Information for Buyers
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• Provisional contract Provisional contract used for the acquisition of real estate or building land. This contract lists the names and addresses of the seller and buyer, their reciprocal obligations, the description of the property in question, its surface area and price. It also lists the conditions of avoidance making it possible to terminate the agreement, notably the buyer’s failure to obtain a loan (or planning permission in the case of the acquisition of building land). If these conditions cannot be met, the agreement will be declared null and void. When the provisional sales agreement is signed, you will be asked to pay a deposit by the seller. If the buyer withdraws from the agreement before signing the legalized deed of conveyance, the seller is entitled to retain the deposit. If the seller wishes to withdraw from the agreement, he must pay the prospective buyer twice the sum of the deposit. • You may cancel the process When buyer and seller agree, a legal purchase / sale agreement ("compromis de vente") is signed. After a week, the purchaser transfers 10% of the agreed price to an escrow account and within 7 days the purchaser may cancel the process and get the deposit refunded.. • Loan and conditions of avoidance If the buyer fails to obtain a loan it is possible to terminate the agreement. • The notary fee The notary will charge 6-8% (on property older than 5 years) of the purchase price concerning used property, depending on the age and value of the residence. The charge comprises official taxes, dues on documents, fee on the registering of the title deed and remuneration to the notaries. All these fees are borne by the buyer. The seller and the buyer may well use each their Notary, at no additional cost. • MortgageObtaining a French mortgage can take some time. In order to ensure that the process goes smoothly, it is necessary to submit correctly completed forms and all requested documentation in a timely manner. Incomplete or incorrect submissions may be returned, causing delay. If you wish to make a cash purchase, the developer will need a letter from your bank with a statement providing proof of sufficient funds in order to go ahead with the purchase. The final signing of the deeds cannot take place without a written offer from a finance or mortgage company being sent to the French Notaire and to the developer. Only then can the Notaire prepare the deeds. • Taxes "Taxe Foncière" is a yearly municipal tax, imposed on property, varying from one municipality to another. The tax is to be paid by the actual owner of the property on January 1st, payable in October. Upon transfer of ownership of the property, the buyer pays a pro rata share of the tax, regardless of the fact if the seller already has paid this in full. "Taxe d'habitation" is a tax on residence, imposed on whoever has the rightful use of a property on January 1st. The tax, also payable in October, varies according to the size of the house, its standard, location etc. Its amount is larger than the "taxe foncière". • Searches on the property Once you have signed the compromis, the searches on the property begin. These might include ownership, land boundaries, rights of way, termite checks, lead and asbestos surveys. The notaire is responsible for ensuring that these take place and you do not need to pay for them. Our website : www.futterer-immobilier.com |
