In a sale or purchase of a residential property in France, the following points might usefully be borne in mind :

The first step is usually the signature by both parties of a preliminary contract by the purchaser and payment of deposit - usually between 5% and 10% which is held by a Notaire or sometimes by an Estate Agent (Agent Immobilier).

This document is called variously a 'compromis', 'promesse unilatérale' etc but note that these expressions all have different legal meanings in French and often very different consequences for the parties.

It should also be noted that this document is binding and not 'subject to contract' as in many common law jurisdictions and it thus obliges the parties to complete the acquisition of the property once the conditions precedent have been satisfied.

It should moreover be noted that surveys are not usually carried out in France (although some UK building societies with subsidiaries in France sometimes request a valuation which should not be confused with a survey) and completion is not generally subject to any condition which might flow from such a unilateral survey in any case.

A search on title and other relevant matters is though usually carried out by the acquirer's Notaire, but once again this should not be compared to the searches which are undertaken by, say, Solicitors in England.

The price of the property is held at French Law to be the sum asked for by a willing vendor which a willing purchaser agrees to pay and it would be difficult to claim after the event that a property was overpriced.

The completion document is usually drafted by the Notaire acting for the vendor who will often suggest that he is able to act objectively for both parties.

It would nevertheless be a more realistic approach to instruct a second separate Notaire (or Avocat specialising in this field) to act for the purchaser in order to insure that the interests of both parties, especially if one of them does not speak French, are properly looked after.

Completion is virtually always carried out at the vendor's Notaire's office in the presence of both the vendor and the purchaser, very often as well as the Estate Agent who will be there to receive (on the spot) his commission.

The formal conveyance document ('acte authentique' in French) is often read in full and in French and very often the first time the purchaser has had sight of this document is at the Notaire's office during the completion meeting.

There is no standard format for such written documents, which means that a careful purchaser should examine it thoroughly and arrange for an interpreter if his own lawyer does not speak English well.

Legal terminology can be particularly difficult to translate as very often there is no directly equivalent concept/procedure in another jurisdiction - attempts simply to superimpose the dictionary definitions of another language can lead to fundamental misunderstandings of the true legal position.

It is always advisable to seek professional advice from an English speaking French law practice well prior to this stage because once this 'acte authentique' is executed it is generally too late to do anything about a problem.

Upon the signature by the vendor and the purchaser of the acte authentique the purchaser hands a banker's or certified cheque for the full amount to the Notaire who in turn hands the him the keys to the property and the ownership thus passes to the purchaser.

The purchaser should be aware that from this moment in time, it is his responsibility to insure the property and failure to do so could bring about catastrophic consequences in the event of the property suffering damage thereafter.

Finally prior to even envisaging the acquisition of property in France, the ramifications in regard not only to one's tax situation but also the question of France's (very different) inheritance rules should also be carefully considered.

10 step guide to buying property in France*

1. Find your property – for example through an Estate Agent, a Notaire, direct newspaper advert by the vendor or through friends and contacts – but do not sign anything other than perhaps the ‘bon de visite’ proffered by the Estate Agent which simply shows that you first saw the property through the Agent in question.

2. Check on local prices – is the house manifestly overpriced not compared to UK or Irish prices but instead compared to French prices in the local area? – Estate Agent’s shop windows are a good source, but have a local map at the ready.

3. Visit the property carefully yourself – in France generally “what you see is what you get” and you should not be afraid to visit every nook and cranny more than once and to ask direct questions of the vendor and/or Estate Agent – if you have doubts, you might want to consider instructing a local architect to give you a written report on the property’s condition.

4. Ask for a draft of the ‘compromis’ or other preliminary document – do not allow yourself to be pressured into signing it - but instead take it away with you and talk to an English speaking French lawyer and ask him or her to explain to you what it commits you to doing before you sign – remember this document is usually binding and not subject to contract – thus once it is signed you are committed to completing the purchase by the date set down in this agreement if the other conditions in it are met. This is also the time to think about inheritance and tax issues; you need to ensure well in advance that the completion document is made to your measure.

5. Be wary of pressure from intermediaries who have a financial interest – it is sometimes better to be prepared to lose a property than to sign up to commitments you do not understand – some Estate Agents will insist that there are other buyers ready to close the deal ‘that very day’ and tell you that if you do not sign the ‘compromis’ at once then you will lose the property – this is rarely the case; others will tell you that you have a statutory seven day cooling off period and can withdraw – but letters can take three days to reach you and a further three days for the return to the sender which leaves little time in real terms for you to pull out and the onus is upon you to show that you complied with the time frame in question.

6. Do not hand money to intermediaries – unless you are absolutely sure of their bona fide – it would be usual to pay over say 5% or 10% to a Notaire upon the signing of the preliminary binding agreement (‘compromis’ etc) and he or she would then hold this sum to your order on his or her client account – however if you fail to complete, and all the conditions set down on the preliminary agreement are met, then you risk losing this sum and might sometimes have to pay damages as well.

7. Ask for a copy of the draft completion document (“acte authentique”) well in advance – many buyers discover the document upon arriving at the vendor’s Notaire’s office on the day of completion – and it will virtually always be available only in French – but you should nevertheless insist on having a draft well in advance of the completion meeting and then take whatever time you need to talk to an English speaking French lawyer and ask him or her to explain its content to you.

8. Ensure that funding is in place well in advance – if a loan is envisaged and it is raised in France, the lending institution will generally transmit the funds directly to the vendor’s Notaire – if the funds are not on his or her client account several days before the completion meeting then he or she will generally refuse to complete – regardless of the fact that you may driven over 1 500 kilometres to be at the meeting - if you are shipping the funds from the UK or Ireland yourself, the onus is upon you to ensure that the funds have arrived on the Notaire’s client account in good time prior to completion – it is not enough for you to show the funds have left your own account.

9. At the completion meeting – it may sound self-evident, but the completion will take place in French and all documents will be in French (and what is more - legal French) - you should ensure that you are aware of what is happening even if it means engaging an interpreter (for whose services the buyer will generally be charged) – also the funds will often be paid over by the Notaire to the vendor and the keys handed to you – you will immediately become liable for the house and its contents and should make absolutely sure that these are insured from that same moment. You will not however usually be given a copy of the signed conveyance document on the day of completion; although you should normally receive a copy of the signed document some months later together with a final account from the Notaire.

10. Post completion – make sure that you advise the utilities (water, electricity, gas etc), town hall and tax people of the change of ownership – do not assume that they will learn about it from other sources. Then, finally, enjoy a glass of cool French wine on the doorstep of your new French home and congratulate yourself on having avoided or overcome at least some of the obstacles to buying property in France.

FIN

*N.B This list does not set out to be exhaustive but simply to assist in drawing your attention to some of the pitfalls most often encountered when buying property in france.