the key steps in buying a property in France - final part
...champagne!
Mr and Mrs Smith exit the notaire's office as the new
owners of their French dream home. The estate agent, who attended
completion, gave them the keys and they are now excitedly heading to their property.
But there are still a few more formalities for them to
consider before putting their feet up and enjoying the sun and good
wine.
The notaire, who asked them to sign the final contract, gave
them a few certificates of completion (attestation de
signature). This document is a proof of ownership and can be
considered as their temporary title deed. It will enable Mr and Mrs
Smith to show proof of ownership to any entity that they need to
contact, such as electric, gas and water companies. After
completion Mr and Mrs Smith will have to transfer the utilities
into their names and the Estate agent kindly offered to help them
to go to the local agencies to register. The meters were read on
completion by the vendors and the final statement will be addressed
to them at their new address. As far as our clients are concerned
they will have to take out building and contents insurance. Unlike
in England where the purchasers have to insure the property after
exchange of contracts, it remains the vendors' responsibility until
completion. Mr and Mrs Smith have contacted a local insurance
company and again will receive a copy of their contract. Insurance
contracts for non-residents are standard. Our clients will have to
inform the insurance company that the property will be a second
home, left unoccupied for a period of time throughout the year.
Mr and Mrs Smith do not have to worry about
the local taxes because the transfer into their names will also be
registered via the Land Registry with the tax administration. For
the current year the vendors will remain responsible for the
payment of both, taxe d'habitation and taxe foncière, but
it was explained by the notaire that Mr and Mrs Smith
will have to reimburse a proportion of the taxe foncière
from completion until 31 December. A note of the amount due will be
sent by the vendors to our clients in due course and it will be
their responsibility to reimburse the vendors.
When the notaire reads the final deed to them,
it will be explained that the contract will be
registered at the Land Registry. The original deed will be kept by
the notaire and a copy sent to the Land Registry. Notaires usually
have a period of two months to register the deed at the Land
Registry, but in our case the notaire will not wait because he also
has to register the mortgage on behalf of the bank. Despite being
covered by his professional insurance for two months, the notaire
will proceed with the registration as soon as possible to
anticipate any problem or potential charge that could be registered
on the property. This is rare in practice but could happen.
The Land Registry will then return the copy
duly stamped with the registration number. Then the notaire will
close the client account and return any balance left on the
provision for fees paid by them. The title deed will go to
the client and a second copy called copie executoire is
sent to the bank for their records. It can take up to six months
before the deed is sent.
