Monday, 12 March 2012

Top Ten Tips -- Buying property in France


Welcome to my hot tips for buying property. Our chosen country is France, this time. Refer to our list of ten best countries to live in, and you will find France on the tenth!

My top ten tips:

Before we begin, I must tell you that buying property in France is fairly straightforward. Also, there are no restrictions on foreign ownership. Therefore the process maybe a simple one. Still, there are some things you have to bear in mind.

1.     Know your French. And know it well. Half baked knowledge of the language is dangerous. Better still, simply get assistance in translation.

2.     Select your region. France is a huge country. So narrow down your search to which region you might want to invest in. (for more info on regions, do look up one of our earlier posts --‘Knowing France’ - a three part series). Also, you must make up your mind whether you want a town house or a country house.

3.     First, only a verbal offer. Remember, not to sign any paper or hand over any money, till you are in front of the notaire to process the sale and purchase contract. If possible, do some research and appoint your own notaire. Do ensure you clear your doubts and ask for advice from your notaire. A notaire’s fee is fixed by law and is non-negotiable.

4.     Research. Do ample research about the property that is of interest to you. Ask questions, make a couple of visits before you get to the ‘notaire’ stage. It might also be extremely useful to go through all the taxes you might have to pay -- agent’s fee, notaire’s fee, land registrar’s fee, VAT, registration fee, and so on.

5.     Preliminary Agreements. Once you have decided on the property and agreed on the price, you will need to sign a preliminary agreement with the seller. You will also have a seven day cool off period, during which time, you have the right to change your mind. This time is best used for structural survey and other inspections, if required.

6.     Buying property with French mortgage. Mortgages are cheaper in France and offers a whole lot of tax advantages. If you do opt for mortgages, ask about conditional clauses and incorporate them.

7.     Vendor obligations. Be sure to know what the vendor has to provide to you before the sale. The vendor must provide a number of statutory survey reports. Get clarification and help from your notaire on this front and do not go by the report alone. The vendor is also obliged to make a number of statutory disclosures, which you must verify in front of your notaire

8.     Laws for unmarried, married and group of people. There are different laws and conditions, you must know and bear in mind. Ask friends, legal experts and read up.

9.     It’s all about wits.  It’s often noticed that when you buy property in your own country, you keep your wits about you, but when it comes to buying property abroad, you lose track of where you left it! Often, it’s your wits that come to your rescue or help you in a situation. Basically, you must remain calm and be able to think clearly without confusion.

10.   Loads of luck. 

Much love

Milo

P.S. A million thank you to several informative websites and my French friends who helped me draw out a comprehensive list.

P.P.S: Our next post: Tips on buying property in Portugal. See you there :)


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