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Hardie & Co Solicitors working in tandem with French Notaires
and Avocats, is 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.
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 and termites; 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.
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. The use
of a company 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.
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.
Legal Disclaimer
The information and opinions on this website are for general information
purposes only, are not intended to constitute legal or other professional
advice, and should not be relied on or treated as a substitute
for specific advice relevant to particular circumstances. Hardie
and Co shall have no responsibility for any loss which may arise
from reliance on materials on this website.
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