THE KNOWLEDGE PAYMENT AND FEES: The
full amount of the sale price is transferred to the seller, minus any fees or taxes to be paid. Notaire’s fees are on a sliding scale of 7-10% of the sale price (3% for a new property) and include registration fees or taxes. They are paid by the buyer. Agency fees are set by the agency and are typically 5-10% of the sale price, paid by the seller (although they’re generally included in the advertised sale price, frais inclus). INSURANCE: It is a legal
requirement in France to have home insurance (assurance habitation), and notaires will often ask for proof of it at completion. You can take over the previous owner’s insurance or take out your own.
INHERITANCE ISSUES Another key difference between France and the UK is that under French law, a forced heirship system applies. This means, it’s not easy to leave your French property to whoever you wish, for example, bequeathing it to the local cats’ home instead of your offspring. Under EU regulations, it
is now possible to include a provision in your UK will allocating your national law (i.e. UK) to your worldwide estate, including your French property. However, it is still advisable to draft both a UK and a French will to avoid any complications. So inheritance, and estate
the acte de vente. During this time, the notaire carries out the various searches and checks on the property and the parties involved, to verify the property’s title and ownership. DIAGNOSTICS AND
SURVEYS: By law, the vendor has to provide (and pay for) a series of diagnostic checks (DDT), covering energy efficiency (DPE); wastewater drainage; termites, fungal and insect larvae related damage; asbestos; lead; gas and electrical installations; natural risks; and surface area for apartments (not houses). These
do not replace a structural survey, which is not legally required. For peace of mind and technical information about the property, however, it may be advisable for the buyer to pay for a survey too. COMPLETION: Once the
notaire is satisfied everything is above board, both parties sign the final contract, the acte de vente. This can be done in person in the notaire’s office or by using power of attorney if you are unable to attend. The notaire will later send on an attestation de vente showing the new ownership.
planning, is something you should consider early on in the process. This is especially important as how you buy your French property – the ownership structure – will have an influence on how you can bequeath it. Your marital status will be a
key consideration. In addition to inheritance, it will affect the tax your beneficiaries will pay. For example, the French inheritance tax rate between spouses (and PACs
civil partners) is nil while non- married couples are, in effect, taxed as strangers at 60%. (Tax varies hugely between beneficiaries so it’s clearly important to consider it in advance; for example, children have a €100,000 tax-free allowance, while stepchildren face a 60% tax bill.) While in the UK there is
only one marital regime, France has three: séparation des biens (you each own only the assets held in your own name), communauté réduite aux acquêts (default marriage regime in France, everything purchased by the spouses after the marriage is owned jointly) and communauté universelle (all assets, from before and during the marriage, is owned jointly). So for couples buying a French property, it is important to understand which marital regime the purchase will come under. (See more on p90.) You can also choose to buy
your French property using a ‘tontine’ clause or via a ‘Societie Civile Immobilière’, both of which are explained on p94. ■
THE NOTAIRE
In France, a notaire (notary) is a state-employed legal professional responsible for overseeing property transactions. Their role in the buying process includes draſting contracts, ensuring legal compliance and handling the transfer of funds. As a neutral party, they can represent both the buyer and the seller, or each party can choose to have their own notaire. This is a key difference between France and the UK, as in the UK solicitors generally handle the legal aspects of a property sale. Buyers and sellers of a French property can also use a solicitor experienced in cross-border transactions for extra peace of mind, especially when French is not their first language.
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FRENCH PROPERTY NEWS: March/April 2024 85
© SHUTTERSTOCK
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