Buying a house in France

House sales work a little differently here, but remember that we will be there to help you at every step. Despite popular TV's fondness for horror stories, things generally go very smoothly.

Step 1: Agree a price

Once you have found a house you want to buy, the next thing to do is agree a price with the vendor. Individual circumstance and market conditions can affect the likely success of an offer, so do ask your agent if he/she has any feel for what the vendor’s position might be. In particular, older French people can be quite sensitive about money matters and may take offence if your offer is very low; it is not unknown for vendors to refuse any further negotiation because they consider the first offer insulting.

It is essential at this point that you establish with the agent/vendor exactly what you are buying! Every property in France is recorded on the “plan cadastral” and you should be provided with a copy of this. If necessary, return to your chosen property with the plan and the agent and make sure you are clear about the boundaries. It may be that the boundaries have been properly marked out with physical markers in the ground, but do not worry if this is not the case, since it is far from universal. Just make sure you are satisfied as to what is included.

Spend some time also at this point thinking about whether there might be any particular difficulties with the property. Anything which might make you think twice about buying should be specified in the contract, so that you have an opportunity to change your mind if necessary. Consider especially:

• Do you have any doubts about the structure? Structural surveys are not everyday procedure as in the UK, but you can certainly request one if you are worried. An alternative is to ask for a builder to give the property a look over and perhaps quote for any necessary works.
• Is the sewage system new? If not, it may need some upgrading. Or, if the property has no sewage system at all then you will need to budget for this AND make sure that you specify that the sale is subject to the requisite permissions for installation.
• Is this a building which you plan to convert from agricultural/commercial use to a dwelling? If so, you should request that a “certificate d’urbanism” is obtained.

Step 2: Compromis de vente

All parties to the sale must sign the initial contract, known as the "compromis de vente". This may be prepared by a notaire or drafted by the agent. Make sure that all the details on it are correct, particularly the description of the property itself. Make sure also that you understand it all and know what you are signing. Remember that this document is a binding contract which obliges you to buy the house.

If a property carries particular concerns, for example if it requires the installation of a septic tank for which permission is needed, then it is possible to include in the compromis a "clause suspensif" relating to this. This then means that the contract becomes conditional upon this clause and you can pull out without penalty should the condition not be met. If you are taking out a loan to buy the property, there is a standard clause which allows you to back out should you fail to get the loan. If you are not taking a loan then you will be asked to make a declaration to this effect, thereby forfeiting the protection of this particular law.

Clauses suspensifs need to refer to matters which are truly fundamental to your intended use of the property, which relate directly to the property and which are achievable within a sensible time-frame. For instance, it is very common to specify that a certificate d’urbanism is obtained, because this is a necessary if one is to live in a building, a routine procedure, a clear yes or no decision, and usually takes about 2 months or so, all of which is acceptable. However, it is not reasonable to insist upon obtaining full planning permission, because this is far more nebulous (you might submit ridiculously zany plans) and can take a long time.

People often want to have a clause which makes the purchase dependant upon the sale of another house. Such clauses have been drafted and your agent may agree to insert one, but you should note that they are invalid in law. You should not sign a compromis unless you are in a position to proceed with the purchase (or have a reasonable expectation of being able to acquire a loan).

Ideally, the compromis is signed by all parties at the same time at the agent’s or notaire's office. A notaire is an independent public official who carries out all transactions relating to property, inheritance, divorce, etc. He performs the functions normally taken care of by a solicitor in the UK. As an independent person, it is quite acceptable and normal for the same notaire to represent both buyer and seller. If everyone is able to attend a signing meeting, this is the best way to do it, as then you can meet the sellers and ask any questions you may have, etc. Should this not prove possible, the two sides can sign at different times and it is even possible to send the compromis to you by post, but this is obviously less satisfactory.

A deposit of 10% of the asking price net of agent's fees must be paid before the end of the cooling off period (see below). The deposit can be paid directly into the notaire’s account. Alternatively, many agents hold the deposit funds themselves and there is nothing suspicious about this, but you need to make sure they are doing things properly. In order to hold client monies, the agent must have a designated escrow bank account (called a compte sequestre) and have the requisite financial guarantee to ensure that the funds are protected. If they cannot show you evidence of these two things, do not give them the money! On no account ever pay anything in cash.

You have a period of 7 days after signing to change your mind without penalty. If everyone signs on the same day then obviously this is when the 7 days commences. If things are dealt with by post then the compromis would normally be sent to you as the buyer first, then once it has been returned and signed by the sellers you should receive by registered post a copy. The 7 days commences from the day you receive this.

After the 7 days has passed, you can no longer simply change your mind. If you do so, you lose your deposit and normally would also be liable for the agency fees. You can still withdraw if one of your “clauses suspensifs” is not satisfied or if the notaire discovers any significant issue (see below).

Step 3: Acte de vente

Once the compromis is signed, the notaire proceeds to prepare the final contract, or "acte de vente". He carries out all the usual searches and investigations into title, etc. If anything is amiss, he will inform you and if it is fundamental to your enjoyment and use of the property, you can withdraw with no penalty. It usually takes 2 -3 months after the compromis to prepare the acte de vente. During this period, you will probably receive little or no correspondence from your agent. This could simply be because everything is moving along quite nicely and there is nothing to report, or it could be because the notaire has let your file slip to the bottom of his “to do” list and the agent has forgotten to keep it moving! Therefore, do not panic, but equally it is a good idea to check in every 3-4 weeks.

On the day of signing, you pay the balance of the purchase price plus the agency and notaire's fees. You agent should supply you with a statement of the final balance to pay. Request the transfer of these funds to the notaire’s account at least a week in advance as the signing will not be possible if the monies have not arrived. The notaire's fees work out at around 7-9% of the price of the house and they include all duties, taxes, etc. There is nothing further to pay except for insurance of the house, which is a legal obligation. You may also need to reimburse the seller for part of the year's property taxes.

Again, the ideal is for all parties to attend the notaire's office for the signing of the acte. However, another option is for you to grant the notaire a power of attorney for this purpose, and he can sign on your behalf. The notaire should give/send you on the signing day a few copies of an “attestation”, which confirms that the property is yours. You can use this as proof of ownership with official bodies, utility companies, etc. The actual property deeds will be available once the transfer of title has been effected, which can take a few months. The deeds are normally sent to the notaire so you should clarify whether you whether you wish them to remain with him/her or be forwarded to you. Once this is done, you can take your keys and move in!