The Step by Step Purchase Process
By Adrian Leeds

In a recent report from the Chambre de Notaires was a step by step guide through the process of property purchase in France. The following is an explanation/translation of their "dossier" "De la visite d'un bien immobilier à la signature de l'acte authentique de vente" translated into English and coupled with additional explanation that is helpful to a non-resident buyer.

This process takes you only from the point you've found the property you've decided to purchase, but not the finding process itself. From recent experience here in Paris in particular, there is so little good property on the market that properties worth purchasing are selling within literally minutes. You must be prepared to make an offer virtually the moment you see it, and in most cases, offer the full asking price, to ensure that it won't be sold to the next person who walks in the door to visit it. (The sellers are morally obligated to accept asking price!)

You may think this is a joke, but in the last week, we've had two such situations, where the buyer hesitated for only a few hours and lost the property for exactly those reasons. This is an excellent time to buy, if you can find the right property -- as interest rates are at an all time low and the U.S. dollar to euro rate of exchange is more favorable than it's been in a long time.

We have not seen prices drop in central Paris and "au contraire" -- prices are holding very well, considering the small inventory with which the agents have to work.

Should you be lucky to find the property (and we do recommend you work with experienced property finders to do that), here's what you can expect to be the process:

Step 1. The Purchase Offer

You find an apartment you wish to purchase (with financing) and the agent or property consultant recommends you make an offer on the property.

In the offer, you propose to the seller a certain price, any contingencies to the purchase and a limited amount of time within which to respond to the offer.

If you were to offer 'asking price,' the seller would be morally obligated to accept your offer and therefore you could virtually 'guarantee' the property would be held for you and no one else could 'out bid' your offer.

There are contingencies which could be very important to the offer, such as appliances and furnishings which you would want to 'purchase' with the apartment and any other requirements the seller must be obligated to fulfill.

Note that even if you believe you will not keep the old appliances, any value to them will be deducted from the selling price noted on the "Acte de Vente" (final title deed), thereby reducing your Notaire taxes and fees! So, do not say NO to anything they wish to include with the purchase.

Step 2. Choosing the Notaire

The offer letter does not legally bind you to a purchase. If the seller accepts your offer, or if negotiations go back and forth until a 'deal' is set, then only until a "Promesse de Vente" or "Compromis de Vente" (Purchase Contract) is signed, is the contract binding.

It is at this stage that a Notaire must be employed to represent you and a date of signature is set. It is highly recommended that each party choose his own Notaire for representation and it costs not a penny more as the Notaires share their commissions.

We recommend working with a Notaire who speaks English and charges nothing extra for that. If you are working with a property consultant who is familiar with the documentation and process or a Notaire you fully trust, then a translation of these documents should not be necessary.

The Notaire will require a long list of documents in order to prepare for the signing of the Purchase Contract, most of which will be provided by the Notaire of the seller.

But you must be prepared to provide your personal information and a copy of your passport along with how you intend to 'structure' the purchase -- that is who will actually hold title to the property. You may choose to change the structure for the signing of the Acte de Vente as long as the Purchase Contract allows for a "clause de substitution."

Should you choose to take a mortgage, you may also want to include a "clause suspensive," or contingency clause, that protects you from default should you not be able to obtain financing. Be sure to ask your lender, Notaire or property consultant how to arrange this, as this is an integral part of the process and is designed to protect both the buyer and seller. (Or see below for a more detailed explanation.)

Step 3. Signing the "Promesse de Vente" or "Compromis de Vente" (Purchase Contract)

The Notaires will prepare the documentation for the signing of the Purchase Contract and you will be asked to provide a deposit held in escrow by the Notaire. This is normally 10% of the purchase price of the property, however, in today's market with prices escalating in central Paris, sellers will often agree to holding 5%, as long as the buyer is willing to pay the full 10% should a default occur.

At this time, the seller must provide the required diagnostics:
energy efficiency, termites, lead, asbestos, natural risk, swimming pools, flooding, quarries and the "Loi Carrez" (official habitable space). He must also provide the "Réglement de Copropriété" (homeowners association bylaws), the "carnet d'entretier de l'immeuble" (maintenance record of the building) and proof of the "copropriété" annual fees.

The buyer, seller, representing Notaires and agents convene for the actual signing. The buyer and seller may have an outside representative or Notaire sign on his behalf with Power of Attorney. We do not recommend that your own Notaire sign on your behalf, as it's best to have another outside but interested party reviewing the signing in your interest. This is another situation where a property consultant can be very valuable and act to protect your interests.

Once the "Promesse de Vente" or "Compromis de Vente" is signed, you have seven days within which a full retraction of the purchase can be made with no financial or legal ramifications. This is called the "cooling off period." For legal reasons, a registered letter must be sent to notify the Notaires and the deposit will be returned within 21 days of the retraction.

Step 4. Preparing for the Final Signing of the Deed: Financing the Property

If you choose to finance the property, applications must be submitted to the banks. Non-resident buyers should work with banks and lending institutions that specialize in non-resident loans or with loan brokers that can provide the service.

The timing is critical, as the Purchase Contract will dictate the deadlines to acquire a loan offer and an 10-day waiting period is mandatory before an offer can be accepted. One contingency of the Purchase Contract ("clause suspensive") regarding the loan is a protection for both the buyer and seller outlining the specific conditions of the loan. If a loan of a particular amount, at a particular rate, and particular term, as requested by the buyer, is not achievable, by proof of the bank's rejection of the applicant, then the buyer will not lose his deposit and the property will revert back to the seller.

Meanwhile, the Notaire gathers specific information and prepares for the signing of the final deed. He must verify that the seller is the rightful owner of the property, that the description of the property is correct in regard to the city planning and easements, along with what money may be owed on the property.

Step 5. The Signing of the "Acte de Vente" (Final Deed)

You have received your loan offer and you have accepted it 10 days later. The day comes to sign your Deed of Sale. The Notaire's dossier is complete and checks are prepared by you for the balance of the purchase responsibility or money is wire transferred to the Notaire (down payment, taxes and fees), checks are prepared by the lending bank for the payment to the seller and by the Notaires to pay the various commissions and fees.

Once again the buyer, seller, representing Notaires and agents convene for the actual signing. The keys are ready to transfer to you, the buyer, in exchange for the check of payment to the seller.

Step 6. The Final Payment and Deed of Sale

The Notaire hands over a check to the seller in full payment for the property and an "Attestation" of the sale to you, the buyer. The documentation will then be submitted to the Chambre de Notaires for official recording and processing. It may take six months or more before you receive the final recorded deed and normally there is a small refund of overpayment of fees, as the assessment at the time of closing is just an estimate and always greater than the final amount officially due.

You, then walk away with keys in hand to your newly purchased French property to enjoy for as many years as you like!

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A Place in The Sun Property Exhibition

A Place in the Sun Live features thousands of overseas properties for sale, by hundreds of exhibitors from more than 40 countries worldwide. And with homes from less than £20,000 to over £1 million, there really is something to suit almost every taste - and budget.

The next A Place in the Sun Live takes place at Earls Court, London on 26th - 28th March 2010.

With everything you need all under one roof, you'll have a unique opportunity to compare properties and talk to the agents and developers face-to-face, all in one place!

Whether you are in the market for a great investment property, idyllic holiday home, a place to retire to or a permanent residence abroad, A Place in the Sun Live will bring you a step closer to owning your place in the sun. There's everything from new and off-plan apartments and developments, houses, villas and unique character properties.Full details and tickets available at www.aplaceinthesun.com/visitorinfo.

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If you are interested in traditional fractional ownership properties currently offered by ourFractional ownership partners, see below:

Paris: LE PALACE DES VOSGES	Paris: LE NOTRE DAME
Paris: LE ROYAL du MARAIS	Paris: L'ABBAYE LUTÈCE
Paris: CHEZ LA TOUR	Paris: La Résidence Luxembourg
Paris: LE PETIT TRESOR	Languedoc-Roussillon: MAISON BLEUE
Paris: PARIS RESIDENCE CLUB	Languedoc-Roussillon: NOTRE MAISON DANS TOULOUGES

Readers of FPI can take a look at special offers for Le Palace des Vosges, Le Petit Trésor and Chez La Tour at adrianleeds.com/frenchproperty/fractional.

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The Paris property market popular among the Russians
By Michael Gerrity

Russians Trigger Price Hikes for Paris Properties...

http://www.realestatechannel.com/

The Paris residential property market has always been popular among the Russians, and will always be. Despite any economic crisis, Russian demand for the Paris residential real estate is steadily increasing.

The Paris residential real estate market has suffered less than many other European capital cities, and according to real estate analysts, prices for Paris real estate have started to recover since the second half of 2009.

Real estate analyst of Paul's Yard, one of Russia's largest realty agencies, said that the growing interest of Russians to the French property can be attributed to the fact that this year (2010) was officially declared as the Year of Russia in France and France in Russia.

Currently many Paris shops and restaurants are actively using Russian motives in their marketing plans, designs, and organizing numerous exhibitions aimed at Russian tourists. Many restaurants are now designing their menus in accordance with the preferences of Russians.

In addition, a recent acquisition of a land plot near the Eiffel Tower by the Russian government for further construction of Russian Spiritual Home may lead to further price increases for the Paris property and land.

According to Paul's Yard, the Paris apartments with the prices starting from 8-10 thousand euros per square meter in 6, 7, 8, 15 districts of the French capital currently are in great demand among Russians as well as other foreign buyers...

Read the entire article at http://www.realestatechannel.com/international-markets/residential-real-estate/real-estate-news-russian-home-buyers-paris-france-real-estate-sales-pauls-yard-realty-french-property-market-trends-2081.php.

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Watch Adrian Leeds and French Property Consultation on
House Hunters International - NEXT WEEK!

***"Vacation Home in Paris"
Episode HHINT-1A05H
March 04, 2010
12:00 PM ET/PT
www.hgtv.com/house-hunters-international/vacation-home-in-paris

To learn more, visit http://www.AdrianLeeds.com or email Adrian Leeds, at adrian@adrianleeds.com.

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Take the Risk Out of Currency Conversion

 

If you’re buying a holiday home or investment property overseas, when you trade your currency is crucial. The euro exchange rate is constantly fluctuating, so trading at the right time will mean your money goes a lot further. Adrian Leeds Group LLC and Moneycorp are working together to ensure you make the most of your Dollar or Sterling when buying a property in France.

For the latest exchange rate use our currency converter at http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor and learn more about moneycorp ere:
http://www.moneycorp.com/affiliates/microsite/index.cfm?agentid=10168408.

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One-Hour Consultation with Adrian Leeds Free!

If you are a guest staying in any one of our luxurious Parler Paris Apartments, and would like to consider having your own "pied-à-terre" for your pleasure and profit, contact Adrian Leeds for a FREE one-hour consultation while you're enjoying the apartment in the City of Light. Visit http://www.adrianleeds.com/parlerparis/apartments for more information or email me at adrian@adrianleeds.com.

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Irish Quit the Cote d'Azur
By Frances O'Rourke

http://www.irishtimes.com/

MANY IRISH people who flocked to the Côte d’Azur in the noughties to buy apartments and villas in the sun are now selling up – but still making a profit, according to estate agent Bernie Ennis.

Irish people under financial pressure at home are trying to release the equity they sank into second homes on the Riviera. “I get calls from people asking me to get an estimate and to do the paperwork in case they are going to sell,” says agent Hilary Larkin. “Then a few weeks later, I’ll get a call asking me to go ahead and sell.”

Agents like Ennis, of World Homes Investments in Dublin, sold apartments and villas on the Riviera as prices rose between 2000 and the peak in 2008, many by as much as 70 per cent. They have fallen since then, but not by much more than 10 per cent, according to Ennis.

Ennis believes that even after paying notary fees and capital gains tax (25 per cent for Irish residents), buyers should make some profit: many buyers only got 80 per cent mortgages because of strict French lending conditions, so most should recoup their 20 per cent investment along with the increase in capital value...

Read the entire article at http://www.irishtimes.com/newspaper/property/2010/0225/1224265138114.html.

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Parler Paris Apartments

http://www.adrianleeds.com/parlerparis/apartments

Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments andme, Adrian Leeds. Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible.We at Parler Paris know each and every apartment owner or manager personally, and stand behind thequality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home ­ and a much better alternative to an impersonal hotel!Parler Paris Apartments is administered and serviced by the same greatteam as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do heir best for your 100% guaranteed satisfaction.

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Sleeps up to 2

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Reserve now! Visit http://www.adrianleeds.com/parlerparis/apartments/rentals/beaubourg.html

For more information go to www.adrianleeds.com/parlerparis/apartments or mail:apartments@adrianleeds.com.

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French Property in Aquitaine
By Daniel Lafferty

http://www.ezinearticles.com/

Aquitaine is one of the 26 regions of France. Situated in the Southwest of France along the Atlantic Coast and Pyrenees and bordering Spain, property in Aquitaine can be found in all 5 departments of the region - Dordogne, Lot et Garonne, Pyrenees Atlantiques, Landes and Gironde.

Property in Aquitaine can be dated as far back as prehistoric times. Nowadays 6% of the French population live in properties in Aquitaine. With a population of around 4 million, that's got to be around 1 million French properties in Aquitaine that will at one time or another come up on the French property market.

Aquitaine boasts most forms of landscape from beachfront, open plains, rolling hills to the peaks of the French Pyrenees. Property in Aquitaine can be found in whatever landscape you dream of living in.

House hunting and Aquitaine property buying is made easier with the many flights available from the UK to terminals in Bordeaux, Bergerac, Pau and Biarritz.

Aquitaine has boasted glamour and glitz since the 1930's and the French have been buying second homes in places like Biarritz and other trendy resorts in the area since then. So, if the French Parisians set the trend in fashion, they also set the trend in where the best places are to buy property in France. If you have property in Aquitaine you will certainly be living the 'joie de vivre'...

Read the entire article at http://ezinearticles.com/?French-Property-in-Aquitaine&id=3763938.

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HOT PROPERTY PICKS: Hot Spots Shopping

Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.

This week we focus on properties located in the what's-old-is-new-again hot spot regions of France.

	*** Gascony: Four-Bedroom, approx. 140m² Located on the border of Haute-Geronne and the Gers, in the heart of the beautiful south west France. The picturesque Pyrenean mountain range is within close proximity, thus providing the benefits of a number of outdoor pursuits, including skiing. Beautiful views over the surrounding countryside. This old farm has lots of charm, character and original features. 4 main rooms - some with period fireplaces, shower room and toilet on the first floor. Oil-fired central heating.Various attached outbuildings offering lots of potential for conversion.Land of around 3 hectares surrounding the house and 2.5 hectares elsewhere. Asking Price: € 180 000 + 2% finders fee
	*** Saumur, Loire Valley: Three-Bedroom, approx. 100m² Well maintained village house in the exciting town of Saumur. Easy driving distance to many of the local chateaux. Most rooms have exposed stone walls and beamed ceilings. Consists of an excellent entry hall, two sitting room areas, equipped kitchen and dining room, and an office in addition to the bedrooms. Also has a cellar and garage, and attic space that can be finished out. Asking Price:€ 214 000 + 2% finders fee
	*** Cote d'Azur: Four-Bedroom, approx. 130m² A a lot of charm in this old maison. It is in perfect condition, built on a flat piece of land of 2068m² with olive trees and a swimming pool. The garden level consists of a living room with fire place, American kitchen, one bedroom and one bathroom. Upstairs are two bedrooms, one bathroom , an additional bedroom or a separate living room with a terrace. Thirty minutes to the airport in Nice. Asking Price:€ 895 000 + 2% finders fee
	*** Velleron, Provence: Two-Bedroom, approx. 65m² This charming property is located in the heart of a pretty market village five minutes from Isle-sur-la-Sorgue. It has the advantage of a roof terrace, garage and workshop, and small garden just across the ruelle (little narrow street) from the house. The house consists of; street level: a shop, office, or studio; garden level: hallway, dining kitchen, bathroom and separate wc; 1st floor: sitting room with fireplace, bedroom with lots of closet space, separate wc; 2nd floor: large bedroom with high ceiling and exposed beams, leading out onto the terrace with views of the village roofs and beyond. Asking Price: € 250 000 + 2.5% finder's fee

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The Next Notaires' Property Auction - March 16, 2010

Notaires de Paris
Place du Châtelet
12 avenue Victoria
Paris 1st

 

Additional information on Les Ventes aux Enchères des Notaires can be found on the Web site at www.encheres-Paris.com.

To read Schuyler Hoffman's article about the property auctions in Paris, click on: www.frenchpropertyinsider.com/

>

	The following properties will beauctioned off March 16, 2010:
	2010-06-01 2 Rooms 33m² 49 rue Sébastien Mercier 75015 - PARIS 15eme Starting Bid: 140 000,00 € Deposit 14 000,00 €
	2010-06-02 House 66m² 3 Passage Volta 94200 - IVRY SUR SEINE Starting Bid: 112 000,00 € Deposit: 22 400,00 €
	2010-06-03 2 Rooms 36m² 35 rue Emile Desvaux 75019 - PARIS 19eme Starting Bid: 160 000,00 € Deposit: 32 000,00 €
	2010-06-04 2 Rooms 33m² 11 rue Beauregard 75002 - PARIS 2eme Starting Bid: 128 000,00 € Deposit: 25 600,00 €

Editor's Note: If you look at the properties on the Notaire's site (www.encheres-paris.com), when you click on the information for a particular property there is also a link to Google Maps to show you exactly where the property is located.

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SEEKING A MORTGAGE IN FRANCE?

When you make a purchase as important as a piece of real estate in a foreign country, you ant to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.

Let us help you secure a mortgage in France at a competitive interest rate. Visit www.adrianleeds.com/frenchproperty/loan for more information or contact Loan@AdrianLeeds.com

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HELPFUL CONVERSIONS FOR REAL ESTATE

1 square meter = 10.7639104 square feet

1 hectare = 2.4710538 acres

For more conversions, refer to: www.onlineconversion.com/

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Parler Paris Après Midi: Next Meeting

www.adrianleeds.com/parlerparis/apresmidi.html

The second Tuesday of every month, Parler Paris and French Property Insider readers gather at La Pierre du Marais for a drink and a "schmooze" --It's an opportunity to meet and chat with other like-minded people and a great way to make friends! Costs nothing except your drinks. Don't miss the next gathering Tuesday, March 9th, 2010 from 3 to 5 p.m. and every second Tuesday of the month (except August).

 

 

 

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Managing Your French Property Insider Subscription is Easy!

We receive many emails from French Property Insider Subscribers who want to change their email address, or update personal information. But did you know that you can make these changes yourself?

It's easy...

1. Go to www.adrianleeds.com/frenchpropertyinsider

2. Click on "Manage Subscription." You'll find it under the "Subscribers Only" section in the sidebar.

3. Enter your username and password.

4. On the Welcome Page, go to "Manage Your Account" and click on "Change Password/Edit Profile"

5. Once you've made the changes, scroll down to the bottom of the page and click on "Save Profile."

Simple!

Of course, we're always happy to help, so if you do need assistance, send an email to fpi@adrianleeds.com.

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THINGS YOU NEED TO KNOW

To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber's Only," then type in your personal username and password.

Past issues of FPI are available on the Web site. You will find the
"Past Issues" link on the left under "Subscribers Only" or by going to
www.adrianleeds.com/frenchproperty/insider/membersTo receive your free French Leaseback Report or the Paris Property
Report, click on
www.adrianleeds.com/frenchproperty/insider/members

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We wanted better guides, So we wrote them!

Insider Paris Guides are written for people who love the City of Light. You'll get a Paris insider perspective on Restaurants... Making a Life... Black Culture... Expat Writers...and the newest guide, Practical Paris!

French Property Insider subscribers receive a discount of 10% off any uide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Here's how it works:

1. Click on special Web link we give you just for FPI subscribers.

2. Then order one or more guide(s) and use the promotion
code "ED762." This promotion code gives you 10% off your total
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3. If you order two or more guides, then an additional 15% will be
taken off automatically. There is no promotion code needed.

Here is the special "coupon" Web link just for you:
www.insiderparisguides.com/offer

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If you're not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it's free!): www.parlerparis.com

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