Purchasing Costs & Procedures
All prices quoted by Purslow's Gascony are FAI - frais d'agence inclus - ie include agency commission, paid by the seller. Our joint agency fees with Knight Frank are based on 5% plus TVA, currently at 20%.
State & legal Fees
The state purchase taxes plus the legal fees for the property conveyance and registration of title deeds are taken from a national tariff and amount to some 6.5 % of the bricks & mortar price. They do not apply to the value of any movable contents being sold. The registration of a mortgage loan can add up to 1% to the overall fees.
Compromis de Vente
Drawn up by the vendor's notary. It sets out in full, all aspects of the transaction and includes standard and any special conditional clauses. The deposit, customarily 10%, is paid to the notary at this time. Once signed by both parties the seller is fully contracted whereas the buyer has the benefit of a 7-day cooling off period.
Searches & Inspections
A satisfactory return from the local authorities must be available to the notary prior to completion. Local bodies and notably the national land commission SAFER must release any rights of pre-emption. The property is inspected for the presence of lead, asbestos, termites, gas & electrical safety and thermal efficiency. The reports form part of the contract. In addition a document from the commune covers any natural or technological hazards which may concern the property.
Acte de Vente
On completion, the 90% balance of the purchase price, together with the state & legal fees, must be in the notary's possession in advance of the signing of the Acte de Vente. As with the Compromis, buyer and seller are present, unless represented by Power of Attorney. The signed document remains in the notary's archives in perpetuity. Once published with the Land Registry, a copy is available to the purchaser. Contents included in the sale can be itemised in the Acte de Vente. The buyer needs to arrange buildings insurance in time for completion.
There are two local taxes which are levied on all French properties. The Taxe d'habitation is paid for the year by the owner (or tenant) in occupation on the 1st January. The Taxes fonciéres, which relates to buildings and land, is shared pro-rata between buyer and seller. Bills arrive in the autumn for the current calendar year.
Purslow's Gascony arranges the hand-over of water and electricity contracts. Note that a fresh telephone number is issued to a new owner and this needs to be arranged in person at the local France Telecom office.
NB While we are not legal advisors these details are given in good faith and we recommend clients take their own independent legal advice.
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