1. |
Before you do anything, contact France Home Finance to determine your budget.
The market is competitive and you may need to decide quickly when you find the home of your dreams. Be prepared; know your budget in advance.
Click here to find out how much you can qualify to borrow.
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Find your home.
There is no central listing database for real estate in France. The frustrating reality is that several agents may list the same home at different prices, especially in Paris. The lack of centralised information makes it very difficult to find a home without a real estate agent. You should expect to pay a real estate agent around 5 to 6% of the purchase price - even up to 10% for very small properties. Ordinarily this fee is included in the list price for the home – be sure to check.
Let us know if you need help to find your home. France Home Finance can put you in touch with the best property search professionals in the business.
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3. |
Choose a notaire to represent you.
A French notaire is a publicly appointed
official who is responsible for correctly
executing contracts in an impartial manner.
Be aware that the notaire is not responsible
to advise you whether or not the agreement
adequately represents your interests like
a lawyer (although a good one will do so.)
You can use the seller’s notaire to complete
the sale however you have the right to
have your own notaire to represent you
at no additional expense. We recommend
that you do use your own notaire. France
Home Finance can put you in contact
with English speaking notaires and
solicitors (lawyers)
specializing in investments
and tax structure in France.
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4. |
Sign the preliminary sales agreement.
This agreement binds the seller to the sale upon signing, while the
buyer gets a 7-day period of reflection in which they can pull
out of the purchase without penalty. This agreement is called the “promesse
de vente” or “compromis de vente”.
The document is signed sometimes simply between the two parties (or at
the real estate agency), other times at the office of the buyer’s
notaire. To protect yourself, it’s best to consult your notaire
before signing in either case. At the signing, the buyer makes
a deposit of 10% of the purchase price into a safe, regulated account
belonging to the notaire, like an escrow account. You can sometimes
negotiate to put only 5% down. This deposit will count toward your
final down payment and closing costs. The notaire is in
charge of dispersing all funds to the correct parties at the final
signature of sale.
It is vitally important that the “compromis de vente” contain a “clause/condition
suspensive” – a contingency clause -- saying that you are not bound to
the sale if you do not find financing on the terms you seek.
Once the contract is signed, your notaire
must verify regulatory and legal formalities
for the property and arrange for payment
of your property purchase taxes to the required
French government authorities. For example,
the notaire verifies that the seller is
the free and clear owner of the property,
that the home is termite- free, and that
the home has the requisite urban-planning
approval. These legal formalities take time.
It is important to set the deadline in the
compromise de vente for final execution
of the sale at least 2 to 3 months after
the date of signature of the initial agreement,
to give you a cushion for unexpected delays.
This is particularly important if you do
not live in France due to delays in mail
correspondence for required signatures.
Count on paying 6-8% of the purchase price
for the
“frais de notaire,” or notaire fees, which
are regulated and mainly composed of taxes.
You typically cannot include these fees
in your bank loan.
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5. |
Arrange your French mortgage.
As soon as you have signed the compromise/promesse de vente, it’s
time to contact France Home Finance. We will help you calculate
additional funds needed to cover notaire fees or renovations on the
property. We’ll then help you choose the best mortgage product for
your situation and get the funding process underway. We work with
you to collect all the necessary documents and information and liaise
with the banks so that you have as little worry as possible along
the way. Lastly, we will help you arrange life insurance for the
loan and homeowner’s insurance, both of which are required to complete
the sale. You may be required to complete a medical interview, blood
test and possibly an electro-cardiogram to get life insurance for
loans over 190,000 €. This is standard process and most easily accomplished
in France as there are special medical centres that offer one stop
shop appointments especially for this purpose at no charge to you.
It is also possible to complete the tests in your home country. Once
you receive your mortgage offer, French law requires you to wait
11 days before officially accepting it (the “cooling off period”.)
See “Financing your home in France” for more information.
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6. |
Complete the sale.
Once you have obtained your mortgage, a copy will be sent to your notaire. You can then work with your notaire to set the date for signature of the “acte authentique de vente” or final purchase and sale agreement. Normally you need to be at the notaire’s office to sign on the closing date but it is possible to give someone power of attorney to sign for you. On your closing date, once you have completed the “acte authentique de vente” you can sit back, relax and have a glass of wine. Welcome to France!
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