The real estate buying process in France is governed by a codified legal system that is meant to protect both the buyer and the seller.
Once you have found your new home in the sunny south of France and negotiated the price, you will immediately be asked to sign a preliminary sales agreement (compromis de vente).
The sales agreement may include a number of conditions (conditions suspensives) which must be satisfied before closing the final sale.
These conditions may include obtaining a loan or building permit, determining the property boundaries, carrying out a property inspection, etc., and require submitting supporting documents to the French notaire to prepare the title deed (titre de propriété).
Once all the conditions are satisfied, the sale can be closed.
The seller is then bound by the sales agreement and may neither sell the property to another party nor cancel the sale without justifying a significant financial loss that is at least equal to the property’s value.
Similarly, a buyer wishing to withdraw from the sale will lose the security deposit paid out to the notaire when he/she signed the preliminary sales agreement (generally 10%).
This secure system protects the buyer from possible counter offers.
The time period between signing the preliminary sales agreement and the final deed is generally 2 to 3 months and is determined by mutual consent of both parties. The given time allows the notaire to prepare and obtain all the necessary administrative documents.
You become the full owner once the official deed (acte autentique) is signed and the total sum has been paid up. Unlike in other countries, French notaires are legal representatives who are responsible for examining title deeds. In the case of future disputes arising, the notaire is responsible for all deeds drawn up in the notary office and can therefore represent both the buyer and the seller.
You may however choose your own notaire who will work jointly with the seller’s notaire. The sales fees owed to the notary office amount to approximately 7% of the sold property’s value, including tax, if no loan has been taken out. This total amount includes the individual notaire fees, which comes to approximately 1% of the sale price and will be shared if there are two notaires involved.