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France - Buyers Guide |
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When buying we strongly recommend you to instruct a local lawyer
to ensure that all is in order. If dealing with a new development it must be checked that the
plot/land is suitable for building purposes, i.e. zoning restrictions, building regulations,
access to an official road, availability of water and electricity supply, telephone lines.
In the case of purchase of an apartment or house the lawyer needs to check building planning and other
permits, the history, reputation and reliability of a developer and the title to the property.
Notaire's commission
It is frequently stated that if you purchase a house directly from a notaire you
won't pay any agency
commission. This is not the case, you will be required to pay according to a government scale, commencing
at 5% at the bottom end of the market, reducing to 2.5%.
Notaires fees
Buying privately will avoid paying agency commission, although using a notaire
and their associated
charges is compulsary. Notaires represent the state rather
than the buyer or seller as a result they are
impartial. In some instances buyers
and sellers can us e separate notaires, although this process can
sometimes become more time consuming.
Commission and fees
The first key question to ask a French estate agent or notaire is whether the price includes commission
and legal fees as well as the level of commission they charge you, this can vary.
Most French estate agents (immobiliers) include the agent's commission the norm tends to be around 7%,
though this can be far higher in sought after areas, large cities or popular areas. Some agencies also
include the notaire's fees, but for the most part these tend to be applied afterwards - as a rough rule
of thumb budget
for up to 10% extra on the asking price to cover legal fees you will not go far wrong.
The agent or notaire will be able to give a more accurate break down.
The notaire's fee will include the various local and national government charges
and taxes, the French equivalent of the English stamp duty. Buying with a
mortgage will incur additional charges made payable to the notaire. A gency fees and legal fees are
generally charged at a higher percentage for less expensive houses.
Other fees
Some non French based property-finders / estate agents add on their own fee on top of the French agency
commission , this can be upwards of 5,250 euros.
If you decide to buy from an agency outside of France make sure you ask the question at the start
of your dialogue. Good agents should always volunteer this information from the outset. Some agencies
share commission with the French agent and don't charge the buyer.
VAT = TVA
TVA (the French VAT, at a rate of 19.6%) is payable on most fees and commissions.
Deposit
After deciding upon the property the norm is to pay a deposit of 10% payable to
the notaire at the end
of a seven-day cooling-off period you get after signing the compromis de vente. Always check the agent
does not ask for the deposit to be
paid to them before signing the compromis.
Currency conversion
If buying with foreign currency remember to check the cost of transferring and converting your mone
and the implications of any exchange rate changes.
See Currency Rates. A currency exchange company will
allow you to set the rate in advance so you know exactly what you will pay. |
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