After your offer on a property in France is accepted, the compromis de vente is signed, and your deposit is paid, the countdown to completion begins. The final steps of the process occur at the notaire’s office, where both the buyer and seller are expected to be present.
However, if you cannot attend in person, you can appoint a legal representative with a valid Power of Attorney to sign on your behalf.
Contents
- Understanding the French property buying process
- Finalising the contract
- Payment and financial transactions
- Costs associated with the property transaction
Whether you want an apartment, cottage or chateau, France delivers
Understanding the French property buying process
The timeline between signing the initial contract, known as the compromis de vente, and receiving the keys typically spans two to three months. This duration varies depending on the specific property and circumstances. The final step in the purchasing process is the official signing of the Acte de Vente, during which the keys are handed over to the new owner.
The Acte de Vente serves the same purpose as completion in property transactions in the UK or US. It legally finalises the sale and confirms your ownership of the property.
There are many protections in place for buyers when making an offer on a home
Finalising the contract
Before signing the Acte de Vente, you must ensure that all funds are available in the notaire’s client account at least three days prior to the signing date. The notaire will confirm that the account is settled and will accept their fee along with any applicable land registry fees, if these were not included in the notaire’s fees. After the sale has been published with the Land Registrar, the notaire will deposit the fees with the relevant authorities.
Your estate agent will assist in transferring the utilities into your name, reading the meters on the day of the signing, and ensuring the safe handover of the keys. Following this process, you will receive an attestation of purchase, which serves as proof of ownership. The actual property deeds will be sent to you several months post-purchase, completing the legal process.
The financial criteria for France’s visas are more generous than many realise
Payment and financial transactions
It’s vital to consider the two types of property taxes applicable in France: the Taxe d’Habitation and the Taxe Foncière. The former is due by the current owner on 1 January each year, meaning if you buy the property at any point after this date, you won’t be accountable for this tax until the following year.
The Taxe Foncière is typically payable around October each year for the upcoming year. Consequently, you will need to reimburse the seller for the tax from the day you purchase the property. The notaire will facilitate this transaction and provide you with a final account for your records.
Careful planning can save you considerable sums in the long run
Costs associated with the property transaction
Several costs combine to form what is known as the notaire fees (or frais de notaire). These include:
- Change of ownership fee (frais de mutation)
- Charges for mortgage security (frais de garantie)
- Land registry fees (droits d’enregistrement)
- Fees for various formalities and administrative acts
It is important to note that in France, the buyer is always responsible for paying the notaire fees. If purchasing a new-build property, a VAT of 20% can be levied on the purchase price, but this should already be included in the agreed price. Existing properties over five years old are generally exempt from VAT.
Understanding these fees and processes ensures that your purchase experience is smooth and that you are well-prepared for the financial implications of buying property in France. By working closely with your appointed notaire and estate agent, you can navigate the complexities of the French property market with confidence.
Once you complete, your overseas journey is just beginning
Next steps
If you’re considering buying property in France, engaging with knowledgeable local professionals can streamline the process and protect your interests. Start planning your French property purchase today by consulting with experienced estate agents and legal advisers.
Purchase your French dream home with ease!
