Steps to Buying Your Home in France
Purchasing a property in France may take a little longer than in other countries (average of 3-4 months), but in general it is a familiar process. There are no restrictions on foreigners to purchase property in France, and there are even banks who will give loans to non-residents. However, it’s always a good idea to know the process of purchasing a property in France in order to maximize your efficiency and avoid dangerous pitfalls that could be costly.
1. Offer to purchase- The offer to purchase is the first step in the process and acts as a “preliminary contract” where both parties agree to the terms of purchase. The offer can be made through an agent or directly between the buyer and seller. It often is just one piece of paper signed by both parties detailing the offer price, conditions of acceptance, land parcel numbers and address, and any other clauses deemed necessary to the sale. Normally, there is an expiration date of the offer given by the buyer or around 7-10 days.
2. Signing the “compromis de vente”- This is the stage where things get a little more serious. The “compromis de vente” is a contract that engages both the buyer and seller in the sale of the property. This document is drawn up by a notaire and is based upon the previously signed offer. The conditional clauses (clauses suspensives) are included as well. However, this is not the final sales contract “acte de vente.” Both parties are legally engaged with each other and if either the buyer or seller break the contract there could be legal ramifications. However, there is a mandatory 10 day cooling off period where the buyer can break the contract with no legal ramifications.
3. Paying of the deposit- Upon signing the “compromis de vente”, the purchaser is required to pay a deposit, which is normally 5 to 10% of the purchase price. This deposit should be paid to the notaire’s escrow account, but never directly to the seller.
4. Organizing of Finances- Although it is suggested that buyers organize their finances before an offer is made, this stage is where buyers are normally dealing with a lender to provide the mortgage or funding of the property purchase. This is typically one of the longer and more difficult parts of the process. Identity and financial documents must be supplied to the lender so that the proper documents can be drawn up for the loan and its eventual approval. One big step that is often overlooked, if you are taking a French loan, is the medical exam. You will need to make a medical exam appointment and have those documents sent to your loan insurance company. This is to ensure you are in good health and aren’t deemed a risk to the insurance as the insurance you take will pay off your loan on your house in the event of your death. This process can take several weeks or even months, depending on the insurance company and the availability of the medical examiner.
5. The acte de vente- This is the final step in the purchase of a French property and happens generally 3 to 4 months after the initial offer. Over the last few months, the notaire has carried out the relevant searches and prepared a final sales contract that all parties will sign. This generally happens at the notaire’s office or one can appoint a power of attorney to be in their place. During the meeting at the office, the notaire will read through the entire acte de vente so that all parties can sign and agree to the sale. Once this step is completed, the final balance for the purchase is transferred and the buyer is given the keys along with an attestation de propriété. Once the deed is registered by the notaire, a certified copy will arrive in the mail 2 to 6 months later. The sale is now complete!
If you are looking for an English speaking real estate agent to help you find a home, contact me anytime at either alex.gaines@prestant.com or +33 (0)778100486.
