NORTHERN FRANCE PRESTIGE PROPERTIES FOR SALE

Why not purchase an affordable luxury property in part of France closest to England? Marie-Anne HELMAN Estate Agencies are located about 30 mn from the Euro Tunnel exit. They offer their reliable expertise as a senior member of FNAIM, the French "National Federation of Estate Agents". This blog will introduce the Prestige Selection of Marie-Anne Helman Estate Agencies. With Marie-Anne Helman Estate Agencies, your main or investment residence in France has never been closer!

Looking Forward to Purchasing a Property in France?

In France, any property transaction must be drawn-up as a deed. To begin with, each buyer freely searches for the property they want to buy. Once the requested property is found, they sign a provisional sales agreement with the seller, also called the Preliminary Contract, which sets the transaction terms and conditions. A few weeks later, this contract becomes final upon the solicitor's signature, which authenticates it.

Upon the signing of the Preliminary Contract, the buyer will be required to pay a deposit of generally 10% of the purchase amount. The buyer will get this deposit back upon the signing of the final agreement at the solicitor's. This amount is payable by cheque or bank transfer to the holding account of the estate agency. The buyer will receive the corresponding receipt.

It must be remembered that once a preliminary sales contract is signed, the buyer will benefit from a full seven day cooling-off period starting from the day of the signing or after the first registered mail delivery of the original copy to their home. As of that date, the contract is no longer changeable except in the case of a standard Condition Precedent.

For all these reasons, it is highly recommended that an estate agent who is a real market expert should assist buyers who do not reside in France. The real estate business is strictly regulated by a 1970 law (Hoguet law) modified in January 2006. It requires estate agents to be holders of an official card; fees must be displayed in the window of the agency; and they must also hold civil liability contract and financial guarantee insurance. FNAIM (National Federation of Estate Agents) affiliation is a must.

The fees of estate agents are freely set, and are generally defined as a percentage of the sum realised by the seller.

Sales Contracts

Preliminary Sales Contracts - there are two sorts:

One is called unilateral preliminary contract and it includes no commitment from the buyer. It gives the buyer, for a set period stated in the contract, a right to exercise ? or not to exercise - his option to buy the property.

The other is called bilateral or provisional sales agreement and commits both signatories: the seller is bound to sell and the buyer is bound to buy. This deed is as good as a sales contract. Which means that in case of breach of contract, the defaulting party will have to pay damages or will be made to execute the contract. Since January 1st, 2001, any (non-professional) buyer of a used property who has signed a private preliminary agreement benefits from a 7 day retraction period. During this period, no sum of money will be paid, except if the buyer is signing with a professional (estate agent, solicitor?). In case of retraction, the buyer has 21 days - as of the day following the retraction date - to return the amount paid.

The Notarial Sales Deed

The sales contract is the last stage of the sales process. It fully commits the seller and the buyer: the former to transfer the property ownership to the buyer and the latter to pay the agreed selling price to the seller. If no preliminary sales contract has been signed, the solicitor must grant the buyer a 7 day retraction period and must therefore send him the projected contract. The solicitor makes the reiteration of the deed. Normally the seller's solicitor takes care of it, but he can be assisted by the buyer's solicitor.

The other costs related to the sale (the formality fees and the duties and taxes paid to the Treasury) entirely devolve to the buyer.

Once the sales contract is signed, both parties are bound. The buyer is now the owner and he then receives the keys of his new house as well as an ownership certificate. The bill of sale must then be sent to the mortgage registry within the next 6 to 12 months for publication.

Documents to be Checked before buyer's Commitment

Fallen in love with a house or a flat? But does its price square with your budget? Before committing for good, a buyer must check the following documents:

Common costs and the report of the last general meeting (in case of a joint-ownership). They will help the buyer find out if the joint-ownership is soundly managed and if repairs have been voted recently;

The maintenance record of the building (in case of a joint-ownership): since June 1st, 2001, the maintenance record of the building must be shown upon request. Taken care of by the joint-ownership managing agent, it reports, among others, when the major repairs were carried out (facelift, elevator facilities?). Its record keeping has been mandatory as of January 1st, 2002.

The last property tax or council tax notice;

The asbestos report certificate;

The parasite report. Mandatory in the areas contaminated by woodborers;

It is also recommended to contact the City Hall to elicit information regarding the applicable urban planning regulations and any works planned in the neighbourhood. This can be achieved for the buyers account by the estate agency.

Glossary

Notarial Sales Deed: documents signed before a solicitor (NB. The final sales contract has to be sign before a solicitor).

Preliminary Sales Contract: document signed between the seller and the buyer before signing the final sales agreement.

Receiver's account: bank account to which buyers deposits are transferred. All real estate agencies have to possess a holding account. The deposit must be untouched until the final sales agreement.

Conditions precedent: mentioned in the preliminary sales contract, they can nullify the sale, if any of them occurs. The most common is related to the mortgage: if the buyer does not get the mortgage he needs for his purchase, the sales can be cancelled, in which case he would recoup his deposit.

Solicitor: The solicitor is a member of the legal profession entrusted by the French Republic to authenticate deeds, thus bringing more security to both signatories. It is also thanks to them that the French system for real estate transactions is noted to be one of the most secure in the world.

Mortage Through A French Bank

There are certain things to take into consideration involved in borrowing money in another currency. With the right advice, however, even the most inexperienced borrower can successfully buy his dream home. French banks are willing to lend money at very attractive rates and terms. As a non-resident you can currently obtain a 15-year mortgage for 80% of the property value with a 4.0% interest rate (French residents can borrow up to 100% of the property value, European residents up to 80%).

French mortgages are not based on the UK model of multiple incomes. Typically the calculation works on the principle that the total of the French mortgage payment, plus any UK mortgage or rent, plus any other long-term borrowings, should not exceed a third of the buyer's gross monthly income. The actual process of applying for mortgages in France, again is not difficult, and usually takes at most 2 to 3 weeks but can be done even quicker. In summary, obtaining a mortgage for a French property is straightforward, especially with our help. To find out more about French mortgage call MARIE-ANNE HELMAN IMMOBILIER in France on +33 618 092 001 (contact@lumbresimmo.com).

What is a "Notaire"?

A French “Notaire” (Notary) is a publicly appointed official who is responsible for ensuring a property has good title (ie, no irregularities in the ownership) and that the purchase or sale is correctly undertaken. Because Notaries are personally responsible for the contracts drawn up they must be objective in the advice they give and be impartial in their dealings with the parties concerned. A “Notaire” represents neither the seller nor the buyer but the French Government. The same Notaire usually acts for both the vendor and the purchaser. This is not obligatory and you can appoint your own Notaire if you wish. The fees (paid by the purchaser) are fixed by law and will be split between both Notaries if two are appointed. You should be aware that the Notaire's job is to finalise the agreement he has been told has been recorded. He is not there to advise or warn the purchaser of any inadequacies in it. His role is therefore very different from that of a solicitor. If you are making a purchase with a mortgage, you should at least instruct the Notaire or the estate agent to make your purchase conditional upon obtaining a mortgage (agreement called “clauses suspensives”). This will offer you further protection under French Consumer Law. Upon signing this preliminary agreement the purchaser has to place a deposit with the Notaire or the Estate Agency, which is normally 10% of the purchase price and will be deducted from the sale price. Source: Sextant French Properties Network.