real estate guide
A garden on the roofs of Paris
An apartment with a roof terrace… the Nirvana of Parisian real-estate! Zoom in on the specifics of this very particular micro-market.
Concrete under your feet, but your head up in the stars! The penthouse, also known as a roof-terrace, is an island of greenery up in the sky, quite the chicest and quietest options at the moment, and extremely sought-after. They are often implanted on the last landings of buildings, sometimes Haussmannian, but more often than not modern in the best arrondissements in Paris: the 6th, 7th, 8th, 16th and 17th; or even in the most exclusive suburbs of the west, like Boulogne-Billancourt or Neuilly-sur-Seine.
What is most distinctive about these building-top apartments, aside from their location, is their price. Usually they are far from the current value of the market and sometimes incredibly higher than in average real-estate. According to professionals, one should obviously keep in mind the plus-value of land in Paris, especially when there are no neighbours! Also, the value of a terrace-roof is not relative to price per square meter. Whereas this notion directly applies to standard apartments, it is not a criterion in this type of estimate. Just like a particular charm, a view or orientation, the benefit of an outdoor space, especially in such an urban setting, has to be factored into the calculation.
Here are some examples of the types of prices to be found in the capital whenever a roof-terrace makes it on the market: a gorgeous 225 m2 penthouse with a 35 m2 terrace on the same level as the living-room, near the Avenue Foch costs over 2.5 million Euros. A small triplex on roof providing an equipped terrace and a 360° view in the 9th is estimated at around 1.8 million Euros. The average prices are between 1.5 and 3 million Euros. The clientele for this type of product is mostly urban, foreign or Parisian, but sensitive to nature and uniqueness. Their dream is to buy a large and luminous apartment with a terrace available to overlook and admire the beauty of the city. Even though such offers are not rare, one must be careful that some apartments open on inaccessible outdoor spaces. Mostly in the 1970’s, many housing blocks were built with terrace-roofs that were not rendered accessible because of cost or lack of the ability at the time in terms to waterproof such constructions. However, these surfaces are flat, provide the advantages of higher landings and can also allow for nature to enter the city. These types of surfaces are also still slightly undervalued, in terms of real-estate.
In Paris there are over 3 million square meters of inaccessible roof-terraces (source: APUR). One would therefore be well advised to keep an eye open! But one should also be aware that there are multiple and sometimes complex constraints when purchasing a livable and healthy roof-terrace (authorisations, cost, regular renovations…)
Can any- and everything be done?
A person who wants a roof-terrace must be prepared to make some efforts. The constraints are manifold. And the first questions of course are those of law: what one is or isn’t allowed to regarding urbanism. Each case is unique, depending on the context and the commune. In the capital, for instance, a meeting with urbanism architects from Paris city hall, of the PLU and urbanism regulations for each area, will give a full understanding of what is required to obtain mandatory authorisations, such as building permits etc. The rules of the condominium must also be abided, and the other owners must in any case be informed.
Big or small work on a terrace can only be done with their authorisation (by absolute majority according to article 25 the legislation of July 10th 1965). Then there are the technical constraints: the first thing is to take into account the weight on the roof itself. If it was not originally designed to sustain such an accommodation, the roof might not be strong enough. It is therefore important to have it estimated and reinforced, as the case may be. Keep in mind: an apartment terrace has a maximum weight of 250 kg per m2.
To those who wish to install a small swimming-pool or bubble-bath, specialists advise to make it out of wood and above ground, since this is both lighter and prettier. In these types of cases, one should not forget to make a preliminary declaration, to inform the condominium, use and architect and respect legal distances with the neighbours (information available at local city halls)! As for the size of the structural walls, especially when the roof-top has to be reinforced, one should make sure that these walls can sustain extra weight. It also has to be utterly and completely waterproof, capable of meeting new standards and a possible vegetation, depending on specific norms. Security on the roof-terraces is the last but not least technical instalment. Specific equipments must be installed and verified to allow for the presence of the new inhabitants of this future rooftop paradise.
Lastly, financial constraints: the valorisation of the roof-terrace and the cost of the transformations depend on a number of factors and on the complexity of the situation, but compared to the final worth of the roof-terrace, it is quite obviously a worthwhile operation!
A taste for Provence!
Decorator and landscapist, specialised in creations in an urban environment, Jean-Christophe Stoërkel designs gardens “that suit the clients who have ordered them, so more often than not they are very bare and contemporary.” According to the founder of the Natureleï agency, a terrace should be seen as an extension of the inside spaces that open onto it. The difficulty resides in waterproofing the installation. “We try to stir our clients away from too complicated projects,” Jean-Christophe Stoërkel explains, “because a garden does mean watering, which will probably produce infiltrations sooner or later.”
Even when the work is supervised by competent engineers and specific insulating materials are used, water remains the main problem in roof-terraces. “This problem is currently solving itself, with the current tendency our clients have of wanting to use wood and minerals. More than greenery, Parisians want the Provence: they want olive-trees in pots that are treated as sculptures. The challenge for the landscapist is to create this effect in the lightest possible way.”
Real-estate plus-value: exoneration cases
Selling real-estate usually means there will be a plus-value, taxable by 27 %! It is therefore important to know exoneration cases.
Plus-value is the gain produces by the sale of a piece of real-estate, when compared to its purchasing price. Since January 1st 2004, plus-values realised by the costly cession of building by private owners in the context of the management of their personal property are taxed by proportionality on the global revenue. The plus-value is declared and the tax paid during the mutation. Taxation is calculated by a proportionality of 16%, plus social taxed of 11%. Therefore, taxation of plus values is of 27%.
How is the plus value tax calculated?
One should first calculate the full plus-value brute, by subtracting the original purchasing price from the current selling price. However, one should add to the initial purchasing price the following expenses: lawyer’s fees, costly mutation rights, commissions to intermediaries (real-estate agents), building, reconstruction, amelioration, etc., costs. Thus the actual plus-value can be accurately determined.
Other deductions can then be applied:
• reduction of 10% per year of ownership after the sixth year, for buildings and parts of societies primarily concerned with real-estate;
• A fixed deduction of 1,000 Euros applied on the full plus-value, corrected by duration of ownership deductions, as the case may be.
Eight known exoneration cases
1- Cession of one’s primary residence, including outbuildings (service room, garage located less than 1km away). Even better, even if the primary residence is not inhabited at the time of the transaction, three cases still grant exoneration: the normal length of the transaction procedure, separation, divorce.
2- land redistribution operations. Plus-values obtained in the case of exchanged due to urban or rural restructuration are exonerated.
3- Cessions under 15,000 €. This ceiling is assessed on a case by case basis, in the case of the cession of building parts.
4- A property owned for more than 15 ans. Thanks to the reduction of 10% per year after the sixth year of ownership.
5- For the holders of an elderly pension or invalidity card, provided they do not pay the ISF and their revenue does not exceed a certain fiscal ceiling.
6- For non-residents. Depending on antecedents in fiscal domiciliation and ownership of property, they are allowed the same exonerations as residents.
7- In the case of the cessation of the primary residence to an associate in a SCI. If an associate is inhabiting a property belonging to an SCI as his primary residence, free of charge, he will be exonerated from the plus value proportionally to the shares he holds in the society.
8- In the case of an expropriation. Plus-value made from the sale of all or part of a building or rights pertaining to said building if there has been a declaration of public interest in view of an expropriation. The seller must use all of the expropriation benefit for the acquisition, building, reconstruction or amelioration or one or several pieces of real estate within a year of the receiving of the sum.
The possibility of less-values
No imputation can be made on less-values in the cessation of buildings, nor of plus-values of the same nature for that matter, nor on global revenue. There can however be a compensation between plus-values and less-values in the case of the selling of a building that has been acquired in successive fractions.
Buying a historical monument: the fiscal advantages
Owning a classified historical monument can prove quite interesting, fiscally speaking. The greatest perks are: a total or partial alleviation of succession rights and the possibility to impute all or part of the charges, depending on whether or not the property produces revenue, on the global revenue, even loan interests.
I Fiscal advantages, case by case
Fiscal advantages vary, depending on whether the building produces revenue, and on whether its owner inhabits it. Actually, it would be best to differentiate three possible cases.
A- The building produces revenue but the owner does not occupy it
(the building is fully or partially rented and generates additional revenue, for instance with visitation fees).
If the building generates locative revenue, all of the charges can be imputed to the general revenue. In the case of a deficit, it will be imputable without limitation on the global revenue of the owner. If the building generates secondary revenue (paying visits for instance), this revenue is subjected to common regulations, after subtraction of charges such as paying the cashier and guide personnel, as well as the fixed deduction. On the final amount of this revenue, the owners can, without specific justification, withdraw a second fised deduction of 1,524.49 € is the monument has neither park nor garden and 2,286.74 € if it has either.
B- The building produces no taxable revenue (this is the case when the building is inhabited by its owner and/or it is open to visitors free of charge)
Whether the monument is open to visitors or not, whether its owner inhabits it or not, the property generates no revenue. In this case, specific charges regarding it are deductible from the general revenue. This applies to all of the participation to the strict up-keeping of the building paid to the local cultural administration as well as participation to renovation made by the latter; the full cost of renovation or repair work minus, as the case may be, the state’s financial participation. All the other financial charges that fall under the regimen of common regulation are also deductible to a certain extend from the general revenue. Loan interests are also deductible but for a varying portion, depending on whether the building is open to visitors or not. The deduction is of 100 % if the building is open to visitors, 50 % if it is not.
The fiscal administration considers that a building is open to the public as long as the monument can be visited:
- at least 50 days a year, 25 of which (Sundays and holidays included) have to be between April and September;
- or 40 days from July to September.
C- The building produces taxable revenue but is also inhabited by the owner (a building that is open to the public with an entry fee for instance).
This is the case, for instance, of an owner who inhabits part of the building and rents the rest of it or who keeps the building for himself in its entirety but perceives additional revenue from paying visitors. In this case, charges that regard the part of the building devoted to the owner’s personal use are fully imputable to the global revenue.
The other charges, for visitation rights or partial occupancy, are taken into account when calculating the net revenue. If there is a deficit, it is fully imputable on the global revenue.
Note that if the building is open to visitors, the Administration admits that the fraction corresponding to the opening is of 75% of total charges. The 25% that directly go to the owner are directly deducted from the global revenue.
II Common advantages
A- Succession rights exonerated
Another fiscal perk: exoneration of succession rights, even if the heir is not a member of the deceased’s family. This exoneration is conditioned by the receiver’s signing of a convention of undetermined length with the Ministry of Culture and Finances. It determines the designation of the property or of the part of the building that is under the protection of Historical Monuments, enumerated mobile and immobile constitutive elements that are to be subjected to the exoneration. Lastly, this convention indicates all the obligations the new owners will have to their property: maintaining the decorative elements mentioned in the convention; specific means of up keeping the building; publicising information on visiting access and times.
To benefit from the exoneration, the building has to be open for visits at least 100 days per year, including Sundays and holidays, from April to October included, 80 of which have to be from June to September.
We now need to discuss the special case of buildings owned by family SCI. Since January 1st 1995, exoneration of succession rights has been extended to historical monuments owner-d by means of a family SCI (Real-estate civil societies). But the revenue of the society have to be taxed as revenue of the shareholders. The society has to be made either of family members in a direct line or by brothers and sisters, their spouses and children as the case may be. Shares must remain the property of these people.
Beware! Letting a new associate who doesn’t have the required family bond into the society will automatically break the exoneration regimen. The civil society must own the property in its entirety, keep the historical monuments in proper condition, as well as the furniture if so required. It can own other property, but exoneration parts will only correspond to those of the historical monuments. Lastly it has to conclude a convention with the ministries of Culture and Finance and the next owner, to which the heir will have to conform.
Furthermore, the exoneration can only take place if the donor or deceased had held his parts gratuitously for at least two years prior to the transmission, if it was an acquisition or paying subscription, and for at least five years if the transmission had previously been exonerated.
B- The situation seen by the ISF
When it comes to taxing wealth, agents are advised to be benevolent in their assessment of the value of the property.
III Declarative Obligations
Proof of classification or inscription is mandatory to benefit from this preferential regimen. It has to be added to the declaration. It is also advisable to join to declaration 2044 all the bills justifying operative deductions, in case of deficit.
IV Specific regimen: buildings that are part of national patrimony
Up till now, the owners of buildings belonging to national patrimony because of the label delivered by the Fondation du Patrimoine benefited from the fiscal special treatment applied to historical monuments and such: deduction from the global revenue, in certain cases, of the charges they caused. One condition was however required: these owners had to first obtain a fiscal agreement. Article 45 of the law of restrictive finances suppresses, for 2002 the fiscal agreement owners of building given the label of the Fondation du Patrimoine needed up till now to benefit from the fiscal advantages that come with this type of property.
“Chambres d’Hôtes”: the keys to success
An expanding area of activity, there are over 65,000 bed-and-breakfast rooms in France, in more than 20,000 houses, many of which are chateaux or luxury residences. These have made over 300 millions euros in 2005. Here are a few tips to get started in this business.
These “Chambres d’Hôtes”, sort of bead-and-breakfast places, are mostly rural. Creating such an installation is a good way to make profit out of ones real-estate property or to finance its renovation. The French have well understood this. About 1,500 such structures are created every year.
Having gone for a long time without any specific legislation, they are now subjected to a law, published in the “Journal Officiel” on the 18th of April 2006. It states that the “Chambres d’Hôtes” are now defined as “furnished rooms, located in the inhabitants residence, destined to accommodate tourists, for lucrative purposes, for one or several nights, and providing a series of services.” In addition to this, those who want to engage in this activity must now make a declaration to the local city hall. Another important aspect of this law is the obligation to obtain a license from the registry of commerce and societies, as well as the “small restaurant license”, which will allow the serving of such non alcoholic beverages as orange juice, coffee or tea - the necessary items of any good breakfast.
The last stipulation concerns the promotion of these facilities. The operations of organising and selling vacation trips, short stays and the services provided on these occasions is now expressly allowed. This is the legal aspect of things. The modalities of creation have not changed. Everyone must respect the existing norms regarding inhabited houses that are open to the public.
Should one belong to a label?
First of all, you have to be the owner. Then, generally speaking, the rooms must be in the house itself or in the outbuildings, and the owner must reside there. The maximum capacity of 6 bedrooms and 15 people, which was allowed until now, is about to be reduced (see text below). Furthermore, these rooms have to provide a bed as well as storing space. The walls and floors must be clean and insulated.
A sanitary access is mandatory. Those who wish to make this their profession and not a mere secondary activity would be advised to belong to a label (Gîtes de France, Clévacances, Château-Accueil…); this will allow them to benefit from the renown and the services of their association. To obtain such a label, there are four essential criteria: environment, interior arrangements, staff amiability and assistance. One the accreditation has been secured, the owners are expected to accept and comply the rules of their label once they open their “mas”, “gentilhommière”, or “château” to the public.
While the Fédération des Gîtes requires that the rooms be of 12 m2 minimum and each have their bathroom, in Château-Accueil, the owners must have been in possession their estate for at least 15 years. Lastly, all the labels will recommend the creation of a website, and this will be a definite business advantage.
A reliable investment?
In order to have a good income, it is recommended to have at least 3 or 4 bedrooms. The prices will range from 45 to 80 e per night, and can go up to 100 or 150 e in the most beautiful residences – the latter will often compete with 4-star hotels, with the added bonus of a family atmosphere. In such cases, the decoration has to be beautiful and refined. For a small business, you will have to wait 3 or 4 years before you can reach a financially satisfying occupation level.
Thus, a bedroom that is occupied 15 weeks per year can make 1 500 to 3 000 e after deduction of the exploitation fees (30 % of the profit). To boost your occupation rates and your revenue, you can create a “table d’hôte” – a country restaurant. You should know that the initial arrangement of each room will cost 10 000 to 20 000 e. The Fédération des Gîtes de France gives an average of 15 000 e, but it all depends on the type of room. If it was occupied just before the transformation, 1,500 e will probably suffice, but if you have to start from scratch, you are definitely looking at 20,000 e. But fear not, there is some financial help available for future owners of “Chambres d’hôtes”.
The work can be partially financed by the department, the region or the EU. They cover masonry work, electricity, sanitary equipment, heating, woodwork, paintjobs and insulation. Be careful: this financial aid, which can reach up to 30 or 40% of the total cost of the work – some 7 000 to 12 000 e per room, is not the same everywhere. Lastly, a pleasant finishing touch: if the revenue of a Chambre d’Hôte is of less than 760 e a year, they are exonerated from tax. However, if they exceed this sum, they are taxable as industrial and commercial benefits.
The final contract is called the «Vente en l’état futur d’achèvement» (VEFA).
3.1. Preparation of the Contract
Whilst there exists general statutory regulation of VEFA contracts, they come in different forms and most contracts will be prepared by a Notaire on the instructions of a developer.
The standard contract will then be used for all sales in a development.
So it may well be that the contract is written to the advantage of the developer.
A Notaire who refuses the 'reasonable' suggestions of the developer is unlikely to retain the business of that developer for very long.
This is one more good reason why you should engage your own Notaire to act for you.
3.2. Contract Documentation
The contract should be a comprehensive document that must contain a full description and plans of the proposed dwelling and its precise location.
It must also include a technical description of the materials and equipment used in the construction, and list the communal facilities and their conditions of use. This document is called the «notice descriptive»
You should check for any differences between the terms set out in the preliminary contract and those contained in the VEFA contract.
In particular, you should check that the location and size of the property are as specified in the initial contract.
In the event of a later dispute, it will be the terms as set out in the VEFA contract that will apply.
You will not normally be provided with your own copy of the full technical supporting documentation («descriptif détaillé»), which will be retained by the Notaire. Nevertheless, you are entitled to consult the documentation at any time, and it forms part of the contract.
When the property has been completed you need to be able to compare any difference between the property shown on the plan and the actual realisation. Indeed, the law states that if you are not given this information (or the right of access to it), then the contract is capable of being annuled.
The developer is also obliged to provide you with the set of the rules that will apply on the development, e.g. use of the communal areas, business use of the property, service charges.
This document is called the «cahier des charges» and it is important you read and understand it.
Not only will the VEFA contract be in French but it will contain a large number of technical terms and drawings that the layman is unlikely to be able to understand. Even a French person would have difficulty in grasping the detail of the contract.
Accordingly, you would be well advised to appoint your own professional advisor, such as an architect, to take you through it.
Provided you have previously signed a preliminary contract, you are entitled to be supplied with a full copy of the final VEFA contract at least one month before signature, in order to give you time to properly understand and agree the contents.
If this period is not respected then, even though you may sign, you will retain a right of retraction. The one month period of reflection does not start until you have received a copy of the contract, sent by recorded delivery.
You need to review with care the level of precision in the contract and how much discretion may be left to the developer.
Thus, it is not unusual for the contract to provide a clause granting the developer up to 5% dimensional tolerance. You need to decide whether or not this is acceptable to you.
The developer is likely to seek as much tolerance as possible, and if you give them too much room for manoeuvre you may well end up with something you did not quite expect and be unable to do anything about it!
One other important issue you need discuss with the developer and the Notaire is the level of discretion that may be left to the developer to choose or change materials, colours and fittings etc.
Thus, it is not unusual for the developer to include a clause with the words 'or equivalent' in the contract, relating to the use of materials or equipment. You may wish to insist that any changes in the specification be subject to your prior authorisation, or to ensure that the level of discretion is drawn as tightly as possible.
The contract will normally grant the purchaser some choice about colours and fittings etc from a catalogue supplied by the developer. If it does not, you should try and insist upon it.
3.3. Price
The contract will give either a fixed or provisional price. In most cases, it will be a fixed price.
If it is a provisional price then it must also state the basis on which the price may be revised, which cannot be greater that 70% of the increase in the official 'cost of construction' price index.
3.4. Delivery Date
The contract is unlikely to state a precise date for delivery of the property.
The best you are going to get is a period, something along the lines of 'scheduled for last quarter 2007', or similar.
Clearly, you need to go for a precise a date as possible, so you can be clear from what date any penalties will apply for late delivery. Try and insist on a final end date, e.g. 31 Dec 07.
Even if you are able to do so, the developer will wish to include grounds on which the delivery date may be exceeded without penalty, e.g. strike action, exceptional weather conditions.
The law prescribes no specific penalities for a developer who does not deliver a property by the due date. If you wish to impose penalties for late delivery you will need to negotiate them into the contract documentation.
You need to ask about the issue of penalities on late delivery before you sign the preliminary contract, as you will have greater leverage at this time.
The issue of penalties is one area of VEFA contracts where the law is silent and which, not surprisingly, developers resist being included in the contract! Unfortunately, delays in the completion of new off-plan developments is not uncommon, in most cases no more than a few months at the most, but in some cases running into a year or more.
In theory, you are entitled to withdraw from the contract and receive full reimbursement, if there is an unreasonable and substantial delay.
Only a court of law could determine what might reasonable in the circumstances, but the general principle the courts operate is that delay is not generally a sufficient reason to withdraw from the contract. You may well be awarded 'damages' if you suffered injury as a result of the delay, but you would not be awarded 'penalties', unless you had a suitable clause in the contract.
You may wish to argue with the developer that, as penalties will be contained in the VEFA contract against the client for late payment, then there ought to be a reciprocal obligation on the developer for delay, as recent legal decisions in the courts seem to imply!
3.5. Fees
The Notaire and legal fees for a VEFA are lower than those for an existing property. Whilst the latter come out at circa 8% the fees for a VEFA are around 3%. Nevertheless, as it is a new property you will be paying VAT at the rate of 19.6%.
The appointment of a second Notaire does not ordinarily increase the fees, which are shared between the two Notaires. Only if you are seeking more detailed, specialist advice might your Notaire ask for an additional fee. It is a matter of negotiation.
Top Tip!
At the outset, ask the Notaire about the likely level and type of fees, so you can be satisfied that costs which are properly the responsibility of the developer are not being passed on to you.
Under pressure from the developer, some Notaires adopt the practice of passing onto the buyer, fees that should ordinarily fall to the seller, e.g. preparation of rules relating to the management of a block of flats, or the fees of a land surveyor. Smart developers normally include these costs within the purchase price of the property.
3.6. Grounds for Withdrawal
The law stipulates several grounds on which the purchaser can withdraw from the contract and recover all monies paid to the seller.
If you wish to withdraw using one of these grounds then you must send a recorded delivery letter to the seller and the bank (or Notaire) holding the deposit. You are entitled to a full refund within three months of your demand.
3.7. Insurance
When you sign the contract you become owner of the land on which the property is to be constructed, together with any construction that may already be on the land.
Like all owners it is, therefore, necessary to take out public liability insurance and insurance against fire and other risks. As stages on the construction of the property are reached, you may well find your insurer requires that you increase your insurance cover.
The builder continues in control of the project as «maitre d'ouvrage» until delivery, and to deal with architects, contractors and sub-contractors.
The purchasing process
If you intend to purchase a property in France, the chances are that the French conveyancing procedure will be new to you. How does it work in practical terms ?
The purchase takes place in two stages:
1) The preliminary sales agreement (« Compromis de vente »)
Once you have found the property, an agreement is negotiated between you and the seller.
- a) The preliminary contract is the document you sign in the case you wish to purchase a property from a private seller. It is as binding as a sale contract for both contracting parties. On signature of the contract, you are generally asked to pay a deposit of 5 to 10 % of the price. You pay it to the notary on an escrow account.
This down payment is held by the notary and not given to the seller until the final sale date. - The suspensive condition to this contract is the mortgage authorization from the bank. In the contract, the mortgage criteria are listed (interest rate, mortgage amount, etc) and if the buyer cannot find a mortgage that meets the criteria, then this will annul the sale, and the buyer will get a refund of his 10% down payment
b)The reservation contract is the document you will sign in the case you make a purchase in a new program sold as VEFA (Vente en l’Etat Futur d’Achèvement), ie off plan. On the day you make the reservation, you will have to sign :- - the contract itself,
- - the specification sheet of the building
- - the block plan as well as the floor plan,
- - and in the case of a lease-back program, the lease contract which guarantees you a rent for 9 to almost 12 years.
You will also have to make a reservation check of 5 % of the purchase price - to put the apartment on hold-- to the bank of the notary in charge for the program.
When buying off plan, the owner will be asked, once the bill of sale has been signed, to pay the total price through stage payments proportionate to the progress of the works. A payment schedule is attached as an annexe to the reservation contract.
The contracts are then countersigned by the developer and a countersigned copy is sent to the purchasers. The cooling off period of 7 days that the purchasers have if they wish to cancel their purchase starts on the day that the letter is first delivered. After this period, if you don't want to buy the property, you will loose that amount unless the suspensive clauses are put into practice.
There is usually a three-months date set from the date of contract, which will be the final closing date. This gives the buyer sufficient time to secure a mortgage for the property.
2) The Final Deed (“Acte de vente”)
The final deed finalizes the transaction between the buyer and the seller. The signing of the deed by both parties has to be witnessed by the notaire. He's a public officer who is impartial in theory. Nevertheless we prefer to introduce you an English-speaking notary who will defend your exclusive interests. In this way we avoid any conflict of interests because each party has its own representative.
It can take anywhere from two to three months - from the moment the property buyer signs the Preliminary Sales Agreement, to the moment he or she signs the deed of sale.
Before presenting the deed of sale for signature, the notary is to verify that the seller is really the owner of the property in question, to verify the state of the building and any government mandates to take this building over by government control (only in rare cases when the building is considered to block some important government project). Recent laws require that the notary verify the actual size of the apartment via an architect’s drawing, that the pipes in the building do not have lead in them and that there are no termites in the building. Any of these can be legal grounds to annul the sale if the buyer wishes to do so.
Once the date for the definitive deed has been fixed, the notary will collect all funds to cover the transaction price and the registration fees (around 7% of the purchase price and payable by the buyer). The draft of deeds are sent to the purchaser by the notaire with, if necessary, power of attorney if the client does not wish to go to the notaire’s office in person to sign the final deed of sale. This power of attorney gives the notaire all authority to sign for and on behalf of the purchaser. From that moment onwards, the property will be yours.
French law states that the notary must retain the original deed of sale, while the buyer will be given an official copy.