Buying a property in France is a dream for many people, but can also be scary. To alleviate your fears when embarkingon this adventure, we have outlined the entire purchase process from getting financing to walking away with the keys.

Financing – Getting a French Mortgage

The first thing you should do is obtain a French mortgage. There are many lenders from which to choose with a range of loan products. If you have'pre-approval in principle’ you will know your budget in advance and have the security to make the purchase.This is an excellent time to buy as interest rates are still low (about 2.5%) and the U.S. dollar to euro rate of exchange is relatively favorable.

Finding Property in France

In France, and Paris in particular, there is so little good property on the market that properties worth purchasing are selling within hours. Be prepared to make an offer the moment you see it. We’ve had many situations where the buyer hesitated for only a few hours and lost the property.

It helps to work with property finders/consultants who work exclusively for the buyer, and take no commissions from the agencies. The agenciesare quick to contact the consultants first when new properties hit the market, as they know the consultants are representing qualified clients.

Making an Offer

Once you find an apartment you wish to purchase and have financing, you can make an offer.In the offer you propose a certain price, any contingencies to the purchase and a limited amount of time within which to respond to the offer.

If you were to offer 'asking price,' the seller would be morally obligated to accept your offer and therefore you could almost 'guarantee' the property would be held for you and no one else could 'out bid' your offer.

Contingencies that could be very important to the offer include appliances and furnishings you would want to 'purchase' with the apartment and any other obligations of the seller. Even if you won’t keep the old appliances, their valuewill be deducted from the selling price noted on the "Acte de Vente" (final title deed), reducing your Notaire taxes and fees!

Choosing the Notaire

The offer letter does not legally bind you to a purchase. Once the seller accepts your offer, a "Promesse de Vente" or "Compromis de Vente" (pre-sale agreement) is signed and then the contract is binding.

At this point a Notaire must be employed to represent you and a signing date is set. It is recommended that each party choose his own Notaire, and it costs nothing extra as the Notaires share their commissions.

We recommend working with a Notaire who speaks English and doesn’t charge more for that. If you are working with a property consultant who is familiar with the documentation and process or a Notaire you fully trust, then a translation of these documents should not be necessary.

Be prepared to provide your personal information and a copy of your passport along with how you intend to 'structure' the purchase, that is, who will actually hold title to the property. You can change the structure of the purchase before signing the Acte de Vente if the Purchase Contract allows for a "clause de substitution."

Should you choose to take a mortgage, you may also want to include a "clause suspensive," or contingency clause, that protects you from default if you are not able to obtain financing.

Signing the "Promesse de Vente" or "Compromis de Vente" (Pre-sale Agreement)

The Notaires will prepare the Pre-sale Agreement and you will be asked to provide a deposit held in escrow by the Notaire. This is normally 10% of the purchase price.

At this time, the seller must provide the required diagnostics: energy efficiency, termites, lead, asbestos, natural risk, swimming pools, flooding, quarries and the "Loi Carrez" (official habitable space). He must also provide the "Réglement de Copropriété" (homeowners association bylaws), the "carnet d'entretien de l'immeuble" (maintenance record of the building) and proof of the "copropriété" annual fees.

The buyer, seller, representing Notaires and agents convene for the actual signing. The buyer and seller may have an outside representative or Notaire sign on their behalf with Power of Attorney. It's best to have a party other than the Notaire review the signing for you, and a property consultant can help protect your interests.

Once the "Promesse de Vente" or "Compromis de Vente" is signed, you have a “cooling off period” of seven days within which a full retraction of the purchase can be made with no financial or legal consequences. For legal reasons, a registered letter must be sent to notify the Notaires and the deposit will be returned.

Preparing for the Final Signing of the Deed: Financing the Property

If you finance the property, non-resident buyers should work with banks and lending institutions that specialize in non-resident loans or with loan brokers that can provide the service.

The timing is critical, as the Pre-sale Agreement will dictate the deadlines to acquire a loan offer. One contingency of the Pre-sale Agreement ("clause suspensive") protects both the buyer and seller. If a loan of a particular amount, at a particular rate, and particular term, as requested by the buyer is not met, by producing the bank’s rejection letter the buyer will not lose his deposit and the property remains with the seller.

Meanwhile, the Notaire gathers information to verify that the seller is the rightful owner of the property, the description of the property is correct, and if there is any money owed on the property.

Signing the "Acte de Vente" (Final Deed)

Once again the buyer, seller, representing Notaires and agents convene for the actual signing of the Deed of Sale. You provide the money to the Notaire to cover the down payment, taxes and fees,and to pay the various commissions and fees.

Providing the Final Payment and Signing the Deed of Sale

The Notaire hands over a check to the seller for the property and an "Attestation" of the sale to you, the buyer.You then walk away with keys in hand to your newly purchased French property. Congratulations!

Acquiring the Deed of Sale

Finally, the documentation will be submitted to the Chambre de Notaires for official recording and processing. Within the next year, you will receive your real title deed and usually a refund of an overpayment of tax as the taxes are estimated a bit higher to ensure full payment.