The buying process
The first difference you will come across is that estate agents do not offer the same information as those in the UK. Estate agents do not automatically have exclusive rights to sell a property because the French vendors often prefer to put their house on the market with several agents, hence you will sometimes find the same house advertised with as many as 7 agents! For this reason you do not see “for sale” signs everywhere in the same way as the UK. The agents are very secretive about the properties they have and as a result it is often difficult to obtain detailed information before visiting a property. You will certainly never get the address of the property. Detailed house descriptions as we are used to picking up in UK estate agencies do not exist in France. However Beyond Biarritz does not work with every agent in town and prefers to select agents for their properties and their professionalism. As a result, our relationship with each agent is based on trust and we are therefore able to obtain a maximum amount of information on each property we advertise and in most cases are also able to visit the properties without the agent being present.
To avoid disappointment it is important to make viewing appointments in advance. Once we have selected a number of properties to visit together, we will arrange the appointments; pick up keys etc. so that no time is wasted when you come over for your visits. We highly recommend that you contact us well in advance if you already know the area and wish us to organise a programme of visits as these take time to set up and due to demand, we do get booked up quickly particularly during the autumn and spring periods.
Surveys do not exist as such, certainly not in the same way as in the UK. You can get a qualified builder to come and check a property or an architect but as this is not common practice, you tend to pay through the nose. However more often than not, we are able to get a reputable builder to come in and give his honest opinion on a property free of charge in the hope that you will use him the day you need any work doing. The only compulsory surveys which are done and paid for by the vendor are for traces of lead, asbestos and termites. From this year vendors are also obliged to inform the purchaser of any history of seismic activity, pollution and relevant general environmental issues which could affect the property.
It is also important to bear in mind that the majority of properties will need re-decorating and sometimes re-modernising. The French don't tend to go in for smartening up their property before selling so often one needs to walk in with a certain amount of imagination. Dirty walls, old fittings etc can be off-putting but once you start getting used to seeing properties in this condition, you also begin to see the potential.
Here is a general description of what happens when you find a property that you would like to buy in France.
Submission of offer - the offer submitted very much depends on how long the property has been on the market, how keen the vendor is to sell and the agent's general opinion on the condition of the property. One can aim to lower the price by 10% but this is a risk if the property has only just come on the market. The French are often very proud of their property and can be very offended if you come in with a very low offer. We will help you to be realistic at this point! This also emphasises the fact that it is important to stick to your budget. We can't guarantee that you are going to get the property you have fallen in love with 10% lower than the asking price so only look at properties above your budget if you really know that you can afford them.
Setting up compromis - once your offer has been accepted, the compromis (initial sales deed also known as sous-seing privé) will be set up either by the estate agent or by the vendor's notaire. For this you will be required to give your personal details (date of birth, marriage, divorce, number of children, if you are taking out a mortgage, details of the mortgage etc) and photocopies of your passports. You will also be expected to transfer 5 or 10% of the sale price to the agent or notaire's holding account.
You will be appointed a notaire whom we use for all our clients. He is particularly meticulous and used to working with "foreign" clients. He also speaks English and will advise on ways of purchasing with regard to the inheritance issues. He will also happily liaise with a solicitor in the UK if you feel the need.
The compromis contains all the relevant information on the house, the vendor and the purchaser, method of purchase, the compulsory surveys and a cadastral plan of the property and its situation. Annexed to this will be the results of the termite/lead and asbestos reports. A recent new survey on energy consumption is also now compulsory since November 2006. It basically tells you what to expect with regard to electricity bills as the survey checks out insulation of the property, if it has double-glazing, if the appliances are environmentally friendly etc. All these surveys are paid for by the vendor.
You can either be present for the signing, or sign the compromis from home, or set up a proxy to sign for you. Whichever you choose, all will be arranged by 'Beyond Biarritz'.
7 day retraction period - Once the compromis has been signed by both parties, the purchaser (if he is not a professional in the real estate business, i.e. property developer or he is purchasing land) has the right to pull out of the sale within a seven day period starting from the day of the signing. If he pulls out within this period, he will be reimbursed the down payment. However it should be noted that occasionally the agent or the notaire will demand a fee for setting up the compromis if you pull out, to cover the expenses and time incurred. This is usually about 150€ and this does depend on the agent and will be stipulated in the deed.
Once the retraction period is up, only if one of the let-out clauses is not fulfilled, may the purchaser back out of the sale and not lose the deposit (refusal of mortgage for example).
Period leading up to completion - During this period, the appointed notaires will carry out the necessary research on the property and you might be contacted by the notaire via Beyond Biarritz.
The post-sale services will be set up so that on completion, you will have utilities connected and house insurance and we will arrange for the opening of a bank account. On completion you will be given an 'attestation' from the notaire proving that you are owner of a property in France whilst you await the registering of the proper deeds.
Once the notaire informs us of a date for completion, you will need to make the necessary arrangements for transferring the final balance on the property, the notaire and agents fees. You can do this via your bank or via a currency broker whom we work with on a regular basis and with whom we would put you in contact.
The monies must be with the notaire on the day of completion. No monies, no signing, it is as simple as that. We therefore recommend that you arrange for the monies to be in the notaires account at least a week before the signing.
Completion - It is advisable to be present for the final signing but if this is impossible, a proxy will be arranged. However it should be noted that this is relatively complicated at the completion stage. If you do not fully understand French, you will be required to translate the power of attorney document set up by the notaire (this must be done by a certified translator) and you will then need to sign it at the French Consulate in London in front of their notary. This requires making an appointment in advance (allow at least 2 weeks) and it all costs! So we advise that you do your utmost to be present for the signing.
In both cases we will be present for the signing. You will be given the keys to your new property at this stage.