A Guide to buying Property in France

Buying a property in France, as it would be  anywhere else in the world, is an important undertaking and involves a complex legal process. Under French law, housing falls under specific legislation which governs what is referred to as immovable property, i.e. that which is attached to the soil.

Below we have laid out some tips to help you with the process of finding the right home. Follow the links for further information relating to the legal process, to find recommended lenders, currency brokers,  for details of market conditions and for links to more agencies if you can not find what you are looking for here.   

The process starts with finding a suitable home.

 House Hunting in France

Selecting the area

• Define your criteria giving consideration to personal interests, sporting activities,  proximity to airports, towns, restaurants,  schools and hospitals. 
• Research the climate and the geographical, cultural and economic  infrastructure in those areas that appeal. 
• Back up the research with field trips.

Financing

• Define your budget, and analyse how it will be financed. 
• If a mortgage is required, decide whether you want to borrow against collateral held in your home country or whether you want to borrow against the property you intend to purchase in France. In the latter case one would use a French Bank.  This is not as daunting as it may first seem as many banks have multilingual departments specialising in loans for foreign buyers and many familiar banks, (Abbey National, Credit Agricole, Barclays...) have French divisions set up for exactly this purpose. 
• Speak to a couple of Banks  in order that you have an idea of what they will be prepared to lend. 
• Assess the costs of restoring a property in order that you can make an informed decision when you find a property requiring work. Most property will require some degree of work.

 

Style of property

• Define the type of property you require,  new or old, elegant or rustic, how rural you want to be, the size of the house, outbuildings and the amount of land that you require.  Remember that the cost of purchasing a house in France may be significantly lower that that in the UK but the costs of maintenance may not be all that different. 

Finding Properties

There are several sources of property which may be worth exploring:

• Notaires often have a department dealing with property sales for their clients.  The advantage is that their commissions are lower than those of Estate agents. Their portfolios are usually limited however and rather localised.
• For sale by owner. This route can produce some savings but purchasers should have a good knowledge of market values as some properties sold in this manner have been rejected by agencies due to unrealistic price expectations from sellers. 
• Estate agents are tightly regulated within the French system and on the whole offer a professional service. The system is different to that in the UK however and property details they provide are often rather sketchy.  This is  compensated for by the level of hands on service.
• Allocate at least half a day per agent. The distances between properties can be substantial. We like to plan a circuit taking in a carefully selected sample of properties. During the trip we try to gather maximum feedback relating to our purchasers' preferences. With this information at hand we can then better interpret their requirements. Most agencies have access to a few hundred properties and the agent should be able work with the purchaser to select those properties most suited to their needs.
• Agents can also be a useful source of information about areas, market values,  local developments, and basic legal issues.

 

We often meet clients with whirlwind agendas looking to see maybe one or  two houses. Our success rate with these clients drops from over 30% to less than 5%. This is obviously not desirable from our perspective,  but ultimately I believe no more desirable for the client.  Here is why.

1. Many mediocre properties present well on the internet.  Occasionaly fine properties present badly. We prefer to concentrate our efforts on the second category whereas the whirlwind client will be planning his agenda around the first category.  We are ruthlessly straight forward about our feelings about a property and can often avoid wasted journeys to see houses that photograph well but which do not meet the clients requirements.
2. We find that the little information we manage to garner about a purchasers on a whirlwind visit is wasted.
3. The areas that lie to the north,  west, south and east of our office are all different and we try to arrange circuits through those areas that best suit a clients requirements.  This not only helps us to further understand their needs but also allows our clients to better understand those differences and to make choices based on that information.  

Negotiating

• Ensure that you are aware of the fixtures and fittings that the seller intends to leave as part of the sale.
• Once you have found the right property,  you have researched the market and have some confidence in market values, you know how long the property has been on the market, you are aware of any price movement and the sellers motivation for moving,  it is time to make an offer.
• There is no exact science to negotiating in France, your strategy should be derived from collecting and analysing the information at hand.  As a rule of thumb we believe that one should make a fair offer, close to, or at the level that you are prepared to pay. The offer should be tempting to the seller and targeted at a level that you realistically hope to achieve.  If you have made an offer at this level you can sit on it without being overly concerned that another purchaser will outbid you in the short term.
• See if there are any other factors that would be attractive to move the negotiations forward. This may involve a longer or shorter completion date,  inclusion of more or less furniture and fittings, allowing the seller to store some possessions after completion, etc. By now you should know exactly what price the seller will accept and you should be able to make a considered decision as to whether you are prepared to agree to it.
• We find the French to be skilled negotiators on the whole and when  an unrealistically low offer is rejected it puts the purchaser on the back foot. Once the price starts moving upwards from too low a level it is difficult to assess at what level the offers become tempting to the seller and it is usually only after moving well beyond this point that an agreement is reached. 
• No matter how tempting a property appears from details on the web or in a magazine, never be tempted to make an offer on a property unseen. This should not need to be stated but to our amazement this activity does occur from time to time and is likely to cause nothing but grief.

Formalities

• Once your offer is accepted a report will be prepared by an approved  surveyor which covers searches for asbestos, lead and termites. This needs to be attached to the preliminary contract.
• Once the Notaire has received the expertise relating to the relevant searches he will prepare the contract for signature.  Once you have signed the contract you have a seven day cooling offer period within which you can withdraw from the sale.  If you cannot be present for the signature the contract can be sent to you by courier to be signed and returned.
• The Notaire can at this stage also advise you on inheritance issues or any changes which may have to be made regarding your matrimonial vows.
• The buying process usually takes 2-3 months but in some circumstances can take longer.  A longer completion date can be negotiated should the seller and buyer both be in accordance.
• When the Notaire is satisfied that all the relevant conditional and suspensive clauses have been met and he has received all paperwork necessary back from the relevant parties the final contract can be signed.  We suggest strongly that you are present for this signature although if for some reason you can not be present a "procuration" or power of attorney can be given to the clerk of the notaire to sign on your behalf.

Services

• On the date of final completion you will need an attestation that the property is insured.  We as your agent can organise this for you, together with the change of name for the electric, and water services.  You will need to apply in person for a telephone line at France Telecom.
• As your agents we are here throughout the buying process to ensure that it is as painless as possible - do not hesitate to contact us should you have any queries and questions.  We will do our best to answer or to point you in the right direction.

Useful Links:   Daily Life in France - Sensible info about daily living in France.