Buying an apartment in central Paris is a challenge for economically conservative people, but for the rich it can be the most exciting experience. Staying in the city centre means access to everything that shines with neon lights, buildings, shops, museums, art, architecture, theatres and more.
Sacrifice and acceptance
As with all purchase transactions in France, the first step in the buying process is the buyer’s offer to buy a house, apartment, villa or condominium, etc.
The offer must be accepted, and if the owner accepts it, two types of agreements can be signed: a promise to sell or a compromise sale.
The promise to sell allows the owner to sell the property to the buyer at the specified price, but leaves the choice for 2 or 3 months. After signing the contract, the buyer makes a deposit of 10% of the total purchase price. The owner cannot sell the property during this period, but if the buyer decides to opt out, the 10% deposit already paid will be cancelled.
The purchase agreement allows the buyer and seller to agree on the price, and the buyer makes a deposit of 10%, which indicates the buyer’s willingness to buy. Any party can seek damages in court if it decides to waive the agreement.
Both types of agreements provide for a seven-day cooling-off period during which the buyer can refuse to purchase without penalty.
Check the contract
Before signing an agreement, it is important that it is fully verified to make sure that it contains all the details of everything that is being sold, for example:
Accessories and inventory
Disruptions with electricity, gas, pests and hazardous materials
Include conditional offers or exclusion offers
The notary investigates any legal, financial or other claims to the property within 3 months or more, and at the same time a completion date may be set for the signing of the act of sale.
At this stage, as the investigation progresses, an architect or surveyor may be asked to perform structural degradation of buildings to justify cost and safety.
It would also be a good idea to consult with the notary before signing the act of purchase and sale about what will happen to real estate in the future. In France, real estate always goes from parents to children, even if it belongs to strangers, but to be absolutely sure will not hurt.
The main costs associated with real estate transactions include:
Notary fees set by the Minister of Justice at 5% or a maximum of 45,735 euros, plus a commission of 3.5%.
Broker commissions in full or in part may be 10% of the purchase price.
Two types of taxes – property tax or property tax and local taxes or housing tax, paid on January 1 of each year. The amount is usually paid on a proportional basis.
Act of sale
After all the research and investigations are completed and there will be money to pay for housing, you can apply to the notary to sign the act of sale.
A foreign buyer may require an interpreter to be present at the time of signing so that the document read can be translated on the spot before the contract is actually signed.
Once the agreement has been signed, fees and taxes can be processed to complete the transaction.
Once all these stages are completed, the purchase documents are entered into the land book and the buyer becomes the new owner of the property in France.