French Property Law

We are here for your French legal needs, Your French Solicitor in France offer expert guidance. Whether it’s property transactions, establishing or acquiring a business in France, managing your French will, or inheriting property, our extensive experience ensures you receive adept assistance through the intricacies of French law.

French Property Law is a comprehensive legal framework that governs the rights and responsibilities associated with property ownership, transactions, and usage in France.

French Property Law ensures that property owners can enjoy their property rights while fulfilling their legal responsibilities. For detailed guidance or specific legal advice, it’s recommended to consult with a legal professional.

Buying Property in France

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Property Rights in France

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Inheritance France

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Real Estate Laws in France

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Finding the perfect property

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Buying a Property in France

Strictly speaking, if you make an offer to a seller to buy their property (even a verbal offer) and the seller accepts it, then, provided the main terms of the deal are clear, a contractual commitment arises.

There is no such thing in France as a sale ‘subject to contract’, as is the case in the UK.

Sometimes, you may be asked by an estate agent or seller to make a formal written offer, called an offre d’achat. A pre-printed form for this purpose is often used.

If the other party accepts your offer then a contract arises, subject to any conditions that may be in the offer.

Now, rare are the circumstances when a seller would seek to enforce a contract on this basis, but you need to be a little cautious about signing an unconditional offer to buy.

You may wish to prepare a written offer in order to secure the property, but if you do so ensure that it states the sale is conditional on the preparation of a sale and purchase contract in which all the conditions will be elaborated.

You can read more about a legal case in which the issue arose at Offer and Acceptance on French Property.

Once the sale and purchase contract has been prepared, one of your main safeguards is that the law grants a buyer a ten-day cooling off period, during which you can withdraw from the contract without penalty. We say more about this in later pages.

This cooling off period does not apply in the case of the purchase of a single building plot and neither does it apply to a purchase through a French property company, called an SCI.

The law strictly forbids a seller or agent to ask for a deposit at the time an offer to buy is made.

Accordingly, if you do sign an offre d’achat do not, under any circumstances, hand over any kind of deposit to the owner or the estate agent.

A deposit should only be handed over at the time you sign the sale and purchase agreement.

In France, property rights are fundamental and include the full and absolute right to possess, use, and dispose of property. This encompasses the authority to sell, transfer, or mortgage property without undue interference.

Property owners in France have certain obligations, such as maintaining the property in good repair, complying with health and safety standards, and paying property taxes like the taxe foncière (land tax) and the taxe d’habitation (residence tax).

Although the utilisation of a solicitor to purchase property is not obligatory in France it may be advisable, particularly if you are not competent to read or speak the language. Lawyers charges would be an additional cost to the fees of the purchase.

In France it is the Notaire who is designated specifically for the business of property transactions. The Notaire is an independent public official and is charged with authenticating all deeds and documents in the property transaction. A property can be neither bought nor sold without the intervention of a Notaire, in brief they will:

  • Validate and confirm details of any charges affecting the property
  • Validate details of title and any third party rights to the property
  • Validate that the property conforms to the relevant laws and regulations viz
  • land registry
  • zoning restrictions
  • planning authorities
  • To prepare the “acte authentique de vente” or purchase deed.
  • To collect all fees in respect of the transaction and forward them to the appropriate local or regional authorities
  • To receive the funding for the agreed purchase price (including mortgage funds from a third party) and to deliver them to the seller

A lawyer can assist with any disputes that may arise with regards to your property at a later date.

  • The legal process is fairly straightforward and the land registration system is secure.
  • However, as a general rule, it proceeds without the appointment of your own solicitor or an avocat, so you need to have your wits about you.
  • A limited knowledge of French may be worse than none at all, as it may give you a false sense of security, so consider getting some assistance with translation. However, translation cannot cover what is not included in the contract, which is often more important.
  • The legal fees and taxes in connection with purchase are not inconsiderable, so you need to ensure you budget for them in the total purchase costs.
  • In addition, you may be asked to pay the estate agent’s commission, but if you accept to do so consider an offset by negotiating on the total purchase price of the property.
  • Take care on the content of written offers. Ensure they state that the offer is subject to such conditions to be elaborated in a sale and purchase contract.
  • Do not under-estimate the importance of the initial sale and purchase contract, which will be the legal basis on which the transaction will proceed.
  • Authorised estate agents can undertake preparation of the sale and purchase contract, but as they are engaged by the vendor there is no guarantee it suits your needs and fully protects your interests. Our STRONG advice would be to only sign in front of a notaire, on a contract prepared by them.
  • You can appoint your own notaire to act for you in the transaction, rather than using a single notaire on a shared basis with the vendor, which we also strongly recommend. Alternatively, or in addition, appoint a specialist solicitor from your own country in a supporting capacity.
  • The notaire is not going to verify everything you need to know about the property, so it is imperative you make your own pre-contract enquiries.
  • If you are unsure whether you are paying over the odds or you have concerns about other issues ask your own notaire for their opinion. They will be familiar with the selling prices in the area and they have a legal obligation to provide advice.
  • If you are seeking a mortgage to buy the property it is imperative you include a conditional clause in the sale contract.
  • You should also include conditional clauses relating to planning and other matters as necessary.
  • The vendor is obliged to make a number of statutory disclosures, which you should verify in front of the notaire and ensure an appropriate clause is included in the contract e.g. major defects, tenancies, easements, local developments.
  • Obtain clarity on the boundaries of the property, including ownership of boundary walls/fences and maintenance liabilities.
  • Check whether there are any neighbour disputes, seeking clarity from the seller in front of the notaire and including in the contract.
  • The same applies to planned major developments in the area, which are not always flagged up by the estate agent or notaire, even if they are in proximity to the property.
  • Confirm important verbal assurances from the seller and the estate agent within the terms of the written contract.
  • The vendor is obliged to provide a number of statutory survey reports. These surveys fall well short of a full building survey, so do not be over-reliant on them.
  • Endeavour to exclude from the contract any clause that exonerates the seller from hidden/latent defects.
  • If the owner has undertaken major changes (facade, extensions) to the property ensure via the notaire/solicitor that planning consent was obtained for such changes.
  • Verify with your notaire/solicitor that the planning status of the property allows you to undertaken any changes you may be considering, eg swimming pool.
  • Determine responsibility for sharing of the rates bill for the year and specify within the contract.
  • Ask if the seller owns additional land or buildings adjoining the property not included in the sale, and endeavour to include a clause in the sale contract granting you the right of first refusal in the event of future sale of the property.
  • A 10% deposit is not obligatory, as a lesser sum is equally valid, so you may be able to get away with offering a lower deposit.
  • Establish with the vendor, and confirm with the notaire in the sale contract, the fixtures and fittings that are to remain in the property.
  • If you are an unmarried couple it is imperative you buy on a joint basis in order to protect the interests of each party.
  • If you are married, and you wish your surviving spouse to inherit all of your estate, you need to undertake appropriate steps, such as a French marriage contract or other inheritance planning measures, such as use of European Succession Regulations.
  • If you are not married, or you are buying as an unrelated group of people, then you should consider buying through a property company, called a Société Civile Immobilière (SCI), although it is not a panacea.
  • Be vigilant in ensuring that the deed of sale accurately restates the terms of the sale and purchase contract, particularly as regards easements, conditions and obligations.
  • On the day of completion, or the day before completion takes place, if possible visit the property to ensure all is as it should be, particularly in relation to fixtures and fittings.

There are two main different forms of contract that can be used:

  • Promesse de Vente
  • Compromis de Vente

In practice, there is little to choose between them, and we describe each in more detail below.

One major difference lies in the process, in that a promesse can only take place through a notaire, whereas a compromis can be directly between the parties or via an estate agent.

Notaires use both forms of contract, but the compromis is more common, and is to be preferred, as there is a clear reciprocal obligation in the contract, whereas this is technically not the case with the promesse.

However, whilst the substance of the two types of contract may be very similar, notaires and estate agents do use their own, or different standard forms of contract, which may be to the advantage of one or another of the parties.

This is notably the case in relation to conditional clauses (conditions suspensives), or latent defects (vice cachés) so you need to have your wits about you as to the conditions that may be contained in the contract. Perhaps equally as important, those conditions that may not be in the contract!

We have seen contracts that vary substantially in the level of detail contained in them, so do not assume that all of these contracts are all the same; they are not.

Despite the variation, each notaire (or estate agent) will have their own template, which they will use for most transactions. There is concern in many legal circles that the use of standard clauses of contract is too widespread, with critics of the view that all contracts should be drafted unambiguously to reflect the clear intentions of the parties.

So do not be persuaded that just because it is a standard form of contract you need to accept it or that it is neutral. In our experience, the standard contracts are generally more favourable to the seller. You need to ensure it contains all such clauses as you require, eg mortgage, planning, condition, access, easements, etc.

Be careful also of the terminology that is used. These contracts are sometimes referred to as an avant-contract, implying somehow that the documents precede the actual contract itself. This is not true, so do not be misled by mis-interpretation of the term.

Once you have signed either form of contract you are obliged to purchase the property, subject to any conditions that may be included in the contract, and expiry of the 10-day ‘cooling off’ period.

Thus, Article 1589 of the Code civil states that: ‘La promesse de vente vaut vente, lorsqu’il y a consentement réciproque des deux parties sur la chose et sur le prix.

Under no circumstances should you treat lightly the contract process as the terms contained in the contract are those to which both parties will be bound. Although there will later be the preparation of a conveyance, the notaire is not entitled to alter any of the terms of the initial contract, whether by omission or commission.

This point is not fully appreciated by many international buyers, who may view a property and rush off to sign the contract with an estate agent without giving proper consideration to what is in it. Most of these contracts are standard form, so may not take account of your particular requirements.

3.1.1. Promesse de Vente

A promesse de vente is, in effect, an option to buy the property granted to the buyer by the owner,

However, since October 2016 the sale has become legally enforceable by the seller, so it has really lost a great deal of its original purpose for the buyer.

It’s full title is the promesse unilatérale de vente, or a ‘unilateral offer to sell’ made by the seller for a specified price and for a specific duration.

The duration of the option in routine purchases is agreed between the parties, normally around three months. In other cases it may be a year or more, particularly in relation to development properties.

The promesse de vente unilatérale is frequently used by property professionals seeking to obtain an ‘option’ to buy land or property on which they may be seeking planning consent, or land assembly

A deposit of up to 10% of the purchase price is made on signing of the agreement. The purchaser has ten days during which time they may withdraw from the contract without penalty.

If they do not withdraw by this time they are legally bound to purchase the property within the option period (subject to any conditions contained in the contract).

So be warned, whilst the option may be available for several months, after ten days you may lose the deposit if you later decide not to proceed.

Indeed, in a ruling in a case in 2021 the French Supreme Court, the Cour de Cassation, judged that the contract obliged the buyer to purchase the property and that damages was not a sufficient remedy.

You should also ensure that the contract provides that in the event that the seller changes their mind you can enforce execution of the contract.

3.1.2. Compromis de Vente

A compromis de vente is what may more commonly understood as a sale and purchase agreement, as there is a clear bilateral obligation.

That is why the technical term for this type of contract is called promesse synallagmatique de vente.

A deposit of up to 10% of the purchase price is made on signing of the agreement and the purchaser has 10 days during which time they can withdraw from the contract without penalty. We say more about this ‘cooling-off’ period later.

Under the contract the owner agrees to sell to the purchaser and the purchaser in turn agrees to buy from the owner, subject to any conditions that may be stipulated in the contract.

There are many templates for a sale and purchase contract on-line, but many are rather simple and none are likely to cater for all your specific requirements.

Mortgages in France

There are many financial options available for those people who wish to purchase a property in France with mortgage funding:

Products include:
Interest only mortgage – this is generally suitable for those people who have a substantial net worth. It is a mortgage where there is no underlying policy to guarantee the loan – there is a first charge on the property on which the mortgage is taken. You will only be paying interest on the loan monthly, so your current outgoings will be reduced – BUT you must be in a position to repay the totality of the loan at term. The loan to value for this produce is generally 80%, with a payment term of 7 years to 20 years, early repayment is possible.

Interest and repayment loans but with a fixed interest rate on the repayment for 2 or 5 years – this enables you to budget your finances knowing that you have the rate of monthly repayments fixed for a period of 2 or 5 years – after which the loan becomes variable- attention should be paid in the case of an interest rate fluctuation during the term of the fixed rate interest period as this may affect the term of the loan.

You will pay only the interest portion of the loan to the finance company but will be required to take out a life assurance policy (agreed by your lender) that will support the capital repayment of the finance at term. You will therefore in this instance be paying monthly interest payments to the mortgage company and also payments to support the life assurance policy. You can borrow up to 100% of the value of the property for a term of between 7 and 25 years. You can also reduce the capital of the loan by early lump sum repayments. Be aware that there may be a shortfall of funds at term, depending upon the prevailing financial market.

Now offered by many lenders and assists those who need to bridge their finances between the sale of their existing property in France and the purchase of the new property in France, loans will generally be for a minimum of 75,000€ and for a maximum term of 2 years. Careful consideration should be taken before entering into this type of proposition – current market conditions etc – otherwise you may find yourself at term of this loan with 2 properties and 2 loans.

Offered at a loan to value ratio normally of 85% – the interest rate is fixed for the term of the loan – caution should be applied as in the case of a fall in interest rates you would not benefit from any savings (as you would in the case of a variable interest loan) as the term of the loan would have already been fixed. The term of this type of loan is in general from 7 to 20 years.

It should be noted that terms and conditions vary between lenders. Currency flunctuations between the euro currency and non euro currencies may cause loans to increase and your property may be at risk should you not make the specified repayments.

Choose you lender and ensure that your circumstances are acceptable to their criterion for loans
Find your property, sign the Compromis de Vente this is the contract to purchase prior to signing the Acte de Vente with the Notaire – ensure that you have the clause written into the contract that the purchase is dependent upon you obtaining mortgage finance. You will regardless of this clause have a 7 day cooling off period in which to change your mind about the purchase of the property.

It is mandatory that property purchases / transfers in France are dealt with by a Notaire, an independent public official, whose role is authenticate all deeds and documents and to ensure that the transaction is carried out correctly. When you are at the stage of the Acte de Vente before the Notaire it will generally be 3 months after the signing of the Compromis de Vente. As the purchaser you have the choice of which Notaire to use.

(as opposed to agency fees) involved in property purchases vary but as a rough guide budget between 8% and 10% of the value of the purchase price. The legality, is as stated dealt with by the Notaire who will account to you the purchaser after all documents etc have been files and deposited at the various property registers. Please note this can take some time – allow a good 12 months.
The information contained on this web site is merely a guideline and you are advised to seek independent financial advice.

Disclaimer: The information contained on this page does not set out to give anything other than a glimpse of certain aspects of this area of French Law. Professional advice should always be sought from a qualified French lawyer.

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