Purchasing a property in France is an exciting prospect, but it can be confusing, especially for those doing it for the first time. To help you on your journey to becoming a French property owner, we’ve outlined some potential pitfalls and how to avoid them to help you navigate the process safely and securely.
Not understanding the market
The first question for anyone looking to buy a property in France is what are you looking to buy? Once you’ve established that, it’s much easier to outline your next steps.
If you’re not already set on a location, deciding what to do with the property will help you narrow your options.
For example, if you’re buying a property as an investment, you want it to be somewhere that’s popular with tourists or where long-term lets bring in decent cash.
If you’re looking for a holiday home, you’re likely looking for somewhere to escape for a few long weekends a year and be within walking distance of all amenities or the beach.
You get the idea.
Once you’ve outlined your purpose, you can narrow down your location.
The French property market is much more varied than the UK market, where the north/south divide says a lot about property prices. In France, your more luxury homes (and higher priced properties) can be found in Paris and Ile de France, along the Riviera in the south of France and in the Alps (Val d’Isere especially).
If you need guidance on where to buy in France, speak to a trusted estate agent today.
Find your dream home in France today
The French legal process
We highly recommend you get in touch with a French solicitor early on in your French buying process. Since you’re buying somewhere where English is not the native language, it’s better to have someone on your side who does speak the language. Most solicitors in France have English-speaking lawyers.
There are a few French phrases you’ll need to know when buying a property in France. A common pitfall could be confusing them and not quite understanding the stage you’re at. Here, we’ll outline the basic steps from a legal perspective.
- Make an offer
- Once you’ve found your property, you might be asked to sign a reservation contract, although this is rather uncommon.
- Then, you’ll be asked to sign a deposit contract, called the compromis de vente, and pay your deposit. The compromis de vente is the first legally binding contract. In France, there is a 10-day cooling-off period for both buyers and sellers to change their minds without additional costs.
- Finally, the Acte de Vente. This is typically drawn up around three months after the signing of the Compromis de Vente. It has to be signed at the office of the notary who prepared it, but it can be done via power of attorney should you not be in France. At the signing of the Acte de Vente, you must ensure that the balance of funds needed to complete the purchase of your property in France is in the notary’s bank account already. It cannot be done on the day by cash or cheque.
- Once the Acte de Vente is signed, you are officially the legal owner of the property and you’ll receive the keys.
Foreign exchange
Presuming that you’re buying from outside France, you’ll likely need to consider foreign exchange to pay for your property in France.
A potential pitfall is to skip this step and use your high-street bank to make your overseas transfer. This can end up costing a considerable amount more than necessary.
These avoidable costs can be mitigated by choosing to use a specialist foreign exchange service. Your Overseas Home recommends Smart Currency Exchange, a currency exchange specialist that has helped thousands of buyers buy a property in France safely and securely.
Smart Currency Exchange specialises in large international transfers, meaning they offer special services that can help protect your budget from the fluctuating exchange market. Why not speak to Smart Currency Exchange today?
Due diligence
When buying a property in France, just like when doing so in the UK, it’s advisable to speak to a French solicitor. They will be able to complete any due diligence on the property including researching its history and checking there aren’t any debts associated with it.
Getting a property survey done before buying a property in France isn’t as common as it is in the UK. However, there are a number of reasons why it could be a good idea.
The phrase ‘subject to survey’ in France doesn’t hold as much clout as it does in the UK. If you did want to get a survey done, the 10-day cooling-off period would be a good time to do so, as should anything untoward come up, you’re legally protected.
A solicitor would be able to advise you on the likelihood of planning permission in France and could recommend services based on where you’re buying.
