HSBC Premier

What you need to know

Finding your property in France

To find the right property for you, check the ads in the newspapers or on the Internet. There are also specialised magazines, such as De Particulier à Particulier (which also has an on-line version).

Even if you wish to negotiate your purchase directly with the current owner, it is recommended that you contact real estate agents. These are professionals who can inform you on the reality of the market and offer valuable legal advice.

If you buy your property through a real estate agency, make sure that the commission it charges (generally between 4% and 8% of the selling price) is included in the price. You won't have to pay this commission if the purchase doesn't go through.

The letter of intent (l'avant-contrat)

Once you have found the property of your dreams, you will sign a letter of intent with the seller, which may be either an initial property sale contract (promesse de vente) or a provisional sale agreement (compromis de vente). In either case, this is an important document that sets down all the terms of the real estate transaction and once signed it is legally binding. You will then put down a deposit (5% to 10% of the purchase price) immediately upon signing, which is deductible from the final amount.

Make sure that the contract specifies the exact boundaries of the property, any outlying buildings and what fixtures and fittings are included (a fitted kitchen, for example). Also make sure that it includes the other conditions governing sale (suspensive conditions), such as obtaining a loan or insurance.

Once the letter of intent has been signed, the seller has committed themselves, whereas the buyer has a cooling off period of seven days after receipt of a signed copy of the contract. During this time, you may withdraw without penalty, and the sums you have paid must be returned to you within 21 days.

Completion and handover

All real estate transactions in France go through notaries. These are public officers in charge of drafting the completion and handover documents, gathering the necessary administrative documents and making the customary legal checks.

The day the completion and handover document is signed you will pay the total purchase price (minus the deposit you paid when you signed the letter of intent), plus completion costs and taxes (5% to 8% of the selling price). If the buyer and seller wish to be assisted by their respective notaries, the notary fees will be shared between them, at no additional cost to you.

After the meeting, the notary will give you the keys to your property, along with the title deed.

You can now move into your new home!

How do you apply for a mortgage loan?

When you apply for a bank loan to pay for your property, the bank examines several criteria, such as your income, ability to repay, down payment, collateral, financial background, and so on.

You will need the following documents to apply for a loan:

•      - Your letter of intent
       - Your last three payslips
       - Documents attesting to any other regular sources of income.
       - Your most recent tax declaration.
       - Documentary proof of your initial equity payment (apport personnel).
       - Documentary proof of any outstanding loans you may have.
       - Proof of identity.
       - Proof of residency from the last three months.