No matter how many properties a person owns in their home country, there will always be a demand for properties abroad, and France is certainly no exception for those seeking to purchase a property. Paris is a prime tourist destination, and the demand for property in France remains high for people looking to spend more time living the French lifestyle. Purchasing a property in any area of France is somewhat different to buying a property elsewhere though, involving more legal stages than many people are familiar with.
With real estate in France varying wildly in style, size, and price, property ownership is the perfect opportunity to experience some truly magical scenery, enjoy a different pace of life and benefit from the growth in this exciting property market. French property markets have benefited from a reduction in wealth taxes, making them a welcoming proposition for a growing number of foreign investors looking to purchase a property in France. For buyers among this growing number, deciding which of the different locations, lifestyles, and exciting opportunities are best, can be a challenge with so many beautiful options. This guide details the process of how to buy a property in France.
Paris, the French Riviera, Alps or Bordeaux?
For people who desire hustle, bustle, and cosmopolitan living, then Paris could be the perfect place to buy a new home or add to a property portfolio. A growing number of high-net-worth individuals are certainly falling for the charms of Parisian life. Its strong reputation as one of the most popular prime property markets and recognition for being the number one European travel destination now sees Paris competing with London as a top European city.
Alternatively, the French Riviera opens up the jet-set lifestyle and warmer climate with St Tropez, Cannes, and Monaco all popular destinations. Joining the growing community of rich and famous residents offers exciting opportunities for French property ownership for investors, holiday homeowners, and those who want to make a permanent move to the attractive french Riviera. Equally, those looking for a countryside gite or a ski chalet in The Alps will also find plenty on offer.
Once set to buy a property in France, finding finance is the next step. Financing property and completing a purchase will require some knowledge of the quirky French system. As a property purchaser or investor, buying a property in a foreign country has its challenges but these can be alleviated with the right advice. For instance, funding for foreign property purchases is more accessible when using the services of a finance brokerage simply because they will have access to more favorable lending solutions than individuals might be able to find alone.
Of course, once the finance is in place the legal journey to buying French property starts.
Legal stages involved in buying a French property
1- Notary Appointment
Once an offer has been accepted on a chosen property, a notary must be appointed to complete the transaction. The seller can appoint an additional notary. A notary is the state’s legal representation who will ensure that everything is lawful and the transaction is being taxed and charged correctly. The notary will ensure that all parties understand the purchase agreement’s contractual obligations.
Notaries must be paid for their services, plus all taxes and stamp duty will be paid to them. There is also potential for additional land registry and property security to be paid. International property investors face a mortgage market that is not as liquid as elsewhere, hence there is a certain reluctance from French lenders to offer favorable mortgage conditions to individuals compared to using a mortgage broker. A mortgage adviser with experience in the French property market will ensure any additional costs of French property acquisition are known upfront and there are no potential tax implications.
2- Preliminary Contract Completion
The notary will draw up a preliminary contract after receiving completed seller paperwork. The paperwork addresses matters such as confirming the title of ownership, confirmation of building regulation compliance, and reporting any potential risks and property deficiencies. There is no legal obligation at this stage to continue with the purchase. This stage is where an annulment is most likely to occur if the report reveals any issues.
3- Deposit Payment
Once the preliminary contract is signed, a deposit of between 5% and 10% of the purchase price is paid to the notary and held in an escrow account pending completion of the purchase. There will be a compulsory buyer’s ten-day cooling-off period, unlike property purchases in many other countries. Should the buyer, at this stage, have a change of heart, they can walk away from the purchase with no further obligation or loss of deposit money. The deposit money will be refunded in full, and there is no necessity to give a reason for the decision.
4- Full Payment and Transfer of French Property Title
After the cooling-off period finishes, the balance of the purchase amount must be paid in full. Final payment is made to the escrow account, and the notary must ensure that taxes and fees are discharged before the balance is transferred to the seller. Both parties will sign the final deed, witnessed by the notary and with both parties’ relevant advisors present. The notary’s role is then finished. At this point, keys are released to the new owner of the property in France.
Summary
This guide on how to buy a property in France details the basics of the process and legalities involved. Now the fun comes for you to decide where you want your property to be in this elegant part of the world.
