What does the procedure of purchasing a flat or a villa in France consist of?
Before purchasing real estate which you are interested in it's necessary to contact a local notary public who'll help you in performing the whole process. Then you should negotiate a price with the seller. In most cases it's enough to come to an agreement orally and then the notary public will start drafting a forward contract. If you want to purchase real estate on credit then it's necessary to include in the forward contract a period of time for getting a credit which may vary from two to six months. Before signing the forward contract it's necessary to grant up to 10% of your flat or house cost as a deposit on your notary public account. The final real estate purchase contract is signed in the notary public office after getting the credit.
Which forms of a forward contract about the purchase are there in France?
After negotiating the prce between a seller and a buyer the forward contract is concluded in the form of "promesse de vente" (in full "promesse unilatérale de vente") or "compromis de vente" (which is also called "promesse synallagmatique de vente"). "Promesse de vente" is an authority to purchase which a seller provides to a buyer for a certain period of time. In case of "Promesse de vente" a seller has more opportunities to cancel a contract. "Compromis de vente" is a double-sided obligation of the seller to sell and the buyer to buy real estate during the specified period of time. In both cases the buyer deposits 10% from the cost of the villa or the flat. The amount of the deposit can be less on agreement with the seller. After signing the contract the buyer has 7 days when he can cancel the purchase without losing the deposit. On the expiry of 7 days the buyer must buy the property for the negotiated cost during the period of time, specified in the contract, which can vary from several weeks to several months. Nowadays "Compromis de vente" is a more preferable form but if you buy a flat near Paris you may be suggested "Promesse de vente". But if you buy a villa at the Cote d'Azur you'll probably sign "Compromis de vente".
What is Société Civile Immobilière (SCI)?
There is a difference between civic and commercial activity in the laws of France. Civic activity concerning real estate ownership includes real estate leasing or real estate ownership for one's personal use. SCI is the most widespread form of real estate ownership in France and Monaco. For SCI creation there should be at least two individual persons having parts of real estate, defined in SCI regulations.
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