order to exercise this right, a registered letter must be received by the notaire before the seven days have elapsed. Property transfer takes place only at the time of the signature of the Title Deeds (Acte Authentique) at the notaire’s office. The notaire will have previously carried out the relevant planning checks and Land Registry searches and ensured all precedent and legal conditions are met. The purchaser is given a provisional ownership certificate whilst the title deed is being registered. The notaire pays the vendor the balance of the price and hands over the keys to the purchaser. Pre-sale surveys also bring purchasers a fair degree of protection. The “dossier de diagnostics techniques” includes all the mandatory reports that must be provided to protect both the vendor and purchaser. These are increasing regularly in number and are all provided at the vendor’s expense. The tests required vary depending on the region and property. Since 2002, a survey mentioning the presence or absence of building materials containing asbestos (walls, posts, beams, floors, etc.) must be carried out before the sale of those buildings whose planning permission was delivered before September 1, 1997. For dwellings built before 1948 and located in designated areas, another survey must be carried out by a qualified technician in order to establish the risks of lead poisoning. In other designated areas, a further compulsory survey reveals whether the property is infested with termites. The surveyor’s report must be less than three months old at the time of completion and is attached to the title deeds. The price stipulated in the contract is deemed to take account of any financial consequences arising from the condition of the property, such as with regard to termites, asbestos, lead poisoning, energy performance and major natural and technological risks. 34
High-end property at the lowest possible price
French off-plan real-estate purchases offer investors the ability to acquire high-end property at the lowest possible price and achieve maximum potential return on investment. Some investors are concerned about buying off-plan as they have heard frightening stories from other markets where developers have disappeared with their money without completing the work. Buying off-plan in France is, however, very formalised and the buyer of new-build properties is highly protected. The French construction industry is highly regulated and developers by law must meet rigorous government standards. All new properties must meet the new building regulations and energy efficiency measures. Contracts for the sale of new off-plan properties provide for payment of a deposit (up to 5%) and subsequent stage payments and precedent conditions. The initial security deposit is paid into a client escrow account and is fully refundable should the transaction not be completed. The reservation contract is a comprehensive document that must contain a full description and plans for the proposed dwelling and its precise location. It must also include a technical description of the materials and equipment used in the construction, and list the communal facilities and their conditions of use. This document is called the “notice descriptive” and is contractually binding on the builder. The deed of sale is signed before the building work is complete, usually once the foundations have been laid, and purchasers acquire ownership of the land and whatever buildings have been built upon it at the time the deed of sale is signed. Buyers automatically acquire ownership of the rest of the building as building progresses. French builders and developers are required
www.theaddressmagazine.com