Are there special difficulties in buying a property in France?
What if I don't speak French?
Do I need to open a French bank account? If so, is this difficult?
Is it easy to transfer money to and from France?
Do I have to be in France during all phases of the sales transaction?
What is the time between having an offer accepted and taking possession of a property?
Who is this person called the "notaire"?
Does ownership of a property in France present special estate planning issues?
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BUYING A PROPERTY IN FRANCE
General questions about buying a property in France
Are there special difficulties in buying a property in France?
No, not at all. The acquisition process in France is generally quite similar to that in countries like the United States or United Kingdom, although the time between having an offer accepted to the day when you sign the final documents and receive the keys may take a little longer.
Depending on your particular situation, two elements common to the acquisition process - determining exactly how to title the property, and financing - should be approached with more caution than in your home country. Your notaire will advise you on the different ways of titling a property in order to assure that your property passes to your heirs as you wish. The financing process is easy, but lending requirements, in particular as they relate to income and loan-to-value ratios, may be stricter than in your home country.
What if I don't speak French?
Provided you work with a bilingual real estate professional, it is not necessary to speak French to buy a property in France with confidence. Except in the most remote areas of France all the players in the acquisition process - agents, notaires, mortgage brokers, bankers - can be counted on to speak good English.
Each real estate transaction will require the assistance of a notaire. In rare instances it is necessary to seek the counsel of tax and estate planning experts. In referring clients to professionals Just France Sales takes special care to recommend only highly qualified persons who speak excellent English and are accustomed to working with foreign clients.
Do I need to open a French bank account? If so, is this difficult?
Yes, at some point before you take possession of a newly acquired property you will have to open a French bank account. Having a euro-based account is not required by law, but entities to which you will owe money for recurrent post-acquisition expenses (property taxes, homeowner's insurance, utilities, etc.) will require or strongly encourage direct withdrawals from your bank account. Direct debit is by far the most common method of payment in France for recurring expenses.
Setting up a bank account takes only a few minutes and requires a minimum of documentation. Among the papers required will be a passport and a couple of statements (home utility bill, bank statement, voter registration card, etc.) by which you can prove your home address in your home country.
Is it easy to transfer money to and from France?
Yes. Currency can be converted into euros, or converted from euros into US dollars, British pounds or any other currency, and transferred internationally in a matter of days or hours, for minimal fees. Just France Sales works with well-established currency exchange companies that provide the best rates.
Do I have to be in France during all phases of the sales transaction?
No. You may give your notaire a power of attorney that will enable you to exchange documents by overnight courier. Documents not requiring a signature can be exchanged by e-mail or fax. The initial deposit and final payment is transferred by wire transfer. While a buyer's presence at final signature (l'acte de vente) is highly desirable, it is not required by law.
Signing a procuration (power of attorney) enabling a notaire to act on the buyer's behalf is greatly facilitated when you have met with your notaire personally. Even if you have not yet selected a property to buy, it is highly advisable to select a notaire and visit his or her office to introduce yourself and familiarize the notaire with your project. The fact that a notaire has met a client face-to-face may ease some of the formalities connected with a procuration.
Just France Sales will be happy to recommend a competent English-speaking notaire upon request.
What is the time between having an offer accepted and taking possession of a property?
Typically the time from offer to acquisition is 75 to 90 days. An all-cash purchase without special legal or estate planning issues can possibly be expedited to as few as 45-60 days.
Who is this person called the "notaire"?
A notaire is a lawyer who is specially trained in French property law and is certified by the French government to oversee real property transactions. All exchanges of real property must pass through a notaire. A buyer and seller are both entitled to have their own separate notaire at no extra cost. The notaires' professional fees are included in the "closing costs" described below.
Preliminary agreement of sale. The notaire (ordinarily the seller's notaire) draws up the preliminary agreement of sale. The preliminary agreement of sale is called a Promesse de Vente or a Compromis de Vente. (Click here for an explanation of the difference.) The chief elements of a Promesse or Compromis de Vente are the identity of the parties, the sales price, conditions (if any) that must be satisfied for the sale to be completed, the results of required diagnostic tests on the property, and the projected closing date. If a mortgage is involved, the most prominent condition of sale will probably be the date by which the buyer has to obtain financing.
Clear title. American buyers will be familiar with the twin concepts of a title company that handles a real estate transfer, and title insurance that guarantees the title comes free and clear. The notaire essentially assumes these two functions by exploring the ownership history of the property, certifying that there are no clouds on the title such as liens or pre-emptive rights, guaranteeing that the buyer is getting clear title, and handling the legal formalities of the property transfer. Thus the Notaire is charged with ensuring that contracts involving real property conform to the current law as well as to agreements regarding the property (for example, easements) that may have existed before the present transaction.
Authentication and disbursement of funds. It is the notaire's further responsibility to sign the Promesse or Compromis de Vente. The notaire's signature authenticates the agreement by which the property is transferred from seller to buyer, and certifies the transaction for submission to government authorities, who will subsequently issue the equivalent of a deed. The notaire must use extreme caution before finalizing any deed of sale, as a misstep can expose the notaire to professional and financial penalties. Finally, it is the notaire who distributes funds to all parties with a financial interest in the transaction (seller, agent, tax authorities, mortgage bank, etc.).
Closing costs, called "notaire fees." Except in unusual circumstances, the charges payable to a notaire ("notaire fees") to conclude a real estate transition include all closing costs (taxes, transfer fees, documentation, etc.) as well as the professional fees due to the seller's and the buyer's notaire. Notaire fees are paid by the buyer. Notaire fees run between 6.5% and 7.25% of the agreed-upon purchase price. A notaire need not be in the region where the property is situated. Any notaire in France can handle any real estate transaction anywhere in the country. Notaires vary considerably in competence, personality, communication skills and English-speaking ability. Just France Sales works with a carefully selected roster of notaires and will be happy to recommend a skilled notaire upon request.
Does ownership of a property in France present special estate planning issues?
For most buyers, no. However, it is imperative to discuss estate tax and legacy issues with your notaire before finalizing the purchase. Of primary importance is to select the ownership regime (individual, joint with spouse, corporate, limited liability company, etc.) that will best accomplish the buyer's goals. Switching from one ownership regime to another after acquisition can be difficult and expensive. Generally tax and estate issues are easily manageable except perhaps in the case where the buyer wishes to prohibit a child (both from a current and former marriage) from inheriting. Nevertheless, a skilled notaire is generally able to devise a strategy that conforms to French law and also accomplishes the buyer's estate planning goals. That strategy may include creating a French will.
Should a client need professional advice Just France Sales has established relationships with lawyers and accountants - American, British and French - who specialize in international real estate transactions and estate planning.
No, not at all. The acquisition process in France is generally quite similar to that in countries like the United States or United Kingdom, although the time between having an offer accepted to the day when you sign the final documents and receive the keys may take a little longer.
Depending on your particular situation, two elements common to the acquisition process - determining exactly how to title the property, and financing - should be approached with more caution than in your home country. Your notaire will advise you on the different ways of titling a property in order to assure that your property passes to your heirs as you wish. The financing process is easy, but lending requirements, in particular as they relate to income and loan-to-value ratios, may be stricter than in your home country.
What if I don't speak French?
Provided you work with a bilingual real estate professional, it is not necessary to speak French to buy a property in France with confidence. Except in the most remote areas of France all the players in the acquisition process - agents, notaires, mortgage brokers, bankers - can be counted on to speak good English.
Each real estate transaction will require the assistance of a notaire. In rare instances it is necessary to seek the counsel of tax and estate planning experts. In referring clients to professionals Just France Sales takes special care to recommend only highly qualified persons who speak excellent English and are accustomed to working with foreign clients.
Do I need to open a French bank account? If so, is this difficult?
Yes, at some point before you take possession of a newly acquired property you will have to open a French bank account. Having a euro-based account is not required by law, but entities to which you will owe money for recurrent post-acquisition expenses (property taxes, homeowner's insurance, utilities, etc.) will require or strongly encourage direct withdrawals from your bank account. Direct debit is by far the most common method of payment in France for recurring expenses.
Setting up a bank account takes only a few minutes and requires a minimum of documentation. Among the papers required will be a passport and a couple of statements (home utility bill, bank statement, voter registration card, etc.) by which you can prove your home address in your home country.
Is it easy to transfer money to and from France?
Yes. Currency can be converted into euros, or converted from euros into US dollars, British pounds or any other currency, and transferred internationally in a matter of days or hours, for minimal fees. Just France Sales works with well-established currency exchange companies that provide the best rates.
Do I have to be in France during all phases of the sales transaction?
No. You may give your notaire a power of attorney that will enable you to exchange documents by overnight courier. Documents not requiring a signature can be exchanged by e-mail or fax. The initial deposit and final payment is transferred by wire transfer. While a buyer's presence at final signature (l'acte de vente) is highly desirable, it is not required by law.
Signing a procuration (power of attorney) enabling a notaire to act on the buyer's behalf is greatly facilitated when you have met with your notaire personally. Even if you have not yet selected a property to buy, it is highly advisable to select a notaire and visit his or her office to introduce yourself and familiarize the notaire with your project. The fact that a notaire has met a client face-to-face may ease some of the formalities connected with a procuration.
Just France Sales will be happy to recommend a competent English-speaking notaire upon request.
What is the time between having an offer accepted and taking possession of a property?
Typically the time from offer to acquisition is 75 to 90 days. An all-cash purchase without special legal or estate planning issues can possibly be expedited to as few as 45-60 days.
Who is this person called the "notaire"?
A notaire is a lawyer who is specially trained in French property law and is certified by the French government to oversee real property transactions. All exchanges of real property must pass through a notaire. A buyer and seller are both entitled to have their own separate notaire at no extra cost. The notaires' professional fees are included in the "closing costs" described below.
Preliminary agreement of sale. The notaire (ordinarily the seller's notaire) draws up the preliminary agreement of sale. The preliminary agreement of sale is called a Promesse de Vente or a Compromis de Vente. (Click here for an explanation of the difference.) The chief elements of a Promesse or Compromis de Vente are the identity of the parties, the sales price, conditions (if any) that must be satisfied for the sale to be completed, the results of required diagnostic tests on the property, and the projected closing date. If a mortgage is involved, the most prominent condition of sale will probably be the date by which the buyer has to obtain financing.
Clear title. American buyers will be familiar with the twin concepts of a title company that handles a real estate transfer, and title insurance that guarantees the title comes free and clear. The notaire essentially assumes these two functions by exploring the ownership history of the property, certifying that there are no clouds on the title such as liens or pre-emptive rights, guaranteeing that the buyer is getting clear title, and handling the legal formalities of the property transfer. Thus the Notaire is charged with ensuring that contracts involving real property conform to the current law as well as to agreements regarding the property (for example, easements) that may have existed before the present transaction.
Authentication and disbursement of funds. It is the notaire's further responsibility to sign the Promesse or Compromis de Vente. The notaire's signature authenticates the agreement by which the property is transferred from seller to buyer, and certifies the transaction for submission to government authorities, who will subsequently issue the equivalent of a deed. The notaire must use extreme caution before finalizing any deed of sale, as a misstep can expose the notaire to professional and financial penalties. Finally, it is the notaire who distributes funds to all parties with a financial interest in the transaction (seller, agent, tax authorities, mortgage bank, etc.).
Closing costs, called "notaire fees." Except in unusual circumstances, the charges payable to a notaire ("notaire fees") to conclude a real estate transition include all closing costs (taxes, transfer fees, documentation, etc.) as well as the professional fees due to the seller's and the buyer's notaire. Notaire fees are paid by the buyer. Notaire fees run between 6.5% and 7.25% of the agreed-upon purchase price. A notaire need not be in the region where the property is situated. Any notaire in France can handle any real estate transaction anywhere in the country. Notaires vary considerably in competence, personality, communication skills and English-speaking ability. Just France Sales works with a carefully selected roster of notaires and will be happy to recommend a skilled notaire upon request.
Does ownership of a property in France present special estate planning issues?
For most buyers, no. However, it is imperative to discuss estate tax and legacy issues with your notaire before finalizing the purchase. Of primary importance is to select the ownership regime (individual, joint with spouse, corporate, limited liability company, etc.) that will best accomplish the buyer's goals. Switching from one ownership regime to another after acquisition can be difficult and expensive. Generally tax and estate issues are easily manageable except perhaps in the case where the buyer wishes to prohibit a child (both from a current and former marriage) from inheriting. Nevertheless, a skilled notaire is generally able to devise a strategy that conforms to French law and also accomplishes the buyer's estate planning goals. That strategy may include creating a French will.
Should a client need professional advice Just France Sales has established relationships with lawyers and accountants - American, British and French - who specialize in international real estate transactions and estate planning.
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