RBL ESTATES PURCHASING A FRENCH PROPERTY
THE FRENCH RIVIERA
Purchasing an apartment on the French Riviera not only means making a sound investment, but also opens the door to a most fascinating world. The sea, magic scenery, the climate, the beauty of the sites, the glamour of the Croisette, the most famous Casinos in the world, fashionable Art galleries, fine restaurants, charming hotels, the most renowned golf courses, Formula 1 car races… an incredible kaleidoscope of characters, emotions, lights and colours. The pleasure of living on the French Riviera encourages more and more people to settle here.THE GUARANTEES OF A PROFESSIONAL
Buying or selling a property is a significant decision, which requires particular precautions.French estate agents are subject to strict regulations that are enshrined in law. For the purchaser it is important that the estate agent:
- Hold a professional card
- Be knowledgeable in tax and legal matters
- Be capable of helping the client make the right choice
ALTITALIA REAL ESTATE GROUP being subject to French legislation is an extra guarantee for its customers.
CHOOSING A PROPERTY
To choose a property that meets your needs you must take into account the following factors:- Geography
- Situation (seafront, town center….)
- Type of property
- Size
- Price
- Purpose of purchase (investment or holiday home)
THE PRICE
The price of a property remains unchanged whether you deal with an estate agent or directly with the building firm.IS THE CONVEYANCING PROCESS IN FRANCE SIMILAR TO THAT IN IRELAND?
No. The French legal system and the formalities when purchasing a house in France are totally different from those in Ireland. For instance title deeds must be signed in front of a Notary Public (“Notaire”). Generally speaking however, we can make sure that checks and enquiries are made similar to those that we would make in Ireland. As in Ireland the purchase of a property in France is divided in two stages.First there is a Preliminary contract called the “contrat de vent sous conditions suspensives” or “compromis de vente”. This may be prepared by an estate agent. Secondly there is a formal deed of sale called the ”Acte de Vente”. This is signed in front of Notary Public or“Notaire”. The two documents are normally separated by about 10 to 12 weeks.
CLIENT PROTECTION
In France it is common to buy a property before or while under construction. This is called “Vente en l’état futur d’achèvement” (sale before completion). In order to protect the customer, building firms are bound by law to guarantee completion in due time. In the event of bankruptcy, the bank which guaranteed the operation must bring it to completion. For this type of property, the purchaser can choose between several modes of payment: cash, by taking a loan or according to the progress of work:- 5 % at the reservation (preliminary contract)
- 10 % beginning of work
- 15 % foundations
- 20 % completion of first floor
- 25 % inside walls
- 20 % roof
- 5 % handing over of keys
The "compromis de vente" or preliminary contract, is an agreement between the seller and the buyer. At its signature the purchaser usually pays a down payment of 10 %.
THE LOAN
For non-French residents, a loan of up to 85 % of the purchase price may be granted, and its term can vary between 5 and 25 years. The procedure is quick and simple. In case the loan is not granted, a suspensive clause is provided for in the contract, which enables the buyer to recover the deposit without any penalty.In the event of death or permanent disability of the purchaser the heirs are protected by Life Insurance that is usually arranged by the bank.
WHO IS THE NOTAIRE?
The Notaire is a public official who is there to prepare the title deeds relating to the sale and purchase of land and to put on the public record the fact that the deed has been signed in his presence and understood by the parties concerned. They enjoy a very privileged and highly respected position in French society.The Notaire does not represent or look after the interest of any one party. You should also note that, in the countryside, very often there is only one Notaire available and he works on a monopoly basis in respect of property transactions. However, it is quite legitimate and increasingly common for a Buyer to instruct his/her own Notaire who would then represent him and his interests. In such a case, the professional fees would be split between the two Notaires, so no extra cost is involved. We will advise when this is appropriate. The Notaire will also make various title checks about the property and:
- Make sure that the property to be sold matches the title deeds and registry documents
- Establish the identity of both parties (with the help of birth and marriage/divorce certificates)
- Make sure that the seller is indeed the owner of the property to be sold
- Make sure that there are no covenants other than those already mentioned in the preliminary contact which might adversely affect the property
- Search the Land Registry with a view to establishing whether or not there exist any restrictions to the right of disposal of the property, such as easements or mortgages over the property
- If the property is mortgaged he will ensure that the purchase price will be sufficient to redeem the mortgage completely
- Obtain from the local Town Hall a planning certificate showing the planning rules relevant to the property.
- Finally, he will inform any people entitled to preemption rights of the impending sale, giving them two months within which to decide whether or not take advantage of their rights.
The Notaire may not speak English, at least to the standard needed to have a sensible discussion with you about technical and complex matters.
THE NOTARIAL DEED
The final deed is signed before the notary on French territory and the presence of a sworn-in interpreter is assured. The fees include registration taxes and notary fees.Through the notarial deed the buyer becomes legal owner of the property, and the payment formalities are fulfilled:
- For properties under construction and in the case of cash payment, the buyer pays according to the progress of the work.
- For properties that have achieved completion and in the event of cash payment, the balance is paid by transfer order. In the case of a loan, the purchaser pays his personal contribution and the bank pays off the remaining sum.
TAXES
The property tax or "Taxe foncière".It is calculated according to a percentage on the cadastral register of the building and varies from municipality to municipality. New buildings are exempt from this tax for two years.
Taxe d’habitation The local tax or "Taxe d’habitation" is a communal tax and includes a certain number of services including refuse collection.
OUR OFFICES:
1, Place Masséna
06000 Nice
06000 Nice
11, Rue Paradis
06000 Nice
06000 Nice
41,Main Street,
Portlaoise.
Portlaoise.
t 057 86 92107/86 20093 e info@rbl.ie w http://www.rbl.ie
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For more information on Purchasing a French Property please Contact RBL Estates
