Twelve Points to Remember When Buying a House in France
Written by Anne-Marie Gordon for http://www.amb-cotedazur.com
Thursday, 03 January 2008
With Spring on the horizon, many new readers will be on their way to France in search of their first home abroad. It is an exciting time and there are few moments more rewarding then the waking up the first day in your own home in France. You can almost smell the lavender and croissants.
However - I am a lawyer so there is always a “however” - buying a home in a foreign country with foreign laws and languages carries additional risks. The good news is that France does a good job of protecting the homebuyer both before and after the purchase, both through the notaire system, and through the laws governing property purchase. There are also many good books and websites explaining in English how to buy French Property. The best is http://www.notaires.fr “My Home.”
So rather than repeat that excellent information, I have prepared a list of what “they don’t tell you,” and should. These are the origins of what fills my property law case folders, court calendar and portable hard drives.
1. Inheritance. In most cases you must decide inheritance issues before signing the final contract, or acte authentique, and sometimes even before signing the compromis (when you are obtaining a loan). After you have completed the sale it is costly to change the ownership structure of your new property.
2. Renovations. Many sellers will say that they have done this and that, rebuilt the roof on the barn, and rewired the pool house. Ask for receipts and proof that each building firm or artisan has insurance. This benefits the seller as well: the seller is responsible for defects and problems in renovations for 10 years after completion of the works. If there are new additions, say a new garage, look at the cadastre plans to see if there is a box drawn corresponding to the change in the house - this will ensure that a building permit was obtained and that the garage was built to its specifications. For all major works requiring permits ask for the Certificat de Conformité (confirmation by the authorities that the building conforms to the permit) to be sure for example that you won’t have to tear down a wall that was built too high.
3. What you see is what you get. The law provides an owner is not responsible for problems he or she does not know of at the time of the sale. So ask a lot of questions about the underlying structure and if possible ask for the answers in writing. Consider for example, swimming pools. If the pool has a leak, the owner probably knows about it, but it will be hard to prove later. Ask for a copy of the water bills just to be sure — always a good thing to do anyway as you will see sudden spikes in water usage, due to a pool leak or bad plumbing.
4. Plumbing/Septic tanks. Always ask about the condition and plan of the septic tank: how old is it and does it conform to the new mandatory fosse toutes eaux. If not, find out how much it would cost to bring it up to standard. And it never hurts to ask the seller to empty the septic tank before you move in.
5. Electricity. Though this will become mandatory, ask for an electricity survey to ensure that the wiring is up to the regulatory standards. This can be done at the same time as all the other surveys (lead, energy performance, asbestos, termites).
6. Taxes. Always ask the notaire to check that all the Taxe d’Habitation and Taxe Foncière have been paid up. If the seller disappears off to Panama to begin a new life, you could find yourself paying off the unpaid debt — plus interest.
7. Negotiations. Every thing you say or write could be held as evidence against you. So be cautious in handling negotiations and do not give the impression that you are agreeing on a price prior to signing the compromis. Indeed, a contract can be enforced by the court regardless of whether an official compromis has been signed, when there is evidence that the parties have agreed to the price (through emails and even oral agreement if it can be proven by independent sources.).
8. Get good advice. Do not make the mistake in thinking that the Notaire is your solicitor. Notaires do have a high duty of care towards their clients and are very helpful, but they will not necessarily offer you specific advice unless you ask the right questions - they do not always realize how much advice foreign buyers really need. Most buyers and sellers use the services of one notaire between them. That is fine but why not hire your own notaire - this will increase your protection but not increase your costs as both notaires split the fees between them. In complicated or expensive property purchases, or just because you want another level of protection, you can hire an avocat who will work alongside the notaire - everyone pays just a little more attention when a avocat is involved. Again, it is best to hire an avocat who is qualified to practice law in France and can immediately handle anything that does not go according to the script.
9. Final completion date. The compromis will define a date for signing the final contract. Be sure that you completely understand the wording of that clause and change it if you are unhappy with it. For example some such clauses can provide that the seller may consider himself free of any obligation should the buyer be one day late (say in transferring the final purchase moneys to the notaire’s account). Therefore make sure that you get plenty of leeway inserted in the clause.
10. Know your Boundaries. Many older properties have very fuzzy borders - “your land runs from that tree to that tree.” If you have any doubts, ask for a “bornage” or survey done by a qualified Géomètre. Find out also whether a wall on your property encroaches on your neighbour’s land. Precise boundaries are very important in France.
11. Bank loans. Many buyers will ask for conditions suspensives (conditions precedent), which would allow them to withdraw from the purchase if the loan isn’t forthcoming. However, occasionally a buyer tries to use this excuse to back out of the sale by just simply saying, “Sorry the bank turned me down.” Be careful; if the seller presses that may not be enough. You must have proof that the bank refused the loan and that you tried your utmost to achieve success in your application.
12. The Compromis is Sacrosanct. Do not think the compomis is just a preliminary agreement that doesn’t carry weight. In France, the compromis is binding and final, after the well known seven-day period has elapsed when you can change your mind. Take it very seriously.
Some of these points are deal breakers while others are simply negotiating points. Either way, these should help you relax that much more when you wake up the first time in your new French home. (And as always, refer any doubts to your avocat or notaire as each case differs in its facts or legal implications.)