Conditions of Purchasing Real Estate in France for a Buyer

Our clients encounter the procedure of purchasing real estate in France when they obtain residence permit status in this country as financially independent persons. It will be useful to know how exactly the transaction takes place, and how much it costs the investor.

The beginning of the process

To begin with, we note that all procedures, as well as the final signing of the document of sale and purchase, are made at the notary. The parties prepare a compromise de vente - a kind of "contract of intentions". This document specifies the key points of the transaction, namely:

• Negotiate the price;
• Agree on the terms of the final signing of the contract;
• Prescribe important nuances (for example, whether credit funds will be used);
• Agree on the amount of prepayment. Usually, it is from 5 to 10% of the total volume of the transaction, and the buyer transfers the money to the account of the notary. They act as a security deposit.

The preparatory stage of the transaction

The preparation of the transaction takes on average about 2.5-3 months. During this time:

• a thorough legal check of the object of purchase itself, examination of its documents is carried out;
• the seller prepares the necessary papers and receives a conclusion on the suitability of the object for sale;
• the buyer prepares finances. Perhaps, gets a loan from the bank, or sells its real estate to form the necessary amount of assets.
• Under French law, the mayor's office, to which the object of the transaction belongs, has the right of first refusal (so-called droit de préemption), and within 3 months can use it.

Finalizing the process

When all stages of preparation have been completed, both parties, with the assistance of a certified translator, sign the document of sale. This procedure necessarily takes place in the office of a notary and is also confirmed by his signature.

By the time of signing, the buyer should deposit the entire amount agreed upon with the notary. After the signatures of the two parties and the notary appear on the document, the buyer is considered the owner of the real estate, receiving the keys to it. Together with them, the notary gives the new owner a certification sheet, confirming that he has taken possession of the object. Based on this sheet it is possible to perform any actions with the real estate.

The certified certificate of ownership is issued to the buyer only after several months (it takes time to complete).

Additional costs of the buyer in the transaction

In addition to the main cost of the object, according to French law, the buyer bears some additional costs. Here is their list.

1. Expenses for a notary. Practice shows. That they are approximately equal to 7% of the contract amount. From here 1% goes as payment for the work of a notary, and 6% - state tax, which the notary transfers as payment for the transfer of ownership of the property.
2. State duty. In the case of the purchase of primary, its size is quite small - only 2% of the total value of the real estate specified in the contract. If the object is purchased on the secondary market, the state duty will be about 7%.