Buying Information for New Build Properties

For new build properties the buying procedure is slightly different from buying existing residential property. There is still a Compromis de Vente or Promesse d’Achat to sign but this is often called a ‘reservation contract’ although it is still as binding. The price is fixed at this stage and cannot be changed even if the property is not due to be completed until much later.

There are two main differences between buying residential property and buying new build. The Notaire’s fees for a residential property are between 6-7.5% of the agreed purchase price whilst for new build they are reduced to 2.5–3%. A big saving! Also new properties come with guarantee of completion, usually 10 year guarantees on the construction and 2 year guarantees on the fittings. Finally, the new build property is paid for in stages and is normally as follows although this can vary with each developer:

• 5% on reservation
• 25% on signing with the Notaire
• 5% at foundation
• 15% at ground level work including underground parking and cellars.
• 15% at first floor level
• 5% at water connection
• 20% when all the apartments are constructed
• 5% on completion of works
• 5% on handover

Nearly all new property in France is sold ‘off plan’ and quite often between 60% - 100% of the units are sold prior to commencement of building. Larger developments are often sold in phases and in this instance, there may be a showhouse to see in a later phase. Fitted kitchens are rarely included in the price although basic plumbing and electricity will be in place so that the purchaser can fit a kitchen of his or her own choice. A schedule of finishes is always included in the original sales information.

Apartments in France are sold freehold with a Management Company (Syndic) appointed to manage the building. They are responsible for the 10 year guarantee and have an insurance policy in place to cover any defects. They are also responsible for maintaining any surrounding grounds, swimming pools etc. and a service charge is levied on all owners to cover these costs. The service charge is apportioned according to the habitable square meterage of the owners’ apartment or villa. There is a legal requirement for a yearly meeting to be held by the Management Company and the owners are requested to participate.

Finally, I can introduce you to bilingual French/English solicitors who can oversee your contract for you from beginning to end to make sure that everything is in order and to give you peace of mind.

French Mortgages in brief

Raising a mortgage with a French bank is not difficult and there are a number of French mortgage companies and banks who will lend upto 85% of the purchase price and often over 20-25 years depending on age and status. HSBC and UCB (formerly Abbey National France) are represented in Nice whilst there are other good French banks eager for your business such as Credit Foncier (formerly Entenial) and Banque Patrimoine & Immobilier.

I can introduce you to a selection of mortgage Companies or banks who can help you raise the necessary finance for your project.

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