We at Ideal Maison wish to help you search for and find the right property in the area you wish to be. As with buying any property abroad both the language and the legal process can prove to be a little stressful. Here are some links to service providers which may be useful for you.
The Purchase Procedure.
1. The purchase price will be quoted in Euros.
2. Normally agency fees are included in the purchase price, but check this.
3. Notaires fees are not included in the purchase price unless stated, 2.5-3.5% on a property which is brand new, 7-10% on a property over 5 years old.
4. Always check with each agent what the price includes before you make an offer.
5. Do not be afraid to make an offer.
6. You can make your offer through Ideal Maison or the French agent. With a busy market there can be a lot of interest in properties so if we are aware of this we can act immediately and negotiate for you.
7. We or the agents we work with will strive to gain the best price for you.
8. The offer to purchase may contain certain conditions, such as being able to obtain a mortgage, if you do not need a mortgage a special paragraph must be inserted to confirm this.
9. A signed first contract must be included with your mortgage application.
10. A contract is conditional on reports being provided for asbestos, termites, insulation, lead and also on being able to convert out buildings into areas for living accommodation or a pool.
11. The first contract is always conditional on local searches, the checking of ownership ( there may be other family members who also must agree to the sale of a property). All this is checked by the Notaire.
12. You are not committed to the purchase of the property until you have signed the contract and paid a deposit which is normally 10% of the purchase price.
13. You also have the 7 day cool off period in which to change your mind if for what ever reason.
14. We can guide you through the purchase procedure and we do not add extra costs.
15. Conveyancing of property in France is empowered to be carried out by a Notaire. He collects taxes on behalf of the government. He must be satisfied that all clauses are included, that all searches and reports are completed before the final contract is signed.
16. When the Notaire reports to you the date of signing, you will be accompanied by our agent and a translator will be present.
17. The Notaire is Able to advise on questions regarding property or family law.
18. Purchases can take around 2-4 months or longer and we will be of assistance during this period
19. We will also assist with after sales, utilities and local services.
Main Points Of The Purchase Procedure.
a. A suitable property is found and the price is agreed.
b. The vendor will be asked to sign a ‘Compromis De Vente’ (there are other first contracts).
c. The purchaser will then sign and then pay a deposit which is normally 10% of the purchase price.
d. The purchaser has a 7 day period during which they can withdraw from the purchase with no loss if they so wish.
e. After the 7 days the deposit is only refundable if one of the conditional clauses ‘Clauses Suspensives’ cannot be satisfied ( if it so happens that you are notified by letter the French bank will wil not agree the mortgage you have applied for).
f. The Notaire receives the letter also, and returns the deposit.
g. Apart from conditional clauses the contract commits both parties to complete.
h. The Notaire is a government official empowered to collect taxes on their behalf and can act for the buyer and the seller.
i. The purchaser pays the Notaires fees.
j. After 8-10 weeks the Notaire will ask for the balance of the purchase price plus the legal expenses so that the transaction can be completed.
k. Both the purchaser and the vendor will attend the Notaires office to through the final ‘Acte De Vente’.
l. A power of attorney ‘Procuration’ can be provided allowing either or both parties to be represented by the Notaires clerk or other named person.
m. It may be requested that the power of attorney may have need to be witnessed at the French Consulate in the U.K and must be arranged in advance of the agreed final date.
Notaires Fees And Taxes.
1. When buying a property off-plan the amount charged will 2-3%.
2. When buying a property under 5 years old from the first purchaser who originally bought off-plan, the purchaser will pay 2-3%.
3. When buying a property over 5 years old the amount is 7-10%.
4. The reason for the higher 7-10% is that new properties have TVA (VAT) included in their prices and so no tax ( Stamp Duty) is payable.
5. If a mortgage is required to buy a property further charge to register the lenders’ interest on the property-approx. 1.5% of the mortgage amount.
Other Costs.
a. There are no other purchase costs.
b. The equivalent of council tax is your responsibility (annually).
c. These are split into those collected by the legal council and those collected by the government. ‘Tax D’ Habitation and Impot Foncier’ are collected annually in arrears. For new properties you have the first year free.
d. Insurance only becomes your responsibility when the property is yours and the vendors policy can be continued.
e. If you purchase an apartment or on a domain there is normally a block insurance together with service and maintenance charges.
A French Bank Account.
a. A French bank account is necessary if a mortgage is required.
b. It will be necessary to have a French bank account to pay your utility bills.
c. Bills are sent to your permanent address and money can be taken by direct debit.
d. It is best to locate a bank close to the property you have purchased.
Something Taxing you need to know this.
1. The French tax year runs from 1st January to the 31st December. The UK tax year runs from 6th April to the 5th April.
2. The main French rule is that if your main home is in France, that is you intend to live permanently, you will become a French resident from the day after you arrived.
3. If your spouse and children live in France but you work abroad, for tax purposes you are still considered a tax resident.
4. You are also considered to be a French tax resident if one of the following applies:
a; you spend more than 128 days in France per tax calendar year.
b; your main activity is in France, e.g. your occupation or main income arises in France, even if you are not salaried.
c; France is the centre of your economic interests, i.e. France is where your principal investments, or where your assets are administered, or where a larger part of your income is drawn.
5. On being a tax resident in France you are liable to pay French taxes on your worldwide income, gains and assets. A non-resident will only be liable to French taxes on French source income or gains and French assets.
6. You must make yourself known to the French tax authorities when you arrive or if you have French source income. Tax residents should contact their local tax office (Hotel des Impots); non residents should deal with the Centre des Impots des Non-Residents, 9 rue d'Uzes, 75094 Paris Cedex 02.