Hardie & Co. Solicitors working in tandem with French Notaires and Avocats, are able to provide full legal services and bilingual support for those seeking to purchase property in France.

These may include for example:  

• Assistance and representation with the transaction itself, including advice on law, procedure, documents, experts' reports, and related correspondence
• Inheritance advice
• Tax
• Company law
• Matrimonial issues
  
  

The procedure for conducting a purchase or sale of property in France is not the same as that in other countries. Information on some of the points often raised by purchasers are set out below; please note that the information is not intended to be in any way comprehensive and should not be relied upon.

If you wish to receive a quotation for our services, please fill out the form at the end of this page, or contact us directly. The fees are related to the type and value of the transaction. We are happy to have a short informal discussion with you about your intended plans, free of charge, before you decide how to proceed.

Full legal advice should always be sought for every transaction, since the advice should take into account the individual circumstances of each client and each separate transaction.

Existence of various and variable procedures and documents

There are various legal types of document that may be used in property transactions in France and whilst there are various matters that should usually be included in the legal documents, there is no one standard form for either a preliminary contract document or a final purchase document, and thus their content varies enormously from transaction to transaction, and depending upon the estate agents and lawyers involved.

The procedure itself may also vary according for example to the nature of the property sold and the type of transaction.

It is important to remember however that under French law it has on occasions been argued that a binding and enforceable preliminary contract exists where a purchaser has agreed with a vendor to purchase a particular property at a given price, even where there is no supporting documentation at all.

So-called "right to withdraw"

There may exist in some circumstances a theoretical period within which a purchaser might seek to withdraw from a proposed purchase after signing a preliminary contract, however the rules regarding this procedure are new and can be quite technical and difficult to comply with, especially by those not resident in France; thus it is better if possible to avoid being in a position where you might then wish to try to exercise this right.

Estate agents' fees and "frais de Notaire"

It is worth checking whether the fees of any estate agent are involved in the purchase price indicated; these fees are usually paid by the purchaser and vary considerably (often between 5 and 10% of the purchase price).

The "frais de Notaire" are not in fact simply the fees of the Notaire, but also include for example stamp duty, search fees, registration charges etc; they vary from area to area and depending upon the type and size of the transaction, but are generally 6 -7.5% of the purchase price.

Condition of the property/surveys

Surveys are not usually carried out by property purchasers in France.

Most lending establishments will not require one, and even if they arrange something that appears to you to be a survey, it is quite probable that this will be limited simply to a quick assessment of whether the proposed price is reasonable, and will not involve any consideration of the condition of the property.

There are various matters that are specifically provided for under French law, and these include for example asbestos, lead in the paintwork, termites, gas/electricity installation, natural and technological risks; if the purchase in question is held to be one to which any of the relevant rules apply then you may be supplied with a report indicating whether or not the particular problem applies or not.

Thus, if the condition of the property may be of concern to you, you may wish nevertheless to arrange for the property to be examined at your own expense.

Planning permission

In common with many other legal jurisdictions, France has various planning zones and extensive planning rules.

Unless and until you receive planning permission for a particular work for which it is necessary, you are not likely to be able to obtain any sort of guarantee at all that you will indeed receive the permission, and it is worth bearing in mind that the procedure for any application for planning permission may take some time.

Inheritance

The law applicable to the succession of a property on the death of the (or one of the) owner(s) is as a matter of international law usually that of the country where the land is situated. France has strict inheritance laws.

In any individual case it may be that the outcome that would usually be expected under French law is in fact in keeping or broadly in keeping with the intentions of the purchasers.

If not, there exist various arrangements that can be entered into that can seek to vary the position slightly; some are taken into account in the purchase procedure itself, some are dealt with separately; as with any matters related to succession, it is better to address the issue sooner rather than later to ensure that any arrangements desired are dealt with in good time.

Property can be purchased jointly in various ways each of which may affect the likely outcome under French succession law (including the use of a suitable type of company - however please also see below the section relating to companies).

English purchasers often ask if this would include the use of the so-called "tontine" clause, however the clause has legal and tax implications at French law which often mean that in fact it is not the best arrangement and that other procedures should be undertaken instead.

A French Will may or may not be best arrangement; this will depend upon the individual circumstances.

An English Will may have little or no effect upon the applicable outcome under French law.

French law considers that all married couples have undertaken a form of "matrimonial régime" (rather like a pre-nuptial agreement) and will imply one if not.

The "régime" deals with ownership as between the couple and thus may affect the way property is held and also succession outcomes.

It is usually possible to undertake a change of "régime", which can only be done using the appropriate French formal legal procedures.

Tax

As with any property transaction in any jurisdiction, tax implications may have a substantial impact.

With some property structures in France, there may be substantial financial benefits to be obtained provided the purchase is set up to comply with particular rules intended, for example, to encourage investment in rental properties, properties of historic interest, or tourist residences.

However care must be taken at the outset to ensure that it will be possible to continue with any ongoing obligations, which may be quite long-term, in order not to risk losing the benefits and potentially having to repay tax rebates. Equally, there may be substantial tax benefits to be obtained by retaining a newly built property for a certain length of time before any intended re-sale.

Proposed sales of properties may need to be timed and/or structured in order to try to obtain the best available tax arrangements.

Companies

French law provides for various types of companies; a "Société Civile Immobilière" may be used to purchase and hold property, however since it usually has unlimited liability, a separate type of company would usually be set up for trading matters.

It is naturally necessary to consider the circumstances of each purchase and the future plans of the purchasers before deciding on the suitability of any company and what form of company would be most suitable.

Matrimonial law

The sale and purchase of property in France may in some cases involve consideration of matrimonial issues and applicable matrimonial law within or outside France.

If you would like to receive a quote for our services, please either complete and submit the form below, or contact us directly.