In two parts, Property finder Alison Morton gives you a rundown of how property buying in France works. Part 1. The system
This guide is only intended to be helpful information. Buyers and sellers should always seek professional advice.
The general way it works
Buyer and seller agree on the price and the terms of contract, including any conditional clauses (clauses suspensives). This is quite a good 
time to be specific about any fixtures and fittings that are going to be left or removed, like a kitchen!
The preliminary sales contract (compromis de vente) is drawn up by the agent or notaire, and signed by both parties. The buyer pays a deposit (usually 5%-10% of the purchase price) at this stage to the notaire. It is up to the buyer and seller to ensure that everything is communicated correctly to the notaire and that all points agreed between them are detailed in the contract.
Conditional clauses can be inserted into the compromis covering things such as rights of way, planning permission or a mortgage application being approved. Be sure that any clauses agreed with the seller are indeed included in the initial sales contract before signing; don’t sign anything you do not understand or are not sure about. Signing the compromis is an important step; it is the stage where people commit to the deal. However, there is a seven day cooling off period starting from the date of the signature during which the buyer can withdraw (but the seller can’t). On the eighth day, the contract becomes legally binding. If the buyer pulls out after this, they forfeit the deposit.
If you are going to buy with a mortgage, now is the time to put in your formal application. However, it is better to have applied for a mortgage in principal before you start looking for property so you don’t miss buying your dream property at a crucial stage. But you are generally protected because obtaining your mortgage will be a condition of the compromis, you can pull out if your application is turned down. Once the mortgage offer has been issued by the bank or other funder, it will be confirmed by the notaire and the compromis becomes unconditional.
The notaire handles the conveyance on both buyer’s and sellers’ behalf, this can take around three months. When all the paperwork is ready the notaire confirms the date and time of the signing of the contract of sale, (acte de vente). The buyer must transfer the balance of the agreed property price to the notaires account before the signing of the acte de vente.
On the day of completion, all parties meet the notaire to sign the acte de vente (the buyers can appoint a proxy if they can’t be present in person). The acte is read out and signed and initialled by all sellers and buyers. Keys and a certificate of sale (attestation de vente) are handed over to the new owners and ownership is transferred. The final acte de vente papers are sent out by the notaire between three and six months later when all paperwork is completed.
Some differences
In the U.K. pre-contract enquiries are made by the buyers’ solicitor before exchange, but in France this does not happen. As the compromis de vente becomes legally binding after seven days, it is essential to resolve any issues before signing, or insert conditional clauses.
Reports on Lead, Asbestos, likelihood of flooding and Termites (where present) are compulsory, and the seller pays for these. They are only valid for a limited period of time and have to be presented at the signing of the final acte de vente. An energy efficiency report (known as a DPE, diagnostic de performance energetique) is also required to help the buyer compare the cost of heating and cooling t
he property they are buying with other similar properties. A natural disaster risk report (etat de risques naturels et technologiques) must be supplied which advises whether or not the property lies within an area where there is a risk of a natural or technological disaster
Alison Morton is a property finder in the Loire area around and south of Saumur. She runs Loire Thouet Property Search, and belongs to Frenchentree Property Services, the first national network of professional, licensed and independent property finders.
Contact Alison.