Buyers Guide for Property Purchases In France

Buyers Guide for Property Purchases In France

• What law applies to French property?

• Have there been any important recent developments in French conveyancing?
• How do you prove that someone owns French realty?
• What is the plan cadastral?
• What is the POS?
• What is a certificat d’urbanisme?
• What is a permis de construire?
• Can I buy French realty freehold or leasehold?
• What is an hypothèque?
• How should I buy French real estate?
• What is the acte de vente?
• Can I buy French realty “subject to contract”?
• What is the avant contrat or sous seing privé?
• Do I have to pay a deposit?
• What happens if I withdraw from the preliminary agreement?
• What happens if the seller withdraws from the preliminary agreement?
• Who prepares the preliminary agreement?
• What happens if I want to buy a new property in France?
• What are conditions or clauses suspensives?
• What is the Loi Scrivener?
• How do I ensure that the property is asbestos free?
• How do I ensure that the property is termite free?
• What is the Loi Carrez?
When can I move in to the property?
• What happens after the preliminary agreement becomes legally binding?
• What are pre-emptive rights?
• How do I complete a French purchase?
• What is a privilege du vendeur?
• Do I have to attend the completion formalities in person?
• When does completion actually take place?
• What happens after completion?
• Can you help me find a suitable French property to buy?
• Can I trust a French estate agent?
• Can I trust a French notaire?

1 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The

English owned FNAIM guaranteed French Property Specialists in the South of France

Buyers Guide for Property Purchases In France
Buyers Guide for Property
Purchases In France
What law applies to French property?
French law always applies to French realty, regardless
of the nationality, residence or domicile of the owner.
French property law is based upon a civil law system
(the Code civil also known as the Code Napoléon).
Case law (jurisprudence) also plays an important part
in French property law.
Have there been any important recent
developments in French conveyancing?
Yes. French property law is in constant development,
and what was the law today may not be the case
tomorrow. Parts of the new French Property Law of
13 December 2000 (the ‘SRU’) came into effect on 1
June 2000. Among other things, the SRU provides for
a cooling-off period (see below) to protect buyers
who may otherwise feel pressurized into signing
legally binding preliminary agreements.
How do you prove that someone owns French
realty?
Your seller proves that he owns French realty by his
titre (title deed) which must be registered at the Land
and Charges Registry (conservation des hypothèques)
to be enforceable against third parties. The registered
title deed can also provide information about
mortgages, easements (servitudes) such as rights of
way and other matters which affect the French realty.
What is the plan cadastral?
French realty is divided into units known as lots or
parcelles, each of which is given a cadastral number
(reference cadastrale) which appear on a registered
2 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
plan (plan cadastral) of the property. The plan does
not guarantee the accuracy of land measurements or
the site boundaries delineated in the plan, which is
often out of date.
What is the POS?
Most French local authorities produce a local
structural plan (Plan d’Occupation des Sols or POS)
which tells you amongst other things what can or
cannot be done to your land or neighbouring
property. For example you cannot build on French
realty situated in a zone non-constructible (ZNC). By
contrast, in development areas such as a zone
d’aménagement concerté (ZAC), public authorities or
private developers can build industrial/commercial or
residential property, roads, sewers and so on.
POS was superseded by PLU (Plan Local
d'Urbanisme) in Sept 2006. The districts (communes)
which updated their POS after this date got a PLU. In
the commune where no update has been made since
Sept 2006 it is still the POS, until next update when it
will become the PLU.
What is a certificat d’urbanisme?
The certificat d’urbanisme is a document which
provides details of the French planning rules
applicable to a particular property.
What is a permis de construire?
No construction, demolition or change of use of
French realty may be undertaken in France without a
permis de construire (building permit). Those in
breach can face criminal, civil and administrative
penalties. However, there are exemptions for some
minor works.
Can I buy French realty freehold or leasehold?
Yes. French realty may be owned en toute propriété
(freehold) or under a bail (lease). A building may be
divided into several residential apartments or other
units en copropriété. The various co-owners in the

Buyers Guide for Property Purchases In France
block own both the freehold of their privately owned
units and a percentage of the freehold of the common
parts (e.g. main walls, staircases, lifts etc) in the
development.
What is an hypothèque?
An hypothèque is a mortgage or legal charge over
French realty. It must be registered at the Land and
How should I buy French real estate?
French real estate can be bought in various ways.
These include a direct purchase by individuals
(personnes physiques) in single, joint or multiple
names, or by taking shares in a company (personne
morale) which owns the French real estate. The right
ownership structure depends largely on what suits
your personal family circumstances. Legal and
taxation advice should be sought in advance of any
purchase.
What is the acte de vente?
The acte authentique de vente (deed of conveyance)
is a legal title deed executed before a notaire (French
notary) who usually represents the buyer, the seller
and any lender on completion of a purchase.
Can I buy French realty “subject to contract”?
No. In other words, you cannot buy French realty
subject, for example, to receiving the results of local
searches and enquiries. Instead, a binding agreement
is entered into at a very early stage. Letters of
intention (échange de lettres) or offer letters (offres
d’achat) should therefore be drafted with care if the
offering party does not wish to be bound by their
terms. To avoid problems, we can immediately
prepare the appropriate offer letter for you in
carefully worded legal language and fax it to the
seller. See Clauses Suspensive to find out what you
can do to protect yourself.
What is the avant contrat or sous seing privé?
3 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
Completion of a French purchase is usually preceded
by the signature of a legally binding avant contrat or
sous-seing (preliminary agreement) before any local
authority searches are carried out, and often before
finance is arranged. The preliminary agreement
usually takes the form of a compromis de vente (a
bilateral sale agreement subject to conditions
precedent. In some parts of France, a promesse de
vente (option agreement) is used instead.
Do I have to pay a deposit?
When you sign the preliminary agreement you must
usually pay a deposit equal to 10 per cent of the
purchase price. At no stage should you pay a deposit
or other money direct to your seller, unless you are
prepared to lose it. We try were possible to reduce
the deposit required to 5% which is dependent on
the agreement from the seller.
What happens if I withdraw from the
preliminary agreement?
You may lose your deposit and other penalties might
also apply if you withdraw. For example, the
preliminary agreement may contain a clause whereby
you must pay a daily penalty for delayed completion
or even double the deposit paid. Depending on the
wording of the preliminary agreement, the seller may
also - up to 3 years after you signed the preliminary
agreement - be allowed to issue a writ against you
and obtain an Order from the French courts obliging
you to complete your purchase.
What happens if the seller withdraws from the
preliminary agreement?
If the seller withdraws he must usually refund your
deposit and (if the preliminary agreement says so)
must also pay you the same amount again in damages.
Who prepares the preliminary agreement?
The preliminary agreement is often prepared by
French estate agents like ourselves and signed by
buyers without legal advice. The agent’s legal duty of

Buyers Guide for Property Purchases In France
care might make them liable if there was a serious
problem over the ownership, but you will have paid a
deposit and may be faced with an action by your
seller for specific performance. Prudence therefore
dictates that we normally recommend that the
notaire draws up the agreement time permitting
unless the compromis is a simple one.
What happens if I want to buy a new property
in France?
French realty sold before or during its construction is
usually known as en état futur d’achèvement (VEFA).
The deed of conveyance is usually preceded by a
preliminary agreement (contrat de réservation).
Ownership of the land passes to the buyer on
execution of the deed but ownership of the building
only passes as construction advances
What are conditions or clauses suspensives?
In France, a buyer can insist on the preliminary
agreement containing one or more clauses
suspensives (conditions precedent) which, if not met,
allow him to withdraw from the agreement and
recover his deposit. In a well-drawn agreement,
conditions precedent will typically cover things such
as the right to withdraw if a loan is required but not
obtained, the absence of termite damage or asbestos,
the absence of adverse rights of way or planning
restrictions affecting the property; that the planning
search made against the property is positive (i.e.
permitting building, renovation or other works) and
that the local authority or others do not exercise a
right of first refusal (droit de préemption) to buy the
property.
What is the Loi Scrivener?
Under Law 79-596 of 13 July 1979 (Loi Scrivener) a
preliminary agreement is subordinated to obtaining
the finance necessary to complete the overall
operation. To this effect your preliminary agreement
must stipulate what proportion of the contract price
is available to you from your own resources and what
4 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
proportion you seek to borrow. In addition, you may
stipulate other loan criteria such as a maximum term,
a maximum rate of interest and a maximum monthly
payment. These criteria are by way of illustration only
and not comprehensive.
Under Article 17 of Loi Scrivener you have 30 days
to obtain a loan, commencing from the date of signing
your preliminary agreement. Most standard forms of
agreement will in fact allow a period of 40 to 45 days
because borrowers also benefit from a 10-day
acceptance period upon an offer of finance being
made. Should an offer of finance not be forthcoming
within the required period, the borrower is entitled
to a refund of all deposits. In a French Supreme
Court case of 9 December 1992 it was held that
obtaining means “is in receipt of an offer of finance
complying with the contractual criteria”. This decision
prevents a borrower from capriciously not accepting
such an offer.
The lender’s offer of finance must comply with
Article 5 of Loi Scrivener. For example, it must be
sent by registered post. The loan offer must remain
open for a minimum of 30 days. However, you are
then prohibited from accepting the offer for a
minimum period of ten days from receipt of the offer.
This should not be seen merely as a cooling-off
period. You should examine closely the terms and
conditions of the offer to ensure that they comply
with the criteria set out in the preliminary agreement
and that the offer meets your financial obligations,
both as to amount and timing. Although not
stipulated by the Loi Scrivener, you should as a
matter of caution return the acceptance, after the 10
day period, by registered post.
How do I ensure that the property is asbestos
free?
Properties if at risk will normally be inspected as part
of the process but if you are worried about such
matters, a surveyor should be instructed to inspect
the lagging, false ceilings and so on.

Buyers Guide for Property Purchases In France
We can find a suitable surveyor for you in France.
Since 1996, most French property owners must
arrange for the removal of asbestos content which
exceeds a certain threshold.
How do I ensure that the property is termite
free?
In certain parts of France termites or other wood-
boring insects (xylophages) may be present in or near
to the property. Nests giving rise to infestation have
been recorded as far as 30 metres away from an
infested building. They are capable of completely
destroying a building from the inside out so their
presence may not be obvious. Since 1999, French
local authorities may require the owner or tenant of
a building or undeveloped land to carry out remedial
or preventive measures. Properties if at risk will
normally be inspected as part of the process but if
you are unduly worried about such matters, a
surveyor should be instructed to inspect the property
and its surrounding area. We can find a suitable
surveyor for you in France.
Diagnostic tests made law now include:
• Asbestos
• Lead (for buildings before 1949
• Termites (in specific areas identified at risk
• Energy efficiency
• Electric installation
• Risques naturels et technologiques (natural
risks in specific areas identified at risk)
What is the Loi Carrez?
Since 1996, most preliminary agreements relating to
the purchase of a property en copropriété must
mention the private habitable surface area of the
property being sold, failing which the buyer can
usually withdraw from the transaction within one
month of signing the deed of conveyance.
5 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
When can I move in to the property?
You cannot usually take possession of French realty
until the transaction has been completed by the
French notary, although if the property is empty
some sellers may allow you access to renovate or
decorate.
What happens after the preliminary
agreement becomes legally binding?
The French notary will carry out various elementary
local authority and land registry searches, draft the
deed of conveyance, and the mortgage deed if
appropriate. No specific time limits are imposed and
these procedures can sometimes take the French
administration more than three months to deal with.
At this stage you should make any practical
arrangements necessary, such as signing with the
electricity, water and other utility supply companies,
satisfying any conditions relating to your mortgage
and buildings/contents arrangements, and making
removal arrangements. As part of our service, we can
help you:
• Organise proper buildings and contents
insurance cover
• Have the electricity, water and other utility
charges transferred to your name
• Apply for a telephone
• register for local French taxes
• Open French bank accounts.
You can pay your French bills from your country of
residence but post between the two countries is
unreliable and can get lost. It is usual practice to
settle all your French outgoings by direct debit via
your French bank. This avoids the frustration of
arriving at the French property only to find that (say)
EDF have cut off the electricity supply because they
have not received your cheque.
What are pre-emptive rights?

Buyers Guide for Property Purchases In France
The French notary’s searches may, although unlikely,
reveal that various parties have a pre-emptive right
(droit de pre-emption) against the property. For
instance, if the seller lets the property his tenants
may have a right of first refusal to buy the property
from him, even though the seller has contracted to
sell the property to you. If the property is in rural
France neighbouring farmers may have similar rights.
The SAFER (Société d’Aménagement Foncier et
d’Etablissment Rural) may also have a right to refuse a
transaction involving agricultural land exceeding 2,500
square metres (2.5 hectares). They then purchase the
property at the offered price. This is seldom
exercised but can sometimes cause an additional
delay. Other French authorities may have pre-
emptive rights if the property is, for example, needed
for road-widening schemes or similar infrastructure
projects. In urban areas the municipality has a right of
pre-emption on the sale of property in zones the
municipality has designated. Exceptions include some
buildings less than 10 years old.
How do I complete a French purchase?
Once the French notary is ready to complete the
matter he will make arrangements for collection of
the balance of the purchase monies and his attendant
costs. This is sometimes the trickiest bit of the whole
transaction. French notary’s do not keep money in
ordinary clearing banks which are instead lodged with
a special bank known as the Caisse de Dépôts et de
Consignations. The buyer can transfer money to
France by SWIFT bank transfer. However, unlike
transfers within the UK and elsewhere which are
effected within a few hours, it can take days - if not
weeks - for the money to reach the notary’s account
in France. Often it is very worthwhile to use a
foreign currency specialist for large deposit amounts
as high street banks often offer very poor rates of
exchange. We can pass good contact details for
recommended companies who provide this service.
What is a privilege du vendeur?
6 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
The seller is entitled to a privilège du vendeur
(vendor’s privilege) over the property in question
until full payment of the purchase price has been
made by the buyer.
Do I have to attend the completion
formalities in person?
Not usually, unless the French notary insists
otherwise. If the actual completion date may not be
convenient to you, we can arrange for a Power of
Attorney (procuration) in favour of one of the
notary’s clerks so that the formalities can be
completed without you having to attend in France in
person.
If however you are buying with a French mortgage
you will need to have the procuration witnessed by a
Notary Public in the UK (or in your home country)
who will then authenticate the document and sent it
to the Foreign Office in London for ‘legalisation’.
Some French notaries insist that all procurations are
dealt with in this way whether or not a mortgage is
involved. The process could take 2-3 weeks in total,
so it is wise to notify the notary as soon as possible if
you do not intend to sign the deed of conveyance in
person.
When does completion actually take place?
Although the preliminary agreement usually provides
a date for completion, never book removals or make
other commitments based on that date. For various
reasons, the French notary may still not be ready to
complete. Although you may be relaxed about this,
the time may come where further action is necessary.
Unless your preliminary agreement contains an
appropriate penalty clause obliging the seller to pay
you a sum of money for each day he fails to complete
the transaction, your only recourse is to instruct a
French bailiff (huissier) to serve notice (mise en
demeure) on the seller obliging him to complete the
transaction within 15 days. If after 15 days the seller
has still not completed, an avocat (French barrister)

Buyers Guide for Property Purchases In France
must usually be instructed to issue proceedings
against the seller. In many cases the avocat will file a
procès-verbal de défaut in the relevant French court.
The seller then has 4 weeks in which to reply (3
months if he lives outside France). If the matter is
contested by the seller your avocat must then issue
formal court proceedings in France.
What happens after completion?
Stamping and registration (enregistrement) of your
deed of conveyance by your French notary takes
approximately six months after completion of your
purchase. In due course your notary should supply
you with a certified copy (expédition) of your
registered deed of conveyance. It is a French legal
requirement that your original title deeds remain in
your notary’s archives, even if the property is
mortgaged. As part of our service we can arrange to
obtain official evidence of your ownership (attestation
d’acquisition) on the day of completion. We can also
assist you with contacts for:
• Obtaining residence permits, work permits
and licenses in connection with the opening
of new businesses in France;
• The importation of cars, furniture and pets
into France;
• Obtaining payment of your pension in
France, national insurance and other related
matters.
Can you help me find a suitable French
property to buy?
Yes. Money can be saved and fruitless visits to France
avoided by instructing us to help you find a suitable
property either for your private use and/or as an
investment.
We have access to property over the complete area
and can act on your behalf without any extra cost
working with all other agents. Whatever your
requirements may be, please let us know fairly exactly
the location, type and condition of the property you
7 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The
English owned FNAIM guaranteed French Property Specialists in the South of France
require (e.g. minimum number of bedrooms, with or
without a garage or garden) any other special needs
and how much you are prepared to pay.
Can I trust a French estate agent?
Many French estate agents (agents immobiliers) are
scrupulously honest and offer an excellent
professional service, but there are always exceptions
to the rule and standards of conduct do vary
No one may claim the title of an estate agent in
France or act in an agency capacity in the transfer of
French realty without complying with the provisions
of Law 70-9 of 2 January 1970 (Loi Hoguet). This
requires obtaining and displaying a license (carte
professionnelle) which is only issued and renewed if
the applicant has the necessary professional
qualifications, a satisfactory financial guarantee (a
minimum of € 30,000 is required to enable him to
handle client’s money), and insurance cover for
professional liability. (We carry a €120,000 guarantee
but always recommend you pay deposits direct to the
notaire).
An unlicensed person is not usually liable to you for
any misrepresentations made by them concerning
French property. Some English intermediaries may
request a fee for their “introductory services”
(i.e.putting a buyer in contact with a French estate
agent) and normally invoice in sterling from the UK.
Provided that they confine their services to this
activity they do not require a carte professionnelle.
However, they must hold a carte professionnelle if
they also offer financial, insurance, removal,
translation or other ancillary services. Failure by a
person to hold a carte professionnelle means that
they face criminal penalties and may have no legal
remedy against you if you refuse to pay their invoice.
We recommend that you employ the services of a
reputable intermediary registered with the FNAIM
such as ourselves who deal with property in your
chosen part of France.

Buyers Guide for Property Purchases In France

Can I trust a French notaire?

French property transactions must be completed

before a French notary (a public officer who is part of
the French administration) practicing in France. The
choice of notary is usually made by the seller or
French estate agent, although you are entitled to
appoint your own notary without incurring extra
cost, as the two notaries will then share their fee.
We recommend normally you have your “own”
notaire who speaks your language.

A notary will not usually be instructed until after you

have become legally committed to buy a French
property. Instead, his job is solely to implement
legally what you and the seller have already agreed.

8 Copyright 2008 RHF International – Riviera Home Finders – http://www.RHF-Prestige.com The

English owned FNAIM guaranteed French Property Specialists in the South of France