Buying Process

The property buying process in France is very simple and easy for the purchaser. Our Real estate in Nice, English Apartments & Villas team will assist you in finding your perfect home.

the To be able to show properties to potential purchasers in France, all agencies must have a licence, called the "carte professionnelle". Our licence number is 454 and we are insured by the CGAIM (Caisse de Garantie de l'Immobilier).

Our English staff have many years experience of the property market on the French Riviera and deal especially with non-resident clients. We understand the importance of having a representative who is able to communicate in your native tongue and who has good knowledge of the French legal and administrative procedures inherent to real estate transactions.

In France each estate agency decides upon the amount of commission they will charge. The price of the property presented to you will include our agency commission previously negotiated with the vendor.

The amount of commission must be displayed in the estate agents window and inside the office. Normally, agencies will take between 5% and 10% commission depending on the price . Our agency commission is between 3% and 6% depending of the kind of property.

We will assist you through each step of your purchase in France.

1. The purchase offer

Once you have decided on a property, we will present your written purchase offer to the vendor. As soon as the vendor and purchaser (you) agree on the price and terms of contract, including any conditional clauses (clauses suspensive) and any furniture included in the sale, the property will be taken off the market after signing the "preliminary sales agreement" (compromis de vente).

2. The preliminary sales agreement

The initial sales contract is very important. It sets out the details of your purchase with information about the property, the people involved (vendor and purchaser’s details) and the price. This will include estimated legal fees as well as details of how you plan to pay for the property. Both the purchaser and the vendor can insert their own conditional clauses into the contract. The sale can be conditional on the purchaser obtaining a mortgage.

The contract must be signed and dated by both parties. It is a legal requirement that the contract is either sent to you by registered letter or that it is received and signed in person in front of the "notaire".

We will also obtain the technical diagnosis of your future property: ie. "Carrez law, asbestos, lead, termites, gas, energy performance, electricity, natural and technological risks reports.

3. The deposit

Between 5% and 10% deposit is paid into the "notaire's" bank account. This is deducted from the balance payable at the final signing.

If a "suspensive clause" has been added to the preliminary sales agreement, you protect your deposit in the event that you are unable to achieve financing. In this case your deposit will be refunded to you in full.

4. The 7 day cooling off period

You have a seven day cooling-off period (Loi SRU) during which you can withdraw from the sale for any reason. After this time the agreement becomes legally binding. The vendor has no special conditions so is unable to withdraw from the sale. Should you decide not to go ahead with the purchase, your deposit will be refunded to you in full. If you decide to withdraw you must, however, make sure that you notify your estate agent of your decision in writing before the seven day cooling off period comes to an end.

5. Finances

French bank account

Even if you only have an occasional holiday home in France, we advise you to open a bank account, to pay the direct debits for taxes due in relation to your property as well as bills for electricity, water, gas and telephone.

To apply for a French mortgage, you will need to have a bank account in France also.

The bank will then send you your account details - the so-called RIB or "Relevé d’Identité Bancaire". This identification slip is designed for your French (or foreign) creditors and debtors who need to carry out operations on your account (credit transfer, standing orders, payment, etc.). You can now transfer funds to your new account.

Mortgages

Unless you are a cash buyer you will need to find a way to fund your French property.

Loans are generally on better terms in France. Apartments & Villas will be delighted to introduce you to a reputable bank with English speaking advisors who will provide details of their interest rates and conditions. Please contact us and we will be happy to put you in touch with our partners.

As a non-resident, you can usually borrow up to 80-85% of the purchase prices (excluding legal fees).

Once you have received the mortgage offer, you must wait at least 10 working days (and not more than 30 days) before signing and accepting the offer (conditions of the Consumer Law in France). It is important to know that you cannot sign the acte de vente (final sale document) until this period has elapsed.

6. The French "notaire"

To purchase a property in France you will have to use the services of a French "notaire" who is an independent public official.

The "notaire" represents both the purchaser and the vendor and is legally obliged to act impartially. The buyer can appoint his own notaire, if preferred, at no extra cost. In this case the "notaires" would share the fee. The "notaire" ensures that all aspects of your real estate transaction are completed in a legal and efficient manner. He is also responsible for all searches relating to the current title of the property and for checking that it does not reveal any significant easements or restrictions which could affect its value as well as verifying that no mortgage exists over the property.

At this stage should any of the searches present something important the purchaser will have valid reason to withdraw from his acquisition, the full deposit will be returned and the contract broken.

Frais de notaire

These fees are normally in addition to the sales prices and include the fees received by the notaire for his work, plus his direct costs (e.g. the land registration fee that he needs to pay), plus property sales tax. These fees are regulated by law, so should be the same regardless of which notaire you use.

The "notaire's" fees (frais de notaire + state tax) for a new property are around 3% and for second hand properties around 7% of the property price.

7. The final signing

There is no statutory period of time between the date on which a promise to sell is signed and the execution of the final deed.

In general the final signing (acte de vente) in front of The French "notaire", normally will take about 2 or 3 months, to ensure there is enough time to assemble all the documents needed for the sale.

When all the paperwork is ready, the "notaire" confirms the date and time of the final signing.

Your mortgage company, if you are using one, should have already sent the funds to the "notaire's" office and on the final day you must pay the balance of the purchase price to the "notaire". They then, in turn pay the vendor. The transfer of this remaining balance should be done in advance as the funds must be in the "notaire's" possession before the contract is signed. We advise you to make the transfer at least 10 days in advance.

Your French property has to be insured in your name from the date of completion and the "notaire" will ask for proof of this along with your passport. We shall be happy to advise you on insurance contracts. We also advise you to visit your future property a last time before the final signing.

Keys and an "attestation de vente" are handed over and ownership is transferred.

The final "acte de vente" papers are sent out around six months later.

You are now the proud owner of your French dream home.

8. French taxes and charges

For anyone looking to move permanently or semi-permanently to France, tax is an issue and you may need some specific advice. If you spend at least half the year in France (183 days), or your main home is there, you will be deemed resident for tax purposes. That means you pay French taxes on your worldwide assets, income and capital gains.

If non-resident, you only pay French tax on those which you incur in France. A taxation agreement between the two countries means that you will avoid double taxation. The tax year is the same as the calendar year in France, and it's up to you to make yourself known to the tax authorities.

Charges de copropriete

Monthly charges (charges de copropriété) cover maintenance of communal facilities. (Guardian, lift, cleaning, insurance etc.…) Sometimes charges include heating, hot and cold water. The property manager must organise a General Assembly of Owners at least once a year to review the budget to cover exceptional costs.

Taxe fonciere (land tax)

This is a tax paid by the owner each year. The amount of the "taxe foncière" (land taxe) depends on the size and the location of the property for sale in Nice. When you purchase your French property, the "notaire" will calculate on a pro-rata basis, the amount you have to refund to the vendor.

Taxe d’habitation (local services tax)

This tax is paid by the person who occupies the property. It covers the services and maintenance provided by the local council. If you rent out your property this tax will be paid by the person occupying the property.