Buying in Paris is not easy. Demand for housing is high, prices are high but mortgage rates are still very low. It’s the time to take advantage of this!
Set your budget and criteria before any visits.
The first step, the most important one, before starting to look, is to determine your budget!
The budget is our main guide in a property search. It is defined according to your personal contribution and your borrowing capacity. In principle, your monthly repayments should not exceed one third of your income (see our article on property financing). Also remember to include the amount of transfer fees (see our article on property taxation)
It’s important to prioritise your requirement criteria :
The location : proximity to transport, shops, schools
The type of construction : old or new; would you rather have a beautiful parquet floor in a Haussmannian building or the comfort of having access to an underground car park?
The floor : would you prefer a flat on a fifth floor with no lift overlooking the Sacré-Cœur or a ground floor flat with direct access to a leafy courtyard?
The possibility of carrying out works (*provided that it fits in with the budget): do you feel like you’re ready for months of work to create your own dream home, or do you prefer the comfort of moving straight into a flat that’s already furnished and decorated?
Your commitment once the apartment has been found :
To formalise your interest, contact the seller with an offer of purchase. This must include your personal details, the proposed price and your method of financing (How much is your personal? Are you going to take out a loan? How much for?). It’s also advisable to attach a bank loan feasibility certificate. This first document commits you to the seller, before the realisation of the commitment to sell.
We advise you to entrust the drafting of the commitment to sell to your notary.
This agreement will serve as a basis for the drafting of the final deed of sale.
To find out more about the building, the ALUR law now requires :
- Minutes of the general meetings of the last 3 years
- The diagnostics of the lot sold
- A dated preliminary report summarising the status of the co-ownership accounts
- The co-owner regulations and any amendments thereto
- The building’s maintenance log and diagnostics
If the seller didn’t plan ahead for this at the time of the sale of the property, it can sometimes take a long time to gather all these documents. So don’t be surprised if there’s a delay of several weeks between accepting the offer and signing the commitment to sell.
The buyer and the seller can each have their own notary. This doesn’t cost any more, but it may just take a little bit more time.
The buyer’s will collect the documents and prepare the file; the seller’s notary will receive the deed. Their fees will then be shared.
The commitment to sell :
On the day of the signing of the commitment, you pay the notary a deposit of up to 10% of the sale price as earnest money. This amount is kept in a “receiver” account and will be deducted from the final sale price.
If you want to cancel the purchase, you can do so freely during the withdrawal period. This 10-day period runs from the day after the first presentation of a registered letter notifying you of the commitment to sell.
If you’re taking out a mortgage, the commitment may provide for a condition precedent for obtaining a loan. This means that if you are unable to get credit within the time limit (usually 30 to 45 days), the sale agreement may be cancelled and the deposit paid is returned to you. However, you must justify the means used to obtain financing within the deadline.
If, for anyone other reason, you decide to cancel the purchase after the withdrawal period, you will lose the deposit paid.
What happens between the commitment and the signature of the final sale ?
During this time, the notary checks a certain amount of information: if the seller is indeed the owner, the previous property titles, the situation of the property with regard to town urban planning rules, easements, the mortgage situation of the property, etc.
On your side, you undertake negotiating the terms of your mortgage. Once the mortgage offer has been made by the bank, you then have a new cooling off period of 10 days before accepting it.
The sale itself cannot be signed before this term.
There’s usually a period of 3 to 4 months between the signing of the commitment and the final sale.
The signature and the handover of the keys.
When everything is ready, the notary summons all the parties to sign the deed of sale. The sale price and the various costs related to the purchase must be paid to the notary’s account before this meeting. After a joint reading of the deed, you sign, you receive the keys and you’re finally a home owner! Remember to insure your home on that date!
Pending receipt of the property title after the completion of the land registration formalities, the notary will give you a certificate of sale.
We support you and let you benefit from our address book every step of the way !
French Touch Properties is at your side to find and secure your ideal property in Paris through a comprehensive systematic process. See our acquisition service offer.
Call us ! We take care of everything !