Advice about buying property in the Charente and Dordogne

ADVICE ABOUT BUYING PROPERTY IN THE CHARENTE AND DORDOGNE

Advice about buying property in the Charente and Dordogne in France * Restored houses for sale and property in need of restoration for sale in the Dordogne and Charente

IF YOU FIND A PROPERTY THAT YOU WISH TO PURCHASE....

Whilst there are some similarities between English & French methods of house purchase, there are, in fact, more differences, therefore caution should be exercised. There are various books and articles written on the subject, one of which "Living & Working in France" by David Hampshire, deals with all aspects of purchase/inheritance/daily living and is, in our opinion, a good reference book. There are also various specialist legal experts dealing with this subject and we can equally make recommendations.

So, you think you have found the ideal property.....

There are no such equivalent to Chartered Surveyors in France, and in reality the average French person buys using his or her own eyes & discretion!

There are building specialists rather akin to a British Structural Surveyor but these people are usually only involved if a structural fault is apparent. For more general matters such as roof, floors, wiring, electrics etc., one can ask local individual contractors to inspect, but a sceptic would no doubt say their opinions could well partly reflect their wish to work……………. Thus, forget the "romance" of your intended purchase, stand back and look closely at it - are there any gaping cracks in the walls, or a roof line shaped like a banana!

Offers can be made but success depends on the vendor & state of the market. Always ask the Agent for advice. Remember that the French legal system generally does not accommodate a purchase subject to a sale and that once an offer is accepted, you & the vendor will rapidly be asked to sign preliminary documents, so a commitment will be required of you.

The offer has been accepted.... now what....?

It is normal for one legal official, the Notaire, to carry out the legalities of the conveyance, albeit you can request different Notaires for vendor & purchaser. Note however, that the Notaire is the supervising legal official who ensures that the terms of the realty pre-contract are carried out, and then registers the "Acte" at the French equivalent of the Land Registry. He has no duty to the buyer beyond that unless he has been specifically instructed to do so (and possibly agrees an additional fee under "Article 4").

The vast majority of UK buyers rely upon the Notaire but if you want independent advice we will be happy to recommend someone.

The first bit of legal paperwork.....

The Estate Agent or Notaire is empowered to draw-up the first document and in all probability this will be a "Compromis de Vente" which is an agreement that will be signed by vendors & purchasers. (If you are presented with any other documents, such as a "Promesse" - where you promise to purchase within a given time-scale but there is no commitment from the vendor to sell, then we suggest you take legal advice prior to proceeding.)

There are various forms of the "Compromis" therefore noted below are only general matters, each property and/or transaction may have inclosures or exclusions, thus the following is only a guide-line to what you may find:-

Personal details of the vendors
Personal details of the purchasers (you will be required to provide date of birth/marital status/passport details etc.)
The vendors sells & purchaser acquires, subject to standard conditions of sale, along with any other specific condition, the property as follows:
There is a brief, and therefore general description of the property, its address and importantly, its "cadastral plan" (say, ordnance survey) numbers, and invariably there will be a plan showing location of the property & boundaries of such numbers. Check this!
Note of what services are connected - water, electricity, drainage etc.
Any contents - furniture etc., included in the price?
Any known rights of way?
It is usually specified that there is vacant possession upon completion
The vendor has to state how they became owners (and the Notaire subsequently verifies this).
In an increasing number of French "Departments" (ie: Counties) you will find that the local law states that there must be various specialist reports carried out. Some of these show items that are purely advisory, others indicate problems that must be corrected, mandatory. Currently as follows:-

Wood Infestation

Most properties of any age will have wood that has wood-worm holes (trou des vers) or is worm-eaten (vermoulu) and current or old death-watch beetle (vrillettes) holes. No surprises here, any old wood should, in any case, upon renovation or every few years upon redecoration, be sprayed with wood treatment fluid (bought at your local DIY store & brushed on or sprayed using a garden rose sprayer). Such matters are advisory.

Of greater importance are active Termites and if the report shows evidence of them it is mandatory that the infestation is reported to the local Town Hall and treatment must be done.

Note that the Law states that the wood report must be carried out prior to a sale of the property being arranged & the report forms part of the

"Compromis". Therefore you will know about such matters prior to signing a contract. These reports are paid for by the vendor.

Lead

The report for lead (plomb) will show if there is, for instance, lead water pipes (unhealthy), also lead in any paint. This latter is common on most older houses especially on exterior paintwork which, you would probably not wish to eat, and will be part of the redecoration process anyway. An advisory report, again done prior to a sale being agreed, again paid for by the vendor.

Asbestos

This report (amiante/asbeste) is again an advisory report, prior to sale agreement and may indicate presence of asbestos n roofing sheets or around old pipe-work. Paid for by the vendor.

Flood Zone

This report is of an advisory nature, obtained via the Town Hall as to whether the property is in a zone liable to flooring (inondation). Again, done prior to sale agreement being signed you will be shown this and therefore know whether your intended purchase could be liable to flooding.

Thermal Efficiency

A test as to the thermal efficiency of a property, that is to say, how easily heat from within the house will dissipate outside. An advisory report. Difficult to comment on this - for if you want exposed stone walls their thermal efficiency will be considerably less than a flat, featureless plasterboard wall behind which are layers of insulation. Likewise, a highly insulated ceiling will not show exposed beams. It is possible to insulate between ceiling beams but only up to their thickness.

Drainage

Note is made within the "Compromis" of what drainage system the property has but, from this date a specialist report will be produced stating if the property has a system up to current standards. At the time of writing it is yet to be finalised as to when this report will be produced and whether it will be advisory or mandatory and if the latter, whether it will be vendors or purchasers responsibility.

Gas

Residential properties with a gas installation over 15 years old are inspected concerning systems for central heating, hot water and fixed cookers.

Electricity

From early 2008 an electrical test on residential property installations over 15 years old.

There are many "standard" conditions of sale, notable:-
- A purchaser will take responsibility for any services charges (water, electricity etc.) and legally must insure the property.

A deposit (usually 10%) will be paid by the purchaser, pending completion. This becomes part of the purchase price but can be forfeit if the purchase decides not to proceed for a "non-legal" reason. However, if the sale had to be annulled as one of the Conditions was not fulfilled, then it would normally be returned to the purchaser, possibly less a deduction for legal works to date. If you are at all concerned with clauses in your contract relating to deposits etc., you should take further legal advice.
Fees for the conveyance & associated legal works are generally paid for by the purchaser, and an estimate of the amount is normally provided within the "Compromis".
Price is stated and whether a loan is required. If this is the case, the amount of loan & potential lending source etc., is stated & this becomes a condition of your purchase. [ie: if you get the loan you must proceed; if your loan is refused & you can prove this, you can withdraw from the purchase. Caution: the statement above is, by nature of these notes, an overview, so possibly take legal advice if this aspect will be of relevance to you].
There is usually a financial statement which will show a net vendor selling price/agent`s commission/legal fees. There maybe a breakdown of the total as to how much you are contributing out of your funds & how much by loan, if appropriate.
There are various Declarations, mainly concerning the vendor who has to state if he knows of anything untoward that should be made known.

So, you have now signed the Contract.....

It is not usual for British buyers to have the ability to give the Notaire the deposit at that instant of signing, therefore it is quite common for a clause to be inserted in the Compromis giving a few days grace………..ie: to be able to return to the UK & organise a Bank transfer.
Potential purchasers have a seven-day "cooling-off" period in which to change their minds. Note: If you wish to exercise this right it must be done in writing, by Registered Delivery to the Notaire, by at least one of the intended purchasers. The Law is rightly very strict on this subject, therefore great caution should be exercised as precise dates of signing, proof of posting & delivery, weekends & Bank Holidays etc., all come into play. Take immediate legal advice! You cannot just 'phone up the Estate Agent and say that you have changed your mind & expect that your signed Contract will be annulled.

And, if all goes according to plan.....

The legalities will usually take around eight weeks and in the Compromis will be an estimated completion date. Towards the end of the eight week period the Notaire should be able to state whether all seems well and a completion date set by mutual agreement between vendor, purchaser & the Notaire.

Note that if the Notaire finds anything untoward, all parties should be notified immediately - so there should be no shocks at the last minute.

Monies are usually transferred from your Bank to the Notaire`s Bank and we suggest you allow a good week for such monies to arrive - for you do not want to arrive for completion only to find you are in advance of your funds!

You can attend the Completion yourselves or else by prior arrangement the Notaire can send you a type of Power of Attorney form in which you have the Notaire powers to appoint someone to act for you. [This also applies if one of the purchasers cannot attend, in which Powers can be given to a joint purchaser to sign for that absentee].

Draft Completion (Acte Authentique) papers are rare and the French norm is that with all parties present in the Notaire`s office, all legal papers are dealt with, questions asked etc., and assuming all is well, vendors & purchasers sign, keys are handed over.... and that`s it! Celebratory drink required.

Subsequently the Notaire sends all the documentation to the equivalent of the Land Registry and many weeks later you should get a letter from the Notaire asking if you wish him/her to retain the papers or send them to you. As the estimate of legal fees is usually a little on the high side you may have the pleasant surprise of a small cheque from the Notaire, along with the detailed statement of monies.

General Caution

The information contained in this document is provided solely to give potential purchasers a guide as to the processes involved if they find a property that they wish to buy. Each property & its transaction will, by its nature, be different. There maybe clauses or terms specific to it, likewise, Notaires have their own "pet subjects" on which they wish to dwell, thus "Compromis" can have different wording, and sometimes items put in a different order than those mentioned here. It is only the French Contract that has any legal standing and no legal responsibility is implied or accepted for these notes.

Only the French Notaire is authorised to carry out aspects of the conveyance and the fast majority of UK buyers happily rely on the Notaire. However, if you want independent legal advice we would be only too pleased to recommend a Specialist Solicitor.

The above mentioned will be able to liase with the Notaire & ensure your questions & requests are attended to & can also advise as to French inheritance laws that may influence your manner or purchase, also, in due course, French Wills relating to your assets in that country and any other matters of specific interest to you.

Michael Treganowan/revised 19/07