France is a well-known destination for luxury property buyers seeking culture, refinement and strong investment potential. In particular, the South of France is a standout region for homebuyers interested in exclusive listings, beautiful natural landscapes, and an affluent lifestyle.
The property buying process in France is highly regulated, which offers protection to buyers but also requires thorough preparation.
To ensure a secure and smooth property purchase in France, it’s crucial that you understand the legal home-buying process. Since due diligence will prevent unnecessary legal complications, it’s important to know how to review contracts and comply with local regulations.
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What Are the Key Legal Stages When Buying Property in France?
Commonly, French property purchases follow this process:
- The buyer starts by making an offer in writing to the seller. Assuming the seller accepts the offer, the process proceeds.
- Both parties sign the Compromis de Vente, which outlines the conditions and terms of the sale.
- The buyer will pay a deposit, which is typically 5-10% of the purchase price.
- A mandatory 10-day cooling-off period allows the buyer to withdraw from the purchase without penalty; the buyer will receive their deposit back if they opt not to move forward.
- The notaire (a legal authority who oversees the property purchase process) will manage due diligence, check the authenticity and legality of contracts and deeds, and advise on various legal issues.
- Buyers who are securing a mortgage must have the loan approval finalised by an agreed-upon date.
- Both parties sign the Acte de Vente, which is the deed, in the presence of the notaire.
- The buyer will pay the final balance owed to the seller.
- Ownership is transferred from the seller to the buyer.
- The notaire then registers the property sale with the land registry, and the buyer will receive the official deed to the home.
For foreign property buyers who are unfamiliar with the real estate process in France, it helps to work with an property agent who will be with you from start to finish.
What Documents Are Needed When Making an Offer?
When making your initial offer to the seller, you’ll need a few pieces of documentation:
- Letter of Intent: Also called a Lettre d’Intention or Offre d’Achat, the letter of intent is non-binding, yet it’s still a formal expression of your interest in buying the property.
- Proof of Identity and Residency: You’ll need to present your passport, visa (if you have one), and proof of address.
- Financing Pre-Approval: If you’ll be purchasing a high-value property, showing proof of financing — while not mandatory — may be expected and can help your offer be approved.
Having this documentation available when you make the offer to the seller shows that you’re serious about the purchase and helps move the process along.
What Is the Compromis de Vente and What Documents Are Required?
The Compromis de Vente, or the preliminary sale agreement, is the first legally binding contract that you and the seller will sign when purchasing French property. The purpose of the document is to clarify the terms that you and the seller agree to at the start of the process.
Mandatory documents in the sale agreement include:
- Acte de Propriété, which is the seller’s property title
- Co-ownership regulations if the property is an apartment or gated estate
- Recent property tax statements, including Taxe Foncière and Taxe d’Habitation information
- Technical surveys (called diagnostics immobiliers) for such things as energy performance, lead, asbestos, termites, etc.
- Documents required of the buyer, including passport, proof of residence, and proof of finances
For rental investment properties, additional or different documentation may be required, including local authority approval for short-term rentals in regulated areas, like Cannes or Nice, and business registration for furnished rentals.
After both parties sign the Compromis de Vente and the deposit is paid, there’s a legally required 10-day cooling-off period. During this time, the process is on pause, giving the buyer a chance to change their mind about the purchase. If they decide not to purchase the property, they can withdraw from the agreement and receive their deposit back.
What Role Does the Notaire Play? What Documents Do They Require?
The notaire is a legally required role in real estate purchases in France. The person in this role is a legal representative who ensures clarity and legitimacy of each aspect of the sale.
As we cover in our article about notaires in France, they are “qualified lawyers and public officers appointed by the Minister of Justice, similar to English solicitors, who authenticate deeds, ensure legal compliance, and handle transactions.”
The notaire will require certain documentation to proceed with the transaction, including:
- Confirmation of Absence of Preemptive Rights: This official document verifies that there isn’t a third party, like an organisation such as SAFER or a government body, that can purchase the property before the buyer.
- Inheritance Checks: This due diligence ensures that the property can be legally transferred to the buyer and is not subject to inheritance claims.
- Land Registry Extract or Extrait Cadastral: This is an official document from France’s land registry that includes geographical and legal details about the property.
- Seller’s Mortgage Release: This resolves an existing mortgage or loan that’s secured against the property. If the seller has an outstanding loan, it must be fully repaid before the buyer takes ownership of the property.
This documentation prevents legal disputes from getting in the way of the sale and ensures the buyer won’t face compliance issues after purchasing the property.
What Additional Documents Are Needed for New Builds or Off-Plan (VEFA) Purchases?
In France, buyers can purchase a property off-plan under VEFA, which stands for Vente en l’État Futur d’Achèvement, meaning “sale in the future state of completion.” The VEFA system lets buyers purchase a property before construction is completed.
Mandatory documents for VEFA purchases include the following.
Building Permit and Insurance Guarantees
- Building Permit (Permis de Construire): This confirms that local authorities have approved construction plans.
- Financial Completion Guarantee (Garantie Financière d’Achèvement or GFA): This ensures the buyer that the project will be finished even if the developer has financial setbacks.
- Perfect Completion Guarantee (Garantie de Parfait Achèvement): This requires the developer to fix defects reported within one year after the property is finished.
- Two-Year Guarantee (Garantie Biennale): Non-structural elements, such as heating systems and plumbing, are covered for 2 years after completion.
- 10-Year Structural Guarantee (Garantie Décennale): This covers major structural defects for 10 years after the property is finished.
Payment Schedule and Completion Deadlines
Commonly, payments for off-plan properties follow this schedule:
- 35% due when the foundation is completed
- 70% due when the property is watertight
- 95% due when the property is completed in full
- Last 5% due when the property is handed over to the buyer
Your contract will specify a completion date, and there will be penalties for delays. Also, note that the remaining 5% due can be withheld if property defects exist that the developer needs to fix.
Performance and Energy Efficiency Commitments
Off-plan properties in France must comply with France’s environmental regulations for energy efficiency, as outlined in RE 2020. Additionally, the developer must provide the buyer with documentation about environmental performance, heating systems and insulation.
What Happens at the Final Signing of the Acte de Vente? What Documents Are Involved?
At the end of the buying process, both parties will sign the Acte de Vente, the final contract prepared by the notaire. The documents required for this stage of the process include:
- Certificate of property insurance
- Confirmation of the buyer’s final payment, such as proof of a bank transfer or a confirmation of the mortgage
- Finalised title deed, called the Titre de Propriété
- Payment receipt of paid notaire fees and stamp duties
Not only will the Acte de Vente be prepared by the notaire, but it will also be signed in front of the notaire as a witness.
What Are the Tax and Financial Documents Required for International Buyers?
International buyers purchasing French property will need a Numéro Fiscal, which is a French tax ID number required for capital gains and property taxes. Additionally, when buying a luxury property over €1.3 million, buyers will need to consider wealth tax, called impôt sur la fortune immobilière (IFI).
Moreover, for French property owners who are official residents of the UK, a fiscal representative is required. Fiscal representatives are tax agents who calculate gains or losses regarding the sale of French property.
Final Thoughts
To ensure a swift, secure property purchase, it’s important to have thorough documentation prepared in advance. Additionally, overseas buyers who are navigating the French property market for the first time may want to hire a property buyer’s agent, lawyer or translator who will work on your behalf and help with different aspects of the process. Working with an advisor assures compliance throughout the process so you can own the home of your dreams as quickly as possible.
HOMEHUNTS property agents are able to select beautiful, luxury French property based on your specific search criteria. Speak directly to one of our consultants by calling +33 (0)970 44 66 43.
