A French notaire, also known as a notary in English, is a legal professional who holds a unique and important role in the French legal system. A notaire is an authorized public official, appointed by the Ministry of Justice, and subject to strict ethical standards and professional regulations.
The notaire's responsibilities encompass a wide range of legal matters, with an emphasis on real estate, family law, business law, and estate planning. This system of notarial involvement helps provide legal certainty, reduce the risk of disputes, and maintain the integrity of legal transactions in France. The fact that a deed is drawn up by a notary is a guarantee of its legality and authenticity.
In real estate transactions, a notary is under a legal obligation to provide the buyer with complete information on the nature and the content of the signed agreement and its consequences. The notaire's main role is to secure the transaction, to ensure a non-disputable title of ownership and to collect all taxes due to the State.
The seller can also choose their own notary if they wish, so in some cases, there can be more than one notary.
The notaire will arrange for the translation of the deeds if you require.
The Preliminary contract - "Promesse de Vente"
After the seller accepts your offer, the notaire drafts the Promesse de Vente based on justification that the property belongs to the seller and that there are no impediments to selling it, confirmation that the building conforms to all legal regulations (see DPE and other diagnostics), the seller and buyer civil status, and any contingencies, for example:
The buyer getting a bank loan at a preferred rate
The buyer selling their own home first
Planning permission to make structural changes to the property
Anything else agreed between the buyer and seller
The Promesse de Vente will also indicate the date by which the final deed should be signed, usually 2-3 months later depending on what the seller and buyer will have agreed upon.
A few days before signing the Promesse de Vente, the notaire asks the buyer to arrange the deposit of 5 to 10% of the agreed property price. This sum is held by the notaire in an escrow account.
The final deed, or "Acte de vente" is either signed at the notaire's office or from a distance via secured electronic signature organized by the notaire.
Notary Fees ("frais de notaire")
The French government regulates notary fees which vary according to property sale price. This cost is paid by the buyer. If the seller and the buyer choose to hire separate notaires to represent them, the cost to the buyer is still the same and that amount is split 50/50 between the two notaires.
Notary fees on existing Property go between 7% and 10% of the purchase price, excluding real estate agency fees.
Even though many refer to these fees as ‘notary fees’, the notaire only receives around 1% of the property sale price. The remaining amount goes to the government to pay stamp duty and registration tax disbursements.
Note: Notary fees do not take into consideration the cost of a mortgage or setting up a company if that's how you intend to purchase a property.
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! 🥐🇫🇷
As always, I love to read your comments and answer your questions.
Thanks so much!
Very helpful. Thank you. From what I understood, there is no document being signed when the seller accepts the offer. The Promesse de vente, which is prepared by the buyer's notaire, is the first document being signed by the parties. Is that correct? Thanks