the french alps

Buying Procedure

If you see a particular property which you would like to buy then you will need to enter into an Option Contract which is referred to as either a "Compromis de Vente", "Contrat de Reservation" or "Contrat Preliminaire". This contract must be signed by both parties to the purchase and sale and be accompanied by a deposit payment usually amounting to 5% of the purchase price if the property is new or up to five years' old. For older properties or plots of land a 10% deposit is normally paid.

This payment is retained by the Notaire or bank acting as guarantor, and is not received by the vendor until completion on the signing of the "Acte de Vente". If a property is to be constructed or is in the course of construction the timing of stage payments as building work progresses will be clearly stated.

Once the Option Contract has been signed by both parties the purchase price, as stated in the Contract, is firm. The balance of the purchase price or the appropriate stage payments, plus legal costs, will become due at the time that the "Acte de Vente" is signed in the Notaire's office and the sale is completed.

If you withdraw from the proposed purchase following signature of the Option Contract, the circumstances under which this arises will determine whether your initial deposit is returned. If the conditions for completion of the sale are not met by the vendor or if your proposed loan arrangements are not forthcoming, the deposit will be returned.

The "Acte de Vente" can be normally be expected to be ready for signature after two or three months and you will then be required to attend the Notaire's office for signature. We can arrange for you to be accompanied if required. If it is not convenient for you to be in France, the Notaire needs to be advised and he will arrange "Power of Attorney" through a "Deed of Procuration".

Under French property law the interests of buyers are well protected. The Notaire is nominated by the vendor but nevertheless acts without discrimination for both parties. You have the right to involve another Notaire or a UK solicitor, who really needs to have experience of French property law, to act independently for you. Legal processes in France are carefully controlled and you will need to decide if the expense of additional legal advice is justified.

Co-propriete arrangements

If you decide to purchase an apartment or in a chalet development where there are shared facilities you will also need to agree the co-propriete arrangements. These will be in a standard format for the development and an agreement will be prepared in respect of services relating to the specific apartment you will own and may include items such as buildings insurance, buildings maintenance, lighting, heating and cleaning of common areas, lift service, maintenance of gardens and private access roads.

Once a development is mostly sold, co-propriete arrangements are placed in the control of owners so that costs will continue at a modest level.

With some chalet developments, where communal arrangements are necessary in respect of any private roads and street lighting, a small service charge is also likely to be made.

Legal Expenses

Completion of your purchase takes place on the signing of the "Acte de Vente" in the Notaire's office, and legal costs are paid to the Notaire at that time. There is a set scale of fees for these services and these relate to the value of the property or land being purchased. In addition there are various taxes levied by the Government, the Department (Haute Savoie in this instance), the Commune in which the property is located, all of which the Notaire is required to collect from you.

The total cost of the Notaire's fee and taxes is as follows:-

New Property - approx. 2.5% of the purchase price.
Property under 5 years' old - approx. 2.5% of the purchase price.
Property more than 5 years' old - approx. 8% of the purchase price.
Plots of Land - approx. 7% of the purchase price.

TVA or VAT is at a rate of 19.6% and this is included in the quoted purchase price of all new property. There is no TVA applied to resale property.

TVA is not payable on plots of land, but land tax at a rate of 4.8% will be collected by the Notaire at the time that the Acte de Vente is signed and is included in the rate of 7% referred to earlier.

No legal costs are incurred in respect of a chalet which you contract to have built on the plot of land you have purchased. The price of the chalet will have been quoted to you inclusive of TVA.

Additional legal costs are incurred at a modest level if you require a "Deed of Procuration" to be drawn up giving Power of Attorney for signing of the "Acte de Vente" if you are not able to attend the Notaire's office.

If a loan is arranged to complete your purchase this has to be registered by the Notaire and a small charge will be incurred.

Should you decide to use the services of an independent Notaire or a UK solicitor with specialist knowledge in French property law, further legal costs will be incurred.

Loan arrangements

It is a good idea to know the borrowing limits which can be made available to you prior to viewing our range of property. Usually our clients have used the loan facilities of French banks with the property to be purchased as collateral. Rates are competitive and we can provide information on your behalf prior to your visit to France.

Funding can also be arranged in the UK using collateral such as your own home by taking out a second mortgage or re-mortgaging, a pension scheme, endowment policy or other security.

Furnishing your property

The cost of furnishing an apartment is inexpensive since fitted kitchens, floor coverings, double glazing and heating are likely to be included in the purchase price. An optional furniture package is sometimes available for new property.

Chalets are usually more spacious and are likely to require more furniture. Even so floor coverings may be included.

If you buy a resale property it is possible that certain items of furniture are included in the purchase price.

Letting your chalet or apartment

We are able to help clients earn a rental income from their property.

There is very good letting potential for the four months of the winter season and in July, August and early September. Of course you will have to decide the dates required for your own private use.