PROPERTY IN FRANCE
We value the little things that make a home
MEETING YOUR PROPERTY CONSULTANT
A property consultant, local to you, will visit your property to gain an understanding of the property itself, and to meet you in person, if possible. Your consultant will have in-depth knowledge of the local and international property market, and be fully trained in the Fine & Country strategy for optimal marketing of upper quartile homes, based on exceptional presentation, exposure and service. Your consultant will ask you questions about the property and ask for certain documents pertaining to the property to perform a market study, or ‘Avis de Valeur’, if required.
THE DIAGNOSTIC REPORT
A diagnostic report, or property survey, is performed by an expert and is required for the sale of a property in France. The first two elements in the following list (DPE and Loi Carrez) are required before marketing, and the rest in time for the sale; however, we always advise that the entirety of the reports are done before marketing, so that the buyer has all the information needed from the outset. It is worth noting that the reports are for information purposes only for the buyer, they are not an obligation on the seller to fix any potential anomalies. A structural survey is not an obligation in France but, if required, it can be organised and paid for by the buyer.
THE DIAGNOSTIC REPORT INCLUDES: Diagnostic de Performance Energetique (DPE)
This is the energy performance rating, and must be displayed as part of the marketing.
Loi Carrez (m2)
This is the internal official square metres of a property in a co-propriety (i.e. an apartment or townhouse in a co-ownership).
Lead
All properties built before 1949 must be tested for lead.
Asbestos
All properties built before 1997 must be tested for asbestos.
Environmental Risk (ERP)
The zone that the property is located in may have associated certain natural risks (such as fire, flooding, etc.), and this is assessed given the location of the property.
Termites
A test for termites may be required, depending on the location of the property.
Gas and electricity
If the property has gas (individual or municipal), the property must have the gas checked, and equally the electricity is checked in line with modern norms.
In addition to the above-mentioned elements that are covered by the expert diagnostic company assigned, there are further reports/
Step 3
requirements for the sale which are best organised as soon as possible, and in time for the marketing; they include:
Swimming pool security
If the property has a swimming pool, then proof as to swimming pool security is required.
Smoke alarm
All properties must have a smoke alarm.
Sewage and water
A conformity inspection must be undertaken whenever there is a septic tank. This inspection can take many weeks to arrange (depending on the location of the property), and if the tank does not conform, a quote is then needed for the works required to bring the septic tank up to modern norms, including a geo-soil test. This quote is then shared with any potential buyer as information from the outset, as the obligation will be on the buyer to do the necessary works within one year of purchase. As the seller, you can also choose to do those works yourself to have a septic tank that conforms, before the marketing and sale. If the property is linked to the mains drainage, a certificate is required, which can be provided normally by the local town hall.
PRICING YOUR HOME
Based on the information provided and a visit of the property, as well as comparable data of homes currently on the market and recently sold, you and your property consultant will come to an agreement on a marketing
price. Your consultant is highly trained in pricing psychology and has an in-depth understanding of the local market in order to advise you on the best strategy for your property launch.
SIGNATURE OF A SALES MANDATE Step 4
Once pricing has been agreed with your property consultant, you will then sign a sales mandate together (either in person, or this can be done via Docusign at a distance). The sales mandate is obligatory in France in order for a property to be marketed by an agency. Your agent will ask you for a list of documents concerning the property, which are all required for the notary when we find the right buyer, but many are needed for information related to the property and are important to communicate with interested buyers from the outset. These documents include:
• Title Deeds – If you do not have these readily available, you can request them from the notary who represented you when you purchased, or we can request them from the deeds office, with a few weeks’ delay. It is best to have this readily available when you have a buyer, as the
Step 5
notary will require the Title Deeds in order to draft the preliminary sales contract.
• ID/passport of all owner/s.
• Company Certificate (KBIS) if owned in a company.
• Diagnostic Report, as well as other property-related reports/certificates – mentioned in Step 2.
• Conformity certificate for a villa (including the Declaration of completion of works (Declaration d’achevement des travaux),
BESPOKE MARKETING STRATEGY
Your property consultant will present our Bespoke Marketing Strategy for your home. This unique strategy is based on Fine & Country’s commitment to exceptional presentation, exposure and service for your property, and with the mandate signed and necessary documents and reports ready, this strategy will be put in place as marketing of your property begins.
if the property was built by the current owner, or if major works took place requiring town hall permissions).
• Latest taxe fonciere
• If an apartment, then the documents relative to the building are required, including a copy of the quarterly charges, the three most recent minutes from the AGMs (proces-verbaux) and the building rules.
• Plans are always helpful if they are available.
BUYER VISITS Step 6
Through marketing and our network, property visits will start. The launch price as well as first impressions in terms of presentation of the property are both key to attracting initial interest from the marketplace.
Your property consultant is a trained professional and responsible for all visits taking place with buyers and colleagues. It is preferable that the sellers are not present for visits, which allows the buyer time to visit in a relaxed manner, and be able to visualise themselves in the property.
NEGOTIATION AND OFFER HANDLING
When there is an interested buyer who wishes to move forward with an official offer, this is done in writing through your property consultant for your consideration and to
start the negotiation process. This offer does not constitute a sale, but outlines the basic terms agreed, including price, purchase conditions and approximate dates.
Once signed by both buyer and seller, the offer is used by the notary to open the sales file and start working on the preliminary sales contract.
PROMESSE DE
VENTE (OR COMPROMIS DE VENTE)
This is the preliminary sales agreement, established by the notary/s. The notary fees in France are paid for by the buyer, on top of the purchase price. Both buyer and seller can choose their own notary, or choose to use the same notary. If using a different notary, the fees remain the same to the buyer; they are simply split between the two notarial offices.
All required documents (outlined in Step 4) will be used by the notary to establish the Promesse de Vente, to be signed by both parties. The buyer pays a deposit of between 5% – 10%, to be held in escrow at the notary’s office and has a 10-day cooling-off period, after which the buyer is engaged to the purchase. If there is a suspensive clause for a bank loan, the sale is contingent on the buyer receiving financing from the bank. The seller is bound to the sale upon signature of the Promesse de Vente.
The notary will perform all necessary checks on the property, including outstanding loans, servitudes, conformity, etc.
ACTE DE VENTE
The Acte de Vente equates to final transfer of title and funds. This normally takes place within 2-3 months of the signature of the Promesse de Vente (dependent on the town hall’s preemption right, as well as whether there is requirement for a bank loan).
Utilities are transferred over to the buyer on this date, based on the meter readings taken before signature.
The notary will repay any outstanding debts to the bank, as well as capital gains tax (if applicable) and the real estate agency fees, before transferring the net funds due to the seller.
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FIGHTING HOMELESSNESS THE FINE & COUNTRY FOUNDATION FIGHTING HOMELESSNESS
A tax representative will be appointed for all non-EU resident sellers to ensure that all tax obligations are complied with.
PRO RATA PAYMENTS
Both the taxe fonciere and building levies (in the case of a co-propriety) will be calculated by the notary and paid to the seller on a pro rata basis, dependent on the date of sale within the year. This pro rata payment will appear on your financial breakdown.
ANNUAL TAXES
Taxe fonciere. The seller is repaid the taxe fonciere on a pro rata basis; however, it is important to note that as the annual taxes are paid for in arrears in France, if you sell your property in the early part of the year,
you will still receive the request for payment at the end of the year, even though you are no longer the owner of the property (having already been repaid on a pro rata basis by the buyer, based on the taxe fonciere from the previous year). The buyer will receive the taxe fonciere at the end of the year following your sale.
Taxe d’habitation. This is the tax on secondary residences, and is paid for in arrears in France. This tax is not repaid on a pro rata basis and it must be paid for in full by the owner/long-term tenant of the property on the 1st January of that year. From the year following the sale, the buyer will receive the habitation tax bill.
We believe that, together, we can make a substantial impact to help the most vulnerable people in our society. As a network, we take part in some remarkable efforts, like treks up Mount Kilimanjaro. Charity no. 1160989, striving to relieve homelessness. THE FINE & COUNTRY FOUNDATION
The Fine & Country Foundation was established to provide grants and support for homeless charities in the UK and overseas. Since 2014, a combination of the efforts from Fine & Country agents across the globe and private donations have helped raise over £980,000.
Thank you for your support. This document in non-contractual and for information purposes only and was correct as of 2nd October 2024. We have made every effort to ensure the information is accurate based on our knowledge and understanding as estate agents. Interested parties should make their own enquiries before making any
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