France is a great opportune place to invest in real estate and buy houses.
Whether it’s purchased because you are aspiring to own a holiday home in France, or you have a plan of moving to France in the future, or maybe something else!
As a country of art, fashion, economy, tourism, culture, history, cuisine…there is no surprise that most the people are dreaming to live in France.
If you are moving forward with that idea, you must take some considerations and be aware of the right process of buying a French property.
For that reason, this article is going to present to you the process of purchasing your dream home in France.
Search your French Property :
Buying a house is certainly a major commitment generally for the long term.
The moment you are sure that you are ready to move forward with that decision, the first thing to do is to define your property search in France
Beginning by setting your budget and your debt-to-income ratio (DTI RATIO), you have to look at your current income and debts so you can consider how much you can afford.
After considering your budget and your affordability, you start to determine your search criteria more based on the specific place and the type of house you are looking for.
For instance, you start questioning: do you want a home in a big city or in a rural hamlet! How many bedrooms? What style of property? Property prices?
It is necessary to make a list of your priorities and essentials for you that will make you more likely to settle and be happy in your choice.
Find and discuss your requirements with the right real estate agent. It will be very helpful to focus on properties that are ideal for you.
Viewing houses that you have selected :
After working out your budget, listing your search criteria, and addressing these requirements to your real estate agents…
It is time to begin house hunting and to search for houses for sale in France that fulfill your needs and aspirations by organizing your viewing trip to France.
Thanks to the emergence of virtual reality, you can save time and money by taking virtual tours to the French property you want to view.
The list of your top priorities that you made earlier will absolutely help you to better choose between the plenty of options of properties for sale.
Definitely, you will need a trusted agent of real estate who will show you homes that fit your criteria and accompany you on property viewings
Make an offer on a property :
Once you finally find a property that fits your needs and budget, it’s time to make an offer.
Now, you can communicate with the vendor and negotiate the purchase price…
Or, you can let your real estate agent communicate on your behalf and hopefully agree with the price before you leave.
Once your offer is accepted, you have to make a deposit transferred to the escrow account of Notaire Public. For off-plan purchase, it is usually 2% to 5% and for resale, it is 10%.
That amount of money goes toward your down payment and closing costs if purchase the property in question.
And typically, you lose your deposit if you agree to the home sale and later cancel.
Sign the agreement sale (Compromis de Vente) :
Once your offer has been accepted…
The agent will put together the details required to draw up the “Compromis de Vente” which represents the initial sales document.
This is an agreement sale contract that is signed by both the buyer and the seller to seal the deal and map out the French property-purchase process.
This document contains within many information that you can check from here.
This time, a completion date will be set at this stage.
From this point, the seller/ the vendor is legally obliged to sell you the property but you still have ten days to reconsider your decision before you are legally committed to the purchase.
Pay the Deposit :
Once you signed the compromise de vente, you will be required to pay a deposit normally 10%, to the Notaire at the end of the ten-day cooling-off period, if you already have not paid.
At this moment, the vendor is legally bound to sell the property to you and you are legally bound to purchase the property at this time.
That means, If the vendor decides to abandon the deal, he must pay you damages equating to 10% of the property price plus returning your deposit.
While if you decide to withdraw that deal, you will have to pay damages to the vendor equating to 10% of the property price.
Sign the Final Contract:
To finalize all the necessary paperwork for a property purchase, it takes usually between 6 to 12 weeks.
When the day of completion arrives…
You will be invited to the Notaire’s office to sign the final document in the buying process (Acte de Vente) which guarantees the legal transfer of the property owner.
Much of the same information listed in the Compromis de Vente is repeated in the Acte de Vente.
Ensure that you have insurance on the property before you take ownership.
Plus, you need to make sure that the balance of funds to complete the purchase of the property is in the Notaire’s bank account along with the notary or legal fees.
It is important to ask for confirmation the money has been received before you leave.
Your currency exchange agent should be able to provide this type of information.
Once the deed of sale is signed! You’re officially the legal owner of the property and you will be handed the keys.