See a lawyer first

Before you even look at a house in France it will save you a lot of time and money if you speak to a lawyer. Only UK lawyers who specialize in dealing with French property will be able to start you off on a smooth route.

Some of the first things you could deal with are:

· Considering French inheritance laws who should own the property
· How to handle conversion of monies
· Setting up a mortgage if required
· Sorting out tax issues, investments or retirement issues

The lawyer will also have a knowledge of the latest rules and regulations, be able to recommend estate agents, architects and other contacts in the area. Before employing a lawyer get quotations in writing and ensure they are easy to contact should you need to, especially if you are in the middle of France somewhere.

The role of the notaire.

In France the processing of the paperwork involved in buying and selling a house is handled by a notaire. These are authorized by the Ministry of Justice and must follow a strict code of conduct as well as have a financial guarantee covering money in his keeping temporarily. They represent neither the buyer nor seller of a property, their job is to ensure all the papers are handled correctly and that all state taxes are paid upon completion.

The notaire is usually involved in the signing of the preliminary contract and upon completion of the deed of sale – ensuring they are drawn up correctly. He also arranges for the registration of the sale at the land registry. His fee is fixed by law, normally 1-1.5 per cent of the price. Importantly his job is not to verify or guarantee the accuracy of statements made in a contract or protect against any fraud.

The different preliminary purchase contracts

If you have found the property you want the first stage in a purchase is the signing of a preliminary contract. The three main documents which you may cross each have very different legal consequences, so again legal advice should be sought to see if it is in your best interest. The Offer to Buy (Offre d’Achat) is a written offer from the buyer to the seller that they want to purchase the property at a stated price and within a stated period.

The Promise to Sell (Promesse de Vente) is a mirror image of the Offre d’Achat whereby the seller promises to sell at a certain price inside a certain time. Not surprisingly most legal advisors would not be happy dealing with either of these contracts. Just making a verbal enquiry about the price and the possibility of a sale would be safer option. The preferred route is the production of a bilateral contract of sale (Compromis de Vente) that commits both parties to the sale. This binds the seller of a property to sell at a stated price to a stated person under the terms set out. And the buyer must buy. This is by far the most binding of agreements so it is vital legal advice is taken to ensure it contains all the terms to protect your interests.
It is also at this point that the buyer must pay a deposit of approximately 10 per cent of the purchase price.  It is usually made to the notaire, occasionally the estate agent who must be bonded, via bank-to-bank transfer. The deposit will only be refunded if strict conditions are met, so if you do withdraw you will lose the money. Make sure you know the exact terms of the return or forfeiture of your deposit. Also at this point conditional clauses (clauses/conditions suspensives) can be inserted to ensure the validity of the contract. The conditions are often inserted to protect the buyer and seller should events beyond their control occur, but if the two parties agree almost anything can be placed in the preliminary contract. Naturally this could include a range of subjects, but often the most common are:

· Clauses about any mortgage applied for (the Loi Scrivener)
· Planning permissions and permits are obtained
· A satisfactory building survey or inspection
· Pre-emptive rights or restrictions on the land are clear

The contract should also include routine elements:

· Both parties names should be stated clearly and completely
· A date for when possession of the property takes place
· A receipt for any deposit paid
· The price is fixed

If you have agreed to the signing of the preliminary contract you will have to provide details of your civil status to the notaire. Although in UK eyes this may appear a little bit too much detail it is required to ensure the French inheritance laws are satisfied. So you will need to provide your passport, birth certificate, marriage or divorce certificate, or if widowed a death certificate, and a copy of a utility bill to prove your current residence.

Completion of the sale

Before the final deed of sale (Acte de Vente) is signed ensure you have your full monies in place and that all the clauses/conditions suspensives have been satisfied. Also ensure you receive a draft of the deed of sale so that your lawyer is able to look over it and ensure everything is as require.

The act of completing the sale involves the signing of the deed of sale, transferring the legal ownership, any payment of the balance, fees, taxes and duties made. The signing of the deed usually takes place in the notaire’s office where both parties are present. This can be a time consuming process as each individual point is covered and agreed upon. If your French is not very good it would be advisable to have someone there to advise you.

Once the Acte de Vente is signed the registration of the property is carried out. You should receive a certificate from the land registry via the notaire together with his final statement outlining where your money went. Once the deed is signed you also need to remember that it is important to register services, insurances and local details in your name.