1) What makes the investment so attractive ?

The demand for self-catering accommodation continues to grow for foreign tourist.
You can rent your French home yearly, monthly, weedly, daily, whith excellent results, you can expect an annual net income of about 7-9% of the full value for most properties.
Since France is the world's top destination in terms of numbers, the French gorvernment has come up with a number of investment plans such as Lease Back.

2) Should I use a lawyer to purchase property in France ?

No, a notary (Notaire) is the authorized official who presides over the transaction and registration of new ownership.

3) How much time does it take to close a sale and transfer the ownership title of a property in France ?

A notary generally takes 2/3 months to complete and register the change of ownership.

4) Must I have a French bank account to buy property in France ?

Yes.

5) How do I open a bank account in France ?

It is easy to open a bank account in France. A non-French citizen must fill out an application form and present a valid passport.

6) What is the "loi Carrez" ?

Since 1996, most preliminary agreements relating to the purchase of a property must state the exact square meters of the property being sold. This measurement is calculated in a national law, "loi Carrez", wich defines what is livable surface and what is not.
For example, space under a ceiling (180 cm), typical in roof top apartments, cannot be measured as livable space. To measure a property, a real estate agent or a certified expert is required.
If there is a difference between the stated surface in the contract and the actual surface of the property, the buyer has up to one year to contest. In this case the seller is legally bound to pay the difference in purchase price.

7) Is it possible for me to get a loan from a French bank to buy property in France ?

Yes, once you have a bank account with a French bank it is a very straightforward process to obtain a loan.

8) How long does it take to approve a loan ?

3 to 4 weeks.

9) What is a hypotheque ?

A French "hypotheque" is similar to a mortgage. It is a form of legal charge over French realty.
It is registered at the French land registry as a guarantee against third party challenges

THE PURCHASE AND CONTRACT

10) What is the "compromis de vente" ? (preliminary agreement or promise of sale).

Before the purchase of French property can be legally binding, a document is signed "avant contrat".
This preliminary agreement is called a "compromis de vente".
This step is most important, as all the legal aspects of the sales agreement are fixed at this time.
If you require financing, it must be shown when making the "promesse de vente".
This financing requirement can be included as a safeguard, or "get-out" clause.

Legal Protection :

A law passed in France in June 2001, gives protection to all individuals buying a residential property.
This law offers a protected period of seven days in which the buyer can withdraw from the acquisition of a residential property.
During this time period, only a certifide agent or a notary is authorized to receive funds before the legal delay expires.

The signed contract is sent by registered mail or by the equivalent to the buyer. The seven-day withdrawal period starts on the day after reception of the signed contract.

11) Is there a deposit ?

When you sign the promise of sale, the buyer generally pays a 10% deposit, which is kept by the notary during the legal and financial transaction.
This security deposit guarantees the buyer's commitment.

12) Who prepares the "compromis de vente" ?

A notary or a real estate agent prepares the preliminary agreement, but only a notary is qualified to counsel the clients and prepare contracts, at no extra-charge.
The buyer and the seller both sign it.

13) The final sales agreement : "acte authentique"

Once the promise of sale has been signed, the notary must the collect various documents, such as property titles and mortgage documents to verify that all the paper work is in order.
Collecting the documents and verifying them may take between two and three months.
After the notary has collected all the documents, the final sales agreempent (deed) is signed. It is called "acte authentique" and is virtually indisputable in court.

14) Can a contract be written in English ?

All the contracts in real estate must be drafted in French, the use of a foreign language is illegal.
However, some notaries with an international practice may translate the agreements for their clients.

15) How much do you have to add on top of the selling price for closing costs ?

After the purchase price, the buyer must also pay the notary fees.

This amount includes :

a) The registration tax.

b) The cost of different documents necesary to complete the transaction (mortgage statement, survey (cadastre)...)

c) The norary's fee.
In France, the law fixes these fees.
Neither the notary nor the clients may modify these specific fees.
The fees for the purchase of an apartment in Paris is about 0,8%.
If there are two notaries, the fees are shared.

d) The Sales Tax, (V.A.T)

The total amount depends on the type and the age of the property.
In general the fees and taxes for properties, which are not older than 5 years, are about 3-4%.
Apartments older than 5 years cost about 8% of the purchase price.

16) What laws apply to French property ?

French law and only French law can be used for the buying and selling and or any questions pertaining to French real estate.

French property laws are based on the "Code Civil " and on Case law.

17) What is the cost of real estate ownership taxes ?

Being a real estate owner in France requires the annual payment of several taxes :

The real estate tax (TAXE FONCIERE) :
It has to be paid by all owners whether they are private individuals or companies.

The local taxes or residential tax (TAXE D'HABITATION) :
It has to be paid by whoever lives in the property.

18) Do I have to be present at the annual general meeting for the co-owner cooperative management ?

The owner can ve represented for a vote by another co-owner. A simple proxy with the owner's signature must be sent ahead of time to the management.