Do you want to buy a property in France?
Whether you are a first-time buyer or an experienced property investor in France, these few pages will help you focus on important points of your purchasing process in Europe.
First, spend the time necessary to discuss with your Value Property Services agent the best investment corresponding with your objectives and financial situation. Your VPS agent is knowledgeable to advise and assist you in making the best investment that suits your needs.
Your VPS agent has the professional experience and valued information necessary to make the transaction as smooth as possible. Your VPS agent has all the financial, legal, administrative tools and documents to help you understand the market. We also will assist with your comprehension of the contracts, the lease (if applicable), and the profitability you can create for yourself.
With all your financial projections made clear to you and with the guidance of your VPS agent, you will be able to select the best property for you. Now that you have decided to move forward, How Does It Work?
1.BOOK YOUR PROPERTY
You have just selected a property with the help of your VALUE PROPERTY SERVICES investment manager. The VPS agent, acting on your behalf, will then under your name place an ‘option’ on the property you want.
2.SECURE YOUR RESERVATION
You now have 48 hours to pay your VPS fees and make your reservation deposit transfer into the Notaire’s Bank account (in France the Notary is equivalent to an attorney). Once the transfer is done, please fax a copy of the transfer receipt immediately to your VPS representative.
Filling and signing your contract is very simple as long as you follow your representative’s advice.
Preliminary Contract of purchase also called «Commitment to sell»
This contract is used when purchasing from a private owner.
This contract is used when purchasing a new property off plan.
Signature and Formal Transfer of Deed
The Act of Sale (Acte de Vente),or closing procedure is processed by a Notaire who represents the French government as an impartial public officer or a solicitor.
The Notaire or the solicitor is in charge of all legal and financial aspects during the entire process from reservation to closing. The Notaire validates to see if the property is free and clear and that the owner is indeed the seller. He prepares the Notarial deed (equivalent to the grant deed) for both seller and buyer, and ensures it is completed by both parties.
Costs and Fees
The government tax for EXISTING PROPERTY transactions is approximately 8.00%.
The government tax for NEW PROPERTY transactions is approximately 4.00%.
4.FINANCING YOUR PROPERTY
Why apply for a local Mortgage?
As a non-resident buying a property, if you do not intend to pay it cash, our best advice would be to request a mortgage through VPS bank partners.
1.We will be your representatives throughout the process dealing with the bank. In addition because we provide business to the bank it entitles us to obtain better terms than any private customer.
2.The bank will lend you more money if the property and the mortgage are located in the same country.
You can expect to obtain from the Bank between 70% and 80% of the property including renovation costs. (Ask us for more details.) The notary fees and VPS fees will not be financed. Unlike other countries, France does not roll the fees into the loan.
The Notaire will contact you via regular mail to acknowledge receipt of your reservation, contract, and deposit. The Notaire will begin to process your closing and simultaneously the bank will send the loan documentation.
Your VALUE PROPERTY SERVICES representative and the closing department will remain in day to day contact with both the Notaire and the bank to ensure everything is going according to plan.
6.THE DAY YOU BECOME THE OWNER
There are two situations which can occur for you to sign your deed.
1. At the French Notaire’s office if you are in France on the signature date.
2. With a notary public, a solicitor, or at the French consulate. In this case you will only sign a proxy which has to be sent to VPS.
Both your VPS representative and our closing department will be present at all times to answer your questions. Make sure that the necessary funds are available upon closing.
As soon as the funds are received and the deed is signed, you will receive your notification of ownership of the property. CONGRATULATIONS!
For further information please contact us on the following address. We look forward to hearing from you.