The first step of legal registration of property purchase in France is the formal agreement between the seller and buyer, which is called Sous-Seing Prive (if is brokered by French real estate agent) or Compromis de Vente (if drawn by a notary).
This agreement shall be signed by both parties. When signing this document, the buyer pays a deposit, which is at least 10% of the value of the acquired property and that will be placed on a special bank account of a notary and will continue until the time of making the remaining amount or cancellation of purchase.
The agreement describes the terms of sale, the price of the object, possible credits and stuff. At this stage, the selected property is assigned to the buyer, ie, will be removed from advertising for sale. The deposit may be refunded if the buyer refuses to purchase real estate within the statutory period - 7 days. After this period the contract may be canceled if not explicitly one of the conditions of the contract. That is, the buyer loses the deposit if he abandons the purchase without reason, as reflected in the contract.
After the signing of that document should be a period of 30-90 days, during which the study should be carried out to identify the real estate legal purity of the transaction and detect any deficiencies in the property and eliminate them. At the same time period the buyer must decide whether the full funding of the transaction. This test and other measures applicable Agreement shall agent and notary.
Notary in France is not acting in the interests of any of the parties to the transaction, and is an official representing the interests of the state. His task is to ensure that the transaction will be made purely in accordance with all legal norms. In addition, through his bank account is financing transactions and settlements.
The second step of the legal registration of property purchase in France is the signing of the seller and the buyer of the Final Agreement (Acte de Vente) in the presence of a notary. Property is transferred to a new owner, who must by this time to pay the remainder of the cost of real estate notary. Notary in the latter pays it to the seller. Note that this sum should be handed over to the notary until the conclusion of the Agreement. After signing the Acte de Vente buyer and seller notary certifies act of sale, the seller sends the keys to the property buyer.
At this stage it is recommended by the notary to resolve the issue of a possible inheritance of the purchased property, to avoid problems in the future. The notary will tell you what documents you have to prepare for this, and will consider this issue at the final stage of the transaction.
After the act of selling notary certification during several days of record of the new owner of the property in a special registration desk. The new owner of a mandatory order should insure their property.
The buyer must be aware that it expected additional costs of processing the transaction. He must pay the government fees and registration taxes, which constitute approximately 7-8% of property value. These contributions are paid to the notary on the date of Aste de Vente.
Notary - an independent official, paid for the preparation of real estate transactions.
He brings all the necessary information before the end of the transaction and is accountable to the Department of French taxes and fees.The notary is responsible for preparing documents for the ownership and errors that it may then happen. He ensures that the transaction was a "clean" on both sides to have been complied with laws, and that the seller has received their money on time and in full, and the buyer - your documents on the property in good shape.
Rate of payment of notarial services are fixed by State laws and are united across France. The amount charged by a notary public, or about 1% of the value of the acquired property and is usually paid after signing the purchase agreement. The total amount of all payments under the transaction is approximately 7.5% including notary fee, stamp duty, depending on the number of pages in a report on the transfer of ownership and a significant amount of property transfer tax (4.8%).
All property rights in France, registered in the Bureau de Conservation des Hypotheques, which can be roughly translated as the Chamber of registration of land ownership. Transaction on real estate called the acte de vente. This document is stored permanently in the archives of the notary. A copy of the document issued at the hands of the buyer as evidence of ownership and is called the titre de propriete. Document notarized. A notary must check the history of ownership for the past 30 years, and make sure that all deal with it were clean, ie: respecting the rights of passage and travel along the ground, properly designed and alienation into account all other legitimate interests of third parties.
Upon completion of procedures for the transfer of property the notary's responsibility to provide the buyer with "pure" property and the transfer of sums owed to the seller and lending institutions. This responsibility is confirmed by the occupational risks insurance policy (neither buyer nor the seller should not bear the losses caused by the notary).
What are the main problems arise when buying property in France, a foreigner?
Firstly, the problem of transferring payment, given the high cost of real estate. Cash transactions of large sums are prohibited, and bank transfers are controlled by the amounts above 10tys.evro.
Secondly, when you make a deed of sale by a notary, you must specify its purpose: the main or principal place of residence. If the property is purchased for the main residence, then this implies a taxable activity in the territory of France.
Thirdly, to exercise their right to own real estate by foreigners to legally stay in France, and it rests on the visa regime. French Embassy (consulate) in Moscow and Saint-Petersburg, on the basis of charges brought legal documents for purchased your property, you can issue multiple business visa, valid for travel for less than 30 days within one year, or multiple tourist visa for 90 days for two trips, or long-term visa for permanent residence in France.
 Additional costs of notarial services pay rates are fixed by the law of the state and united throughout France. The amount charged by a notary public, or about 1% of the value of the acquired property and is usually paid after signing the purchase agreement. The total amount of all payments under the transaction is approximately 7.5% including notary fee, stamp duty, depending on the number of pages in a report on the transfer of ownership and a significant amount of property transfer tax (4.8%).
 Expenditure on the Estate Property Tax (taxe fonciere) - about 0, 5% of its price, and a tax on speculative profits (taxe d'habitation) is about the same. Taxes on the two-bedroom apartment would be approximately 1. 200 euros per year, on a nice house with a pool and a large portion - 10. 000.True, new construction in the first two years are not subject to taxe fonciere, but all new housing (and new it is, until they reach 5 years of age) is subject to VAT - but it is rather high in France, 19, 6%, plus a luxury tax .
But if you decide to invest in the ancient monument - that is to buy and renovate - up to half the cost of restoration will be able to deduct from their taxable (French) income. Only trouble is - the Russian Tax Ministry has taken these charges to the deductible for any price. But a tempting option - buy a chateau in a large circle of friends, let the children grow up in this aristocratic walls. Yes, and quite cheap - from 1. 200 euros per square meter. It is true, then that would surely have to pay tax on personal wealth - up to $ 1, and 2% of property value in excess of (approximately) 720. 000.
In France the average price of home detention - 1-2 euro for a "square" in the month, if you do not need a gardener, groom, groom, guardian of the pond with gold fish and cleaner water fountain. If you need - that plus the 2.4 thousand or more, there is a question of appetite. Contents very good villas can cost 10. 000 euros per year, but even flat in good location, it may be necessary to pay substantially more than 100 euros a month
Thus, the taxation system in France is more complicated than in other European countries. In addition to single payments for purchase (tax on the purchase of property, stamp duty and notary fees) property constituting about 7-8% of its value, there are annual taxes.
Real estate tax (taxe fonciere) pays the owner of the property. Its size is not fixed and varies depending on the type of property and its location.
Tax on accommodation (taxe d'habitation) is paying resident, that is if the property is rented, the tax is levied on tenants if it is used for personal residence - with the owners. When it comes to apartments, it is necessary to calculate the tax amount not less than 2 thousand euros per year, in the case with living in a villa - 4 thousand euros per year.
Property tax (impot de solidarite sur la fortune) pay individuals whose capital is in France (real estate and bank accounts) exceeds 700 thousand euros.
Tax on profits from the resale (sapital gains taxe, le «plus-value») set based on the difference in price for resale property. In the case of real estate sales in the first year after purchase, this tax makes 33,3%, but every year its size decreases.
Banks. Credits. Mortgages in France
Type of Loan
When the mortgage in France is a calculation of payments on annuity and in the differentiated scheme are also available for refinancing of French real estate. There are also other funding schemes, such as a mortgage on Leaseback objects.
Borrower
Borrower may act as an individual and a company under French jurisdiction, SCI.
The size of the mortgage in France
The minimum loan size in France is € 46,000. The size of the mortgage is only limited by the fact that its amount can not exceed 80% of the appraised value of the property (which may be below the market). If the property is acquired at the stage of off-plan, then the possible large size of the loan.
Terms
from 5 to 30 years of age with a maximum of 75 years. (Taking into account the possibility of life insurance)
Costs
French banks fees vary, but typically is 1-2% of the mortgage. The costs associated with property valuation will be around € 400, but often this amount is included in the fees of the bank.
Requirements for the borrower
Must be borne in mind that banks are looking at the borrower's creditworthiness and ability to repay long-term mortgage. A prerequisite for French banks is the ratio of your monthly income to the obligations of no more than 33% (for borrowers with high incomes up to 40%). Implying that the payments on consumer loans, mortgages in Russia, the other monthly payments, and payments on real estate in France should not exceed 33% of monthly income of the borrower, otherwise you will be denied a mortgage.
French banks will require proof of income.This may be information on wages, savings, investment income or rental income. However, not all lenders take into account these documents. You should also verify personal information, bank accounts and existing loan payments.
Mortgages can also be obtained not only for the purchase of real estate, but also for its repair or restoration, or all together. For such a mortgage banks require an estimated declaration from a licensed appraiser who can estimate the cost of necessary works.
Insurance
Insurance purchased property is a prerequisite. As for life insurance, it is a prerequisite for the mortgage contract, in most cases, insurance companies often insist on this. In some cases, life insurance companies may require that the borrower and co-borrower (if any) have been medically examined. Often it is necessary if the amount of the mortgage is more than 200,000 Euro, and borrower's age over 40 years. Independent medical examination is often required if the amount of the mortgage is more than 400,000 euros, regardless of your age. Examination may take place either in France or in Russia or other countries.
Score
Assessment of the property and its impact on the amount of the mortgage.
Mortgage available for up to 80% of the appraised property value or the cost under the contract, whichever is less. Lenders do not always require the evaluation of real estate in France, but they do it often if you are not familiar with the area (often, if the provincial area) or the amount of mortgages more than 750.000 Euro.
Legal issues of French property law and French law
Once you select a property, you want to sign a preliminary contract of purchase / sale (compromise). This document confirms the intention of the parties and is often accompanied by the introduction of deposit. After the signing of the compromise, the seller may not advertise the item and sell it to someone else. Prior to the signing of any documents, consult on all expenses that you will incur, including the state or other, before the transaction in France.
We strongly recommend that when making real estate transactions in France to consult with qualified attorneys on the issue of the preliminary contract. Do not sign any agreement and do not make a deposit to buy property in France as long as you are sure that these funds Recurrence in the event of failure you in getting a mortgage. This is a frequent item in the preliminary contract, which sometimes make the French real estate agency. It is worth special attention. A copy of the preliminary contract required to provide to the bank.
Completion of the transaction processing mortgage loan.
At the conclusion of the transaction on your French property and the buyer and the seller sign before a notary public document of sale. On the day of signing the contract of sale, or for a few days before you require a translation of the remaining amount from your account at the expense of a notary. On the day of signing the contract will transfer the keys to the property and you become the official owner of real estate in France!
An application for a mortgage in France for the purchase of real estate.
We recommend you learn about possible mortgage options before making a purchase and, perhaps, that until such time as you plan your visit to search for real estate in France. This will allow you to learn on what conditions you can expect based on your financial situation and your budget, and obtain the prior approval of the bank, upon which you will have time to search for real estate and obtaining funding for the proposed conditions.
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Buying property - France