|
GENERAL INFORMATION
REGARDING THE PURCHASE OF REAL ESTATE IN FRANCE
The handling of the purchase of real
estate in France runs along strict legal guidelines. From the
initial offer to the final entry into the Land Register, certain
official regulations will have to be fulfilled. Each sale must
be handled therefore by a notary.
As of June 1, 2001 all agreements
between private persons regarding the acquisition of a property
for housing are subject to a right to withdraw by the purchaser
within seven days and no one is enabled to receive funds
before this legal delay expires with the exception of a professional
agent or notary having received a sales mandat and holding a
financial guarantee regarding the repayment of the funds. The signed contract is delivered to the purchaser
by registered mail or equivalent. The delay of withdrawal starts
on the following day after the first presentation of this letter.
If you choose to buy, a legal preliminary
agreement is arranged taking into consideration the above conditions.
This can be made by a notary or an officially certified broker.
In this preliminary agreement, the main points of the contract
are determined These form the basis of the notary contract later.
This preliminary agreement is absolutely binding. Non-compliance,
and refusal to sign the notary contract, incurs a penalty, usually
10% of the purchase price, to be paid to other party.
If you require financing, indicate this
when making the preliminary agreement. If the other party agrees
with it, this financing requirement can be included as a safeguard,
or get-out, clause.
The preliminary agreement is passed
on to the notary, who creates the final notary contract within
a period of 2-3 months. This period is relatively long, since
the notary must collect various documents from the Mairie, the
Land Register and the Revenue offices. The notary vouches for
the legal passage of title with his signature, and for the new
Land Register entry which can then take place.
After the purchase price, the buyer
must also pay the notary costs. This amount includes the tax
on real estate transactions, all fees and the notary fee. The
size of the amount depends on the type and the age of the property.
In general, the notary costs with properties which are not older
than 5 years are about 3% of purchase price. With older properties
the cost is about 6 % of the purchase price.
AFA International can advise, guide
and assist at any and all stages in this process. We have over
10-years experience in this specialized field, and can help in
German or English for those whose French may be insufficient.
Try us - we have a good reputation!
For more in-depth information about the process of acquiring
real estate in France and its legal, tax and financial implications,
please visit frenchnotaire.com
and learn how to make the best use of the French "NOTAIRE"
|
