We strongly recommend that you engage your own lawyer and/or independent notary—one that speaks both English and French—to represent you throughout the purchase process. You may wonder why, when you’re already paying the government notary to handle the property conveyance. Although it’s not necessary, it is in your best interest. The only function of a government notary is to make sure that a sale is properly completed under French law. As state officials, they are acting on behalf of both purchaser and seller. They are under no obligation to draw your attention to any potential problem areas. An independent French notary won’t cost you anything additional, as he will share the fees with the government notary. He will guide you through the paperwork and have all the legal documentation translated for you before you are required to sign anything.
Moreover, you need to be sure that you understand France’s inheritance laws before signing any legal documents. How you structure any contract (whether it is in a single name, joint names, or the name of a company) affects who inherits your property. Regardless of how you’ve formulated your North American will, don’t assume that your spouse—or anybody else—is going to be the beneficiary of your French property when you die. France’s complex inheritance laws date back to Napoleonic times and guarantee children (and sometimes parents) a share of the estate. A spouse has no automatic right of inheritance. There are ways around this, and a specialized lawyer can advise you.
The agent draws up an initial contract of sale, the compromis de vente. Remember, unless you are absolutely and clearly au fait with the process, we recommend that you get your own lawyer and/or an independent notary to look it over before you sign it. Although the compromis de vente is the most usual, there are other types of preliminary contracts. There is no standard form. Know what you’re signing, and be sure that it contains any conditions suspensives that may be deemed necessary. These are conditions that, if not met, render a contract null and void and entitle the prospective purchaser to recover his deposit. For instance, there are laws to ensure that the preliminary contract can be conditional upon the prospective buyer being able to arrange a loan to purchase the property.
The promesse de vente and promesse d’achat are options. These constitute a commitment to sell or buy, but, in each case, the other party is not legally bound. On the other hand, the compromis de vente is a binding agreement that fixes the price and obligates both vendor and purchaser to come to an eventual completion. However, with a promesse de vente or a promesse d’achat, a purchaser who decides to back out won’t lose his deposit...and may be subject to a claim for damages. The same applies to the vendor. If he pulls out, he can be liable for compensation up to an amount equivalent to the buyer’s deposit.
When the compromis de vente is signed, the purchaser pays a deposit, usually 10% of the price of the property. This deposit is put into an escrow account, held by the notary or real estate agent. If paying cash, the contract is considered definitive. If you pull out, you lose your 10%. If you’re applying for financing, you have a maximum of 45 days to arrange a mortgage. If the bank refuses to lend you money, then the contract is null and void, and you get your deposit back. If, however, the bank accepts, then the conditions are the same as a cash buy.
Once you’ve signed the compromis and paid the deposit, the notary gets down to business. Various searches are carried out relating to the freehold of the property. During this intermediary stage, you will be required to provide the notary with copies of your birth and (if relevant) marriage certificates.
Once searches have been conducted and everything is judged to be in order, both purchaser and vendor are called to the notary’s office. The notary reads aloud (in French) the final deed of sale, the acte de vente. Both parties, as well as the notary, sign this deed. If you have given your notary or the real estate agent power of attorney ( par procuration), he can sign on your behalf. You pay the balance, receive the keys, and become owner of the property. (Note that the balance monies are required to be in place before final sale day.)
You will be given a proof of ownership paper and, approximately six to eight weeks later, receive a copy of the deed once it has been recorded in the French administration system. The original document is kept at the notary’s office.
Once you’ve signed the final acte, you are responsible for the insurance of the buildings. This, by law, must include third-party liability insurance. You are responsible for paying local and land taxes ( taxes d’habitation and taxes foncières). Taxes d’habitation are charged to the person occupying the property on Jan. 1. Taxes foncières are charged to the person who owned the property on that same date. (Owners of new properties are exempt from taxes foncières for the first two years.)