Looking to buy in France? First pick an agent. In an excerpt from her latest book, expert Penny Zoldan explains the French estate agency system
Those who are looking to purchase property in France should contact agents for property information and listings. You will soon discover that estate agencies dealing with France work in a very different way to a local UK agency.
Which agency?
First, you have the choice of dealing with either an agency that is based in France or one based in the UK which deals with French property, albeit normally in association with a French agent (agent immobilier).
French-based French agencies
To own an estate agency in France, you must have a carte professionnelle; to obtain this you must have either ten years’ experience of working in an agency or a law degree. Each agency must be registered with the local town hall, hold a carte professionnelle and have a bank guarantee. You will often see a certificate hanging on an agency’s walls confirming this, and you are at liberty at any time to ask to see their carte professionnelle number – don’t be afraid to ask if they have one, or to see details of their charges.
Without a carte professionnelle an estate agent does not have the right to hold a ‘mandate’ to sell a property or to take clients to view properties. It is a necessity, and should there be any questions you need answered or problems with your purchase, only a registered agent will be in a position to sort these things out for you. Do not be tempted by someone offering to show you a few properties that ‘friends’ have for sale – if they are acting as an agent and do not hold a carte professionnelle, they are acting illegally.
Bear in mind that French estate agents are not used to sending out property descriptions by post as we have come to expect in the UK, so do not hold your breath if you have phoned or emailed to ask for details – they might never arrive. Also, French agencies have to accompany their clients to view properties; they can’t just send them along or give them a set of keys.
The FNAIM is a regulatory organization in France similar to the NAEA (National Association of Estate Agents) in the UK. Although it is not essential that an estate agent is a member, knowing that your agent is a member of a regulatory body is an additional comfort for a buyer.
Agency fees
A fixed list (barème) of an agency’s commission is often displayed on the wall of their office. Agency fees in France are higher than those in the UK as their role differs greatly (more on this below). You can expect the agency fees to amount to between five and ten per cent of the purchase price of a property; normally, the higher the property price the lower the percentage charged. This percentage includes TVA (VAT) at 19.6 per cent which the agent has to pay to the authorities. The total amount is normally included in the quoted price, but do check!
Sole, multiple and shared agencies
French agencies have to have a signed mandate to sell each property they carry on their books. Each vendor giving an agency a property to sell will be asked to sign a document confirming their instructions to sell, the price and the commission, etc. In some cases the agents may have a sole agency, i.e. no other agent is instructed – it is a good idea to ask about this if you see a property you like and need some time to think it over. If other estate agencies have been instructed they could be showing their clients the property and your agent will have no idea that they are proceeding until informed that it has been sold. It is quite usual for French agencies to share their properties with other local agencies to give you a wider choice. They will then share the commission and it will not cost you any more.
Purchasing procedure
French agents are permitted to draw up the first contract (compromis) and hold deposits in their client’s account. If you require further information on a specific property that you are prepared to purchase with regard to extending or changing it in any way, the agent will go to the mairie (town hall) for you or with you to find out the possibilities.
During the purchase procedure, the agent will liaise between you and the notaire if you wish and is always in attendance at the notaire’s office for the final signing and transfer of the property – sometimes even acting in the capacity of translator. Bear in mind that the agent is based close to your property and they have probably lived nearby all their life; they have a reputation to uphold and can fill you in on all the information you need on the area.
They will want to make sure that you are pleased with their service as there is every likelihood that they will be bumping into you in the future at the local shops and restaurants – estate agents are respected members of society in France. Some French agents employ British staff, which can be very useful as they can give you information regarding making the move and buying as a foreigner, etc. However, do check that they are working legally for the agency.
UK-based French agents
The role of an agent based in the UK and dealing solely with French property is to smooth the way for prospective purchasers. These agents will normally work in partnership with French-based agencies, and whereas some will specialize in a certain area of France, while others will cover most of the areas.
They may be members of regulatory bodies such as FOPDAC and NAEA and will have to have proved themselves to be members of these associations. The advantage of dealing with an agent who is based in the UK and covers most of France is that they can give you a good overview of the differences between areas, i.e. house prices, types of property, weather and accessibility. When you are trying to decide between different areas, this information
can be extremely helpful. There is also the fact that they can send you details of comparably priced properties in the areas you are considering. They will also be able to advise you on journey times from one area to another as they will be accustomed to travelling in France on a regular basis.
As well as having valuable local knowledge about a range of areas, they will be in a position to make appointments for you with long-established and very knowledgeable French agencies which have been vetted by the UK company. These will be agents who have elected to work with the UK market, who enjoy doing so and are prepared for the extra workload that is usually entailed in dealing with ‘foreigners’ who are buying properties in France.
Excerpted from Buying Property in France by Penny Zoldan, published by Collins, priced at £8.99