These pages answer some frequently asked questions about our services. Please read our disclaimer. Please feel free to raise any interesting points you may have. Just contact us. This is not an advisory service but we are happy to informally exchange views on interesting points raised. Just click here.

Frequently Asked Questions -

French law requires you to insure your French property against damage, fire and other risks, including third party liability. Cover must be taken out with effect from the actual date of completion of your purchase. You can transfer the seller's policy to you, but notice is normally required to cancel a policy, failing which it is automatically renewed at the renewal date. Your insurers may insist on extra security measures to prevent theft and damage. These measure sometimes include heavy-duty steel or aluminium shutters, new locks and burglar alarm systems, which are not only expensive but will need full-time monitoring, so incurring ongoing costs. We can refer you at the appropriate stage to one or more independent insurance brokers (English-speaking) who will effect the right policy(ies) for you.

All lenders will insist on life-insurance coverage. Life insurance can be taken out with a French insurer or a recognized foreign insurance company. Your lender may have a block contract with a French life insurer so that they can arrange cover for customers at preferential rates.

• We can help you find a suitable property anywhere in France.
• We are here to help you on a totally independent basis and can therefore help you to negotiate the best price.
• We can discuss all the implications with you to ensure that you are fully aware of what you can do to make the transaction as easy as possible. Most issues are covered in our lists of FAQ’s.
• We can report to you throughout as your transaction progresses.
• We can discuss in whose name the property should be bought. A number of people buying in France have complications with children and ex-spouses. It is vital that in these and other circumstances you have expert help in dealing with any possible problems at the outset, i.e. before you make a legally binding purchase commitment. It is normally possible to solve and avoid mot problems, if they are looked at soon enough.
• We can recommend and introduce you to professionals in France or the UK for all your legal, tax, financial, survey and insurance requirements.
• We can help you if you are considering earning money from French property.
• We can help you with translation (although we do not translate legal documents, we know who can) and any other technical problems.
• We can also help you with accountants in France, advice on UK/French taxation, solving French legal disputes, bank accounts in France, builders quotes, general practical advice, paying bills, planning consents, SCI’s and other property-holding companies and many other topics.
• If we can’t answer your question, we know someone who does!

Our aim is to make the expertise of our company available to provide a comprehensive and unique service to serve the highly specialised needs of our clients.

Everyone at FPS endeavours to maintain minimum standards of case management. The relevant standards are:

• All telephone calls are returned within 24 hours.
• All correspondence is replied to within 24 hours, but if the reply requires prolonged consideration a short acknowledgement is sent and a full reply within five working days.
• All letters received from other persons in your case (other than those which relate to merely routine matters) will be sent to you within five working days of receipt, but if any letter or document requires prolonged consideration the full comments on the other person’s communication may take up to ten working days to send you but no longer.

• The French language and culture (we know both very well). If you speak English only or non-fluent French, you can be at a disadvantage. The French know their laws, they expect you to know them as well. You may find it hard to believe, but you will receive no or very little advice from anyone in France, to include your notaire and/or accountant. All our clients come to them knowing exactly what they want.
• The marketplace for French property (we know this very well). The French property market is almost always in motion and only on-the-ground expertise will get you in at the right price.
• French law (we know this well). Unfortunately, it just isn't as easy as it is in the UK, the USA or other English-speaking countries.

We are experienced with the complexities and vagaries of the French property market. We maintain an electronic database of available properties anywhere in France and can "tweak" that database to find properties that will interest you. We know how hard it will otherwise be for you to find, negotiate and buy from hundreds, sometimes thousands of miles away. FPS is on-the-ground throughout France and prepared to assist you starting today. We are technologically sophisticated and keep you closely informed during this exciting, but demanding endeavour. Please read through all the FAQ's on display. Then you will realise that our assistance will be invaluable before, during and after any transaction.

Yes, bilingually. Just contact us.

No. We are used to dealing with clients from all over the world who are not able to meet with us in person, and everything can normally be done by e-mail, fax, phone or post. However, we would always be pleased to meet with you and discuss matters personally if that is more convenient to you. If you feel you really would like to meet up, an appointment can be arranged but you would need to discuss this with us first: we would have to charge expenses or a fee should we have to take the time to travel to see you.

Please note that French authorities will require evidence of your état civil. This is the description of an individual by reference to his or her parentage, date and place of birth and marriage, the regime matrimonial under which he or she was married, his or her divorce and remarriage, nationality etc. In France a married woman is known by her maiden name, 'wife of' her husband. If you are more than one buyer, the obligations which you undertake can be enforced against you all jointly or against each individually. If you intend to buy in the name of one or more individuals, you must provide - so therefore please let us have - a photocopy of the first 6 pages (if you have an old blue British passport) or the last 2 pages (if you have a new red British passport) of the passports of all the proposed buyers. You will also be required to provide photocopies of your birth certificates and, if appropriate, photocopies of your marriage certificates or photocopies of your divorce decrees. If you have mislaid or destroyed any of these documents, certified copies will be required. The French authorities sometimes require that such certificates be not more than 3 months old. This means that the certified copy of the UK entry of the relevant event must have been issued not more than 3 months before its use, and it is quite useless explaining to the French that such a certified copy issued many years previously is equally valid as proof of the event related in it. French translations may also be required.

Yes, we can take care of all the paper work: authorizations, permits and whatever else is required by law. You just have to give us a proxy (we can prepare this for you) to act as your representatives and even if you're not here in England or France, we can do everything, provided you pay the purchase price and give us the correct information.

Yes. Unless otherwise indicated the price shown on each property includes all estate agent's fees, the notaire's fees and duties. However, please also budget for a survey, and remember that you will need to take out buildings/contents insurance. We also recommend that you take independent legal advice before making any formal purchase commitment. We can help you with all this. Just Click Here.

Now. If you are seeking to fund your French property purchase by way of a mortgage or other loan, there are literally scores of lenders to choose from. It is always sensible to find out how much you can borrow at an early stage, even before you start looking for a French property. Please contact us for further details.

Please be careful about going through a French estate agent for a loan. Should the agent recommend a lender, it is wise to question his motives as he may be receiving commission from the recommendation.

If you are borrowing in France, it is not necessary to have a firm offer of a loan before you sign a purchase contract, as you would normally do in the UK. On the other hand, if you are borrowing in the UK on the security of property in France, the special protection given by the Loi Scrivener does not apply and you should have got an "in principle" loan facility tied up before you make the decision to buy.

As you will have realised from the FAQ's on the buying process, in France you can be pressured to sign a contract within minutes of having seen the property you would like to buy. Therefore the added advantage of making preliminary financial enquiries is twofold: you know what price you can afford; and the French estate agents will treat you more seriously;

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

We have a commission-sharing arrangement with our counterparts in France. Most French estate agents pay us a very similar amount, so there is little reason for us to favour one agent against another, except for reasons which would be in your best interests.

Information is sent to clients free of charge by e-mail only. We do not copy any of our material any more onto paper. This saves an enormous amount of time and cost.

We recognise that no client has money to waste. We therefore try very hard to minimise the cost to our clients. Being specialists helps us to do this. Doing something for the hundredth time is always faster - and thus cheaper - than doing it for the first time. We have introduced a range of ways of paying for our services. Please pick the way that suits you best.

In most cases we will quote you a fixed fee for dealing with your work. For example, our fee structure for an introductory meeting is £100 for a two- hour session at our offices in Ipswich (the same rate applies for a telephone discussion). A two- hour introductory meeting or telephone discussion is normally sufficient to cover a very large amount of ground. It will point you in the right direction - we may then discuss what further help you require and effect all necessary introductions. We suggest that you make a list of all of your questions whilst reading information from our lists of FAQ's to use as an agenda

We can also help in many other ways always at a reasonable price. Please Contact Us for further advice or to book an appointment. If you do decide to choose our services, please let us know as soon as possible so that we can provide you with a quote.

If you do not wish to proceed on a fixed- quote fee basis, we will agree with you a method of charging on a time-spent basis. Our hourly rates are competitive within this specialist marketplace. In many cases, a preliminary budget of (say) £500 can be agreed beyond which we will not exceed without your express authority.

The basis upon which we undertake any work is that we ask all our prospective clients at the outset for a certain amount of money on account of our likely fees and disbursements. Most clients are willing to accept this arrangement.

Providing translations of any of the relevant French or English documents will incur further fees. Our basic translation charges (French to English or English to French) are £250 plus VAT per thousand words. Other factors such as urgency, undue difficulty, highly specialised or barely legible texts may be taken into account. Accurate estimates of fees and completion times are more easily given on sight of the relevant texts for translation.

Courriers fees and other possible out-of-pocket expenses incurred on your behalf are made at cost and we make no profit from them. Before such expenditure is incurred, it is a requirement that you provide sufficient funds to cover these expenses. We will try to give you as much notice as possible of payments that may be required.

We will also have to pass on to you the cost of any surveyors fees, bank charges and the like levied in respect of your particular transaction.

No. It is not our policy to seek any direct rewards for referrals to lawyers or other third party firms. We also refuse any such offers on principle - as we are Proud of our complete independence. We do not charge fees to firms appearing on our Links page nor have any direct involvement in any firms listed there. Equally, no firm or individual is listed there if any adverse information comes to light from any FPS client using their particular services.

No. This is a way to circumvent the law and, as such, is prohibited. Anyone who offers to do that for you can go to prison, the property can be confiscated, and your money lost. We don't do that kind of thing.

Yes. Just contact us.

No. We have never been and will never be involved in that kind of activity.

For no fee we can immediately recommend and introduce you to:

• French notaires
• Independent lawyers in the UK who specialise in French property, succession law and inheritance tax matters (we strongly recommend that you take their advice before making a purchase commitment)
• Surveyors, valuers, architects and builders throughout France
• Banks and other lenders
• Insurers

For little or no fee, we can also arrange most other things such as paperwork, permits, furniture, finding that special present you want to take back. In most cases our fees are saved many times over by the savings that you are able to make.

Yes, if the price is quoted on an all-inclusive basis. Otherwise, please see…

Prices are generally low right now following a speculative bubble which burst in the late 80's. At these prices, property in France makes an interesting investment. But please remember that some owners will be selling to you at less than what they bought a few years ago, and so they won't be eager to lower the price any further.

On the sunny side of the Channel, a very affordable way of life goes on. By even the most conservative estimates, more than 500,000 Britons already own homes in France, and our rising affluence, coupled with the strength of the pound, means many more are searching. The renewed popularity of France among a new generation of buyers is evident in figures published by the Woolwich in June 2001. Although house prices in France have risen by 40% in some areas in the past 18 months, it remains the most popular destination above Germany, Spain and Italy, accounting for 36 per cent of people moving abroad from the UK - up from 25 last year.

The good news is that there are still beautiful, battered, sun-bleached houses going for a song in regions that are relatively undiscovered but newly accessible because of the growth of low-cost airline connections

No. Unlike some other European countries French law does not forbid foreigners without permits to buy any real estate in France. However, it allows local authorities to give limited buying authority in selected areas, if the buyer fulfils certain conditions. If you hold a residence permit, however, that is another story.

Unlike some other European countries (e.g. Switzerland) French law does not forbid foreigners without permits to buy any real estate in France. However, it allows local authorities to give limited buying authority in selected areas, if the buyer fulfils certain conditions.

The only document required by British and other EU citizens (natives of the Channel Islands and the Isle of Man are not British or EU citizens) intending to reside in France for less than three months is a valid passport. British or other EU cases intending to reside in France for more than three months must also have a Carte de séjour (resident permit). If you intend to reside in France on a permanent basis, a resident permit will be issued for 5 years. Thereafter, your permit can be renewed for 10 more years and is renewable every subsequent 10 years. Non-EU cases must have a valid passport and cannot take up employment in France without the approval of the French immigration, police and unemployment authorities.

If you become tax resident in France (e.g. you spend more than 183 days in France in a given calendar year) your exposure to French income and other taxes is a matter upon which you should take tax-strategy advice.

You can visit France as often as you like. However, if you become tax resident in France (e.g. you spend more than 183 days in France in a given calendar year) your exposure to French income and other taxes is a matter upon which you should take tax-strategy advice.

In selected areas of France, local authorities are allowed to give limited buying authority unless the buyer fulfils certain conditions (e.g. resides permanently at the French property).

The only document required by British and other EU citizens (natives of the Channel Islands and the Isle of Man are not British or EU citizens) intending to reside in France for less than three months is a valid passport. British or other EU cases intending to reside in France for more than three months must also have a Carte de séjour (resident permit). If you intend to reside in France on a permanent basis, a resident permit will be issued for 5 years. Thereafter, your permit can be renewed for 10 more years and is renewable every subsequent 10 years. Non-EU cases must have a valid passport and cannot take up employment in France without the approval of the French immigration, police and unemployment authorities.

We have thousands of property to suit you anywhere in France.

It depends on what you want to do in France. For example, many people looking for a home in France are drawn to the Mediterranean coast. It is here that they get what they want - warmth - and it is here that they experience the true Mediterranean climate - hot, dry summers and warm (but not too wet) winters. In summer, the average minimum temperature will rarely dip below 65 degrees Fahrenheit and will usually be up in the mid 80s at the hottest time of the day. In winter, of course, it is cooler. It will usually be around 60 degrees Fahrenheit on average at its warmest but will rarely dip below the low 40s. You have to go at least as far south as the Loire to find a gentler climate, which tends to be wetter in the west and drier in the east. The area to the east of Bordeaux - which is very popular with the British - has long warm summers but is rainy and foggy in winter. Further south along the Atlantic coast, in the south-west corner of France, the weather is warmer in summer but just as wet in winter.

Our extensive property portfolio ranges from small flats to individual houses, farms, manors and châteaux, although many people prefer to buy into a copropriété (condominium) where you own an apartment, garage and cellar plus a share of the common parts of the buildings. You have to pay charges every year to cover maintenance of the building as well as the purchase price. Please contact us and tell us your needs.

It depends on what you want to do in France. Memories of the late war are still strong and there is often goodwill to allies of France in the war, such as Britain and America. For climatic reasons, the British do not generally like the North East of France. You have to go at least as far south as the Loire to find a gentler climate, which tends to be wetter in the west and drier in the east. The area to the east of Bordeaux - which is very popular with the British - has long warm summers but is rainy and foggy in winter. Further south along the Atlantic coast, in the south-west corner of France, the weather is warmer in summer but just as wet in winter.

Our extensive property portfolio ranges from small flats to individual houses, farms, manors and châteaux, although many people prefer to buy into a copropriété (condominium) where you own an apartment, garage and cellar plus a share of the common parts of the buildings. You have to pay charges every year to cover maintenance of the building as well as the purchase price. Please contact us and tell us your needs.

France enjoys one of the best public transportation systems in the world. It's safe, widespread, punctual and reliable. Of course there are also excellent roads and driving is usually no problem, with costs lower than in most European countries. If you need a car and have the necessary paperwork, we can arrange to get one for you. Please click here for further information.

French law imposes no restrictions on the type or location of property you can buy. We can find a freehold property or tenancy for you anywhere in France (leasehold is not a recognised form of ownership). Land suitable for building is relatively difficult to find in France. Please remember that French properties are built to last centuries and that you can resell later.

Our extensive property portfolio ranges from small flats to individual houses, farms, manors and châteaux, although many people prefer to buy into a copropriété (condominium) where you own an apartment, garage and cellar plus a share of the common parts of the buildings. You have to pay charges every year to cover maintenance of the building as well as the purchase price.

Many people from the USA or Japan like to live in new buildings. We have many apartments for sale in new buildings, but you should realise than in France old buildings usually command the best location and generally have more character. The important question is: has it been renovated recently? Please click here for further information.

We count each bedroom and the living room as one room apiece. So in a 3-room flat you will usually get 2 bedrooms, a living room, one or two bathrooms and a kitchen. Rooms in average properties will be around 15 square metres, that is, about 160 square feet. So first ask for the habitable surface area (surface habitable) and then room disposition.

A square metre (mètre carré) is a metric measure of area that corresponds to the size of a living unit. One square metre is approximately equivalent to 10.75 square feet. In France there is a strict measurement law (Loi Carrez) that assures that the described size of a new unit is accurate.

A hectare is a basic unit of area in the metric system, equal to 2.471054 acres, 11,959.9 square yards or 107,639.1 square feet.

An are is a basic unit of measurement in the metric system, equal to 0.2471 acres or 1,076.3910 square feet.

A centiare is a basic unit of measurement in the metric system, equal to 1 square metre or 0.01 acre (about 10.7639 square feet).

You will usually have either a cellar or an attic attached to your property. If it is possible, we advise you to buy a property with a parking space or an indoor garage - even if you don't drive - in case you ant to resell and the next owner needs it.

Many of our properties would make an ideal investment. Please click here for further information.

In recent years, thousands of British families or groups of friends have bought a property in France to escape from cold winters and wet summers. For many, their personal use of the property is a source of considerable pleasure. Although by UK standards property price in France are still generally low, and purchase loans are readily available, many potential buyers are discouraged from purchasing French property for two main reasons.

First, they do not want to feel tied down to the same property each year when there are other countries or parts of France to explore. Secondly, their available holiday time is limited to two or three weeks in the summer and, although friends and relatives may occasionally visit the property, it will otherwise remain unoccupied for the rest of the year.

Investing in French property will give all the chances for profit - or loss - of investing in financial assets, and may give you the added benefit of leisure use, as well as generating rental income and a possible capital profit as well. But remember that any such investment will bring with it the added disadvantage of comparative illiquidity, and the need for continuing maintenance, either by you or an agent.

Please however take heed of the following main guidelines. First, don't commit yourself to anything while you're abroad. The methods and cost of purchase will be different from those in your home country. Be especially wary of timeshares. High pressure selling to vulnerable holidaymakers has been developed into a fine art form. Don't sign anything or pay any money until you've had time to consider carefully what you're being offered. Owning an investment property in France will almost always bring additional tax liabilities. To buy in France you will always need the help of a lawyer who is expert in French law and the law of your home country. It will be a rare coincidence if your holiday inclinations coincide with good investment opportunities. Always bear in mind the exchange rate risk, particularly if you are buying with borrowed funds. Always take competent professional advice.

We recommend that you buy a copy of Letting French Property Successfully which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

More than 60m tourists visit France each year. This is not a passing phenomenon, and with new, improved and cheaper transport links, the demand for self-catering accommodation in France continues to grow from foreign holidaymakers, especially in Britain and northern Europe.

The rent you charge might not only cover annual maintenance and other expenses, but also leave you with surplus income to pay for your own holiday. You can expect an annual net income of about 7.5 per cent of the value of most properties in France. With careful planning, more systematic lettings could also earn you enough to recover your initial capital outlay and borrowings. You may even decide to buy more property to let as a business!

Currently, the value of a well-located French property in a popular area should also grow by between 10 and 15 per cent each year.

We recommend that you buy a copy of Letting French Property Successfully which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

Yes, anywhere in France. Please click here for further information, or contact us.

We also recommend that you buy a copy of Letting French Property Successfully which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

As a general rule, if you are looking for capital growth from your investment, avoid small and cheaper properties. If you are looking for high income returns, avoid large and expensive properties. If you are looking for a combination of both, a two bedroom apartment in a copropriété is usually a safe bet.

Regular lettings (locations) are only likely if the property is in a good location, well maintained, furnished and equipped, and within fairly easy reach of shops, restaurants and other tourist attractions. For example, golf draws visitors all year round. France is the most popular country with British holiday skiers, boarders and mountain walkers. Alpine property is one of the hottest investments in France. If you are buying for the rental market then above all else you must by as close to the slopes as possible. Many buyers who invest close to the ski slopes earn high returns from letting their chalet or apartment throughout the year. All the major resorts are an easy day=s drive from the Channel ports along French motorways that are generally deserted in winter. The most famous alpine ski resorts - such as Val d`Isère, Courchevel 1850, Méribel, Les 2 Alpes, Chamonix, Megève, Alpe d=Huez, Tignes or Val Thorens - can all be reached from Lyon-Satolas airport by bus (chartered by tour operators or regular coach service), taxi or car very easily and quickly.

We recommend that you buy a copy of Letting French Property Successfully which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

Generally yes, although some lenders will not lend you money to buy a 'leaseback' property. Most lenders are happy if you let French property for short-term holiday lets or for longer periods, but you will need to obtain written permission from the lenders before you do. Please click here or contact us for further information.

We also recommend that you buy a copy of Letting French Property Successfully (please click here) which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

Depending on the location of your property, and marketing efficiency, you can usually let for between 45 weeks (e.g. Côte d'Azur) to 12 weeks (e.g. isolated parts of central France) each year.

We recommend that you buy a copy of Letting French Property Successfully which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

To manage the property yourself you should ideally live in or close by. However, because of the cost of advertising and the trouble and expense of finding tenants, employing local cleaners and gardeners, it is often easier to instruct a local French letting agency (agence locataire) to market and manage your property. Management fees for these and other services typically range from between 10 to 25 per cent of rental income. Your rights and obligations and the duties of the letting agent should be clearly defined in a written mandat de gestion. We can help you find a reputable managing agent anywhere in France. Just contact us for further information.

We also recommend that you buy a copy of Letting French Property Successfully (please click here) which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

A leaseback (nouvelle propriété) exists when you buy the freehold of a new or totally rebuilt property in a classified tourist residence in France, and immediately lease it back to the developer's onsite management company ('your head tenant') for a fixed period of between 9 to 11 years. Your head tenant then sub-lets the property to tourists throughout the year in return for which you receive a significant French VAT ('TVA') discount off the purchase price.

For example, a leaseback property in Nice is listed at £100,000. The net price you in fact pay is about £80,000 after deducting TVA of 19.6%. Add to this French legal fees of about 3% of the net purchase price. your total investment amounts to about £82,500. If you require a mortgage, funding of up to £76,000 (95% ) can be obtained. If you take out a 20 year mortgage at about 4.2% fixed rate or 3.8% at variable rate, your monthly repayments will be about £450. These payments can be covered by a guaranteed income from your head tenant of about £4,000 each year.

For a capital outlay of about £15,000 you could put together an attractive investment portfolio with other properties in Paris, the Alps etc costing about £250,000. With property prices increasing in France, after 9 years you could multiply your return by owning three properties worth a total of £500,000.

We have at present leaseback properties available in many parts of France where there is likely to be considerable property appreciation over the next 9 years. This includes Paris, the French Alps and Côte d'Azur, Normandy, Brittany and Charente. Please contact us for further information.

Do not however sign anything until you have taken competent independent legal advice. For example, the French wording of your lease (not an English-language translation which is often wrong) should be carefully checked to ensure that:

• It fully complies with the requirements of Décret 53-960 of 30 September1953 ('the 1953 Law').
• You also get a guaranteed fixed rental income (typically around 4.5%) index-linked payable in arrears net of French income tax and TVA.
• You can either occupy the property yourself free of charge (typically for a period of between 1 and 6 weeks each year spread over high, mid and low seasons, (renting any additional necessary time back from your head tenant); or allow others to occupy the property in your place; or surrender your right of occupation in return for a higher payment from your head tenant.
• Throughout the term of the lease your head tenant will pay all the rates (except taxe foncière which you must usually pay yourself) water, electricity and service charges, and the costs of insurance, maintenance, repairs and (if it belongs to you) furniture replacement.
• Your head tenant will return the property to you in good condition when the lease expires.
• When the lease expires the property is yours to do as you please, and your head tenant cannot claim financial compensation from you.

If you decide to terminate the lease and keep the property for personal use before the 9 years is up you must repay TVA on a pro rata basis. Leaseback owners in a development which loses its tourism classification (regulated by an Arrêté of 14 February 1986) may also have to reimburse some or all of the TVA they avoided on purchase.

Income generated from French lettings is frequently not declared to the French tax authorities. Many UK residents have wrongly been led to believe that the reporting of their French rental income to the UK Inland Revenue is sufficient and absolves them from any need to declare the rent to the French authorities.

But under Article 5 of the 1968 France-UK double tax treaty France has the principal right to tax French rental income. The French tax paid is then set aside against any UK tax liability arising from the same source. Rental income is always French-source income if it relates to a property in France. It does not matter if both landlord and tenant reside in the UK or where the rent is paid or what currency the rent is paid in.

The widespread failure of UK lessors to declare their French rental income in France has to date been encouraged by the apparent nonchalance of the French tax authorities. But it now seems that the latter are becoming more efficient at collecting tax from UK and other foreign landlords.

The French tax authorities may tax up to three years in arrears and usually add interest and penalty charges on late tax returns.

Rental income profits (or losses) must be reported on the normal French income tax return (Cerfa 2042) and submitted to the Centre des Impôts des Non-Résidents (Paris) before 30 April each year following the French tax year end of 31 December.

Calculation of the net taxable income varies depending on whether the letting is furnished or unfurnished. Furnished lettings qualify as a business for the purposes of French taxation.

The method used to determine the taxable income varies depending on the level of annual turnover from the preceding year. Where this does not exceed (currently) FRF 500,000 income tax is calculated on 30% of the rent. The abatement of 70% is supposed to cover all expenses. If the turnover exceeds FRF 500,000 the "simplified real" regime or "normal real" regime applies. The normal regime requires the preparation of detailed accounts and involves compliance formalities similar to a company liable to French corporation tax. The simplified version, allowed where turnover does not exceed FRF 5 million, follows the same rules but the level of formality is reduced.

Taxpayers can opt out of the regime prescribed by law and choose a more formal one. Elections must be sent in writing to the tax office. The implications of a change of tax regime must be carefully weighed, as in many cases the option used is irrevocable.

Yes. French income tax is not the only tax charge applicable to French rental income. Some rentals may be subject to TVA (at a reduced rate of 5.5%) and exempt TVA rental income in excess (currently) of FRF 12,000 per annum is usually liable to a local tax on leases called droit de bail at a rate of 2.5% and an additional tax of 2.5% if the property is over 15 years old.

Since 1999 the droit de bail has not applied where the gross rental income is under FRF 36,000. The charge was abolished as of 1 January 2001. The additional contribution of 2.5% does, however, remain applicable.

The supply of food, telephone and other services is subject to TVA at the standard rate of 19.6%. Where an establishment provides accommodation on a full board or half-board basis, the reduced rate of TVA may apply to three-quarters of the total amount charged.

Businesses whose annual turnover is below (currently) FRF 500,000 may trade outside the scope of TVA. Small businesses which exceed the above turnover limits may still benefit from a simplified TVA regime, as long as their turnover does not exceed FRF 5 million. The simplified TVA regime allows these businesses to make one annual TVA return as opposed to one every month.

A business registered for TVA will be in a position to receive, where appropriate, refunds of TVA paid for the running of the lets and any renovations of the letting units. Nevertheless, any payment of this tax cannot be reclaimed if the business was not registered for TVA at the time the liability was incurred.

Tax-planning advice should also be sought to cover possible French wealth tax and French inheritance tax liabilities.

We hope you have many years of happiness from your French property before the time comes to sell it. That time will eventually arrive, though. And that's when capital gains tax kicks in.

Non-residents selling French property often believe incorrectly that any gain in the value of the property needs to be declared and taxed in their country of residence. In fact, the French tax authorities will want 33.33 per cent of any gains realised by non-residents on the sale of French property. If the French tax authorities believe that your acquisition of French property was business or profit motivated, the rate of tax increases to 50 per cent.

In France, there are two ways of arriving at the net taxable gain depending on whether the vendor is an individual or a commercial company. If the property is owned by an TVA (a French property-holding company) the capital gains tax treatment will depend on whether the TVA is subject to French income tax or French corporation tax. In the latter case, it will be classed as a commercial company and subject to French business capital gains tax.

Capital gains in the hands of individuals or TVA's subject to French income tax are determined as the difference between the sale price and the base cost, which is indexed for inflation. The base cost includes the purchase price and expenses, plus any major restoration work (but not painting, decorating or other embellishments). The difference, i.e. the gross gain, is then reduced by 5 per cent per year of ownership beyond the second. In other words if an individual has owned the property for over 22 years the gain is totally cancelled.

The 5 per cent reduction is granted for each full year of ownership (beyond the second) from the exact date of purchase. For instance, the full period of ownership of a property bought on 15 May 1990 and sold in March 2000 will be 9 years. If the property was sold after 15 May 2000 the vendor would gain an extra year and thus a further 5 per cent reduction.

The gross gain is further reduced by a general annual abatement of FrF 6,000 and, if it is their first sale of a secondary home in France, the vendors may apply an abatement of FrF 40,000 (for a married couple) or FrF 30,000 for a single person, plus FrF 10,000 per child (whether dependent or not). For this, they must have had the use of the property (i.e. not rented) for a five-year period, which need not be consecutive from the date of acquisition.

The business capital gains regime is not so generous, as the base cost is reduced by a 2 per cent depreciation on the buildings per year of ownership, thereby inflating the gain. Furthermore, no indexation or other abatements are applicable. This method applies, for instance, to foreign limited companies owning French property, but also to any TVA liable to French corporation tax (usually when they have rented the property out on a furnished basis) although there are ways round this problem. It also applies where an individual has registered the property as a business asset, used for instance for seasonal lettings. In this case, the taxpayer has benefited from depreciation for the purposes of French income tax on the rental income.

However, there is an exemption from French capital gains tax for small businesses, but the following conditions must be fulfilled: the activity has been running for at least five years at the time of the property disposal; and the annual turnover does not exceed FrF 1m.

Non-residents may be asked to appoint a fiscal representative whose responsibility is to calculate and to collect the French capital gains tax. The person or business acting as a fiscal representative undergoes a "tax audit" to gain the French tax authorities' approval.

The fiscal representative is responsible for the payment of French capital gains tax if the liable taxpayer they are acting for fails to pay this. For this reason it is very rare to find a person who readily accepts this role and non-residents are left with no choice but to appoint a professional firm to act as fiscal representative. These normally charge a fee of 1 per cent of the sale price, deductible from the taxable gain. The service they offer for this fee includes advice and calculation relating to the computation of the taxable gain, the preparation of the relevant returns, and representation of the taxpayer in case of conflict with the French tax authorities.

The fiscal representative will scrutinise each invoice claimed for deduction in respect of renovation, property improvements and so on. To be allowable, the French tax authorities will usually require sight of all original TVA receipted invoices (copy invoice, receipted estimates or 'back of an envelope' type invoices are normally unacceptable). If you have used British or other non-French contractors, the French tax authorities will usually only allow their charges as an allowable deduction if their invoices expressly state that they relate to your French property.

Taxpayers who have not kept any evidence of renovation work may deduct a notional amount of 15 per cent of the acquisition price. This notional deduction is subject to evidence that work has effectively been carried out and may require the certificate of an expert. If the taxpayer has done the work himself and has kept all invoices for material and equipment, the deduction can be fixed as the total invoices multiplied by three to reflect the work done.

If they feel that the deduction of some invoices may be questionable, but deduct them anyway, the fiscal representative will retain a sum as surety to cover the risk of reassessment. The latter runs for a four-year period after the filing of the French capital gains tax return.

Where there is a capital loss or the gain is low, the notaire will normally apply for a dispensation from fiscal representation.

British resident must also report their sale of French property to the Inland Revenue. The French tax authorities are likely to pass on to the Inland Revenue any information they have about your French affairs to include copies of your French bank account statements and any capital or interest credited to you. The Inland Revenue also has the right to see all correspondence leading to the sale of your French property.

Under the Anglo-French Double Tax Treaty any liability for French capital gains tax should be wholly or partially offset by way of credit relief against any UK capital gains tax.

You can sell the property at any time. But beware French capital gains tax which may have an adversely impact if you sell within two years of acquisition, or if you speculate in French property.

In the first instance, please contact us. We also recommend that you buy a copy of "Letting French Property Successfully" (please click here) which has had excellent reviews. This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners.

The extent of a French property or structural survey (expertise) will depend on the age and condition of the property and on how much you can afford. If the property is furnished at the time, it may not be practicable to make a very detailed inspection, which would involve lifting carpets and floorboards, for example. Much depends on how thorough an inspection the seller permits.

You are likely to get a general description of the construction and materials used, and comments on the condition of:

• roof - timberwork, cladding, tiles, slates, chimney stacks, flashing, rainwater gutters, insulation
• walls - plasterwork, brickwork, pointing, insulation, decoration, any cracks, damp, bulges
• foundations - soundness, damp-proof course and external soil level, any subsidence, settlement
• windows - state of frames
• floors and joinery - soundness of timber, ventilation, any evidence of wet rot, dry rot, woodworm
• plumbing - bathroom and WC, fittings, waste pipes, tanks and cylinders
• drains - soil and rainwater
• electrical installation - age of wiring
• chimneys and flues
• garden - state of walls, fences, outbuildings.

The report which the surveyor gives you should summarise the condition of these items in as much detail as you have agreed, together with any faults and their importance.

Give the surveyor as much relevant information about the property as you can, particularly details of any doubtful points you noticed when you viewed it (such as damp patches, odd smells, cracks, obvious recent repairs, state of party walls) and on the siting of the property regarding potential flooding or subsidence. The presence of any pollutants or other deleterious materials can also be investigated.

If you plan to make any alterations or improvements, inform the surveyor before the survey in case there are any snags which he might spot. If, for example, you plan to demolish an inside wall to enlarge a room, this may turn out to be a load-bearing wall which it would be inadvisable, or very costly, to remove. And if you are planning complete redecoration, or a rewire or replumb, tell the surveyor. You will save his time and your money.

The survey of the electrical installation may be confined to a 'visual examination'. Much of the wiring is hidden behind skirting boards and under floorboards, and it is possible that the surveyor will draw his conclusions only from what can be seen. He will say so in the report, but you should be aware of the limitation.

Do not hesitate to discuss the report with the surveyor, who will be able to put any defects into perspective. Ask him to explain any technical terms that you do not understand

The existing owner may have employed specialist firms to carry out remedial work for which a guarantee has been given - for instance, treatment for woodworm, for dry or wet rot or rising damp, or the use of special protective coatings for roofs or external walls. Such a guarantee can normally be transferred from one owner to the next, although you may have to notify the company concerned and pay a registration fee. You should get the original document eventually, usually through your notaire, but ask if the surveyor can see it before he does the inspection. Make sure he also obtains the original report and estimate on which the guarantee is based. This will detail what work was (or should have been) done and any qualifications to the guarantee. For example, guarantees for damp treatment are often conditional on other works being carried out (such as replastering in a special way or lowering the ground levels outside). These tasks are not usually carried out by the treatment company. If any problem arises, it is often easy for the treatment company to put the blame on someone else.

Yes. When you first inspect French property look carefully for any visible defects (vices apparentes) to the structure, equipment and services which by law your vendor is not obliged to disclose if you or your surveyor could have discovered them. Tell-tale signs include bulges or cracks to walls, shrinkage to woodwork, springy floors, stains on the walls, sagging ceilings, crumbling plasterwork and funny smells. Be aware of termites which are a problem in many parts of France but rarely, if ever, occur in the UK. They are capable of completely destroying a building from the inside out so their presence may not be obvious.

A house-proud vendor may have newly painted, plastered, rendered or otherwise covered over a multitude of defects which by law he must disclose if you or your surveyor could not have discovered them (vices caches). For example, you can sue your vendor if he falsely stated that the property has not suffered from dry rot or flooding. Ask your vendor if he has carried out any structural work to the property. If so, why, and where are the planning permissions, guarantees and/or invoices?

Litigation in France is not an economic option and for peace of mind you should therefore always commission an expertise (survey) before you make an offer to buy. Your vendor is unlikely to accept an offer made 'subject to satisfactory survey' but may accept a more specific condition such as subject to written confirmation by a surveyor that the roof structure is in good condition, the attic ventilation/insulation functions properly and that no repairs or timber treatment are required.

Most buyers should want to know the exact condition of the property they are buying. To do this, they should commission a proper building survey or structural survey. One of the most common misconceptions is that mortgage lenders carry out surveys. They do not. They carry out valuation surveys, which are very different. The lenders are solely concerned with whether the property is worth the amount being borrowed, not with its precise condition.

It is not only for old property that it is desirable to have a survey done: a recently built property can have serious defects too, through bad design, bad workmanship or neglect.

Before you enter into a legally binding purchase commitment. Ask the surveyor to tell you the approximate cost of putting right any faults which are found and to give you an estimate of how much you would need to spend to put the property into good structural order. Then try offering the seller a price reduced by that amount. If the seller will not budge, you have to decide how badly you want the property. If you decide that you do not want to buy the property, you are not obliged to go ahead, unless you have already committed yourself to a legally binding purchase contract.

Your vendor is unlikely to accept an offer made 'subject to satisfactory survey' but may accept a more specific condition such as subject to written confirmation by a surveyor that the roof structure is in good condition, the attic ventilation/insulation functions properly and that no repairs or timber treatment are required.

Yes, although you will need to instruct the surveyor direct and be responsible for his fees. We can put you in contact with a surveyor anywhere in France. Please contact us.

If you want to have your own survey done quickly, so as to avoid delay if there are other potential buyers, please contact us. We can put you in contact with a surveyor anywhere in France.

Access permitting, his survey report (where speedy advice is essential this can also be telephoned from on-site) may either draw your attention to any structural or other physical defects that you did not know existed in the property, or the seriousness of which you may not have appreciated. However, a surveyor does not have x-ray eyes and cannot report on the condition of floor surfaces covered by fitted carpets, or other inaccessible parts of the property.

Ask the surveyor how soon he can do the survey and discuss how comprehensive a survey to carry out. Give the surveyor as much relevant information about the property as you can, particularly details of any doubtful points you noticed when you viewed it (such as damp patches, odd smells, cracks, obvious recent repairs, state of party walls) and on the siting of the property regarding potential flooding or subsidence.

If you plan to make any alterations or improvements, inform the surveyor before the survey in case there are any snags which he might spot. If, for example, you plan to demolish an inside wall to enlarge a room, this may turn out to be a load-bearing wall which it would be inadvisable, or very costly, to remove. And if you are planning complete redecoration, or a rewire or replumb, tell the surveyor. You will save his time and your money.

You should obtain written confirmation from the surveyor setting out the extent of the inspection: this may avoid misunderstandings at a later date.

A property survey or structural survey should be carried out by a qualified person who specialises in this kind of work, such as a building surveyor or architect. It is preferable to engage a surveyor local to the property being inspected since he may know of any relevant conditions in the area which might affect it. The French estate agent/surveyor acting for the seller is not allowed to carry out a survey on the property (because of a conflict of interest) but may recommend a surveyor. A qualified English surveyor may be a member of the RICS (with the letters FRICS or ARICS after the name) or of the Association of Building Engineers, or of the Architects and Surveyors Institute. These professional associations are responsible for maintaining standards within the profession.

For obvious reasons the surveyor should have professional indemnity insurance to cover his work in France.

We therefore recommend that you commission an FRICS who is insured to practise in France, or a member of the Chambre des Experts Immobiliers de France to produce a written English or French language valuation and/or survey report (expertise) before committing yourself to a French property purchase.We can help you to find a suitable expert anywhere in France. Please let us know if you would like further details.

Fees are usually by negotiation and relate to the time taken to inspect the property and write up the report. Generally speaking, the larger the property and the worse the condition of the building, the longer the survey will take.

The cost of a survey is usually a minimum of £500 rising up to 1% (plus TVA) of the purchase price for more complex and time consuming work plus out of pocket expenses. As a percentage of your total investment is small and a reasonable price to pay for peace of mind. If a problem is detected early, the modest costs involved become money well spent, especially if you are able to use it to negotiate a price reduction.

Ask the surveyor how soon he can do the survey and discuss how comprehensive a survey to carry out. Give the surveyor as much relevant information about the property as you can, particularly details of any doubtful points you noticed when you viewed it (such as damp patches, odd smells, cracks, obvious recent repairs, state of party walls) and on the siting of the property regarding potential flooding or subsidence

If you plan to make any alterations or improvements, inform the surveyor before the survey in case there are any snags which he might spot. If, for example, you plan to demolish an inside wall to enlarge a room, this may turn out to be a load-bearing wall which it would be inadvisable, or very costly, to remove. And if you are planning complete redecoration, or a rewire or replumb, tell the surveyor. You will save his time and your money.

The written report accounts for a large part of the cost, so if you are content to have oral comments, or a less detailed survey taking note only of any major structural defects, you would pay less. However, beware of relying on oral comments only. If defects show up later, you may have difficulty in establishing just what the surveyor actually said.

Be prepared to have to pay for a survey more than once during your house hunting, not only because a survey may show that a property is not worth buying but because a deal may fall through for reasons beyond your control, so that you have to start all over again.

Do not hesitate to discuss the report with the surveyor, who will be able to put any defects into perspective. Ask him to explain any technical terms that you do not understand.

Where a property is old or appears to be in a poor state of repair, the surveyor may recommend specialist tests. He will offer to call in specialists (and you have to pay for them). The fact that he recommends tests may be sufficient reason for you to incur this extra expense - he will usually have diagnosed a potential problem. If the surveyor has found evidence of serious problems, you will have to accept that you are likely to commit yourself to a lot of expenditure. If that worries you, this could be the point when you start looking around for another property.

Ask the surveyor to tell you the approximate cost of putting right any faults which are found and to give you an estimate of how much you would need to spend to put the property into good structural order. Then try offering the seller a price reduced by that amount. If the seller will not budge, you have to decide how badly you want the property. If you decide that you do not want to buy the property, you are not obliged to go ahead, unless you have already committed yourself to a legally binding purchase contract.

Yes. There is a distinction between an 'inspection' and a 'test' of such services as the drains, the heating system, the wiring, timber. In particular, discuss with the surveyor whether any central heating system should be inspected or tested. Where a property is old or appears to be in a poor state of repair, the surveyor may recommend specialist tests. He will offer to call in specialists (and you have to pay for them). The fact that he recommends tests may be sufficient reason for you to incur this extra expense - he will usually have diagnosed a potential problem. If the surveyor has found evidence of serious problems, you will have to accept that you are likely to commit yourself to a lot of expenditure. If that worries you, this could be the point when you start looking around for another property.

If your surveyor's report shows that specialist treatment is recommended, you can get estimates (usually free) of the cost from specialist firms, most of whom provide guarantees. It is worth getting more than one such estimate from firms who will provide guarantees. You may want to offer less for the property to allow for the cost of treatment and other work needed.

Some guarantees are for long periods (20 years or more). However, the company which carried out the work might not last as long as the guarantee it gave. If it goes out of business the guarantee will become worthless, unless there is the backing of insurance, in which case the insurers will usually undertake to have guaranteed remedial work done.

The existing owner may have employed specialist firms to carry out remedial work for which a guarantee has been given - for instance, treatment for woodworm, for dry or wet rot or rising damp, or the use of special protective coatings for roofs or external walls. Such a guarantee can normally be transferred from one owner to the next, although you may have to notify the company concerned and pay a registration fee. You should get the original document eventually, usually through your notaire, but ask if the surveyor can see it before he does the inspection. Make sure he also obtains the original report and estimate on which the guarantee is based. This will detail what work was (or should have been) done and any qualifications to the guarantee. For example, guarantees for damp treatment are often conditional on other works being carried out (such as replastering in a special way or lowering the ground levels outside). These tasks are not usually carried out by the treatment company. If any problem arises, it is often easy for the treatment company to put the blame on someone else.

If you are let down by negligent surveyors, you should not have to risk court action to get compensation. A compulsory arbitration scheme for all members of the RICS came into effect on 1 September 1998. Chartered surveyors are also required to have a proper in-house complaints procedure. Suing English surveyors for negligence is now simple, quick, informal and inexpensive. Each party presents a written statement of its argument in the dispute. A specially trained arbitrator then looks at all the evidence and, if necessary, inspects the property himself. His decision will be binding on both sides.

Many English buyers pay inflated prices for French property and never recover their investment. One way to value a French property is to compare the asking price with similar properties in the same area. Other methods include assessing the potential annual rental income, measuring the land value in terms of square metres and/or the French cost of construction index.

Your notaire, architect or builder can all arrange a simple valuation but the person best qualified to value your property is your surveyor or a local expert immobilier who has an intimate knowledge of local market conditions. For example, he will also be able to quote local building costs for any essential or desired improvements, and estimate the subsequent value of the property once restoration has been carried out. He should also be able to advise on any local building restrictions and what written permissions will be required. Buildings and fire insurance valuations can also be arranged to ensure that the property is fully (but not over) insured.

Please contact us if you require any further assistance.

The géomètre or land surveyor is the only person legally qualified to establish whether or not all the land being offered for sale does in fact solely belong to your vendor. The title deeds, relevé cadastral or plan cadastral are usually in need of revision and no substitute for a géomètre's accurate on-site measurements. For example, the géomètre can prepare a definitive plan de bornage or arpentage correctly siting the boundaries to the property. This will also confirm whether buildings, fences, trees etc are actually on your property. He can also deal with party wall matters. For example, a new fence in the wrong place can cause legal problems and expenses. If the adjoining owners agree, a party wall or other structure can be built on either side of the boundary or such other position as the parties agree, and the cost is usually shared according to the use each makes of the new structure. If the adjoining owners do not agree, the wall has to be built wholly on the land of the building owner who must bear the whole cost. No unnecessary inconvenience should be caused to any adjoining owner and compensation must be paid for any loss or damage caused. However, the building owner may construct necessary foundations and footings below the adjoining land. Underpinning, thickening, demolition and rebuilding of party walls is usually subject to local building control. All works must usually be exactly in accordance with agreed plans.

The géomètre can also establish whether neighbours or other people are entitled to partial use of your property (e.g. via utility easements, rights of way, light or other servitudes) thereby reducing its value. He can inspect the local land development plan (Plan d'Occupation des Sols or POS) in your commune to establish what works can be carried out to the property. For example, if your property is in a zone non constructible only limited refurbishment works may be permitted. Even if you do not intend to undertake any construction works to the property yourself, this limitation may frustrate a quick sale to a buyer who may wish to build in years to come. The POS and other planning searches will also tell you if other planning matters affect the property. This will be the case for instance if the property is listed (classé), situated in a beauty spot, a development area or a church or other monument historique.

The answer to this question is perhaps best provided by the following imaginary case:

Jack and Jill have found their dream property located on a hill near a stream in France. The French estate agents tell them that the property is in perfect condition, that they do not need a survey and, unless they sign a purchase contract today which has been prepared by the French estate agents, someone else will buy the property. Jack and Jill take the plunge and complete their purchase three months later, but then discover the house has cracks, woodworm, noisy neighbours and a building company has begun to dig trenches in the adjacent poppy field. At no stage were they warned about these pitfalls, either by the French estate agent or their notaire. So what can Jack and Jill do?

The seller
Jack and Jill could sue the seller if he hid defects which by law he must have disclosed if Jack and Jill or their surveyor could not have discovered them. But the seller was not obliged to disclose any defects to the structure, equipment or services which Jack and Jill could and should have discovered. In Jack and Jill's case, therefore, as they had signed the contract without a survey, their sellor is not liable.

The French estate agent
All French estate agents have a devoir de conseil (legal duty to advise) the buyer and seller of any defects which affect the property. Under Article 1382 of the French Code civil they may be found negligent if their error or mistake (faute) causes someone to suffer loss or damage. The French courts have awarded English buyers significant sums of damages against negligent French agents.
In Jack and Jill's case, the French court decide that the French estate agents were not aware of these defects and were not therefore liable.

The notaire In 1997 the Montpellier Court of Appeal held that a notaire owed a special duty of care to his English client who knew nothing about French law. If you are unhappy with a notaire you must formally complain to his Chambre des Notaires who will either investigate and deal with the matter themselves, or, more frequently, recommend that you issue proceedings in the French courts. However, Jack and Jill's notaire is not liable as they did not take any advice from him before they signed the contract.

Jack and Jill have clearly been taken for a ride. Most of their structural problems stem from the fact that they did not instruct a surveyor to inspect the property (he would have advised them not to touch it) before they signed a purchase contract. Early legal advice would have warned them of all the above and other potential problems or expenses.

No. Most French banks see expatriates as a safe bet. But do not expect to be spoon fed; the banks will lend you money and that is about all.

If you need someone to hold your hand through the application process it may be better to use a UK institution such as Abbey National or Banque Woolwich which cater for the specific needs of expatriates. These banks will provide you with documentation in English.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

There are a number of options available. With cash, if you are fortunate to have the available resources. You can either borrow in the UK on the security of property you own there (UK mortgage or remortgage), then use the cash to buy a property in France. Similarly, you may have other assets available as security for a UK loan. Alternatively, you can borrow from any of the lending institutions in France on the security of the French property (euro mortgage). Obviously the method you choose must be that which fits your personal circumstances. The points to consider are discussed below.

There has never been much difficulty for a UK buyer of property in France to obtain a French loan. On the whole, the criteria are the same as in the UK. If you are borrowing in France from a French lender, the Loi Scrivener will usually apply as between you and the lender. There are very stringent consumer protection rules with a basic ten day cooling-off period after the loan offer has been received. Unlikely though it is that your lender will try to break these rules, always let your adviser see the loan offer before accepting it and never postdate an acceptance so that you can go home and the lenders can hold it until the ten day period is up.

If you decide to remortgage your UK property then it is essential that you seek advice on the most suitable option for your purposes. It would be unpleasant to lose your French property because you could not keep up the mortgage payments, but it would be disastrous to lose your home in the UK because the borrowing or extra borrowing on its security became too much of a burden. On the other hand, many house-owners have untapped equity in their property which could be used towards the purchase of a French property.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

This will depend on a number of factors such as the percentage of the purchase price you wish to borrow, the term of the loan and whether you are likely to want to pay back part or all of the loan early.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

Few of us are financial wizards prepared to gamble on exchange rate fluctuations. It does seem on the face of it undesirable to earn in one currency but be obliged to pay out of those earnings over a period of time in another currency.

If you borrow in currency A, you pay interest on that loan and make capital repayments at currency A rates. At the time you take out the loan, they can be much lower than those of currency B. For example, if you choose a euro mortgage then your loan will be in the same currency as the property is valued in. This means any currency swing will not leave you in negative equity (i.e. where your property could be worth less than the value of the loan). If the loan interest is at a fixed rate, this may also give you a significant saving.

On the other hand, if your income is in sterling you will still be subject to currency variations as any weakening of the pound will make your repayments more expensive. For example, what happens if the rates of exchange have moved against you when you have to buy currency B in order to make payments to your lender? All you hoped to have saved is lost in one of a series of exchange variations. Of course, sterling is now linked to a number of other European currencies so that its fluctuations are somewhat limited. However, you can reduce this risk by arranging to be able to switch the currency of your loan every so often but, unless you are a foreign exchange dealer, you risk becoming too ill with worry to get much pleasure out of your French property.

Should you borrow in a currency which is not that of the country of your lender? The answer must be that, if you feel you wish to borrow in this way, you must take advice from a highly qualified expert. If you follow the advice he gave you and his prophecies were correct so that you made (or did not lose) money, you may clap your hands. If his advice turned out to be wrong and you lost money, do not blame the expert: blame yourself forever having though of taking exchange risks with your property in France.

As the FAQs on our web site are at pains to point out, every person who lives in one country and buys property in another asks for - and usually gets - just what he deserves if he does not avail himself of the advice which in fact is always at his service. Few aspects of this kind of buying call more loudly for competent advice than the provision of a loan towards a purchase.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

French mortgages are somewhat more regulated than their UK equivalents and there are strict legal controls on how much people can borrow in order to stop them overstretching themselves.

All mortgages in France are straight capital and interest. Endowment or pension-linked mortgages do not exist. Borrowers can choose from fixed-rate and variable-rate loans, capped mortgages and interest-only loans linked to an insurance policy or the money markets. Fixed rate mortgages (which in France are available for the entire life of the loan) mean you know exactly how much you will have to pay. The starting interest rate dos tend to be slightly higher than the variable rate equivalent, however.

In contrast to the UK, where the amount you can borrow is based on a multiple of income, in France it is a percentage of your disposable income which is taken into account. No more than 30 per cent of your (joint) gross monthly income can be committed towards mortgage repayments. This figure is inclusive of any existing mortgages, rent, maintenance and loans outside of France, but not day-to-day living costs. So two people earning exactly the same salary, who would be able to borrow the same amount in the UK, may be able to take out very different amounts under the French system.

As in the UK, you will have to provide proof of income, such as three to six months' pay-slips, or three years of fully audited accounts backed up by banking records if you are self employed. If you're looking to buy a property for commercial purposes, you will need to provide a detailed business plan.

It will be a condition of virtually every French loan that you take out insurance with death, sickness and accident cover and against the possibility of your being made redundant during the term of the loan. The premiums are not high and under 50 years of age a medical is usually not required.

French lenders will usually require a first legal mortgage (hypothèque conventionnelle) on the property you are buying.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

A French mortgage (hypothèque) is a first charge on the property you are buying. The legal system and procedure are different from the English system but there is absolutely no need to be afraid on that score provided that you are being properly advised on the effect of French law. In the long run, lenders the world over are the same - if you fail to make repayments, you risk losing your property but otherwise they leave you alone.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

No. All mortgages in France are straight capital and interest. Endowment or pension-linked mortgages do not exist.

If you speak very good French you could simply go to the local bank branch close to your property in France and arrange a loan directly with the bank manager there. But if the most complex financial negotiation you've ever managed in French is ordering a beer and a baguette then you'd be well advised to use a bilingual banking service to arrange your mortgage.

An alternative is to use a mortgage broker who specialises in French mortgages. A broker will do the legwork of finding the best interest rate on your behalf and, if you're considered a good credit risk, they may even be able to negotiate a better rate than you would get going directly to the bank yourself.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

Conditions will be laid down by he lender, which the borrower has to undertake to observe. These will in most cases include:

• keeping the property in good repair
• not letting all or part of the property without the lender's permission (this means you would need to ask before you have tenants in the basement, for example, or take in lodgers or paying guests).
• not altering the property without the lender's permission
• informing the lender of any local authority proposals which would affect the property
• keeping the property insured
• not applying for an improvement or other grant without proper permission.

They may also include:

• undertaking to carry out certain repairs or improvements within a specified period
• not taking out any further mortgage without permission.

Yes. If you decide to remortgage your UK property then your first port of a call should either be your existing lender or a qualified financial consultant.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

It is quite rare for a French lender to ask for a valuation or have a survey made unless the purchase price is very large, though it is possible that their local expert is consulted.

If you intend to let out your property you should think about the tax position. You are entitled to tax relief on the interest payments on a French franc mortgage - proportional to the amount of time your property is let - but there is no tax relief in France on remortgages or sterling loans.

There are stringent rules about French mortgages for the protection of borrowers.

French purchase contracts automatically carry a condition suspensive relating to the availability of a mortgage offer to the intended buyer. This is required by Law 79-596 of 13 July 1979 known as the Loi Scrivener. This law applies to all credit for the purchase of a dwelling or premises to be used for the combination of a business and living accommodation. It does not apply to loans for the purchase of purely commercial or business property. Similarly, a UK borrower who has borrowed from an English bank is not protected by the Loi Scrivener.

There are literally scores of lenders to choose from. At the moment we deal with Abbey National (France), Crédit Agricole, Banque Woolwich, BNP, Société Générale and Crédit Lyonnais. All offer mortgage packages to the expatriate.

If you need someone to hold your hand through the application process it may be better to use a UK institution such as Abbey National or Banque Woolwich which cater for the specific needs of expatriates, and often offer customers preferential rates.

Companies which have a wide experience of all the factors involved should be consulted and all the facts put before them. The advice you need is not just how much can you borrow but which is the best way to borrow, and that advice is much more skilled than it may seem. This is why the best possible advice from those with the widest lending experience is essential. Please contact us for further information.

In contrast to the UK, where the amount you can borrow is based on a multiple of income, in France it is your gross (i.e. pre-tax) disposable income which is taken into account. If you borrow from a French lender, you will not be offered a loan if the total amount of all your monthly payments exceeds 30 per cent of your joint income (this includes existing mortgage payments, rent, maintenance payments and the repayment of the loan you are looking to take out, but not day-to-day living costs such as food and utility bills, Council tax etc. Potential income (e.g. letting the French property) is not normally considered when assessing your mortgage application.

If you wish to borrow less than FrF 500,000, you must be able to put down a minimum of 20 per cent of the purchase price, and 15 per cent if you wish to borrow more than FrF 500,000).

Typically, French banks will lend up to 80 per cent of the purchase price of the property. Some banks will lend more, but few will lend more than 85 per cent. Lenders and notaire's fees cannot be covered by a mortgage.

Most lenders have a minimum loan amount, typically FrF 100,000 - 200,000 and some set minimum purchase prices.

It may be possible to include the cost of renovation work in the advance, but this is the exception rather than the rule. You will need to supply copies of detailed estimates from registered French companies which have been accepted by both parties. If you intend to carry out the work yourself it is only possible to finance the cost of materials.

The French like to pay off their mortgage debts as quickly as possible. Consequently, loan terms tend to be restricted to a maximum of 15 years, though some lenders will be willing to extend this to 20 years.

If you think you may wish to pay your mortgage off early make sure you are aware of any redemption penalty your lender charges as these can be high - ideally you should ask for this to be removed or go for a deal where there is no penalty.

If you think you may wish to pay your mortgage off early make sure you are aware of any redemption penalty your lender charges as these can be high - ideally you should ask for this to be removed or go for a deal where there is no penalty.

An "in principle" decision can be obtained within a few days. An offer of a loan can usually be obtained within 4 weeks.

Not usually.

Yes. Please contact us for further information.

We recommend that you open a French euro bank account and pay the mortgage by French direct debit. Please contact us for further information.

If the loan and purchase are dealt with simultaneously, there is only one document, not a separate acte de vente (conveyance) and mortgage. The notaire will let you have a certified copy of the document on request.

Yes, although it is preferable for a variety of practical and cost reasons to carry out both transactions simultaneously.

Most lenders will hold a provisional offer for two or four months, subject to valuation of the property and other checks.

All lenders will insist on life-insurance coverage. Life insurance can be taken out with a French insurer or a recognized foreign insurance company. Your lender may have a block contract with a French life insurer so that they can arrange cover for customers at preferential rates.

Insurance for fire and other risks to the property is always a condition of granting a mortgage. Most lenders arrange the insurance with a selected insurer or a borrower is entitled to choose from a number of insurers named by the lender. If you want to use another company, you would have to get the lender's approval.

Yes, if you own a French property. If you live in France, you must also inform the French tax authorities if you have a bank account outside France. Please contact us for further information.

Many lenders offer insurance policies which pay your mortgage payments if you are unable to earn because of illness or unemployment. If you find that you cannot keep up your mortgage payments, do not assume that you will automatically lose the French property. There is much that can be done to help the situation. You should tell the lender as soon as possible and try to work out a way through your problems together. For instance, the lender may agree to extend the term of a mortgage. Or the lender may agree to your paying interest only for a short period, particularly if your problems are likely to be short-lived.

Do not ignore letters from the lender. Respond promptly by fax and/or registered post with proof of delivery.

The lender has a number of rights to take possession, sell or let the property, or appoint a receiver. He may also foreclose or apply to the court for an order for sale. Please also note that any French court judgement can be enforced against your property and other assets in the UK.

Yes. Please contact us.

Administration charges vary from bank to bank. Arrangement fees can be a fixed percentage of the loan, usually 1 per cent or a set fee of about FrF 10,000. If you opt for a variable-rate loan, check to see if the rate is more advantageous if you put down a large deposit on the property. Also ask if there is any flexibility on payments.

The sale of land, buildings or other immeubles (French property) is always governed by French law, regardless of the nationality, residence or domicile of the buyer and/or the seller. The provisions of the Napoleonic Code, otherwise known as the Code civil, regulate French property. The distinction recognised in common law countries as between legal and beneficial ownership does not exist under the Code civil. This has major implications, especially in the context of French estate planning matters.

The French courts generally have exclusive jurisdiction in proceedings involving French property and their decisions can be enforced against you, even if you live outside France.

Litigation in France, as elsewhere, is not a desirable option. An avocat (French barrister) must be instructed and, even if you win the case, his advance and other fees will usually be payable in full by you and not by the losing party. It can take at least 3 years before a French property dispute is heard by the courts, and many more months before the judges reach a decision.

You must buy with money that has not been generated through criminal activity and have full legal capacity. If you fulfil these conditions, you will normally be allowed to buy.

The French estate agent and a notaire who must be practising on French soil. French estate agents are subject to statutory control. Anyone not in possession of the requisite accreditation is precluded from negotiating a sale of French property on behalf of an owner.

All French property transactions must be completed before a notaire practising in France. Many notaires also act as French estate agents. We have access to a special register of properties which are sold by notaires inclusive of their commission.

The choice of notaire is usually made by the seller or French estate agent, although you are entitled to appoint your own notaire without incurring extra cost, as the two notaires will then share their fee. However, where two or more notaires share fees they may be motivated to find problems where none exist, and inflate the fee accordingly. A notaire can but will not usually be instructed until after you have become legally committed to buy a French property. In any event, his job is solely to implement legally what you and the seller have already agreed. He will carry out various searches with the French local and other authorities, but these are not as extensive as those carried out in England.

A notaire is never involved in contentious matters. Thus, if a disagreement arises between you and the seller the notaire must refer you to separate avocats (French barristers). The French court system is slow: often it will take two years for a case to get to court and about 50 per cent of all cases go to appeal, taking at least another two years.

A notaire does not usually perform an advisory function. Do not therefore expect him to volunteer any advice or indeed report to you as the matter progresses. You will usually hear nothing from him until after a few days before the matter is due to complete. This can be problematic because, unless you raise the subjects yourself (which presupposes a knowledge of French law), in general he will not explain to you the complex documents - even though you will be deemed to have knowledge of them - or the different methods of ownership which can avoid French succession law problems and taxation. Finally, you are expected to make your own mortgage arrangements and will normally have to deal with the insurance of the property when you have bought it.

Therefore, you must avoid relying on the notaire for independent legal advice as he probably won't have your best interests at heart. Complex French documents should be checked and independent advice given in English, taking into account your personal circumstances and requirements. If there are problems, suing a notaire can be notoriously difficult. If you employ a UK-based lawyer, who instructs and liases with the notaire, you should at least have a British operator to hold liable.

Always consult a French legal specialist to deal with your individual concerns. We recommend that you consult with Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field. In many cases a simple review of your papers is all that is required. On inspection some cases reveal flaws of ranging importance. These include failure by the seller to obtain the necessary written authorisation(s) for various building or other improvement works to the French property

Stephen Smith is also an expert on French inheritance laws. Unless a property is set up as a company, or good legal advice sought, the property usually reverts to nearest blood relatives (i.e. children, not spouses) after death.

Legal advice should take into account both French and UK law, which Stephen Smith (On contact quote ref FPSAMJ) can provide.

A sale of French property is binding between the parties as soon as there is agreement on the subject matter and the price. Buying French property is usually a two-stage process.

(a) The contract stage

You cannot buy French property "subject to contract" as you can in England. Instead, once you have found a suitable property and agreed a price, you and the seller will usually be asked to immediately sign a purchase agreement ('your contract') and pay a deposit - usually 10 per cent of the purchase price - before any local authority searches are carried out, and often before finance is raised. We can usually arrange this for you in less than 48 hours. Please contact us for further information. At this point the parties have normally entered into a legally binding contract which commits both the seller to sell and you to buy the property. Nothing can be added to or removed from your contract at a later date without the seller's consent.

French estate agents can and frequently do prepare contracts for the sale of French property. You will often be asked, even urged, to sign a contract which will be legally binding before anyone has examined the title deeds. The agent's duty of care could make them liable if there was a serious problem over the ownership, but you may well already have paid a deposit and be faced with an action by your seller for specific performance. Prudence therefore dictates that you should endeavour to defer signing any document until you have had advice from someone other than the seller's agents.

For the above reasons, and even if you are under enormous pressure to proceed with your purchase, we do not recommend that you sign your contract and/or pay a deposit at such an early stage. Instead, we recommend that we immediately arrange for a French language offer letter (unlike other documents the wording of this letter is not in any way legally binding) to be prepared and sent to you for your signature, which can then be faxed to the French estate agent or the seller, confirming your interest in proceeding further at a proposed purchase price, subject however to the production of:

• A photocopy of the current property register (relevé du propriété du vendeur or extrait de la matrice cadastral). These documents will confirm the identity of the registered owner(s) of the property. You may have only met one of them. If there is more than one owner, they must all authorise the sale of the property for it to be legally binding. If there are several registered owners dotted across France or elsewhere, it is common practice for one of their number or for the French estate agents to be given a French Power of Attorney (procuration) authorizing him to sign your contract and the acte de vente on behalf of all the registered owners. To avoid tedious and expensive delays, a copy of the Power of Attorney should also be obtained and carefully checked to ensure that all the necessary powers have been given.
• Your contract. In France there is no standard-form of contract like the English National Conditions of Sale. Instead, every contract is individually prepared and so should be carefully checked each time. Nothing should be taken for granted. For example, many contracts do not contain an accurate physical description of the property being sold. To avoid problems, the description of the land in the property register should be checked to see how the property is currently described and whether any alteration to your contract is necessary to meet the true registered description of the property. Three main forms of contract exist. The contract most commonly used in France is a compromis (also known as a promesse synalagmatique) de vente. The compromis binds both parties and if you withdraw from the transaction, you will lose your deposit. Depending on the wording of the contract, you may also be sued for damages and/or an order compelling you to complete the purchase. In some parts of France the transaction is recorded instead in a one-sided agreement called a promesse unilatérale de vente. Under a promesse the seller is legally bound to sell his property but you are not bound to buy it from him, and can withdraw from the transaction before completion, subject to losing your deposit. It is subject to certain additional formalities, such as registration at the bureau des hypothèques. If the property is still being built you will sign a contrat de réservation and pay a réservation deposit which cannot exceed 5 per cent of the purchase price (only 2 per cent if completion of building works is schedules within 2 years, none if longer). Ownership of the land and whatever has been built on it passes to you at the time the acte de vente is signed, and you acquire ownership of the rest of the property as it is built. Types of contract to be avoided are the exchange of letters (échange de lettres), the offer of sale (offre de vente) , the purchase offer (offre d'achat or promesse d'achat) and the pacte de preference (a right of first refusal). These contracts offer you little protection and are therefore not recommended. Anything else you put in writing may be construed as a legally binding contract, even though that offer may be said to be "subject to contract". Remember, an oral offer is also legally enforceable. To avoid problems, do not therefore make any offers or similar expressions of intent without first taking independent legal advice. Your contract should always contain conditions suspensives. If these conditions are not fulfilled you will not be obliged to proceed with the purchase and your deposit is normally fully refundable. For instance, if you require a French mortgage secured against the property, your contract must by law contain a condition suspensive conditional on that finance being obtained in a specified amount. Other typical conditions suspensives include there being no adverse rights of way or other servitudes or planning restrictions affecting the property: that the certificat d'urbanisme (planning search) is positif, thus ensuring ensure that the property can be used in accordance with planning law, and that the local authority or others will not exercise a pre-emptive right of first refusal (droit de pre-emption) to buy the property. In any event please ensure before signing your contract that it truly records what you have agreed, and contains all the appropriate clauses for your protection. If not, you lose the opportunity to insert your own tailor-made requirements. Always consult a French legal specialist to deal with your individual concerns. We recommend that you consult with Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.
• An apartment or other property situated in a copropriété is regulated by a co-ownership agreement known as the règlement de copropriété which defines which parts are privately owned by you (e.g. heated garages, ski-lockers) and the parts which are owned in common with others (e.g. lifts, staircases). The règlement also records your rights and obligations in the copropriété, how it is managed and various annual service charges calculated. Every purchaser who signs a contract is deemed to have read and understood the règlement and is therefore legally bound by it.
• A copy of the plan cadastral, the cadastral numbers of which should match each parcelled of land described in your contract. Unfortunately many plans are of poor quality and can contain confusing amendments to the cadastral numbers. If the extent of the property is not clearly marked on the plan cadastral, it may be advisable to instruct a géomètre-expert to precisely measure out and mark out on the ground the correct boundaries to the property.
• An inventory should be attached to your contract detailing what is included in the sale price and what is not. In France chattels and fixtures will not automatically pass to you with the immeubles and, unless otherwise agreed, the seller is entitled to remove them before completion, even if they feature in the estate agent's particulars of sale. Without an inventory you may for instance find the fitted kitchen that sold the property to you when you first viewed it is not there when you move in.
• A copy of the sellers registered title deed (titre de propriété) which should be carefully checked for any servitudes or easements which might affect your use and enjoyment of the property and, in some cases, making that property unsellable in future years. A servitude is a right over land in favour of other landowners. Servitudes include rights of access, rights of light and air and car parking rights. Administrative servitudes, which include the right to run service such as electric cables, are imposed by public bodies and may entitle the owner to compensation. Common issues include shared rights of access (and joint liability to contribute to its upkeep), a separate access to the garden (you may need a formal right of way to it), and other easements such as a 'short cut' through your property or the way a neighbour's drains join yours.
• Copies of French planning documents. French planning permission (permis de construire) or some other written approval may have been or will in future be required for any building works or improvements to the property. In addition the property or area in which it is situated may be protected in some way, in which case it is an offence to make any alterations or improvements to the exterior and the interior of the property without first obtaining planning permission.

A reasonable estate agent or seller should allow you/us a few days to check the papers. In most instances we can carry out necessary checks at very short notice if copy documents are transmitted to us by fax.

You may also wish to make further preliminary searches and enquiries. France is divided into various local districts for each of which there is a local authority (commune) which maintains a register of planning and other matters affecting property in its area. In contrast with English practice, you will not receive the protection of a local authority search advising you (inter alia) of the construction of new roads in the proximity of the property. As there is no real equivalent in France to English preliminary enquiries or local searches - and certainly none which are carried out before you are expected to sign a contract and commit yourself - you or your surveyor should:

1. Visit the serice d'urbanisme at the local mairie (town hall) to make enquiries about the development potential of the area in question. Planning permission is required for many alterations and extensions to French property, particularly if it affects the external aspect and appearance, or for changing the use of a building. Whether planning permission is needed or not, building regulations will apply to the materials and method of building. French planning laws and building regulations are complicated and you would be well advised to contact the mairie for informal advice from a planning officer. Ask to see and if possible obtain a copy of the plan d'occupation des sols (POS) which indicates how your land and the neighbouring land is zoned (e.g. zones ZIF, ZAD or DPU which prevent our seller from selling his property to you); whether you or others can build on your land or neighbouring land; and whether there are any plans for new motorways, roads, railways, electricity cables or pylons and other miscellaneous infrastructure within a distance of (say) 1,000 metres of the property.
2. A cursory glance at the next-door properties is usually all the though most of us give to them before we move. More often than not we are pleasantly surprised by the people we find ourselves living next door to, but occasionally they can turn out to be a complete nightmare. The colour and condition of someone's front door suggests very little about the type of people who live behind it. Just because a house looks scruffy does not mean the inhabitants are noisy, unfriendly or difficult. However, it does imply repairs might be needed on the house in the future, and that if work is not done, it could adversely affect your property. If the next-door property is uninhabited (particularly if it is derelict) find out who owns it and what is likely to be happening. Neighbour disputes tend to focus on things which are shared: gateways, drives, drains, hedges etc. If there are any shared facilities will you be troubled by constant use from the people next door? The kindly old couple who may live there now could sell to a family with a much more intrusive lifestyle. Imagine the worst that could happen. Could you live with it? It is always therefore prudent to ask the current owner about their neighbours. If you are lucky, they will be straightforward and forthcoming. If the owner suggests that the elderly male neighbour on one side is "a little strange", this may ring alarm bells. In practice, a telephone call to the local police station to find out whether they have had any trouble from any residents on the road will often prove to be the reassurance you need.
3. In rural and even some urban parts of France farmers or anyone else having usage agricole (use of land for pasture, cultivation or other agricultural purposes) and their successors may be entitled to an agricultural tenancy (bail rural) over your French property. This inter alia means that if you wish to sell the property, your tenant farmer has first rights to buy the freehold. If he does not want to buy, you can sell to a third party but the tenancy will continue, which may deter a potential buyer from proceeding. French agricultural tenancies are often very informal and, although usually made in writing, can be created verbally. It is important that a formal tailor-made agreement containing all the necessary clauses for your protection is prepared before the tenant begins to use your land. If you feel that the maintenance and upkeep of your land can only be achieved by engaging the services of a local farmer, but do not want to grant an agricultural tenancy, a carefully-worded written convention d'occupation précaire (licence agreement) should be prepared by a French lawyer.

Bear in mind that there may be other matters which, although not visible, could adversely affect your use and enjoyment of the property. If you are viewing on a weekday, try to find out whether things change at weekends. Or if you are there in the summer, consider the other seasons of the year.

The French authorities will require evidence of your état civil. This is the description of an individual by reference to his or her parentage, date and place of birth and marriage, the regime matrimonial under which he or she was married, his or her divorce and remarriage, nationality etc. In France a married woman is known by her maiden name, 'wife of' her husband. If you are more than one buyer, the obligations which you undertake can be enforced against you all jointly or against each individually. If you intend to buy in the name of one or more individuals, you must provide - so therefore please let us have - a photocopy of the first 6 pages (if you have an old blue British passport) or the last 2 pages (if you have a new red British passport) of the passports of all the proposed buyers. You will also be required to provide photocopies of your birth certificates and, if appropriate, photocopies of your marriage certificates or photocopies of your divorce decrees. If you have mislaid or destroyed any of these documents, certified copies will be required. The French authorities sometimes require that such certificates be not more than 3 months old. This means that the certified copy of the UK entry of the relevant event must have been issued not more than 3 months before its use, and it is quite useless explaining to the French that such a certified copy issued many years previously is equally valid as proof of the event related in it. French translations may also be required.

Your contract must be signed personally by the parties or their properly authorised agents. If for any reason you are unable to sign your contract in person, a French Power of Attorney (procuration) must be prepared giving authority to a trusted person to sign this and other documents on your behalf.

At no stage should you pay a deposit or any other money direct to the seller, unless you are prepared to lose it. French estate agents can only receive deposit monies if they hold a carte professionnelle which is only issued upon proof that the agent holds minimum insurance cover (garantie financière). Otherwise, the risk of loss of that deposit through the agent's insolvency or misappropriation falls on you. It is always advisable that the deposit be held by the notaire acting as stakeholder in a compte séquestre (stakeholder account). The deposit is deducted from the purchase price on completion but no interest is paid for the period between signing your contract and completing the purchase. With the notaire's consent we may however be able to arrange for the deposit to be placed in an interest-bearing English stakeholder account in which case a proportion of the interest which accrues can be paid to you on completion.

If you withdraw from your contract you will lose your deposit unless there are conditions suspensives in your contract which have not been fulfilled. Other penalties might also apply if you withdraw. For example, estate agent's commission may still be payable even if you do not complete the purchase. Your contract may contain a clause whereby you (but not your seller) must pay a daily penalty for delayed completion. Depending on the wording of your contract the seller may, up to 3 years after your contract was signed, be allowed to issue a writ against you and obtain an Order from the French courts obliging you to complete your purchase. If the seller withdraws from your contract he must refund your deposit and (if your contract says so) must also pay you the same amount in damages. Because of this penalty clause it is rare to see sellers breaking a contract to accept a higher offer elsewhere.

A new French law (Loi relative à la solidarité et au renouvellement urbain or SRU) dated 13 December 2000 entered into force on 1 June 2001. Article 72 of the SRU applies to all contracts signed by a private individual or his agent for the purchase of French residential property after 1 June 2001.

Henceforth, once the purchaser has signed a preliminary contract and sent off his deposit, he must receive a copy of the preliminary contract signed by both parties. The purchaser then has a seven day period of reflection (délai de retraction) during which time he can withdraw from the contract without any penalty and any deposit paid must be returned. The seven-day period runs from the following day that the purchaser is reputed to have had knowledge of the contract (Sundays and French bank holidays do not count). This can be provided by ordinary post, recorded delivery with advice of delivery, handed to the buyer directly, or by any other means presenting equivalent guarantees for determining the date of receipt or delivery.

If the purchaser wishes to withdraw, he can do so in writing by ordinary post although should do so by recorded delivery with advice of delivery and by fax. If there are several purchasers, they must all do so in writing as above.

For example, if the purchaser receives a copy of the purchaser contract signed by both parties on Saturday 2 June, the seven day cooling-off period starts to run on Sunday 3 June and expires at midnight on Monday 11 June.

If the purchaser exercises that right, his deposit must be returned to him within 21 days from the day next following that cancellation, making in practice 22 days.

If no preliminary contract is signed at all, the draft French conveyance deed must be sent to the purchaser giving the purchaser seven days to think about whether he wants to proceed to completion or not (délai de réflexion). During that period, the deed cannot be signed.

(b) The notarial stage

Once your contract becomes legally binding, the seller is entitled to remain in possession of the property until the transaction has been completed by your notaire. He must also discharge all outgoings until completion. Except by agreement between the parties, there is no right for you to take possession of the property before completion.

Your notaire will carry out various elementary local authority and land registry searchs, draft the acte de vente and mortgage deed if appropriate. Unlike the position in England no specific time limits are imposed and these proceedings can frequently take the French administration more than two months to deal with. The time between signing your contract and completion should be used by the parties (usually via the French estate agent) to make any practical arrangements necessary such as signing with the electricity, water and other utility supply companies, satisfying any conditions relating to your mortgage and building/contents arrangements, and making removal arrangements. As part of our service we can help you:

• organise proper buildings and contents insurance cover
• have the electricity, water and other utility charges transferred to your name
• apply for a telephone
• register for local property taxes
• open French bank accounts. You can pay your bills from the UK but post between the two countries can be unreliable and can get lost. It is usual practice to settle all your French outgoings by direct debit via your French bank. This avoids the frustration of arriving at the French property only to find that (say) EDF have cut off the electricity supply because they have not received your cheque.

As mentioned before in connection with agricultural tenancies the notaire's searches may, although unlikely, reveal that various parties have a pre-emptive right (droit de pre-emption) against the property. For instance, if your seller lets the property his tenants may have a right of first refusal to buy the property from him, even though your seller has contracted to sell the property to you. If the property is in rural France, neighbouring faremers may have similar rights. The SAFER (Société d'Aménagement Foncier et d'Etablissement Rural) may also have a right to refuse the transaction involving agricultural land exceeding 2,500 square metres (2.5 hectares). They then purchase the property at the offered price. This is seldom exercised but can sometimes cause an additional delay. Other French authorities may have pre-emptive right if your property is, for example, needed for road-widening schemes or similar infrastructure projects. In urban areas the municipality hs a right of pre-emption on the sale of property in zones the municipality has designated for development. Exceptions include some buildings less than 10 years old. Prior to the sale, if the property is in a designated zone, the seller must declare his intention to sell to the municipal authority. A failure to do so will render the sale void. The relevant municipality has several options: it may waive its right expressly, or by implication if it fails to respond within two months; it may exercise its right on the same conditions as those of the initially envisaged sale, in which case the seller is obliged to sell to the municipality at that price; or the municipality may offer a different price, which the seller is not obliged to accept. The tenant of agricultural land has pre-emption rights on the sale of land let. Residential tenants also have a right to buy rather than renew at the end of their current tenancy if the seller states that he wishes to sell with vacant possession.

Once your notaire is ready to complete the matter he will make arrangements for collection of the balance of the purchase monies and his attendant costs. This is sometimes the trickiest bit of the whole transaction. French notaires do not keep money in ordinary clearing banks which are instead lodged with the Caisse de Dépots et de Consignations. You can transfer money to France by SWIFT bank transfer. This is the method we recommend if your UK bank is used to dealing with such transfers daily. The important things to remember are that transferring money to France does take time and that it is not as reliable as transfers within the UK.

If the property is being bought with money borrowed for a French bank or other French lending institution, the mortgage documentation is usually completed by your notaire at the same time as completion of the purchase.

The actual completion date may not be convenient to you in which case we can arrange for a Power of Attorney (procuration) in favour of one of the notaire's clerks so that the formalities can be completed without you having to attend in France in person.

If, however, you are buying with a French mortgage you will need to have the procuration witnessed by a Notary Public in England who will then authenticate the document and send it to the Foreign and Commonwealth Office in London for 'legalisation'. Some notaires insist that all procurations are dealt with in this ay whether or not a mortgage is involved. The process could take 2-3 weeks in total, so it is wise to notify the notaire as soon as possible if you do not intend to sign the acte de vente in person.

For the above reasons never book removals or make commitments based on the completion date (date limite) provided or in your contract. The notaire may not be ready even if that date is given as part of the contract. Although you may be relaxed about this the time may come where further action is necessary. Unless your contract contains an appropriate penalty clause obliging the seller to pay you a sum of money for each day he fails to complete the transaction, your only recourse is to instruct a French bailiff (huissier) to serve notice (mise en demeure) on the seller obliging him to complete the transaction within 15 days. If after 15 days the seller still has not completed an avocat (French barrister) must usually be instructed to issue proceedings against the seller. In many cases the avocat will file a procès-verbal de défaut (default notice) in the relevant French court. The seller then has 4 weeks in which to reply (3 months if he lives outside France). If the matter is contested by the seller your avocat will then issue formal court proceedings in France.

(c) After completion

Stamping and registration of your acte de vente (which takes approximately six months and thereby secures your title to the French property) is dealt with by your notaire after completion. In due course your notaire should supply you with a certified copy (expédition) if your registered acte de vente. It is a French legal requirement that your original deeds remain in your notaire's archives, even if the property is mortgaged. As part of our service we can arrange to obtain evidence of your ownership (attestation d'acquisition) on the day of completion. We can also assist with:

• Obtaining residence permits, work permits and licences in connection with the opening of new businesses in France
• The importation of cars, furniture and pets into France
• Obtaining payment of your pension in France, national insurance and other related matters.

You must pay French income tax on any income derived from your letting or other activities in France. You can register with the Tax Centre for Non-Residents in Paris who will send you an annual tax return which can prove invaluable as a record of your assets in France should you decide to sell your property, the proceeds of which may become subject to French and/or UK capital gains tax. Provided no income comes from the property (i.e. you do not let it out) your French tax return will be left blank.

If instructed by you, we can launch the process immediately. It is impossible to give you definite time estimates for completing different stages of work. What can take two or three weeks in one area of France may take two or three times as long in another area or at a different time of year. While we can work towards and encourage a speedy completion, much is out of our hands. As a rough guide it generally takes approximately 6-12 weeks between signing the purchase contract and completing. We would however emphasise that any time periods do however depend very much on your individual circumstances. It is important that if you need to complete quickly or have a deadline to meet, you advise us as soon as possible so we can make the necessary arrangements.

As a buyer, you should budget forTVA, legal fees, survey and valuation fees, annual taxes and outgoings, buildings and contents insurance premiums, transport costs to and from the property, furniture, maintenance and renovation costs. In some cases you should also budget for estate agent's commission.

1. Estate agent's commission.

   The seller usually pays estate agent's commission. But check the contract carefully which sometimes requires the commission to be paid by the buyer. The amount of commission (which is only paid if the transaction completes) varies from one to five per cent of the sale price.

   Where thenotaireacts as a selling agent his commission is part of the notarial fees, and will be paid by the buyer

2. TVA

   Owners of French property will come across French VAT (TVA) in various situations such as the purchase or sale of their property, renovations, lettings or simply as consumers of general goods and services supplied in France.

   The general TVA rate of 19.6 per cent applies to invoices rendered by French lawyers, estate agents and others in France. TVA is also charged at the same rate on new French property. "New" tends to mean either that the property is unfinished or brand new and you will be the first owner, or that it has been built within the last 5 years. The seller pays the TVA and, in practice, it is added to the sale price. The acquisition of old properties in need of substantial repairs to make them habitable, or destined to be redeveloped, is not usually subject to TVA. However, if the planned transformation work will result in bringing the property into a state considered as new, TVA may apply. Furthermore, the subsequent sale of such property within 5 years on the completion of the work could also attract TVA as a brand new building. TVA-liable property transactions are also subject to a further registration tax (taxe de publicité foncière) of 0.6 per cent payable by the purchaser.

   Since 22 October 1998, the acquisition of land by individuals for the building of residential property is no longer subject to TVA. However, if the new buildings are intended for future sales, typically if the land is purchased by a property developer, the land acquisition becomes TVA- liable.

   Property developers must register for TVA but may, under certain circumstances, elect for favourable treatment, allowing them to pay the TVA due when they sell a property and calculated as the difference between the TVA on the purchase price and the TVA due on the retail price after deduction of all TVA paid on any building work.

   The TVA rate applicable to renovation or other building works carried out on properties over two years old has been reduced from the normal rate to 5.5 per cent with effect from 15 September 1999. This reduction should be maintained until 31 December 2002. The type of work which qualifies for the reduction is any improvement, transformation, maintenance and repairs carried out by French registered builders. Building material and equipment, such as carpets, wallpaper, paint, cement, slates or tiles, bathroom suites and so on may also qualify but only if supplied by the builder.

   Some equipment remains subject to normal TVA at 19.6 per cent such as sauna, Jacuzzis, boilers, cisterns and kitchen appliances. There are numerous exceptions, depending on the type of property, and it is always advisable to seek the confirmation of the appointed builder.

   Taxpayers who decide to let their property often wish to deduct TVA paid on expenses incurred to make the property fit for such an activity, but under French law most lettings are TVA-exempt. The following activities only are liable to TVA by a specific provision of tax law:

   • Registered tourist hotels
   • Registered tourist residences let out under a nine-year contract to a business which is promoted abroad ('leaseback')
   • Quasi-hotel businesses which provide, in addition to accommodation, hotel-like services (meals, cleaning, reception etc).
   • A property let (furnished or unfurnished) under a commercial lease to a business engaged in one of the activities described above.

   Where liable, the supply of furnished premises is subject to TVA at the reduced rate of 5.5 per cent. On the other hand, the supply of food, telephone and other services are subject to TVA at the standard rate of 19.6 per cent. Where an establishment provides accommodation on a full board or half-board basis, the reduced rate of TVA may apply to three-quarters of the total amount charged.

   A business registered for TVA will be in a position to receive, where appropriate, refunds for TVA paid for the running of the lets and any renovation of the letting units. Nevertheless, TVA paid out in the past cannot be claimed in arrears, as the business was not registered as such.

   The rate of TVA on invoices relating to renovation work can in some cases be reduced to 5.5 per cent.

   No TVA is usually payable if you buy a plot of land on which to build your own main residence.

   TVA can sometimes be avoided or reclaimed but specific advice should be taken at the beginning of a transaction so as to maximise any potential benefits and avoid expensive traps.

3. Thenotaire's fees

   You cannot complete your purchase until all yournotaire's conveyancing fees (frais denotaire) have been paid and are cleared in his account.

   If your purchase is subject to TVA, you should budget for frais denotaireof between 3 to 4 per cent of the purchase price. Included in this figure are thenotaire's profit costs (emoluments) and various disbursements (débours) which yournotairepays out on your behalf to the land registry and other French authorities. As it is difficult to calculate accurately the total amount of disbursements payable, which varies from case to case, until several weeks after completion, it is customary fornotaires to slightly over-estimate their requirements in this respect and they will not usually provide an itemised breakdown (décompte détaillé) until title to your property has been registered.

If your purchase is not subject to TVA you should budget for frais denotaireof about 10 per cent, most of which is made up of French stamp duty (currently 4.89 per cent of the purchase price) and other disbursements.

You can reduce French stamp duty if you agree with the seller to declare a lower (i.e. not the true) purchase price in the contract and pay the balance to the seller in cash. However this practice is illegal and we recommend that you resist all devices which may be suggested to reduce your purchase costs in this way. If you are found out, you may face heavy fines and a prison sentence. The French authorities may also apply other penalties to your considerable disadvantage.

4. French mortgage registration fees

   Stamp duty of about 3 per cent of the amount borrowed is payable if you take out a first mortgage on the security of French property.

5. Extra notarial fees

   Under Article 4 of a law dated 8 March 1978,notaires can and often do make an extra charge for any legal work undertaken by them which does not directly relate to the preparation and attesting by them of the acte de vente on completion. Charges of this nature typically include drafting a notarised purchase contract; forming a French property-holding company; oral or written consultations dealing with French succession law/tax planning.

   Strictly speaking,notaires cannot charge under Article 4 without the written consent of their client and most will insist on an advance payment on account before undertaking any work of this nature.

6. Other costs

   £1,000 would be a conservative estimate for the annual cost of running a French holiday home.

   Buildings insuranceis obligatory, whether the property is used regularly or not. The cost of the premium will vary according to the number of rooms in your property and the outbuildings you possess, as well as by region.

   Property taxes(taxe foncière and taxe d'habitation) are also unavoidable expenses. The bills usually arrive in the autumn, but the costs of these taxes can be spread over the year by paying in monthly instalments, by direct debit from a French bank account. The sums vary enormously, according to region.

   Utilities. Mains water is also unavoidable, unless you use your own well water and have a septic tank. Again, this varies from region to region. For a holiday home, the standing charge for mains water can easily exceed your consumption, which is metered. You are also stuck with having to pay a standing charge for electricity, no matter how little you visit. This can vary from as little as FrF 176 a year for a very basic installation which is unable to run many appliances to FrF 1,138 for the 'Temo' option, which offers the advantage of varying tariffs for several different periods. To this must be added your consumption: if you have a number of electrical appliances, you should allow between FrF 700-1,400 for two months' use, depending on the size of the house. There are no standing charges for gas if your property is very rural and far from mains gas supplies. The price of bottled propane or butane gas is around FrF 140 per standard bottle for a refill. Consumption will vary, according to whether you use your gas only to cook, in which case you might get away with a bottle a year, or run a gas water heart as well (remember to keep a spare bottle or two). Mains gas standing charges vary from FrF 124 a year to FrF 970, according to the number of appliances you run. Consumption of mains gas over two months for four people using a cooker and water heater is estimated at FrF 250. You could forego using a telephone, or make do with a mobile if it works in your part of France. For a fixed line, the annual standing charge is FrF 938 per year, plus you will need to buy or rent a telephone. Make sure you read and understand the small print!

   Upkeep. For annual running costs, such as sweeping the chimney or servicing a boiler, and general household repairs, allow about FrF 1,500 - FrF 2,000. If you employ someone to cut your grass or tend your garden in your absence, allow double this.

You pay a deposit when you first decide to buy the property, and then the balance when you sign the acte de vente at the notaire's office.

The notaire jointly incurs liability for taxes, registration fees and various other related charges with those who execute documents before him. Consequently, the notaire will obtain payment on account prior to completion, in order to cover fees, taxes and other disbursements connected with the transaction. The notaire's fees are governed by a complex statutory tariff being 0.825 per cent on urban sales. As it is difficult to calculate accurately the total amount of disbursements until a considerable time after completion, it is customary for notaires to slightly over-estimate their requirements in this respect.

You have to pay directly to the notaire who will forward the money to the seller when the transaction goes through.

That depends on the seller and whether you want a mortgage.

Apart from annual property taxes, you should consider the possible impact of French income tax, French wealth tax and French inheritance tax.

• French income tax. A UK resident who lets out a property in France will have a UK liability to income tax but will be entitled to credit against his UK tax bill for the French tax which he has paid on his French rental income. If a non-resident does not submit a French tax return, the French tax authorities can charge interest and various tax penalties.

• French wealth tax

• French inheritance tax. In France transfers between husband and wife are not exempt from French inheritance tax. The remoter the heir is from the deceased, the higher the rate of tax. For example, a rate of 60 per cent applies between unmarried couples.

Always consult a French tax specialist on the most suitable solution to suit your individual circumstances. We recommend that you consult with Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

Yes, but couched in cautious language. We can prepare the offer letter for you if you like. Please contact us for further information. However, we recommend that you consult with Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who can prepare the appropriate offer letter for you which sets out your preconditions in clear and unambiguous language.

Some people will offer to buy you a property in their name. This is illegal, and we won't do it. And we don't advise you to do such a thing, as the property could be confiscated and you could go to prison.

Yes, but land suitable for building (terrain à bâtir) is relatively difficult to find in France. Any contract for the purchase of a lotissement or other plot should include carefully worded clauses enabling you to withdraw without penalty if planning permission is not obtained to build precisely the property you wish to construct - and connect it to the mains services - on the number of habitable square metres (SHON) required. You must usually start building works within one year and complete them within 5 years of obtaining planning permission.

The preliminary purchase agreement will contain conditions precedent (conditions suspensives). These include warranties by the seller as to title, servitudes, encumbrances and vacant possession. The deposit will be forefeited to the seller if the transaction does not complete.

Registration at the French land registry (bureau des hypothèques) will be evidence of ownership of French property enforceable against third parties. For an interest to be enforceable against the property, i.e. against third parties, it must usually be protected by registration.

The compromis (also known as the promesse bilatérale de vente) is the most commonly used form of binding contract by which the seller agrees to sell and the buyer agrees to buy the property upon the terms and price set out in the contract.

We strongly recommend that you do not sign anything until your legal adviser in your home country has reviewed the documents and advised you on its terms and effect. If you sign any document without independent advice you will find yourself bound to purchase the property on the agreed terms.

Copropriété ownership occurs when a building or group of buildings is divided into privately owned units (lots) and common areas over which the owners will all have rights of ownership. The rights over the common parts combined with the right of absolute ownership of the individual units are not separately disposable, and together constitute a parcel of rights making up the copropriété ownership. There is a statutory duty on copropriété owners to establish internal regulations to administer the management of the building and the rights and duties of the parties. The overall management of the building is in the hands of all the individual owners, who together form a syndicate which is a legal entity of its own. Decisions are taken at general meetings of the syndicate. A managing agent will deal with day-to-day management and there is usually an executive committee composed of a number of the owners.

A servitude is a right over land in favour of other landowners. Servitudes include rights of access, rights of light and air and car parking rights. Administrative servitudes, which include the right to run service such as electric cables, are imposed by public bodies and may entitle the owner to compensation. Common issues include shared rights of access (and joint liability to contribute to its upkeep), a separate access to the garden (you may need a formal right of way to it), and other easements such as a 'short cut' through your property or the way a neighbour's drains join yours.

The cadastre is a country-wide plan which sets out land ownership in units (lots), each of which is given a plot number (référence cadastrale). The plan is not definitive.

Not necessarily, even if these are listed in the French estate agent's particulars. By law, your seller must include in the sale anything that is part of the fabric of the French property (e.g. plumbing, central heating and other installations integrated into the structure) which are classed as immovable property (immeubles) and cannot therefore be removed, unless it is specifically agreed between the buyer and the seller that particular items are excluded. The French courts have defined immeubles to include trees and shrubs in a garden; electric sockets, wall switches, lamp socket holders and wiring, and garden sheds/greenhouses built on foundations. French law defines immeubles to include wine presses, vats, barrels and distillation stills located in the property!

Over the years, various meubles can get fixed to a French property and lose their removable nature by becoming part of the structure. French law defines these to be immovable if the owner attached them to his property on a permanent basis. For example, the French courts have decided that the seller should not have removed a bath and toilet, which in that particular case were held to have been fixed to his property on a permanent basis (but see below).

You should assume that any meubles will be removed by your seller unless he has formally agreed to sell these to you in addition to the French property. The French courts have defined meubles to include cookers, freezers, fridges, dishwashers, washing machines and any similar detachable equipment, heaters connected to mains supply only by plugs or detachable means of connection, lampshades and light bulbs, carpets, underlay and curtains, and free-standing garden furniture and sheds.

Rather confusingly, in one case the French courts held that prefabricated kitchen cupboards were removables which were not sold with the property; but in another case held that a fitted kitchen was immovable property and could not be removed by the seller. These two conflicting decisions can be partly explained by the fact that a French court judgement in one case is not binding on other courts and there is therefore no way of accurately predicting how the French courts are likely to decide a given case.

More specifically, the acid test is the extent to which property is a permanent part of the structure of the main building. For example, French law states that movable property becomes immovable property if it has been sealed in plaster, lime or cement, or if it cannot be removed without breaking or damaging that part of the property to which it is attached. Examples include mirrors, paintings and other tableaux which are only classed as immeubles if their backing is integral with the woodwork or other fabric of the main structure of the building. So, if removal of property does not cause breakage or damage (e.g. major deterioration to plaster work) to the main structure, it will usually be classed as meuble. For example, in one case the French courts held that electric radiators were removable by the seller, even though such removal resulted in minor damage necessitating some replastering. And yet in another case the French courts held that a medieval fresco in a disused church was removable property, despite the fact that it was integral with the fabric of the main structure. Other litigated cases have involved curtain rails and tracks, fitted (and other) bookshelves, built-in kitchen units and appliances, built-in cupboards and wardrobes, electric storage heaters, wall lights, water softeners, decorative door furniture and door chimes, bathroom fittings and free-standing garden ornaments.

Litigation in France is not a desirable option. To avoid disputes, an inventory should be prepared and attached to your purchase contract detailing what is included in the sale price and what is not. Please Contact Us for further assistance.

Yes. A deposit is payable when you sign the purchase contract. This will normally be 10% of the purchase price and it will be paid to and held by your notaire or the French estate agent in their client account. At no stage should you pay a deposit or any other money direct to the seller, unless you are prepared to lose it. French estate agents can only receive deposit monies if they hold a carte professionnelle which is only issued upon proof that the agent holds minimum insurance cover (garantie financière). Otherwise, the risk of loss of that deposit through the agent's insolvency or misappropriation falls on you. It is always advisable that the deposit be held by the notaire acting as stakeholder in a compte séquestre (stakeholder account). The deposit is deducted from the purchase price on completion but no interest is paid for the period between signing your contract and completing the purchase. With the notaire's consent we may however be able to arrange for the deposit to be placed in an interest-bearing English stakeholder account in which case a proportion of the interest which accrues can be paid to you on completion.

You sign the acte de vente on completion of the transaction. It will in part repeat the terms contained in the purchase contract.

No. The purchase contract can be signed in your home country. The acte de vente can be signed either in person at the offices of your notaire or you can appoint a proxy to sign on your behalf. Please Contact Us for more assistance.

Yes. Please Contact Us for more assistance.

Yes. The two main taxes are taxe foncière and taxe d'habitation. Both are levied in October/November each year. taxe foncière is a local land and property tax and is calculated by reference to the theoretical rental value of your property, set by the land registry on 1 January each year. This tax is payable by the owner of the property. Properties which have been just built, or which have recently been restored, are generally exempt from this tax for two years commencing on 1 January following the date of their structural completion, provided the work undertaken has been declared within 90 days of its completion. When French property is bought midway through a year, taxe foncière charged will be calculated on a pro-rata basis.

Taxe d'habitation is a local residential tax payable by the occupier of the property (owner or tenant). However, if the property is let on a holiday basis only, the owner pays the tax. The property must be habitable, and should any major restoration work be carried out, thus rendering the property uninhabitable for some time, taxe d'habitation would be charged pro-rata according to the amount of time it was habitable. Again, the liability depnds on the cadastral value of the property as at 1 January.

In some parts of France, sundry taxes or taxes assimilés will also be charged by the local authority for the supply of snow sweeping or other amenities.

All these charges are usually lower than similar charges in the U.K. To get an idea of the amount these taxes will be each year, we can ask the seller or the French estate agents to send you a copy of the latest demands before you sign anything.

If you own an apartment or other property in a copropriété, you will be liable for annual maintenance and service charges (e.g. for a lift in the block, ski lockers, etc). These can be high and the position should always be checked by obtaining a copy of the annual general meeting reports for the last 3 years. The mot modern flats will have individual heating and hot water. Avoid those that do not since otherwise you will find that your service charges may include the cost of heating other people's flats.

You don't. By law, the notaire must keep the original title deeds in his archives. He will let you have a certified copy of the registered document on request.

If the property is empty, possibly at the moment you pay the deposit. If the owner is still living in it, you'll have to arrange with him, but in any case usually in less than 3 months.

As between the buyer and the seller, ownership of the property effectively passes once there is an enforceable compromis de vente or other purchase contract. Third parties will not, however, be bound and the property could be in theory be sold again to another buyer, who will take free of the first sale, if this is not "perfected" by an acte de vente and registered in the French land registry. Your notaire has a duty to check that everything is legal in the transaction before the acte de vente can be executed and recorded in the French land registry that you are the new legal owner. Once your ownership is registered, you can usually be sure that nobody can contest your right to the property.

We can arrange this for you. Please Contact Us for further assistance.

A notaire does not usually perform an advisory function. Do not therefore expect him to volunteer any advice or indeed report to you about the different methods of ownership which can avoid French succession law problems and taxation.

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

In England, you are free to dispose of your estate as you wish. In France, you are not. French succession law always applies to French immeubles and your English will or trust is of no effect. This rule applies even if your permanent home is in England and you spend only a few weeks in France every year.

However, this need not keep you from buying property in France, because if things are properly organised, there is no reason why you should not quite simply avoid the rule.

In many cases a simple and cheap solution is to make a French will. Your English will should also be reviewed at the same time. If you do not have a will, French law makes almost no provision for a widow(er) or surviving partner. Depending on your will, the property will usually go to your children (but not your spouse) or if you don't have any, to your siblings and parents.

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

To make things simple, assume that you are married with a wife and a child. Under French succession law you would have to leave one-half of your French estate to that child. If you had two children, the proportion would be two-thirds and if you had three or more children, it rises to three-quarters. You would be free to deal with the remaining balance as you wished and may or not as you wish leave it to your widow. However, there are ways of 'cutting in' a spouse to childrens' shares.

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

It is possible to get round French succession rules if you are buying property jointly. When you bought your house in England, you probably bought it jointly with your husband or wife. Your solicitor will have explained to you that there are two ways of owning property jointly. One is that on your death the property passes automatically to then survivor (in English 'joint tenancy', in French en tontine) and the other is that each of you own a part of the property which you can deal with separately (in English 'tenancy in common', in France en indivision). You probably chose the former method and your solicitor would probably have been very surprised if you had chosen the other method.

In France, the same two ways of jointly owning property exist, though for quite different reasons. The French almost always use the en indivision method for the very reason which makes it usually disastrous for the English to do so: it does not avoid the normal French succession rules. The English should (subject to advice) always buy en tontine which is how they would buy in the UK and the property will pass automatically to the survivor.

It is quite impossible to say how many English husbands and wives whop have not been properly advised on this point are horrified to learn that they have made the wrong choice. In fact, usually they have not made a choice at all but have signed papers prepared by a notaire who assumes that English law is the same as French law and that all English couples buy jointly in the same way as French couples. Usually, it is far too late to do anything about it except at great cost. If you are buying jointly, get advice from a lawyer who knows English and French law and who, if the circumstances require, will ensure that the notaire does the right thing.

It is worthwhile giving an example so that you may see how important this is. Remember that if you are not prepared for it, the problem will arise just at the moment when one is least able to cope with it i.e. on the death of a husband or wife. Take the following situation, which is not unusual.

• Mr and Mrs A are married. They have one child. Each has been previously married. Mr A has two children by her previous marriage and they now live with their mother who has remarried. Mrs A had one child by her previous marriage who lives with Mr and Mrs A. Some of the children are under 18 and some are older. Mr and Mrs A have bought a holiday home in France for FrF 750,000. They have bought it by the standard French method of joint ownership (en indivision). Mr A dies. Mrs A owns one-half of the house as her own property. Three-quarters of Mr A's half share is divided among his three children (by his existing and previous marriage) and one-quarter goes, if his will says so, to Mrs A At best, therefore, Mrs A has five eighths of the house and her joint owners now include children whom she may never have known and with those of whom are under 18 she can come to no legal arrangement.

It is true that arrangements can be made so that Mrs A can be given a life interest in her husband's share so that she would own one-half outright and one-half she can use for as long as she lives. This is, however, hardly a situation which Mrs A wants to learn of for the first time on the death of her husband, She may well have assumed that because her husband's will in England leaves everything he has to her, she now owns the whole of the house. She is mistaken, however, because French law overrides that will.

If Mr and Mrs A had bought en tontine none of this would have happened. On the death of one of them, their holiday home would automatically have passed to the survivor.

It is true that this method of joint ownership may involve the payment of French inheritance tax whereas the other method might avoid it. Usually, the amounts involved are only a small price to pay to avoid the confusion caused by the imposition of the French law of succession.

There are notaires and others who say that there are dangers in using the tontine method because children who have been 'cut out' can claim to be 'cut in'. Take courage from some recent cases on this point which say that it is almost impossible for children to succeed if care is taken and the documentation is correctly prepared. This applies to any Power of Attorney given by the buyer and to the acte de vente itself. It is worth taking the right advice to ensure that this happens.

There are at least two other methods of circumventing French succession rules. Only the most competent advice can establish if either may be suitable for you. As a general rule, unless your family circumstances warrant it or you are trying to get out of a very difficult succession situation into which you have been put through lack of advice on a purchase, neither of these methods should be indulged in for properties worth less than £100,000.

Do not use an offshore company to buy French property or, worse still, buy the shares in a company which already owns French property. The notaire may not understand the implications but an English lawyer and the French tax authorities will. For instance, the company will be liable to a series of heavy taxes which it may never have paid and thus you may be buying a past and future tax liability

Legal advice should take into account both French and UK law.We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

It is possible to get round French succession rules if you are buying property jointly. When you bought your house in England, you probably bought it jointly with your husband or wife. Your solicitor will have explained to you that there are two ways of owning property jointly. One is that on your death the property passes automatically to then survivor (in English 'joint tenancy', in French en tontine) and the other is that each of you own a part of the property which you can deal with separately (in English 'tenancy in common', in France en indivision). You probably chose the former method and your solicitor would probably have been very surprised if you had chosen the other method.

In France, the same two ways of jointly owning property exist, though for quite different reasons. The French almost always use the en indivision method for the very reason which makes it usually disastrous for the English to do so: it does not avoid the normal French succession rules. The English should (subject to advice) always buy en tontine which is how they would buy in the UK and the property will pass automatically to the survivor.

It is quite impossible to say how many English husbands and wives whop have not been properly advised on this point are horrified to learn that they have made the wrong choice. In fact, usually they have not made a choice at all but have signed papers prepared by a notaire who assumes that English law is the same as French law and that all English couples buy jointly in the same way as French couples. Usually, it is far too late to do anything about it except at great cost. If you are buying jointly, get advice from a lawyer who knows English and French law and who, if the circumstances require, will ensure that the notaire does the right thing.

It is worthwhile giving an example so that you may see how important this is. Remember that if you are not prepared for it, the problem will arise just at the moment when one is least able to cope with it i.e. on the death of a husband or wife. Take the following situation, which is not unusual.

• Mr and Mrs A are married. They have one child. Each has been previously married. Mr A has two children by her previous marriage and they now live with their mother who has remarried. Mrs A had one child by her previous marriage who lives with Mr and Mrs A. Some of the children are under 18 and some are older. Mr and Mrs A have bought a holiday home in France for FrF 750,000. They have bought it by the standard French method of joint ownership (en indivision). Mr A dies. Mrs A owns one-half of the house as her own property. Three-quarters of Mr A's half share is divided among his three children (by his existing and previous marriage) and one-quarter goes, if his will says so, to Mrs A At best, therefore, Mrs A has five eighths of the house and her joint owners now include children whom she may never have known and with those of whom are under 18 she can come to no legal arrangement.

It is true that arrangements can be made so that Mrs A can be given a life interest in her husband's share so that she would own one-half outright and one-half she can use for as long as she lives. This is, however, hardly a situation which Mrs A wants to learn of for the first time on the death of her husband, She may well have assumed that because her husband's will in England leaves everything he has to her, she now owns the whole of the house. She is mistaken, however, because French law overrides that will.

If Mr and Mrs A had bought en tontine none of this would have happened. On the death of one of them, their holiday home would automatically have passed to the survivor.

It is true that this method of joint ownership may involve the payment of French inheritance tax whereas the other method might avoid it. Usually, the amounts involved are only a small price to pay to avoid the confusion caused by the imposition of the French law of succession.

There are notaires and others who say that there are dangers in using the tontine method because children who have been 'cut out' can claim to be 'cut in'. Take courage from some recent cases on this point which say that it is almost impossible for children to succeed if care is taken and the documentation is correctly prepared. This applies to any Power of Attorney given by the buyer and to the acte de vente itself. It is worth taking the right advice to ensure that this happens.

There are at least two other methods of circumventing French succession rules. Only the most competent advice can establish if either may be suitable for you. As a general rule, unless your family circumstances warrant it or you are trying to get out of a very difficult succession situation into which you have been put through lack of advice on a purchase, neither of these methods should be indulged in for properties worth less than £100,000.

Do not use an offshore company to buy French property or, worse still, buy the shares in a company which already owns French property. The notaire may not understand the implications but an English lawyer and the French tax authorities will. For instance, the company will be liable to a series of heavy taxes which it may never have paid and thus you may be buying a past and future tax liability

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

A life interest in French property.

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

In recent years, thousands of non-residents have bought a property in France to escape from cold winters and wet summers. For many, their personal use of the property is a source of considerable pleasure. Although property prices in France are still generally low, and purchase loans are readily available, many potential buyers are discouraged from purchasing French property for two min reasons. Firstly, they do not want to feel tied down to the same property each year when there are other countries or parts of France to explore. Secondly, their available holiday time is often limited to two or three weeks in the summer and, although friends and relatives may occasionally visit the property, it will otherwise remain unoccupied for the rest of the year.

The clear choice for new buyers wanting to enjoy the benefits of owning and occupying property in France for limited periods only with the reduced costs that such a purchase can bring is to use a non-time sharing method of company ownership (called a société civile immobilière d'attribution à temps partagé or SCIATP) which allows the owners to share ownership with friends or others who have similar interests. As explained below, the use of such a structure can also have significant French succession law-avoidance advantages.

The scheme can apply to a house or part of a house (for example, a flat in a block). A property can be brought within its scope either by being bought by an SCIATP previously formed for that purpose, or a property owned by one or more owners can be transferred to an SCIATP.

This is also the most satisfactory method for an existing owner wishing to reduce his capital burden whilst retaining an interest in his property. For example, the SCIATP acquires the French property from the original owner who then offers for sale as many shares as he wishes (e.g. 75% if he wants to be able to occupy the property for about three months in every year). French law provides precise rules as to the way in which the property must be managed, how management costs are dealt with, the rights of each occupier vis-à-vis each other and their rights to deal with their occupancies and generally everything which is necessary for the enjoyment by these shareholders of the property by the company.

The right to occupy the property at agreed times stems from the ownership of shares in the company. The basic rules laid down by French law are strict since they are intended for the protection of the public and cannot in most cases be varied.

The price for the shares will depend not only on the value of the property but also on the periods in the year in which the shares sold give rights to occupation. However, since these periods are likely to be spread over the year over periods of more than (say) six weeks at a time, it is probable that the price for all of the shares will be more or less the same. The sale by the original owner of shares will, of course, give rise to French capital gains tax, but unless the property is of recent acquisition and the owner has benefited from an unusual rise in the French property market, this tax is not likely to be high if it exists at all.

The equivalent of the Articles of Association of an English company are the statuts of an SCIATP. All the basic rules relating to the use of the property are set out in this document. These will cover, in addition to the dates when the property is occupied by shareholders (which can be varied by consent of all the shareholders), the important provisions relating to the transfer of shares during a shareholder's life and on his death.

The normal French rule is that transfers between existing shareholders may be made freely as may transfers on a death to heirs entitled to inherit, or spouses, but this can be varied since the shareholders will be subject to English and not French succession law. Otherwise, the body of shareholders controls who can become shareholders and such a decision requires at least a majority or unanimous vote.

French law specifically requires that shareholders must have the right to let the property they occupy during their period of occupation. The shareholder remains liable to the SCIATP for his tenant's default.

Rules for the holding of meetings of shareholders and for the passing of resolutions by correspondence and similar management procedures follow quite closely what is common form in English companies.

Overall management is in the hands of the gérant who basically takes the place of a director of an English company. He may be appointed or removed by a simple majority vote of the shareholders but the statuts can provide for a larger majority or a unanimous vote. He can, but need not, be a shareholder. It is his duty to act on behalf of the SCIATP subject to such limitation as may be placed on his powers.

The gérant is responsible to report to the shareholders when the annual accounts are submitted. The SCIATP will be liable for taxe foncière (property tax) and taxe d'habitation (local authority tax) but, unless it has income - which is unlikely - for no other French taxation.

He is assisted by an Executive Committee composed of shareholders (the number is fixed in the statuts) whose task is to advise the gérant or the shareholders on all matters relating to the management of the SCIATP which either have been referred to it or which it enquires into of its own volition. It is the recipient of the SCIATP's accounts and has a right to call for production of all documents and papers affecting the SCIATP.

The cost of maintaining and managing the French property will, as with these taxes, be shared out among the shareholders in proportions which will reflect the length of each period of occupation and presumably the date in each year. The gérant arranges for the collection from each shareholder of his share of expenses and, if needs be, may ask for payments on account in advance. There are rules to ensure prompt payment.

Unless the finances of an SCIATP attain a fairly high figure - not likely where only a single house is involved - it is not necessary to appoint auditors, but in that case the SCIATP must appoint an independent qualified person who is not a shareholder to prepare the annual accounts.

The use of an SCIATP is also a useful tool to avoid the adverse implications of French succession law. In brief, French succession law applies to all land, houses and flats in France irrespective of the nationality, domicile or residence of the owner. This put simply, means that children have the absolute right to inherit but surviving spouses have no such rights. Furthermore, if you do not structure joint ownership of French property through an SCIATP or a similar French company, the two alternative methods of joint ownership re likely to cause problems. One method (indivision) was created to deal with property inherited by various members of the family and is quite unsuitable for property which is bought for sharing with other people. The other method (tontine) has the effect of the property belonging to none of the joint owners until the death of all except the last survivor, who then acquires the whole of the property. This is clearly not suitable for owners who are strangers to one another.

The purchase and transfer of French property and the formation of companies in France is the sphere of a notaire practising on French soil. However, any person interested in making use of this scheme either as a means of selling part of his interest in his French property or of buying into such a property on such a basis should consult lawyers in England expert in French legal matters since their residence and/or domicile in England makes this highly desirable.

We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

Please contact Stephen Smith (France) Ltd (quote ref FPSAMJ) for further information.

Yes. However, please do not use an offshore company to buy French property or, worse still, buy the shares in a company which already owns French property. The notaire may not understand the implications but an English lawyer and the French tax authorities will. For instance, the company will be liable to a series of heavy taxes which it may never have paid and thus you may be buying a past and future tax liability. An SCI (French property-holding company) is usually the preferred alternative.

Legal advice should take into account both French and UK law. We therefore strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

A 3% annual tax applies to all companies (French or otherwise) having a head office or centre of administration in France. However, with proper timely advice there are simple ways to avoid payment of this tax.

Legal advice should take into account both French and UK law. We strongly recommend that you consult a French legal specialist to deal with your individual concerns. Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is an internationally recognised expert in this field.

You can sell your French property at any time and at any price. But beware French capital gains tax which may have an adversely impact if you sell within two years of acquisition, or if you speculate in French property.

You can resell to anyone who has the right to buy. This means to any French citizen or to a foreigner who is an adult with full legal capacity.

It is impossible to know when you buy a French property how long you are going to remain in it or what will be the reasons for wanting to sell it. You may lose a lot of money if you sell. So have you considered the following two alternatives?

Firstly, have you considered letting your property ? In recent years, thousands of British families or groups of friends have bought a property in France to escape from cold winters and wet summers. For many, their personal use of the property is a source of considerable pleasure. Although by UK standards property price in France are still generally low, and purchase loans are readily available, many potential buyers are discouraged from purchasing French property for two main reasons.

First, they do not want to feel tied down to the same property each year when there are other countries or parts of France to explore. Secondly, their available holiday time is limited to two or three weeks in the summer and, although friends and relatives may occasionally visit the property, it will otherwise remain unoccupied for the rest of the year.

On the other hand, more than 60m tourists visit France each year. This is not a passing phenomenon and with new, improved and cheaper transport links, the demand for self-catering accommodation in France continues to grow from foreign holidaymakers, especially in Britain and northern Europe.

We recommend that you buy a copy of "Letting French Property Successfully" which has had excellent reviews. The purpose of this book is to provide a guide to the main practical, legal and tax processes necessary to let your property successfully in France. It explains how, in the short term, the rent you charge might not only cover annual maintenance and other expenses, but also leave you with surplus income to pay for your own holiday. With careful planning, more systematic lettings could also earn you enough income to recover your initial capital outlay and borrowings. You may even decide to buy more property to let as a business!

This book is a very good starting point for anyone looking to gain familiarity with most of the issues, questions to ask and decisions to take when acquiring French property as an investment. The authors have covered each stage of the French property experience from choosing the property through to purchase - financing, how to own, and the legal process itself - on to landlord and tenant issues. There is a readable explanation of French succession law and matters' relating to wills. As well as providing input to strategic decisions there is a wealth of detailed support material covering such matters as the risks of unintended agricultural tenancies, licensing in relation to alcohol, and a comprehensive French-English glossary of terms. There is also a series of precedents and a comprehensive chapter dedicated to the taxation of rental income, in both France and the UK, for both individual and corporate owners. Please click here for further information.

Secondly, have you considered sharing the load? The clear choice for new buyers wanting to enjoy the benefits of owning and occupying property in France for limited periods only with the reduced costs that such a purchase can bring is to use a non-time sharing method of company ownership (called a société civile immobilière d'attribution à temps partagé or SCIATP) which allows the owners to share ownership with friends or others who have similar interests. As explained below, the use of such a structure can also have significant French succession law-avoidance advantages.

The scheme can apply to a house or part of a house (for example, a flat in a block). A property can be brought within its scope either by being bought by an SCIATP previously formed for that purpose, or a property owned by one or more owners can be transferred to an SCIATP.

This is also the most satisfactory method for an existing owner wishing to reduce his capital burden whilst retaining an interest in his property. For example, the SCIATP acquires the French property from the original owner who then offers for sale as many shares as he wishes (e.g. 75% if he wants to be able to occupy the property for about three months in every year). French law provides precise rules as to the way in which the property must be managed, how management costs are dealt with, the rights of each occupier vis-à-vis each other and their rights to deal with their occupancies and generally everything which is necessary for the enjoyment by these shareholders of the property by the company.

The right to occupy the property at agreed times stems from the ownership of shares in the company. The basic rules laid down by French law are strict since they are intended for the protection of the public and cannot in most cases be varied.

The price for the shares will depend not only on the value of the property but also on the periods in the year in which the shares sold give rights to occupation. However, since these periods are likely to be spread over the year over periods of more than (say) six weeks at a time, it is probable that the price for all of the shares will be more or less the same. The sale by the original owner of shares will, of course, give rise to French capital gains tax, but unless the property is of recent acquisition and the owner has benefited from an unusual rise in the French property market, this tax is not likely to be high if it exists at all.

The equivalent of the Articles of Association of an English company are the statuts of an SCIATP. All the basic rules relating to the use of the property are set out in this document. These will cover, in addition to the dates when the property is occupied by shareholders (which can be varied by consent of all the shareholders), the important provisions relating to the transfer of shares during a shareholder's life and on his death.

The normal French rule is that transfers between existing shareholders may be made freely as may transfers on a death to heirs entitled to inherit, or spouses, but this can be varied since the shareholders will be subject to English and not French succession law. Otherwise, the body of shareholders controls who can become shareholders and such a decision requires at least a majority or unanimous vote.

French law specifically requires that shareholders must have the right to let the property they occupy during their period of occupation. The shareholder remains liable to the SCIATP for his tenant's default.

Rules for the holding of meetings of shareholders and for the passing of resolutions by correspondence and similar management procedures follow quite closely what is common form in English companies.

Overall management is in the hands of the gérant who basically takes the place of a director of an English company. He may be appointed or removed by a simple majority vote of the shareholders but the statuts can provide for a larger majority or a unanimous vote. He can, but need not, be a shareholder. It is his duty to act on behalf of the SCIATP subject to such limitation as may be placed on his powers.

The gérant is responsible to report to the shareholders when the annual accounts are submitted. The SCIATP will be liable for taxe foncière (property tax) and taxe d'habitation(local authority tax) but, unless it has income - which is unlikely - for no other French taxation.

He is assisted by an Executive Committee composed of shareholders (the number is fixed in the statuts) whose task is to advise the gérant or the shareholders on all matters relating to the management of the SCIATP which either have been referred to it or which it enquires into of its own volition. It is the recipient of the SCIATP's accounts and has a right to call for production of all documents and papers affecting the SCIATP.

The cost of maintaining and managing the French property will, as with these taxes, be shared out among the shareholders in proportions which will reflect the length of each period of occupation and presumably the date in each year. The gérant arranges for the collection from each shareholder of his share of expenses and, if needs be, may ask for payments on account in advance. There are rules to ensure prompt payment.

Unless the finances of an SCIATP attain a fairly high figure - not likely where only a single house is involved - it is not necessary to appoint auditors, but in that case the SCIATP must appoint an independent qualified person who is not a shareholder to prepare the annual accounts.

The use of an SCIATP is also a useful tool to avoid the adverse implications of French succession law. In brief, French succession law applies to all land, houses and flats in France irrespective of the nationality, domicile or residence of the owner. This put simply, means that children have the absolute right to inherit but surviving spouses have no such rights. Furthermore, if you do not structure joint ownership of French property through an SCIATP or a similar French company, the two alternative methods of joint ownership re likely to cause problems. One method (indivision) was created to deal with property inherited by various members of the family and is quite unsuitable for property, which is bought for sharing with other people. The other method (tontine) has the effect of the property belonging to none of the joint owners until the death of all except the last survivor, who then acquires the whole of the property. This is clearly not suitable for owners who are strangers to one another.

The purchase and transfer of French property and the formation of companies in France is the sphere of a notaire practising on French soil. However, any person interested in making use of this scheme either as a means of selling part of his interest in his French property or of buying into such a property on such a basis should consult lawyers in England expert in French legal matters since their residence and/or domicile in England makes this highly desirable.

Please contact us if you would like any further assistance or information about this attractive scheme.

There is no doubt that a well cared for property sells more easily than one which is dilapidated. Although furnishing styles vary enormously from country to country, it is generally advantageous to include the furnishings in the sale price. Second-hand furniture and equipment of any kind commands only the lowest possible prices in France if sold separately from a property. Therefore, it is preferable, if you do not need them elsewhere, to add something on to the sale price for kitchen equipment, such as dishwashers and refrigerators, rather than to try to sell it elsewhere.

If you originally bought a new property, so that the stamp duty you paid was well below the usual rate, and you were the first buyer from the developer, and you sell within five years of completion of the building, your buyer will again pay a low stamp duty. With the high rates of stamp duty in France, you may think that this makes the property cheaper and easier to sell, but this is often untrue. Since high stamp duties are payable on 'old' properties, their sale price reflects this. Alternatively, the price of a 'new' property may be increased to take account of the low stamp duties.

You have a number of choices. Firstly, you can try to sell privately without the use of an agent, but this is probably not a good idea. Advertisements in English Sunday newspapers do produce results and save commission but you will be very much on your own if you use this method, with no one to offer you advice.

Secondly, if you think that your property will be particularly attractive to the non-French, and possibly to a particular nationality, you can use an agent in England or elsewhere. For a variety of reasons, this is not to be recommended except in the case of agents who have a proven long-term practical knowledge of French methods of dealing with sales and particulars of property.

Thirdly, you can instruct a French estate agent. Take the greatest care in your choice of French estate agent as their quality can vary widely. Remember that French agents tend to interest themselves in only a very small local area. No one may carry on the business of an estate agent in France unless he holds a carte professionnelle. This is granted only to persons who can fulfil certain professional qualifications or can prove that they have long experience in the field. In addition, they must be suitably bonded in respect of all moneys they will be holding on behalf of third parties. Certain other strict requirements are in force. It is worthwhile making sure that you are dealing with a French agent who complies with all these requirements.

Fourthly, and probably best of all, you can instruct us! Our purpose is to show potential buyers worldwide properties for sale in France. Our database is updated daily and all the properties displayed are currently for sale. Our marketing service is entirely free and the prices always include the estate agent's fees (where applicable). Please contact us for further information.

Sellers of French property do not usually pay any French notarial fees.

There is no reason why initially we should not prepare the sales contract but you are well advised to have it checked by your local adviser before you sign it. In most cases, you do not need a notarial contract but if your agent produces anything other than a compromis de vente make sure you have it checked.

No one can properly prepare a contract without showing the acte de vente to you and, if you are selling a flat, the règlement de copropriété. If you have not got the expedition of your acte de vente, all you need is to remember is the name of the notaire who acted in your purchase and the date of the purchase. He will supply you with a further copy.

Under the Loi Carrez if your French property forms part of a copropriété your buyer can cancel his purchase within one month of completion unless the sale contract specifies in square metres the surface area being sold (cellars, garages or any room measuring less than 8 square metres are excluded). If the surface area quoted is inexact by more than 5 per cent, your buyer can either cancel his purchase or obtain reimbursement from you of a sum equal to the overpayment made by him. To avoid possible disputes you should always have your property measurements calculated exactly in compliance with the Loi Carrez, which we can arrange for you if required.

In certain parts of France the local authority may require you to obtain an état parasitaire certificate from a local expert - which again we can arrange for you if required - confirming the presence or absence of termites or other xylophages (wood-boring insects) in or near to your property. Nests giving rise to infestation, which can be detected early, have been recorded as far as 30 metres away from an infested building. Your buyer can withdraw from the sale unless a clear certificate is annexed to the acte de vente on completion.

Some départements in France also require you on completion to produce a certificate confirming to your buyer that there is no asbestos in your property.

No French estate agent may deal with property transactions in France if he does not hold the prior written authority (mandat) of the person for who he is acting.

These documents may look simple but they are full of hidden traps for those not used to them.

Each person instructing a French estate agent must receive an original copy. Make certain that your mandat is fully signed and dated. Every mandat must be entered in a register in date order and the registered number must figure on the copy given to the client. Failure to abide by the rules results in no commission for the agent and can lead to a term of imprisonment or a fine and the withdrawal of a carte professionnelle.

Read with the greatest care any mandat you are asked to sign. It may be exclusive or non-exclusive and limited in time. Some are for a given period only; some are for an initial period and then run on until cancellation by the client. If they require cancellation, this must be done precisely in accordance with the stated provisions. The authority should state the minimum price at which the seller will sell and great care must be taken to ensure that the mandat does not include a specific power for the agent to sign a contract on behalf of the seller at that price. Indeed, it is often safer to exclude that power.

Be very careful about giving more than one mandat at a time even if it is non-exclusive or you may find yourself with two sets of commission on your hands. Equally, if you have given only one mandat, make certain that if you find a buyer through your own efforts, you are nevertheless not liable to commission under that mandat.

French estate agent's commission is not charged on a scale basis but works out currently at about 5 per cent, sometimes inclusive and sometimes exclusive of TVA (19.6 per cent). It is usually open to some negotiation. However, be careful how the question of commission is dealt with. In most parts of France it is the seller who pays in full but you must enquire about this. Many agents suggest a selling price and then add on their commission and you sell at that higher price. You will then get the price net of commission although, of course, it is you who has the liability to pay the commission. This is not the same as buyers paying agents' commission, which except by local custom or special arrangement, they do not.

Commission is earned when contracts are signed. Virtually every contract states that the parties were introduced to XYZ estate agent as a result of which commission of a set amount is payable by the seller. Agents have found it necessary, in many standard forms of contract, to ask the parties to undertake that, if by mutual agreement they cancel the contract but then proceed to complete the transaction without informing the agent in the hope of avoiding the payment of commission, both parties will become liable to pay.

It is almost certain that your French estate agent will turn up at completion with his commission account. You will be asked to authorise payment, which will be made out of the proceeds of sale. If an agent has received the deposit, he may not pay himself his commission out of it and account for the balance. He must bring the full amount to the notaire on completion.

Any mortgages or other charges registered against your French property must be redeemed on completion of your sale. You may also be required to pay an early redemption penalty of up to 6 months interest, which by law cannot exceed 3 per cent of the outstanding capital owed on the mortgage immediately prior to repayment.

It is common to let a French mortgage extinguish automatically at the French land registry two years after repayment. However, your buyer, his lender and/or the notaire may insist that you obtain and register a form of release (mainlevée) which will usually cost you about 0.1 per cent of the value of the original loan. The notaire will usually deal with these formalities for you and deduct his fees from the sale proceeds.

There are special rules about insurance on a sale. They are complicated but you need not worry about them. On completion, just make certain that it is agreed that you cancel your insurance on the property. You will have to do this yourself or get your local advisor to do it for you because it is not part of the notaire's duty.

If you do not cancel your insurance policy(ies) they will automatically continue - and you will be responsible for the premiums due - for a period of at least 12 months from completion of your sale.

One way to get round this problem is for us to arrange for a special clause to be inserted in the contract providing that buildings and contents insurance cover will continue until the acte de vente is signed and that your buyer will take out his own insurance from that date.

A few weeks before completion of your sale is scheduled, you should arrange (via the French estate agents or us) for the electricity, water and other meters to be read by the relevant authorities on the day of completion, asking that a final account be sent to your UK address for your settlement. If your buyer wishes to take occupation of the property on the day of completion, do not arrange for the utilities to be disconnected unless he specifically asks you to do so.

Unless you let your French property you will be solely responsible for any outstanding taxe d'habitationdue (which cannot be apportioned with your buyer) until 31 December of the year in which you complete your sale. taxe foncière can be apportioned with your buyer if a special clause to that effect is inserted in your contract.

If you are selling property en copropriété, it is the duty of the notaire acting for you to obtain from the syndic a note of the service charges due from you to the date of sale and to pay these direct to the syndic out of the proceeds of sale. You will usually be asked to confirm the figure, which you cannot do exactly because no one knows what the final service charge figure will be but you should have a rough idea. Query it if you have any doubts. Obviously, it may turn out that the amount paid to the syndic was too much or too little. It is not the task of the notaire to sort this out at the end of the service charge year and very frequently nothing is done about it.

If works to your block have been voted at a meeting of flat owners before completion of your sale, you will be liable for this expense although it is incurred after you have sold the property. In such a case, someone will chase you for the cash in due course. Remember that the syndic has a lien on the whole of the proceeds of sale in the hands of the notaire, who cannot therefore pay out this money to you until outstanding service charges to the date of completion have been agreed and paid.

The fairest solution is usually to ensure that a special clause is inserted in your contract specifying that you will pay for all work decided upon by the copropriété before the contract is signed, and your buyer will only pay for work which is decided upon between the date of signature of the contract and the date of completion of your sale provided that he is allowed to attend the meeting of the copropriété which decides upon such work.

The selling process is the reverse of the situation when you bought. Please note the following points:

You are not liable for any visible defects ( vices apparentes) affecting your French property, its equipment or services, which your buyer or his surveyor could have discovered from his own inspection. However, you remain potentially liable to your buyer for any invisible defects ( vices cachées) for 10 years from the period when he first discovers the defect, which may be much later than when it actually occurred.

However, we can exclude your potential liability by arranging for the insertion in your sale contract of a carefully worded non-guarantee clause

It is important that you agree the right type of contract. Please do not sign it, even if it purports to be accurately translated into English, until it has been thoroughly checked and approved by an independent legal adviser. For example, what penalties apply if your buyer fails to complete his purchase on the date provided for in the contract? The answer is usually none, although we can insert a tailor-made clause requiring your buyer to pay a penalty for each day that he fails to complete his purchase. Do you agree with all the conditions suspensives(let-out clauses) inserted by your buyer?

If for any reason you do not wish to sign the acte de vente in the presence of the notaire in France we can arrange for a French power of attorney to be sent to you for signature in England, the effect of which authorises the notaires clerks to sign any documents on your behalf.

When your buyer signs the contract he must usually pay a deposit of 10 per cent of the purchase price to the notaire or a licensed French estate agent which is held in a non-interest bearing account. However, we can arrange for the deposit to be placed in an English interest bearing account in which case a proportion of the interest, which accrues, can be paid to you on completion.

If all the conditions suspensivesare met, but your buyer still withdraws from the contract, you can usually keep all the deposit. Depending on the wording of the contract you may also be entitled to damages and/or other remedies. If you withdraw from the contract without your buyer's consent, you must usually refund the deposit to him and also pay the same amount again in damages.

If you let your French property your tenants may have a first option ( droit de pre-emption) to buy it from you, even if you have contracted to sell elsewhere. If your property is in rural France, neighbouring farmers may have similar rights. Various French authorities may have pre-emptive rights if your property is needed for rod widening schemes or similar infrastructure projects. As previously indicated we can make various searches and enquiries to establish whether your French property is likely to be affected by any pre-emptive rights in the future.

In the event that a pre-emptive right affects your French property, the relevant authority must be informed of your intention to sell after the contract has been signed. Usually your notaire sends a declaration d'intention d'aliéner (DIA) on the pre-emptive right holder specifying the agreed sale price and full identity of your buyer. The holder of the pre-emptive right usually has 2 months in which to reply to the DIA. In many cases no reply is ever-forthcoming buy you must still usually wait 2 months from the date on which the DIA was posted before completion of your sale can legally take place. However, some French authorities will expedite their response to the DIA on payment of a fee (usually no more than about £50).

Furnishing styles vary enormously from country to country. However, in general, it is advantageous to include the furnishings in the sale price. Second-hand furniture and equipment of any kind commands only the lowest possible prices in France if sold separately from a property. Therefore, it is preferable, if you do not need them elsewhere, to add something on to the sale price for kitchen equipment, such as dishwashers and refrigerators, rather than to try to sell it elsewhere.

Even if the property contents are listed in the French estate agent's particulars, you can in theory remove them. By law, however, you must include in the sale anything that is part of the fabric of the French property (e.g. plumbing, central hating and other installations integrated into the structure) which are classed as immovable property ( immeubles) and cannot therefore be removed, unless it is specifically agreed between the buyer and the seller that particular items are excluded. The French courts have defined immeubles to include trees and shrubs in a garden; electric sockets, wall switches, lamp socket holders and wiring, and garden sheds/greenhouses built on foundations. French law defines immeubles to include wine presses, vats, barrels and distillation stills located in the property!

Over the years, various meubles can get fixed to a French property and lose their removable nature by becoming part of the structure. French law defines these to be immovable if the owner attached them to his property on a permanent basis. For example, the French courts have decided that the seller should not have removed a bath and toilet, which in that particular case were held to have been fixed to his property on a permanent basis (but see below).

our buyer should assume that any meubles will be removed by you unless you have formally agreed to sell these to him in addition to the French property. The French courts have defined meubles to include cookers, freezers, fridges, dishwashers, washing machines and any similar detachable equipment, heaters connected to mains supply only by plugs or detachable means of connection, lampshades and light bulbs, carpets, underlay and curtains, and free-standing garden furniture and sheds.

Rather confusingly, in one case the French courts held that prefabricated kitchen cupboards were removables, which were not sold with the property; but in another case held that a fitted kitchen was immovable property and could not be removed by the seller. These two conflicting decisions can be partly explained by the fact that a French court judgement in one case is not binding on other courts and there is therefore no way of accurately predicting how the French courts are likely to decide a given case.

More specifically, the acid test is the extent to which property is a permanent part of the structure of the main building. For example, French law states that movable property becomes immovable property if it has been sealed in plaster, lime or cement, or if it cannot be removed without breaking or damaging that part of the property to which it is attached. Examples include mirrors, paintings and other tableaux which are only classed as immeubles if their backing is integral with the woodwork or other fabric of the main structure of the building. So, if removal of property does not cause breakage or damage (e.g. major deterioration to plaster work) to the main structure, it will usually be classed as meuble. For example, in one case the French courts held that electric radiators were removable by the seller, even though such removal resulted in minor damage necessitating some replastering. And yet in another case the French courts held that a medieval fresco in a disused church was removable property, despite the fact that it was integral with the fabric of the main structure. Other litigated cases have involved curtain rails and tracks, fitted (and other) bookshelves, built-in kitchen units and appliances, built-in cupboards and wardrobes, electric storage heaters, wall lights, water softeners, decorative door furniture and door chimes, bathroom fittings and free-standing garden ornaments.

Litigation in France is not a desirable option. To avoid disputes, an inventory should be prepared and attached to your purchase contract detailing what is included in the sale price and what is not. Please contact us for further assistance.

We hope you have many years of happiness from your French property before the time comes to sell it. That time will eventually arrive, though. And that's when capital gains tax kicks in.

Non-residents selling French property often believe incorrectly that any gain in the value of the property needs to be declared and taxed in their country of residence. In fact, the French tax authorities will want 33.33 per cent of any gains realised by non-residents on the sale of French property. If the French tax authorities believe that your acquisition of French property was business or profit motivated, the rate of tax increases to 50 per cent.

In France, there are two ways of arriving at the net taxable gain depending on whether the vendor is an individual or a commercial company. If the property is owned by an SCI (a French property-holding company) the capital gains tax treatment will depend on whether the SCI is subject to French income tax or French corporation tax. In the latter case, it will be classed as a commercial company and subject to French business capital gains tax.

Capital gains in the hands of individuals or SCI's subject to French income tax are determined as the difference between the sale price and the base cost, which is indexed for inflation. The base cost includes the purchase price and expenses, plus any major restoration work (but not painting, decorating or other embellishments). The difference, i.e. the gross gain, is then reduced by 5 per cent per year of ownership beyond the second. In other words if an individual has owned the property for over 22 years the gain is totally cancelled.

The 5 per cent reduction is granted for each full year of ownership (beyond the second) from the exact date of purchase. For instance, the full period of ownership of a property bought on 15 May 1990 and sold in March 2000 will be 9 years. If the property was sold after 15 May 2000 the vendor would gain an extra year and thus a further 5 per cent reduction.

The gross gain is further reduced by a general annual abatement of FrF 6,000 and, if it is their first sale of a secondary home in France, the vendors may apply an abatement of FrF 40,000 (for a married couple) or FrF 30,000 for a single person, plus FrF 10,000 per child (whether dependent or not). For this, they must have had the use of the property (i.e. not rented) for a five-year period, which need not be consecutive from the date of acquisition.

The business capital gains regime is not so generous, as the base cost is reduced by a 2 per cent depreciation on the buildings per year of ownership, thereby inflating the gain. Furthermore, no indexation or other abatements are applicable. This method applies, for instance, to foreign limited companies owning French property, but also to any SCI liable to French corporation tax (usually when they have rented the property out on a furnished basis) although there are ways round this problem. It also applies where an individual has registered the property as a business asset, used for instance for seasonal lettings. In this case, the taxpayer has benefited from depreciation for the purposes of French income tax on the rental income.

However, there is an exemption from French capital gains tax for small businesses, but the following conditions must be fulfilled: the activity has been running for at least five years at the time of the property disposal; and the annual turnover does not exceed FrF 1m.

Non-residents may be asked to appoint a fiscal representative whose responsibility is to calculate and to collect the French capital gains tax. The person or business acting as a fiscal representative undergoes a "tax audit" to gain the French tax authorities' approval.

The fiscal representative is responsible for the payment of French capital gains tax if the liable taxpayer they are acting for fails to pay this. For this reason it is very rare to find a person who readily accepts this role and non-residents are left with no choice but to appoint a professional firm to act as fiscal representative. These normally charge a fee of 1 per cent of the sale price, deductible from the taxable gain. The service they offer for this fee includes advice and calculation relating to the computation of the taxable gain, the preparation of the relevant returns, and representation of the taxpayer in case of conflict with the French tax authorities.

The fiscal representative will scrutinise each invoice claimed for deduction in respect of renovation, property improvements and so on. To be allowable, the French tax authorities will usually require sight of all original TVA receipted invoices (copy invoice, receipted estimates or 'back of an envelope' type invoices are normally unacceptable). If you have used British or other non-French contractors, the French tax authorities will usually only allow their charges as an allowable deduction if their invoices expressly state that they relate to your French property.

Taxpayers who have not kept any evidence of renovation work may deduct a notional amount of 15 per cent of the acquisition price. This notional deduction is subject to evidence that work has effectively been carried out and may require the certificate of an expert. If the taxpayer has done the work himself and has kept all invoices for material and equipment, the deduction can be fixed as the total invoices multiplied by three to reflect the work done.

If they feel that the deduction of some invoices may be questionable, but deduct them anyway, the fiscal representative will retain a sum as surety to cover the risk of reassessment. The latter runs for a four-year period after the filing of the French capital gains tax return.

Where there is a capital loss or the gain is low, the notaire will normally apply for a dispensation from fiscal representation.

British resident must also report their sale of French property to the Inland Revenue. The French tax authorities are likely to pass on to the Inland Revenue any information they have about your French affairs to include copies of your French bank account statements and any capital or interest credited to you. The Inland Revenue also has the right to see all correspondence leading to the sale of your French property.

Under the Anglo-French Double Tax Treaty any liability for French capital gains tax should be wholly or partially offset by way of credit relief against any UK capital gains tax.

You must accept that you will not get your proceeds of sale on the day of sale. How soon you will get them varies from notaire to notaire and depends on a number of factors but, on average, you should expect not to receive them for at least ten days. Make sure that you or your adviser checks with the notaire when the payment is likely to be made and, if you are in a hurry, make certain he is aware of this. Since notaire's do not keep clients' accounts in ordinary clearing banks, payment will either be paid into your French bank account or through a French clearing bank to your account elsewhere, which will add to the delay in it reaching its correct destination.

For various reasons sales of French property often do not complete on the date limite provided for in the contract. Although you may initially be relaxed about this the time may come where further action is necessary. Unless the contract contains an appropriate penalty clause obliging your buyer to pay you a further sum of money for each day that he defaults, your only recourse is to instruct a French bailiff ( huissier) to serve a notice on your buyer obliging him to complete the transaction within 15 days. If after 15 days your buyer has still not completed his purchase a French barrister (avocat) must usually be instructed to issue proceedings against your buyer.

Yes. The pitfalls involved in selling French property may cause you problems and expenses, which can often persist for many years after completion. However, advance preparation is the key to a successful sale of French property. For peace of mind, therefore, we recommend that we carry out a "health check" of your papers and prepare the sales contract to ensure that your position is fully protected. On inspection by us many cases reveal flaws of ranging importance. Typically these include failure by the seller to obtain the necessary written authorisation(s) for various building or other improvement works to the French property. Generally speaking bathroom/kitchen conversions and other works carried out to the inside of a French property do not require planning permission. There are however exceptions to this rule. In several cases we have successfully obtained retroactive planning permission. Similarly, we may be able to conduct other searches and enquiries, which will answer various questions that may be asked by your buyer or his lawyers.

For instance, if you contract to sell a French property but fail to transfer the freehold title, you must not only refund the purchase monies to your buyer (plus any difference if there has been an appreciation in value) but the French courts may order you to pay significant damages to your buyer. This problem is only likely to occur if the notaire who previously acted for you did not recite in your French title deeds that there was an unbroken chain f ownership dating back at least 20 years, or you knew that a third party might have a right of way, mortgage or other claim to your French property. To avoid potential exposure to litigation, we may need to ask the notaire for a written guarantee to be placed in your deeds stating that he is completely satisfied with your title to the French property.

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