The housing in France: purchase process
In France there are no restrictions for purchase of the real estate by foreigners. The most part of real estate objects is on sale on the basis of the freehold (the unconditional property right to the real estate). There is also a leasehold (ownership on the basis of the lease agreement which consists for a period of up to 99 years).
As soon as the parties came to the arrangement concerning the price, they shall sign the provisional agreement.
In the north of the country the provisional agreement usually grants the preferential right to purchase. If you as a result did not purchase the real estate, then the penalty of 5%-10% is levied from you. This penalty usually becomes covered by a conditional deposit which is kept by the notary. If the seller refuses sale of property, then the buyer will not be able to demand real agreement performance. The agreement of preferential right to purchase is valid if it was notarized or registered within 10 days. In the south of France, the purchase and sale agreement allows any party to file a lawsuit against another for non-execution of agreement obligations.
There is a seven-day period during which the buyer can change the mind and refuse purchase of the real estate. At this time it is the best of all to organize inspection of an object.
If purchase is performed by means of a mortgage, the agreement shall include regulations that the buyer will pay purchase by means of mortgage lending. In this case, if to it it is refused loan granting, the buyer will not lose the deposit.
As soon as the provisional agreement was signed, it is necessary to make all necessary checks and to collect documents: document on registration of the earth, construction license and so on. If the seller is a professional in real estate field or the property was constructed less than 10 years ago, then the seller bears legal responsibility to all future owners for defects during the ten-year period.
As a result the buyer and the seller sign the agreement (acte authentique de vente) at office of the notary.
On average about 193 days are required to pass all stages necessary for registration of property in France.
Cost of the transaction
Are paid by the buyer:
Registration payment – 0.60% - 4.89%
Remuneration of the notary – 3%-10% (+19.6% of the VAT)
Payment of registration of the earth – 0.60%
Remuneration of the real estate agent - 1.50% – 5% (+19.6% of the VAT)
It is paid by the seller:
Remuneration of the real estate agent – 1.50% - 5% (+19.6% of the VAT).
Total the buyer pays 6.58%-23.43%
the seller pays 1.80%-5.98%.
The AWAY REALTY company offers the clients only the best real estate objects in France. Glance in our electronic catalog, leave the online application or call us, and we will be able to pick up the option corresponding to all your criteria.
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