Property for sale in France ~ RealPoint

This guide aims to help you get started with the basic concepts of purchasing a property in France. We always recommend using legal advice.

Buyers Guide France - in a nutshell

Realpoint Property only work with reputable developers with established credentials - you know you will be in safe hands. They can offer full financial support and legal advice.

Once you have chosen your property you typically pay reservation fee to secure it. This is particularly important in a fast moving market and is the first step towards a binding agreement which is known in France as the compromis de vente.

At its essence, the compromis de vente is a conditional or preliminary agreement to purchase real estate.

Generally speaking, the compromis de vente will set forth those steps and acts that must be taken and that must occur before a final contract will be entered into between the parties and before ownership of the real estate will transfer from the seller to the buyer. For example, after the signing of the compromis de vente, the buyer will have to obtain suitable and appropriate financing while the seller will have to work to make certain that the title to the property is free and clear and that the real estate can be transferred to the buyer without any encumbrances.

At the time the parties enter into the compromis de vente, the buyer will have to make what normally amounts to a deposit in the amount of 10% of the total purchase price. There are limited instances when the deposit is refundable. For example, if free and clear title to the property cannot be arranged during the time period set forth within the compromis de vente, the buyer can back out of the deal and get the deposit money back. However, barring something of this nature, if the buyer does back out of the agreement, he or she generally will lose the deposit money that has been paid pursuant to the terms and conditions of the compromis de vente.

It is highly recommended that the deposit be paid to either a qualified solicitor or a designated notaire. A solicitor or notaire will hold the money until all of the requirements and obligations of the compromis de vente appropriately are completed and concluded. At that time, the money will be paid to the seller if the deal goes through or will be refunded to the buyer under limited circumstances as outlined previously.

Generally, there are legal fees of under 10% that are associated with most real estate sales in France. These fees are due to be paid upon the completion of the sale - at the same time that the balance due on the overall property sale is paid by the buyer.

For most of Realpoint's sales, the developer pays commission so there is nothing for you as a client to pay. For resales the real estate agency fees will vary between 3% and 10% of the purchase price.

There are restrictions on how much of the purchase of real estate a foreign national can finance in France. If a foreign national is a citizen of another European Union nation, that person can finance up to 85% of the total purchase price of the real estate. If a foreign national is from a country beyond the European Union, he or she can only finance up to 80% of the total purchase price of the property. On the other hand, a French citizen can finance 100% of the purchase price of the real estate in question.

However, with leaseback it is possible to borrow around 95% of the value of the property as the mortgage is based on the price including VAT. With leaseback schemes your VAT of 19.6% is returned to you, so you can obtain 80% of the valuation which will be 119.6%, resulting in 95% mortgage. We have experts on hand to explain all this and guide you through the mortgage application - please contact us for further information.

The final agreement in the real estate sales transaction is what is known as the acte de vente (which roughly translates as the final deed for sale). This agreement is to be signed in front of an official notaire

Realpoint Property always recommends using a Solicitor or Lawyer for purchases. Please contact us for contact details of lawyers recommended to us.

Realpoint Property work with the leading leaseback companies in France so you can be sure your investment is secure. For many of our products the management company is also the developer with considerable infrastructure and a very clear vested interest in the quality construction, location and ongoing maintenance of the properties.

Please contact us to learn more about the specific companies we work with and the wonderful properties on offer in France.

Where do I find French Leaseback property ?

Realpoint Property can offer a wide variety of leaseback properties throughout France with various options depending on the management company providing the leaseback scheme. Realpoint Property work with the pioneers of the leaseback concept who created the fist car-free ski resort in Avoriaz in 1967. We have a number of leaseback properties available in many areas of France. Use our search page to find your own leaseback property in France.