There’s always a lot to think about when selling property, even before you thrown in a language barrier, or bureaucratic and cultural oddities, with the French process being significantly different to that in anglophone countries.
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Step one: Agent v private
The first choice is whether to use a real estate agent or sell it privately.
It has been estimated that up to 40 percent of properties on the French market are sold privately. Private sales are cheaper because there are no agents’ fees to pay, and simpler than it used to be because of the ubiquity of the internet in 21st-century life.
However, selling privately is not the answer for everyone - and foreigners unfamiliar with the French legal process may find it beneficial to have an agent to explain each step to them.
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They should at least do a lot of the marketing and viewing heavy lifting — bear in mind that their online presence is geared towards property searches, so they’ll be higher up the page rankings. And they will be able to help with any statutory surveys, including the need to ensure that the energy rating of the property is included in the advertisement.
Step two: Real estate agents
Let's say that you have chosen to use an agent, the next step is choosing one, and choosing the type of contract you want with them.
Estate agencies (agènces immobiliers) in France are highly regulated. But you should still run the rule over them before agreeing to let them market your property. Trust your judgement. If you don’t have a good feeling about an agent, don’t go with them.
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Once you have chosen your estate agent (or agents), you need to enter into a written contract with them, called a mandat de vente.
There are three basic types: A non-exclusive contract is called a mandat de vente simple, which allows you to engage the services of more than one real estate agent, while an exclusive contract with one agent is called a mandat de vente exclusif. This type of contract entitles the agent to a fee for their services, even if you happen to sell your property privately.
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The halfway house is the mandat de vente semi-exclusif, where only one agent acts to sell a property, but the homeowner retains the right to sell privately.
These contracts are time limited. However, a simple or semi-exclusif one will simply roll over unless you formally terminate it.
Be aware, a mandat signed in the estate agents’ offices is immediately binding. If it’s signed elsewhere — such as your home, for example — you have a 14-day cooling-off period.
You must be given a copy of the mandat for your records.
Step three: Property valuation
If you're using an agent, they will give you their opinion of what they think your property is worth when they visit.
You can also ask a local notaire for their view, given they will have knowledge of property prices in the area. And you can do your own research, looking at prices online.
The French government also has a helpful website which allows you to see the prices of any properties sold within the last five years, so you can get an idea of what similar properties in your area go for - details here.
Step four: Statutory surveys
You’ll need a Diagnostique de Performance Energétique (DPE), carried out by an approved specialist. The results of this test – which provides information about energy consumption, greenhouse gas emissions, levels of insulation and other factors which may affect heating bills, as well as giving your property an energy rating from A to G – must be included on the property listing.
You need a new DPE in order to sell a property, even if you have recently had one done (for example in order to rent out the property, or to claim an energy-efficiency grant).
If your property is rated E, F or G - the lowest ratings - you are also obliged to pay for a more complete 'energy audit', which will show potential purchases the work that needs to be done in order to make it more energ-efficient.
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You also need the Dossier de Diagnostic Technique (DDT) — a series of surveys that house sellers are required to provide to potential house buyers. If you are using an agent, they will help with these.
The DDT covers a number of tests such as energy efficiency, natural risks (such as flooding or industrial) and parasites (including termites, in certain parts of France), sewerage and septic tanks, lead and asbestos (for older properties).
Only the DPE information (the energy rating) needs to be included on the property listing, but all other results must be supplied to anyone who indicates an interest in purchasing.
Homeowners who have made an insurance claim relating to a natural disaster must declare it in the report.
Step three: Marketing
This is the bit that, if you’ve engaged an estate agent falls very much within their remit.
Your estate agent will have taken photos of the property, and will use those in the marketing materials.
Don't worry too much about tidying up for the photos, it seems to be a feature of French property adverts that the home is photographed 'as is' - often including dirty crockery, laundry drying on the rack and a sock left on the floor.
But, while estate agents must not provide misleading or inaccurate information, they are under no obligation to describe in any great detail the properties they have for sale. The better ones will, so this is worth checking out when you are picking an agent.
Step four: Visits
Be prepared for would-be buyers to want to take a look around your home. Estate agents tend to be good at dealing with house visits and the like — otherwise they’d be out of business, but home owners can do their bit too.
Some running repairs, where necessary, and some well-judged painting and retouching will go a long way to helping a house sell.
Step five: Compromis de vente
Congratulations. Someone has put in an offer to buy your property. Now comes the difficult negotiating bit. Again, if you have an estate agent, they can handle negotiations for you, if you want, and smooth the way over any pre-sale conditions.
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Once an agreement is reached, you’ll sign a compromis de vente – a preliminary sale agreement. This is a written contract, which sets out the terms of the agreement between the buyer and the seller. It is legally binding.
It includes details about the property, the agreed price, and deposit (usually 10 percent of the sale price) and what’s included in the sale, confirmation of estate agent and notaire fees, and — crucially — a completion date target.
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Step six: Acte de vente
Three or four months later, after the notaire has done all the behind the scenes legal work, you’ll agree a date to sign the acte de vente.
This is a crucial date, because it’s also the day you hand over the keys, so you’ll need to have cleared the property, and make certain you have somewhere to go that night.
Be aware that the property is sold in the condition it was when the compromis de vente was signed. That means any damage you may cause while moving out (it happens) needs repairing.
Before this meeting, the notaire will ensure that the balance of funds to complete the purchase is in their bank account, including any funds paid by a mortgage company. You will be required to provide the notaire with a IBAN to enable them to transfer funds (less any taxes such as capital gains tax if it is due, or mortgage repayments) to your account.
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During the 'in between' period between the compromise de vente being signed and the final signing of the acte de vente the buyer can, in some circumstances pull out. The seller, however, cannot.
When drawing up the compromise de vente, the notaire will add a Clause Suspensive (conditional clause), allowing a buyer to pull out at this stage -- as long as the seller agrees.
This clause will be added as a matter of routine if the buyer needs a mortgage - this is because the mortgage process in France is slightly different. Essentially the buyer finds a house they want and then they apply for the mortgage (in the UK that process is the other way around). There's always a possibility that they may be turned down for a mortgage, in which case they can back out of the sale.
The clause could also be added if there are specific issues - for example planning permission questions, or work agreed to be carried out before the sale.
. . . And don't forget property taxes
Even once you have sold your house/apartment, you are still liable for property taxes the following year.
This is because the two property taxes (taxe foncière and, for second-home owners only, taxe d'habitation) are based on who owned the property on January 1st of the tax year. So if you sell up in February, you will still have to pay property taxes the following autumn.
Some sales contracts include a clause making the buyer responsible for property taxes, but this is not standard and you will need to ask for it. Normally what happens is that the buyer pays what would be their share of the tax, and then the seller pays the final bill when it arrives in the autumn.
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