Country Buying Guides - France

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and French legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• The Notary Public
The notaire who oversees the sale of a property is primarily concerned with registering the sale, ensuring that the conveyancing is carried out according to the law, and collecting the relevant taxes on behalf of the government. Although they are qualified to provide legal advice, notaires are neutral and do not act on behalf of either side.

• Insurance
Special assur’titre insurance policies can be taken out to insure the title of a property against unknown title defects, such as unforeseen claims by third parties and the violation of planning regulations by former owners, as well as mistakes on behalf of the notaire.

• Preliminary Contract
In France, it is common to sign a preliminary contract. A contract, known as a ‘compromis de vente’, a ‘promesse de vente’ or a ‘sous-seing privé’, is entered into early on in the process, and commits the vendor and buyer to an agreement that concludes with a deed of sale, or conveyance. The agreement is drawn up and handed to the notaire overseeing the completion of the sale together with the deposit. The preliminary contract gives the details of the parties and the property, and the price and the completion date when the signing of the final deed of sale takes place. At this stage, a deposit of 10 per cent of the purchase price is paid by the buyer to the notaire.

• Completing the Sale
When all the procedural formalities have been concluded, the notary will summon the parties to his office for the signing of the final deed. The formalities leading to completion usually take between two and three months. The notary will ask for the balance of the purchase money and the costs to be sent direct to his bank account. This process can often take up to two weeks.

Many buyers complete the purchase by using a power of attorney, which effectively gives someone the power to sign the contract on your behalf

• Registration
The notary will stamp and register the title deed which can take about six months. A certified copy of the purchase deed, or expédition de vente, is then sent to the notary by the land registry who usually keeps it on behalf of the buyer. This is the only evidence of ownership available. There are no title deeds. If a buyer requires evidence of his ownership, he can ask the notary for a declaration –attestation de vente– to this effect.

• Costs and Fees
In France Stamp duty (Imposto de Selo) is payable at the same time as the notary fees, Stamp duty is normally 0.8% of the purchase price, and notary fees range from € 250 to € 300, dependant on the purchase price.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP