Barbara Heslop, a member of the Property Lawyers Abroad Network (PLAN)
1/ What is the market currently like in France – e.g. is it buoyant and where are the hot spots? Still reasonably buoyant we believe. Hot spots remain the Dordogne, the Alps and the Cote d’Azur.
2/ What should the buyer be looking out for when purchasing in France – any legal problems/issues specific to these countries? Planning issues and drainage issues tend to cause most problems.
3/ Could you briefly talk UK property buyers through how the legal process works in France? What should a lawyer be doing on their behalf? Buyers make an offer, once accepted either the estate agent or the local notary will prepare a draft contract, we check the contract and once it is agreed the buyers sign and pay a 10% deposit. There is then a period of approximately 8 weeks whilst various searches are carried out and if applicable a mortgage offer is obtained. Once all search results are received and provided all are satisfactory, a completion meeting will be arranged.
The role of a UK based legal adviser is briefly as follows:
• We make contact with the notary and estate agent
• We assist in negotiations regarding the price and extent of the property;
• We investigate planning matters affecting the site as well as potential developments in the area.
• We discuss the buyers lending requirements and liaise with the mortgage provider;
• We negotiate the terms of the contract making sure any necessary conditions are added;
• We check the draft final purchase deed prior to completion;
• We obtain a completion statement prior to the transfer of funds for completion;
• Finally, we make arrangements for the buyer to pick up the keys and ensure the water and electricity are on when they get there.
• We also advise you on succession and inheritance law applicable to ownership of real estate in France.
4/ What legal costs can buyers expect?Our average fee where the purchase price does not exceed 500,000 euros is between £1500 - £2,000(there is no VAT payable on our legal fees) Buyers should also budget to pay between 6-8 % on top of the agreed purchase price for notarial fees and taxes payable in France.
5/ How long should the legal process take?2-3 months
6/ Should buyers trust legal services offered by their developer or agent?It is generally preferable to find and instruct your own independent solicitor who is regulated by the Law Society.
7/ Is it safe to buy in France?Yes – French conveyancing is tightly regulated and is overseen by notaries who are highly trained and respected members of their communities.
8/ What is the most important piece of advice you would give to someone looking to buy in France?Do not sign anything nor pay over any money until you have taken independent legal advice.