France is known for its beautiful countryside, historic cities, and idyllic villages. Over 3 million foreign nationals own property in France, attracted by the mild climate, slower pace of life, and high quality of life. If you're considering selling your French property, this complete guide will walk you through everything you need to know about the French property selling process from start to finish in 2024.
Requirements for Selling French Property
Before placing your French property on the market, you'll need to tick a few boxes to ensure the sale goes smoothly:
Secure Ownership Documents
First things first, gather all documentation proving your ownership of the French property. This includes:
- The purchase deed (acte de vente)
- Land registry certificate (extrait cadastral)
- Any building permits for construction work
- Utility bills in your name
Proof of ownership is essential for the notary and provides transparency to the buyer.
Pay Any Outstanding Taxes
You must settle any overdue taxes on the property prior to sale. This includes:
- Property taxes (taxe foncière and taxe d'habitation)
- Capital gains tax
We'll go into further detail on taxes when selling French property later in this guide.
Perform Required Diagnostics
France legislation dictates that all properties for sale must have an energy performance certificate and other compulsory diagnostics.
Required diagnostics when selling a French home are:
- Energy performance diagnosis (DPE)
- Electrical conformity certificate
- Natural and technological risks report
- Asbestos report
- Lead exposure risk diagnosis
In some cases, you may also need:
- Termites diagnosis
- Radon exposure measurement
- Wastewater conformity test
Failure to perform these mandatory checks could halt a potential sale.
Clear Out Your Property
It's advisable to clear out French property before sale by:
- Removing all personal belongings
- Deep cleaning the entire home
- Clearing out storage areas/garages/attic space
- Ensuring there's nothing that could deter buyers
Staging your property can also help it sell faster by showcasing its full potential.
Select Your Sales Method
There are several options for how to sell French property:
- Sell privately (entre particulier) also known as For Sale By Owner (FSBO)
- Via a real estate agency - they will market and facilitate viewings
- At auction through a licensed auctioneer
Weigh up the pros and cons of each method to choose what best suits your needs.
Finding Professional Help
Selling French property involves a lot of bureaucracy, paperwork, and legislation mastery - tasks that are challenging if you don't speak French.
For a smooth process, it's advisable to have language and legal support via:
A Bilingual Agent or Lawyer
A French estate agent or solicitor who speaks fluent English will guide you through the process. They can value your French property, market it internationally, organize viewings, negotiate offers, and project manage the sales process. Fees are usually 4-8%.
A Notary Public
French property sales must go through a notary - an independent legal specialist appointed by the French government. They check the 'provenance' of the property, carry out required searches, finalize contracts, arrange surveys, collect taxes on completion, pay off any debts attached to the property, and transfer ownership deed.
Notary fees are regulated by law and are usually shared between the buyer and seller. Overall fees are around 7-10% of the French property selling price.
Steps in the French Property Selling Process
Now let's dive into the key steps that take your property from "for sale" to "sold":
1. Valuation
Having an accurate idea of your French property's value is essential for setting an attractive asking price.
There are two main options:
- Comparative Market Analysis: Your agent or notary will perform a comparative market analysis taking into account recently sold properties in the area similar to yours. This gives an estimated sale price range.
- Formal Valuation: A professional valuer/surveyor carries out an in-depth inspection providing a formal value estimation in an official report. This costs around €200-500 but is seen as more legally robust.
Ensure you can justify your valuation with evidence to buyers later down the line.
2. Mandate an Agent or Auction House
If selling via an agent or auction, they will ask you to sign an official mandate document allowing them to market your French property on your behalf.
The exclusive mandate gives them exclusivity to sell your property for an agreed period, usually 3-6 months. You cannot sell via other means during this time.
A sole mandate allows you to also promote the listing yourself or via other agents. This is less common in France.
Make sure conditions regarding commission fees, advertisement budgets, responsibilities, etc are clear before signing.
3. Marketing & Viewings
Your agent will now get to work compiling listing materials to showcase your French property in its best light, including:
- Professional photos / videos / 3D scans
- Detailed sales particulars
- Eye-catching advertisements
- Customized listing descriptions for each portal
- Print and digital marketing campaigns
They will promote the listing across suitable property portals as well as their website and office. If selling privately, you will have to manage marketing single-handedly.
When potential buyers show interest, the agent or auctioneer will qualify them, then organize and accompany viewings.
4. Negotiate Offers
Once you start receiving offers on your French property, your agent will discuss them with you, negotiate back and forth on your behalf, and ultimately secure the desired sale price and terms.
If bids come in via auction, the highest bidder whose offer matches or exceeds the reserve price wins.
Five key factors are negotiated:
- Sale price: Usually offers will come in below the asking price at first. Be prepared to negotiate.
- Inclusions/exclusions: What moveable items are included (or excluded) from the sale? E.g. light fixtures, curtains, some furniture.
- Completion date: This is the date ownership officially changes hands. Aim for 8 weeks minimum for sales procedures to complete.
- Conditions suspensives: Any subjects the buyer makes the offer conditional upon, e.g. obtaining mortgage financing. These will be written as clauses in the offer.
- Deposit amount: Buyers will pay a deposit upfront when their offer is accepted, usually 5-10% of sale price. This is held by notary in escrow during sales procedures then deducted from final amount owed.
Once offer terms are signed off by both parties, the sales process enters its final legal phases.
5. Due Diligence Searches
French property sales are contingent on thorough background checks revealing no issues with the property or validity of documentation.
The notary will carry out numerous searches known as “precontractual due diligence” checks including:
Land registry check – verifies owner identity, size, boundaries
Local authority searches – for planning, building permits, taxes owed
Mortgage check – confirms if property used as guarantee for any outstanding debts
Notaire check – all previous property sales acts must be provided
If issues arise from the searches that deem the property unsellable, the buyer can withdraw with deposit returned.
6. Sign the Sale Agreement (Compromis de Vente)
With due diligence complete, the compromis de vente is signed - the mutually binding purchase agreement governed by French law. This details:
- Property identification
- Sale price
- Inclusions/exclusions
- Completion date
- Other negotiated terms
- 10% deposit payment officially exchanging hands
Date of signature sets the completion countdown officially in motion.
7. Final Preparations
Once offer terms are set in stone, preparations get underway to finalize legal and logistical aspects including:
Legal:
- Notary oversees remaining due diligence
- Land registry service informed to start updating records
- Outstanding property taxes and charges calculated
Logistics:
- Utilities like electricity, gas, water, internet get transferred to buyer’s name via specialist providers
- Buyer sets up insurance policy effective on completion
- Removal firms booked ready for move dates
These elements all synchronize to transition the property seamlessly.
8. Final Property Walkthrough
Shortly before completion date, the buyer will perform one last property inspection to ensure it is still in the condition originally viewed and that any included furniture/items are still in place.
The estate agent usually oversees this final walkthrough. It offers a chance for the buyer to ask last minute questions too.
If issues arise, the buyer may attempt renegotiating or withdrawing from the purchase - so it’s in your interest for everything to appear satisfactory.
9. Sign Deed of Sale (Acte de Vente)
This is D-day when ownership legally transfers to the buyer under French law.
All parties - the sellers, buyers, estate agents, notaires - will gather at the notary's office to sign the final binding acte de vente contract and transfer funds.
The contract will contain:
- Full property details
- Sale price
- Completion statement of accounts - fees, taxes, charges deducted from price
- Date & signatures making transfer of ownership official
Following contract signing, the notary will register new owner details with the land registry and tax authority. Congratulations, your French property sale is now complete!
Taxes on French Property Sales
Let’s now discuss the tax obligations when selling French property that you’ll need to budget for. This includes:
Capital Gains Tax
As the property seller, you are liable for capital gains tax in the year of sale, due within one month of completion.
The capital gains tax rate in France is 36.2% above a profit threshold which varies per your tax residence status:
- 19% for main residence
- 26% for rental/investment properties
- 50% for second homes
Expenses directly linked to the property like renovations/extensions can be deducted from the capital gain.
There are also capital gains tax exemptions for main residences depending on number of years lived in.
Withholding Tax
The notary will deduct a property sale withholding tax from proceeds on completion at rate of 7.5-19% depending on sale price. This is an upfront payment of capital gains tax owed.
If already paid the full amount through direct declaration, this will be reimbursed.
Plus-Values Tax
A form of capital gains tax owed to the local town council in some regions. This averages around 15% of net capital gain.
Sales Commission
Estate agent fees or auction house commissions will be deducted from proceeds. Typically this is 4-8%.
Notaire’s Fees
As mentioned, notaire completion fees are shared between buyer and seller, averaging around 7-10% total.
Non-Resident Surcharge
Non-French resident sellers pay an additional surcharge of 3% of sale price unless they are resident in EU/EEA.
FAQ: Selling French Property
Still have some lingering questions? Here are answers to the most frequently asked questions about French property sales:
What is the procedure for selling a house in France?
The process involves gathering ownership documentation, carrying out required diagnostics, legally mandating an agent, marketing the listing, negotiating offers, conducting due diligence checks, signing the initial purchase agreement, final preparations by notary, property walkthrough, then signing the final deed of sale and money transfer at the notaire's office under French law.
How much tax do you pay when selling property in France?
You must pay capital gains tax which averages 15-20% of profit. The exact rate depends on your residency, property type, and other factors. Your notary will also deduct a withholding tax from proceeds and you may owe local plus-values tax.
How do I transfer ownership of a French property?
The notary oversees signing of the final binding acte de vente sale contract which transfers legal ownership. They registration new owner details with the land registry. Money minus taxes and fees changes hands, completing purchase.
Who pays the fees when selling a house in France?
The buyer and seller share the bulk of fees including notaire charges averaging 7-10% total sale price. The seller also pays their agent’s commission fees if applicable which are typically 4-8% from sale proceeds.
Ready to Sell Your Slice of France?
And there you have it - everything you need to navigate the French property selling process in 2023 for a smooth and successful sale.
Selling French property involves no shortage of bureaucratic hoops from language barriers and red tape. Yet with the right professional help guiding you, plus allocated budgets for taxes and fees, you can relieve the stress and focus on the excitement your onward journey... where next? C’est la vie!
