Process of Purchasing a Property in
Brittany France
The process of buying a property a can seem daunting with the
regulations and the language barrier. We have tried to put together a
simple guide to help you through the process of buying a property in France.
Inspections to be carried out by the Seller
When selling a property in France the seller has to inform the potential buyer
everything that he or she knows about the property. Technical inspections must
be carried out addressing a number of specific issues prior to the sale of the
property
Inspections Carried Out
1. If the Brittany property is co-owned the surface area must be provided pursuant to the Carrez Law. The seller must indicate to within 5% the surface area of the
property and vouch for this accuracy for a period of one year after the sale.
Services of a professional are normally used to take these measurements.
2. Since 1 September 2002 detached properties must be tested for Asbestos. For
properties in Brittany built before 1 July 1997 a test for Asbestos must be
carried out. This test must be carried out by an authorised, insured
professional.
3. Depending on location two other tests may be required as well for termites
and lead. If a department is classified as termite-infested a report must be
provided by the seller carried out by a qualified, insured professional.
With testing for Lead if any department is deemed at high risk for lead exposure
properties constructed before 1 January 1948 must have been inspected within the
previous year. A copy of this report must be sent to the departmental prefect.
4. From 2005 All Septic tanks must comply with EU Regulations so it is worth
asking for a certificate of conformity from the seller.
Purchasing Property in France
Notaires specialise in property and family law. They are public officials
authorised by the government to prepare private contracts and are there to
assist you. Any property transaction must meet the requirements of French and
International Law.
Pre-Sale Agreement
A Pre-Sale Agreement is a contract between the seller and the buyer which in
effect freezes the property ensuring no one else can purchase that property. The
contract is normally valid for a few months during which time the Notaire will
prepare the sale documents. This process normally takes about 3 months but can
take longer to obtain the necessary paperwork. This agreement is normally signed
within a few days after the buyer and seller have reached an agreement on the
property sale.
This agreement obligates the seller to sell the property and the purchaser must
provide a security deposit (usually 10% of the purchase price) when the contract
is signed as proof of intent to purchase. These agreements are
normally prepared by your notaire. The buyer may instruct their own notaire or
share the sellers notaire with the fee being shared between both notaires.
Suspensive Condition
A number of provisions (suspensive conditions) can be stipulated within the
contract. These provisions stipulate that the contract will be invalidated and
both parties released if certain events take place prior to the final sale e.g
if the purchaser's mortgage application is rejected, certifcate d'urbanisme
(confirmation of planning approval) is not approved, problems arising from the
inspection reports etc. These Suspensive conditions have to be agreed between
the buyer and the seller and ensure that say for example if you are buying a
property and need planning permission to convert into gites this condition is
set out in the Purchase Agreement, if planning permission is refused the seller
may pull out of the sale and will not loose their deposit.
Once the Agreement has been signed the buyer has a cooling off period of seven
days during which time they can withdraw from the agreement and the deposit is
returned in full. If after the eight days the buyer changes their mind they will
loose the deposit.
It is also important to list in this agreement any items to be included in the
sale.
Completion
Once all the conditions of the agreement have been met and the Notaire has all
the necessary paperwork the buyer and seller will meet with the Notaire for the
final signing of the Acte Authentique (Transfer Document). The balance of funds
must also be paid including any tax and Notaires fees. The Notaire will read
through the document and both parties will need to sign. The buyer will then
receive an Attestation de Propriete (Confirmation of Purchase) and a receipt for
the purchase price plus the keys to the property.
Insurance
It is also worth remembering that under French Law the
property must be fully insured by the purchaser at the time of purchase - a
certificate of insurance will be asked for by the Notaire at the final signing.
Fees and Taxes
When purchasing a property it is important to ensure that you know the full
costs involved. These Notaires fees are primarily paid as tax. The Notaire is responsible for
collecting the tax on behalf of the French Government. The tax is normally about
5% of the purchase price, together with another 2% for the Notaires fees and
other miscellaneous fees. It is worth checking with the Notaire exactly what
these fees are.
Glossary of Terms
Accompte - Deposit
Acte Authentique - Transfer Document drawn up by the Notaire
Agence Immobilière - Estate Agent
Amiante - Asbetos
Attestation de Propriete - Confirmation of Purchase
Bon de Visite - Form completed by a person before they view a
property. This form means that if for a set period of time you wish to
purchase the property viewed you must purchase it through the Notaire or Agent
you signed the form with
Cadastre - Register for local town planning
Carte Professionelle - Professional registration of an Estate Agency
Certifcate d'urbanisme - Confirmation of Planning Permission
Clause Suspensive - Suspension Clauses which can be included in the
initial agreement for purchase
Compromis de Vente - Purchase Agreement Drawn up between the buyer and
seller of the property.
DDE - Department of the Environment
(responsible to the Mairies as instructors for planning permissions etc.)
Etude de Sol - Test carried out for permission for a Septic Tank
Fosse Septique - Septic Tank
Geometre: Surveyor
Hypothèque: mortgage encumbering the
property as a security for the payment of money
Immobilier - Property or Estate Agent
Impot - Tax
Mandat - Form
Mandat de Recherche - Form which a buyer signs when engaging an agency
to search for a property
Notaire - Public Official authorised by the French Government to to
prepare private contracts
Permis de Construire - Planning Permission
Promesse de Vente - Undertaking to sell the property
Taxe D'Habitation - Habitation Tax payable for occupation of a
property
Taxe Fonciere - tax payable for ownership of a property
Toutes Taxes Comprise (TTC) - price includes all sales taxes
This is our interpretation of the French regulations so please check with the
Notaire for any changes in the regulations and how they apply to your property
purchase. We accept no responsibility for any errors or misinterpretations of
any of the information on this page.
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