Buying a property in France can be stressful, even
to a French-speaker. Language is not the only
barrier; French expectations, culture and, most of all, the
legal system can trip up even the most savvy property investor.
Our French Property team offers you
peace of mind and will smooth the buying or selling process,
avoiding the mis-understandings and nasty surprises that all too
often befall the unwary.
Here we provide some useful information for anyone buying or
selling a property in France, including some 'key facts' about the steps in
the process:
purchasing a French property
Our French Property team will liaise with
the French notaire, estate agent and the Mairie (local
authority), review the initial contract (compromis de
vente) and draft any clauses that need adding. They will
ensure that you are satisfied with the contract before committing
to the transaction. The last stage will be to review the draft
deed.
If you are buying a new build chalet or
apartment in the Alps, for instance, our French Property
team can assist with reviewing the reservation contract
and any commercial lease agreements for those buying in a leaseback
development.
other buying considerations
- Find out more about the best way to buy
the property together.
- Are you selling your property in the UK
before buying in France, or perhaps considering a house swap? We
would work closely with our Residential Property team, who would be happy to
deal with the UK property, and will assist the notaire in drafting
the right get-out clauses.
- If you have bought an off plan property and
encounter any difficulties with the construction, our Travel team
may be able to assist you.
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selling a property in France
Selling a French property, when not a
French resident, has specific legal and tax implications that would
not be relevant for French-based vendors.
Remember; as a vendor, you do not have the
benefit of a cooling-off period, so it is vital that you seek
advice on the draft initial contract before signing it. You
would not want to remain liable to your new buyers after the sale
has completed, for instance. Selling an apartment has further
implications regarding the works to be voted and the split of
running charges during the year of the sale.
In addition to reviewing the contract for you,
we would focus on your French capital gains tax (CGT) position and,
if applicable, your VAT position (for example, if you are reselling
of new build).
Non-French residents are liable for CGT at a
rate of 19% from 1 January 2011 if you live in the EU, or 1/3 if
you live in the Channel Islands or outside EU. Furthermore
you will also have to appoint a tax representative if the sale
price exceeds 150,000.00€. Our French Property team will
liaise on your behalf with a tax representative to facilitate the
calculation of any tax and the release of the proceeds after
completion.
If you are selling any furniture, you must
exercise caution as the common way of dealing with those is to
include them in the main contract for the property, but you may
inadvertently create a tax liability. We can prepare a
separate sale contract for the furniture if we advise this is
appropriate.
See how we helped non-French
residents save tax in their French property sale.
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key facts about buying and selling a property in France
Whether you are buying or selling a house in
France, you will be asked to exchange contracts almost immediately,
event before any searches have been carried out by the
notaire. This is why the initial contract is the most
important document - it needs to anticipate any problems that
could be revealed in the searches. Get out clauses will be inserted
in the contract to provide some protection.
The contract is prepared by a notaire or
an estate agent and includes the general conditions of sale
(conditions générales) and the get out clauses (conditions
suspensives) that you will have agreed with the other
party. It can be tailored to your wishes and to the property
you are buying.
A deposit of 5% to 10% is usually paid by the
purchaser. Once the contract is signed, a cooling off period
of seven days will be offered to the purchasers only.
From the day that the notaire is instructed,
you will have to allow a period of approximately two
to three months for him to carry out the searches before being
able to complete at his office.
Should you not wish to be present on
completion, we would be able to prepare a power of attorney
(procuration) and legalise it with one of our UK
solicitors, or a notary public if required.
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