Our property division : several departments to help you : five star service.
* Property sale and purchase : house, flats, investment properties, principal residences and holidays homes, building plots.
* Commercial : businesses, assignments of leases, new leases, shares in compagnies, compagny formation.
* Business and industrial : industrial buildings, factories, industrial plots, sale of businesses.
* Valuation : photographs, land registry plans, planning possibilities, written reports.
* Property management : rent collection, tax returns, quarterly accounts, drafting of tenancy agreements.
The role of the solicitor (notaire) in the sale of a house
1 – the preliminary sale agreement
A preliminary sales agreement is a contract used to outline the transfer of real property in France from one party to another. There are two main types of contract typically used, the Promesse de Vente and the Compromis de Vente.
Commonly, the 'Compromis de Vente' contract is used. The Compromis de Vente is more of a compromise between parties and is often understood as being a sale and purchase agreement. In a Compromis de Vente the buyer makes a commitment to purchase the property. The Compromis de Vente often calls for a 10% deposit. The buyer then has seven days in which he may change his mind and withdraw from the contract without penalty. After the seven day cooling off period, the contract is legally binding and the purchaser must purchase the property or forfeit its deposit.
The Compromis de Vente may contain additional agreed conditions and stipulations that govern the transaction. The conditions, if not met, may invalidate the agreement and release the parties from their obligations. Such conditions might include the buyer’s ability to obtain bank financing, adverse zoning easements, and local government exercising its pre-emptive right.
No matter which contract you use, it is not to be entered into lightly. Consult your notaire and go over all the terms and conditions in detail before finalizing the agreement.
2 – the sale
French notaires are government officials. They are under the authority of the French Minister of Justice and are appointed by decree. In general, the notaire is a government official who is responsible for receiving all the actes and contracts which require a seal of authenticity. They ensure documents are dated accurately, held in trust, and provide authentic copies.
The Notaire in French real estate transactions is responsible for ensuring the conditions of the transaction are met. An independent, unbiased, third party, they represent the interests of neither the buyer nor the seller, but the integrity of the transaction itself. While the notaire does not specifically represent the buyer, they do follow the buyer’s instructions. It is also the buyer’s responsibility to pay their fees.
Notaires have a lot of different responsibilities in French real estate transactions. They are responsible for searching the title for mortgages, easements, restrictions, planning, zoning and anything else that may affect the value and use of the property. The notaire will check for nuisances such as lead, asbestos, termites, etc. Verifying all rights of pre-emption have been cleared and researching the cost of running the property and new investments, also fall within the purview of the French Notaire. Suffice it to say, this extensive process is not quick, in fact, it can take up to three months before the real estate transaction can be completed.
The financial aspect of the real estate transaction is handled by the notaire. Any mortgage on the property must be paid in full and it is the notaire who will contact the lender to establish the final amount due. French notaires will also calculate any transfer taxes due on the property. Professional fees due to the notaire them self are fixed by decree. On completion day, the notaire acts as escrow agent receiving all money from the purchaser, turning over all money due to the appropriate taxing authorities, lenders, or other vendors, and issuing any remaining proceeds to the seller.
The official documentation for the conveyancing of real property in France is prepared, registered, and maintained by the French notaire. The notaire will prepare the deed and read through it completely on the day of completion to both the seller and the buyer. After which, they will have the title deed registered at the Land Registry and keep the original indefinitely. A copy will be provided to the purchaser as proof of ownership.
The French notaire plays an integral part in every real estate sale, choose your notaire wisely.