Once you have selected your property and made an offer, both the vendor and the purchaser will sign a compromis; a legally binding agreement setting out all the terms involved. Financing will have to be sorted out and you are advised to make reference to any loan required in the compromis. French law allows the purchaser a seven-day cooling-off period during which they may back-out without a penalty. A 10% deposit is then required and the PeregrineLaw will ensure that all necessary checks are done in respect of title, in conjunction with the French notaire.

Before we attend to signing, you will be required to transfer funds to the notary’s account. Failure to do this on time could cause you, the buyer, to lose both the property and the money. PeregrineLaw will ensure that you are guided through every step of the process to make sure that all payments are met timeously and that this does not happen. The process for purchasing off-plan may be slightly different but we will consult with you.

If the buyer is not able to visit the property before signing the final contract, a representative should do so on your behalf to make sure everything is in order. Contracts usually state that the property is accepted in its condition as on the date of sale.

Finally, the acte de vente is signed in front of the notary and the sale is complete. PeregrineLaw will gladly arrange a Power of Attorney and attend to this on your behalf.

As French inheritance law is a complicated beast, make sure that you have taken the appropriate legal advice in this regard and that you make mention of the inheritance provision in the initial contract in order to save the heirs thousands of pounds in the future

Fees and taxes:

•    Vary hugely depending on the region and the type of property but set aside 12 – 15% of the purchase price.

•    Allow around 6 – 8 % for the French notaire’s fee. This includes stamp duty, which varies from 0.6% for a new-build to 6% for any property over five years old.

•    Check that the purchase price includes the letters FAI after the price. This means that the agent’s fees of around 7% are included in the price.

•    IVA (VAT) of 19.6% is applicable on most fees and taxes but is avoided on leasebacks. The price of new-build properties usually includes 19.6% IVA, but verify this from the start.

•    If a French property is sold within two years, Capital Gains Tax is likely to be in excess of 33%.

•    Transfer taxes vary greatly, but for properties over five years, it tends to be around 7%.