Initial costs in purchasing property

The Deposit :
At the signature of the « compromis de vente », an amount will be payed as a deposit (a show of good faith). It represent to 5% of the purchase price, and it is deducted from the whole amount at the notarial act.

Legal fees to purchase property :
These legal fees (8% of the purchase price) are payed to the notaire and include:
- taxe d'enregistrement: registration tax payed to the state
- « débours » : sums payed by the notary on behalf of his client in order to get the appropriate documents needed to transfer the property,
- Emolument : sums payed to the notaire for his work.

Agency fees
Purcentage based on the purchase price, decided according to the property's characteristics .

Funding

- You can use your own funds to finance your real estate project.
- You can finance your project by taking a mortgage with a french bank or a mortgage provider.
in that case the mortgage provider has to follow strict rules edicted by the Banque de France.
These rules determine  which amount can be borrowed, dependind on your financial capacities,

Actors

The Notaire: public official qualified to validate a sale by a legal act and to register it officially.

The Mortgage Broker : acts as an intermediary between  lenders and potential buyers, They are often directly remunerated by the lender. The broker helps you find the best offer.

The Real Estate Agent : provides intermediation between the seller and the buyer.
He has a duty of providing good advise and loyalty to the both parties and his activities are covered by his financial guarantee.

To buy a property in France

When you begin looking for real estate in France, several questions should come to mind.
The purpose of this blog is to make you aware of a number of answers.
However, this is probably not sufficient and an interview with a professional advisor is highly desirable in order to take into account all aspects of project.