Property Buying Process in France

French Mortgages

France is in an increasingly popular destination for investors from the UK who are looking to purchase abroad. The country’s popularity is partly due to accessibility and partly to the comfort that British people feel with the French legal and financial structures.

French Buying Process

Get a Free Quote A Look At Property Buying Process In France

Of course, the first task when looking to purchase a property is to find the right property that meets your needs. But, make sure that you view the market as a whole and have a clear idea of what you will do with the property, once it is purchased. If you are considering renting the property out, you may be able to obtain a larger mortgage. This is because French lenders will take into account both the rental income and your own earned income (this is considered in more detail later on).

The Actual Purchasing Process
Once you have selected the property that you wish to purchase and your offer has been accepted, you will be required to enter into a sale agreement known as a ¡¥compromise de vente¡¦. At this stage, you are expected to pay a 10 percent deposit and if you intend to buy with the use of a mortgage, it must be mentioned in the agreement.

After this contract is signed, there is a cooling off period of 6 days in which either party can withdraw without repercussion. Once the cooling off period has passed, it will be necessary to make the formal application for a mortgage.

In France, providing you have mentioned that you intend to rely on a mortgage to purchase the property in the sale agreement, you will be able to withdraw from the sale and receive your deposit back if the mortgage is refused for any reason.

Once you have been accepted for a mortgage, you will receive a formal offer from the lender. This is followed by a further cooling off period before the mortgage offer can be accepted. After this cooling off period has passed, the balance of the purchase price can be sent to the notary.

As soon as the notary has received the balance of the purchase price, they will then arrange a day for all parties to sign the deed of transfer (known as the ¡¥Acte¡¦). On this day, you will also need to pay the notary¡¦s fee and any taxes due. As soon as the deed of transfer is signed, the property becomes yours.

Interestingly, agents¡¦ fees are normally paid by the buyer, although properties are usually advertised as ¡¥including agents¡¦ fees¡¦. In reality, this means that the fee is negotiated between the seller and agent, when the final price is determined by the buyer and seller.

Summary
Bullet Point The property purchasing process in France is relatively similar to that in the UK, which is comforting for UK investors;
Bullet Point once the first sale agreement is signed, there is a 6-day cooling off period in which either party can pull out without penalty;
Bullet Point it is also possible to withdraw and receive your deposit back, if you have met all the requirements of the sale agreement but have failed to secure a mortgage offer;
Bullet Point there is a further 10-day cooling off period after the mortgage offer is received.

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Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

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