by notaires, solicitors who handle the legal formalities of the transaction. There must be at least one notaire per sale, but the buyer may choose to hire his/her own independent notaire. The notaire receives a fee of around 5-8% of the purchase price. If there are 2 notaires, this fee is shared between them.

Once the deposit is paid, the notaire will begin researching any legal or financial restrictions on the sale; this can take as long as 12 weeks. You may use this time to secure a mortgage, if necessary, and insurance.

ARRANGING A LOAN

If you are taking out a mortgage, HSBC France has a dedicated department with bilingual advisors to guide you through the process. We offer mortgage packages to expatriates that include guidance on finding properties, in addition to tax and legal advice.

To find out more, download our Buying a Home in France brochure.

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THE DEED OF SALE

Once everything has been arranged, you will sign the final acte de vente, usually in the notaire's office. Having read the deed carefully, you will sign the documents and pay the outstanding amount.

THE CO-PROPRIETE

If you are buying an apartment in a shared building, there will be a set of rules that govern the building. As an owner, you are a co-proprietaire and are bound by those rules. Owners collectively determine and pay for such things as having the building repainted or the roof repaired. It is a good idea to check if any maintenance work has been agreed to prior to your arrival, as you may be responsible for paying your share.

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TAXES

As soon as you have bought your property, you will need to register with the French Taxation Centre for Non-Residents.

LAND TAX (TAXE FONCIERE)

The amount of the taxe foncière you will be liable for depends on the size and the location of your property. The tax amount owed is paid by the owner of the property during the final quarter of each year and is calculated starting from January 1.

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LOCAL SERVICES TAX (TAXE D'HABITATION)

This tax covers the services and maintenance provided by the local council. The estate agent can inform you of the amount you will have to pay for your new property.

FRENCH INHERITENCE LAWS AND TAXATION

Before buying property in France, you should be aware that France has very specific inheritance laws. Children are favoured over the spouse, and on your death your property is divided equally between your spouse and your surviving children. Consult with your notaire for advice on how to deed the property in anticipation of an estate settlement.

A more pressing question is your residency status. If you reside in France full time and earn a living here, you will become part of the French social system. French taxes are extraordinarily high (more than 50%). See our introduction to French Taxes and seek the advice of a tax lawyer familiar with the French taxation system.

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