Pitfalls of buying property in France

The property buying process in France is generally quite straightforward. In a survey of those who have already bought there, 75% said it was quite or very easy. However, there are a few things that have caused issues for international buyers in the past.

Here we outline a few pitfalls of buying property in France that you can learn from. The information in this list comes from conversations we’ve had with buyers in France as well as estate agents, property lawyers, solicitors and tax specialists in France.

Common mistakes

Having no flexibility

Being laser-focused on a particular location obviously limits your options. While you might love the idea of an apartment in Cannes or a sea-view home in Normandy, are there alternatives? Listen to your estate agent’s recommendations; they are local experts.

Your estate agent in France will usually show you at least one unexpected property that they think will suit your requirements. Be open to their suggestions and you could be pleasantly surprised.

Misunderstanding types of contracts in France

There are two types of initial contracts in France, the promesse de vente (promise to sell) and the compromis de vente (contract of sale). There is a slight difference:

Promesse de vente – a promise from the seller to sell a specific property to a buyer. This is a legally binding contract to the seller, not the buyer. So, if you don’t want to go ahead, you are not legally inclined to buy.

Compromis de vente – typically the initial contract in the buying process. Once this is signed by the seller and the buyer, there is a 10-day cooling off period which allows either party to back out without attracting penalties. Once this 10-day cooling off period is over, the contract becomes legally binding.

Not reading the diagnostic files

If you’re purchasing an apartment in France, you will be provided with La Loi ALUR documents, which will provide information on how much the apartment is going to cost you. These will include your ongoing liabilities like management and maintenance fees.

When buying a home in France, you will be provided with a set of technical real-estate diagnostics (the DDT) where you’ll find reports on asbestos presence, gas and electric system functionality, lead presence etc. There is no legal obligation for the seller to make right on these things, only to declare them.

Understand what’s not covered in the DDT

Building surveys are quite rare in France and there is no legal obligation to get a structural survey carried out before buying a home in France. You can choose to appoint a chartered surveyor at your own expense, but it’s advisable that you do this before you sign your contract or before the cooling-off period expires.

When buying a property in France you are not given any guarantees as to the boundaries of the property. You will be given a land registry plan by your notaire, however land boundaries on the land registry plan are not legal boundaries and they are not enforceable into courts or against your neighbours. They are only applicable for tax purposes.

If you’re unsure of where your property ends, for example, your plot neighbours a field or farmland, you can opt to have a land surveyor come and mark the boundary. Once done, a plan will be created which will be legally binding and enforceable. Again, this is something you’d have to do at your own expense as the buyer.

Energy ratings in France

Something that’s become increasingly relevant in France is the EPC rating. Properties with poor energy performance ratings, such as F and G, you will have an obligation as a buyer to undergo building work to make the property more energy efficient. This is something to consider when viewing the documents, as you may have to budget for additional works. If that is the case, the seller must provide you with an energy audit, which will document exactly what’s required to bring the property up to the minimum energy standard.

Please note, if your energy rating is particularly low, there may be limitations around whether you can rent your property out in France.

Financial pitfalls

A potential financial pitfall for property buyers in France is not managing their exposure to currency risk. It’s likely, if buying from overseas, that your home currency won’t be the euro, therefore you’ll have to consider exchange rates throughout your buying journey.

The biggest period of exposure to the ever-moving currency markets is the time between the compromis de vente and the acte de vente. This period tends to last two to three months. In that time your local currency-to-euro rate could have moved quite significantly, effectively altering the price you’ll pay for a property in France.

To avoid being exposed to the volatile currency markets, speak to a currency specialist with experience in international property purchases. They are able to offer a range of services suited to international buyers that can help them manage their currency risk appropriately.