French property purchase process

Buying a property in France follows a slightly different path than in the UK or elsewhere, with its own traditions, legal requirements, and paperwork. While it can seem unfamiliar at first, the process is straightforward once you know what to expect. From making an offer and signing the initial contract, through to notaire involvement and final completion, each stage is clearly defined. Here’s an overview of how the journey typically unfolds.

Estate Agents

You should only view properties through a licensed immobilier, as these agencies must have a carte professionnelle as well as full professional indemnity insurance. Almost all prices that you see on an agent’s website or in their window will include their fees (normally around 5–7%) but will not include notaires’ fees and taxes. You should check this before viewing.

All French estate agents operate under the Loi Hoguet (their code of conduct) and are subject to tighter regulations than their counterparts in the UK. There are also a small number of federations that have best practice charters and who offer training and guidance to their members.

The biggest, and best known, of these is the FNAIM, which has over 11,000 member agencies throughout France, selling almost half a million houses. When you’re ready to start looking at properties, make contact with some agents. They will show you a selection of houses that meet your criteria and will be able to answer questions on the buying process and compulsory diagnostic tests that will be carried out before purchases.

Viewing Trips

A much higher percentage (as many as 50%) of properties are sold privately in France than in the UK, avoiding the hefty estate agent fees. A good starting point may be driving around the area you’re buying in, looking out for signs saying “À Vendre” (for sale), or sometimes just “AV”. Obviously, you then lose the “hand-holding” service that agents offer, both during and after the sale to help you settle in, and you will need good legal representation.

Almost all buyers will start their search by looking for a property online. When looking through French search engines: “pièces” means rooms, “chambres” means bedrooms.

Unlike the UK, with French properties the floor size (surface) in square metres (m²) is prominently displayed, as well as the plot size (terrain) – which is much more useful for comparing properties. It is always a good idea to line up legal representation before you look for property, so that if you find the right one you’re in a position to make an offer and can check what you’re signing.

Role of the Notaire

A Notaire is a self-employed legal specialist who has public approval to draw up the conveyancing contracts and oversee the sale. All sales need to go through the hands of a notaire. They act on behalf of the state and are appointed by the Minister for Justice. Both seller and buyer are able to request a notaire of their choice – costs remain the same and they simply split the work. You can find a list of notaires, and their duties, at www.notaires.fr.

Contrary to popular opinion, the notaire is not there to represent you. They represent the state and undertake planning and other searches with the local authorities. If you want to have someone representing your legal interests there are a number of regulated UK legal practices with specialist bilingual solicitors (for a fee).

Making an Offer

Once you have found a property that you like you should make an offer (preferably in writing) to the agent. Ensure that all parties know exactly what is included in the offer and don’t forget to set aside a budget for the notaire’s fees and taxes. There is no hard and fast rule as to how low your offer should be, and in a “hot” market you may well need to pay the asking price. In turbulent times you may well be able to negotiate a discount but making a derisory offer could be a mistake.

Either way, you should have all of your financing in place before you make the offer. Almost all properties in France are freehold. Each property is registered at the Conservation des hypothèques (land registry). In France, ownership of property is determined by registration, not by title deeds. If an exact plan of the property is not available or if you are purchasing part of an existing plot, the notaire will hire an expert to map the boundaries.

Preliminary Sale Agreement

Once your offer is accepted and the compulsory tests have been undertaken you will be asked to sign the compromis de vente. This will either have been drafted by the agent or notaire. It is a binding agreement between the vendor and the buyer, subject to any conditions that may be stipulated in the contract.

The most common such condition is that relating to a mortgage being secured but others could include planning consent or rights of way. Once signed you do have a 10-day cooling off period – during which you may pull out of the transaction at any time, without explanation, but you must do this by registered letter/email.

You will usually pay a deposit of ten percent to the agent or notaire and this will be kept in a special bank account as a guarantee until the purchase is completed (another reason to only buy through a licensed agent).

Completion

It usually takes eight to twelve weeks from signing the compromis for the final acte de vente to be completed and ready for signature. The signing is usually at the notaire’s office although since Covid-19 you can sign via power of attorney and the date set in the compromis is a target date and not set in stone).

You must have transferred the balance of funds in advance, and it would be wise to shop around using specialist currency brokers. You must also provide proof that the house is insured. Once the signing is complete you are given the keys and the house is yours.

Purchase Tax

Buyer should budget for between 7-8% on top of the purchase price for notary’s fees and tax. The tax (effectively stamp duty) represents approximately 5.5% of this amount and the rest is the notary’s fee.

The seller doesn’t contribute to the notary’s fees. The fees and tax are payable via the notary’s account on completion of the purchase. For new build and off plan purchases the costs payable by the buyer are significantly less - approximately 2.5%. Additional notary’s fees will be charged if the buyer is obtaining a French mortgage to assist with the financing of the purchase.

Buyers should expect to pay additional notary’s fees of 0.5-1% of the amount of the loan for the notary to receive loan instructions from the bank and register a charge over the property in favour of the bank.