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P-D de Rouffignac

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Everything posted by P-D de Rouffignac

  1. Hi! I have described briefly the latest version (from 01 February 2012) on the other forum and in my blog - P-D de R.
  2. Before you or your friends get too excited, note that 'occupying your (French) property as your main and principal residence' is a matter that has to be provied to the satisfaction of the French tax authorities, usually through a history of completing French tax returns during the period of residence. 'Second homes' are subject to capital gains tax, with some abatements (reductions) after five years of ownership. Note that these rules are applicable only until 01 February 2012 when the rules change and the reliefs are considerably less generous.  Note also that in areas where there are a majority of second homes (where I live and am also selling, 80% of the housing stock constitutes second homes!) we are anticipating a rush of sellers trying to beat the February deadline and a surplus of properties for sale. It's never a good moment..... P-D de R.
  3. For those of us who live in co-ownership/condominium type properties (apartment, villa in gated estate with common services etc) it is around this time of year that the syndic (professional managers) invite the co-owners to the annual general meeting. Some friends have recently gone through this process and like many, alas, had not until this year taken time to look at the annual expenditure included in the report and agenda - and were shocked at what they found. Numerous examples of over expenditure on trivial items like changing lightbulbs, fixing the lock on the front doors (1000 euros!), cleaning services (600 euros per month for 2 hours per week!), trees cut down without consultation etc etc. The weakness in this case was that the so-called 'residents committee' consisted of just two people, who admitted they simply checked that the cheques paid out by the managers corresponded to the bills received. At the AGM, my friends were applauded for their findings by a shell-shocked group of residents but personally attacked by th repesentative from the management company, who was allowed to chair the meeting but succeeded in digging himself into an ever deepening hole. The upshot is that the residents are now considering sacking the management company and managing the building themselves, having recognised that they have let things slide over the years - and are no faced with huge costs for both internal and expernal painting of their building (60 apartments over 8 floors). The moral of the story is to get involved, in your own interests, by joining the residents committee, and at very least read and check the annual accounts, and attend the annual general meeting, insisting on being heard if you have something to say. Many local agencies who used to manage properties ('gestion de syndic') have been taken over by large conglomerates such as Foncia, Nexity, Lamy etc and it is essential to remain ever vigilant. After all, it's your money they are spending..... P-D de R.
  4. Notaire's fees and disbursements (the latter accounting for 70% or more of the total cost, including taxes and filing fees) have to be estimated as the precise total is not known until all work has been completed and taxes and costs paid. The buyer generally receives a final account, with a refund. I can't quite see what the problem is here - the delay may be for quite legitimate reasons connected to the other parties to the transaction, for example calculating and payment of CGT in the case of a second home. P-D de R.
  5. In the last 'compromis de vente' that I checked on behalf of English buyers, the Notaire included a specific clause headed 'Vendor's obligation to maintain the property in the state it was when viewed by the purchaser' followed by a long, indicative list of items that were not allowed to be removed without agreement between the two parties. The list included curtain rods and rails, door handles, fittings inside cupboards (mirrors, hanging rails, shoe racks etc), fixed shelving, all sanitary and heating equipment, radiators, blinds/shutters, water softeners, garden furniture (fixed), plants, trees, shrubs etc; external TV aerails; specific mention of light fittings - had to be left at least with sockets and bulbs. The second part of the clause expressly forbade any alterations to be carried out and an obligatiion to maintain the property in good order, including repairing any damage that might occur for example when the vendor was in process of moving out. The liquid gas tank was three-quarters full and the buyers allowed to take this over without cost. The buyers had the right to re-visit the property before signature of the 'acte finale' to ensure that eveything was in order and had cause to pull out or re-negotiate if the above clause had been breached. From the above, it is clear some Notaires are being pro-active in intervening and I would recommend having a similar clause included for protection of both buyer and seller. P-D de R.    
  6. Not sure quite what you mean by 'surveys' but apartments are subject to the same technical survey as for other types of building (lead, asbestos, termites, electrical, energy efficiency etc) paid for by the owner/vendor, plus confirmation of the square metres of livable space. Regarding the common parts of, say, an apartment block, you can consult the minutes of the syndic (building managers) for information on recent works done (exterior/interior painting, lift, roof etc) or scheduled (for which you will inherit your share of the costs). Regarding your second post about the mix of occupiers, contentions can arise between owners and renters, particularly if the latter are short term or seasonal. Owners tend to care more about the building (for which they pay the charges), renters less so - and owners who let their apartments are responsible for the conduct of their tenants and summary expulsions of rowdy holidaymakers, for example, are not unknown. You can check a building for signs of (seasonal) occupation - outside the season, closed shutters and lack of occupants, during the season typical mix of holidaymakers, and balconies covered in beach towels! The latter are however forbidden by the building managers of the block I live in, but these and other rules are generally ignored by (or unknown to) seasonal renters. Hope this helps to answer some of your queries, and if in doubt there is no substitute for careful research before you buy - P-D de R.
  7. I would suggest you consider using a local agency, with an established holiday rental market and portfolio of properties they already manage. Okay, they charge a commission but in return take care of bookings; take deposits, guarantees, payments and repayments; handling changeovers and cleaning; are on hand to sort out inevitable problems - lost keys, plumbing mishaps, breakdowns, unruly tenants (it happens!) etc etc. You are probably too late for this season, though agencies can also handle last-minute bookings - people who arrive on spec looking for a rental for a few days. Note in general that holiday apartment/house bookings were down in 2010 (by up to 30% in some areas) due in part to increased competition from camping sites or holiday villages featuring modern chalets and all facilities. In may area (Mediterranean coast south of Perpignan) the downturn in apartment/house rentals bas been blamed on owners neglecting to modernise and refresh their properties, hoping to pick up another summer of rentals without too much effort. Holidaymakers are now expecting the same standards they would enjoy at home. Two examples: a block of holiday apartments in Perpignan has recently failed, largely because the market is tight, and four more hotels (large chains) have appeared, including brand new self-catering suites, with their national/international booking expertise. Second, a friend with a holiday villa on the coast normally expects 6 to 8 weeks rentals in summer, so far nothing for July and only three weeks in August. Hope this helps, even if it is not what you want to hear - P-D de R.
  8. Having read the replies so far, you will have got the clear impression that it is not generally necessary to use a UK based solicitor. Their role is advisory only, as they cannot complete the French transaction (that is the Notaire's prerogative), and they can at best rely on the documentation made available to them by the French Notaire. Even a literal translation of the sales documents ('compromis de vente' etc) can be tricky unless you (the buyer) understand the finer points of the French legal system. More useful, I think, is to ensure your Notaire explains the implications of what you are signing - he/she has a general duty of care in this respect - and one who speaks a little English (and many do) can help enormously in this respect.  The Notaire does a certain amount of research, for example at the local mairie, and checks the history of the ownership of the property, correct title (proof of ownership by the vendor), and the absence of any easements (anything that might affect your enjoyment of the property like a right of way). However, as others have noted, the Notaire - unless he happens to know the property personally - won't necessarily visit it nor can he/she guarantee the state it is in (any more than a UK solicitor would do in a UK property sale), and there is no substitute for conducting you own investigations on the ground - state of neighbouring properties, neighbours and their cars (a telltale sign!); noise levels during the day, evening, weekend - all things that can affect your enjoyment of the property. If there is adjacent empty land, the planning department at the mairie can advise as to its status - constructable, agricultural etc., though this can change over time. If the area is classified as subject to risk, such as flooding, this is known and documented. If you like the property and are perhaps thinking of extending it, the planning department can let you know informally what would or woud not be allowed. This sounds like an awful lot of hard work but note that in France you buy a property at your own risk 'in the state in which you find it' and if in any doubt employ a local specialist - surveyor, architect etc. Hope this helps and as others have said, the vast majority of property transactions go through without a hitch. P-D de R.  
  9. A couple of quick replies: Auctions - seems to be only the case in connexion with wills, probate, enforced sales where there is a legal requirement to try and achieve the highest price. Re estate agents - you can employ more than one, get an estimate(s), agree the commission rate, sign a mandate for as little as 3 months, cancel if not satisfied. Property sales - According to latest FNAIM report, based on current activity, the number of overall sales expected to be 750 000 during 2011, compared with an average 850 000 pa during the boom years and 570 000 in the worst year. All points taken about variations from area to area, but the same FNAIM report said price reductions (apartments) earlier this year were recorded in only four cities - Annecy, Chateauroux, Perpignan and Reims. Regards, P-D de R.
  10. If a house has been on the market for six months and you have had a few viewings and no offers, then it's time to take a hard look at your property and ask yourself Why? Currently property sales are NOT significantly down on previous years and programmes such as 'Maison à vendre' (Channel M6) - which I recommend - regularly show how completely hopeless cases end up being sold. It is rarely (just) a question of price, but decor, presentation, numerous unfinished DIY jobs, old fasioned furniture in a house that would attract young buyers, etc etc. If you are not using an agent (among other things to get an estimate of potential sale price) I'd take a look at similar properties to yours and/or properties that are similarly priced but perhaps more attractive than yours. Private sellers often have an inflated view of the value of their property, not just in cash terms but sentimental value as well. You need to be totally dispassionate and follow the above guidelines and those of the TV programme mentioned above. Hope this helps - P-D de R.    
  11. I presume you are looking for a furnished rental (leaving your furniture in storage until you make the final move?) and need something for a few months while you look around. As I have noted in the post below on renting pitfalls, furnished rentals are normally for one year but particularly in seasonal resort areas many studios and apartments are let for shorter periods, as are gites etc as suggested. Even with a one year rental agreement, the tenant can leave earlier, giving adequate notice. A guarantee may not be necessary but it can be arranged through a bank providing a 'caution bancaire'. Whatever you do, set up your local French bank account as soon as possible, even before you buy, as without it life becomes extremely frustrating. It takes a few weeks but once you buy your property if you want to install a phone, pay the first electricity bill etc and set up standing orders for these, the first question you will asked will be your French bank details! Hope this helps, good luck - P-D de R.
  12. I have just been compiling information for an upcoming piece in French Property News about the letting market, so here are a few pointers. Basically leases are a minimum of one year for furnished and three for unfurnished, but given adequate notice (3, 6 months respectively) tenants can leave at any time, with less notice in some situations - sudden loss of job, illness, job relocation to another area etc. For their part, owners are restricted in many ways - generally unable to give notice except in special circumstances (breach of tenancy rules, non-payment of rent) or if they need the property for themselves or immediate family. Again there are exceptions, such as whether it is the tenant's principal home or the owner wants it as one, and the winter non-eviction rules, tenants of advanced years etc etc. Eviction can take several months in practice. There are insurances for non-payment of rent etc and individuals or agencies can do their best to vet potential tenants' financial security - normally seen as someone in a steady job (CDI) and a salary that is 3 to 4 times the rent. But if a tenant falls ill, loses their job etc he/she can stick it out until evicted. Shortish term furnished rentals can be subject to high levels of wear and tear and high turnover (students, seasonal workers etc). All that said, figures from FNAIM show that out of France's 27 million households, some 11.6 millions are renters, of which 6.55 million are in private accommodation (as opposed to public sector HLM). So someone is getting the formula right...... Hope this helps a bit - P-D de R.
  13. I have seen a figure of around 5000 people a year building their own homes in France. I would also look around for an architect prepared to advise - many are willing to help self-builders all along the way to completion. They can often help you make best use of an 'awkward' or atypical site, that you may be able to buy cheaply. P-D de R.
  14. The one piece of advice I offer to clients and friends is to use a good local French insurance company (or agent). I have used the local agency of one company for the past ten years since arriving here, with the same owner and staff that I meet face to face or over the phone, and who sort out problems immediately - including on-the-spot cover for people buying a property and who have forgotten about getting insurance cover on the morning they are going to the Notaire to complete the purchase. Others may choose to spend hours on the internet looking for a few euros savings here and there, but the question I ask is Where are these people when it comes to a claim? My local agents have paid out within days, sometimes on account to tide customers over; arranged an expert visit and estimate within 48 hours; and cancelled a vehicle insurance instantly after a breakdown/write-off - half way through the current month. It sometimes pays to shop locally. P-D de R.
  15. I endorse Mikep's solution as the simplest and most cost-effective, and considering the small amount of time you would be spending in Paris and the fact you have your own UK setup already in place. I did this in a similar way some years ago, particularly when on assignments for the European Commission in Brussels. Provided you are contactable wherever you are - Eurostar and mobile phones revolutionised my life at the time - there is no need for a fixed base in Paris. In addition to looking at hotels, you might check the booming market in short-stay self-catering studios, which give you a bit more of a feel for the French-way-of-life even for the few days you may be there each time. Regarding payments, little difference in the source of your 'fees' and your UK bank can open a Euro account for you - I had one even before Britain joined the EC and the Commission paid everyone in Ecus (European currecny unit, fore-runner of the Euro). Best of luck, sounds like a fun way to earn a living - P-D de R.
  16. It is always useful when trying to sell a (French) property to have an idea of the type of buyer you think might be attracted - young couple, first-timers, both working; parents with family, husband working, spouse possibly spending a lot time at home; (British) person looking for retirement property, possibly offering a source of income; and so on. The needs of these and other groups are entirely different, and by selecting your target(s), you can tailor your property description, advertising media - even choice of agency, some having a strong local connection, others more oriented towards non-French buyers. These points are highlighted - and forgive me for mentioning the programme again - in 'Maison à vendre' (France 6 TV) which is largely concerned with preparing your home for sale, but emphasises for example that an older, old fashioned property might have to be refreshed before sale, as the likely market could be younger families needing several bedrooms but wanting modern furniture and decor.  Some targets are easier to spot - if your property is in an area noted for walking and cycling, then an ad in the specialist magazines might be more effective than a general announcement or even websites boasting 10,000-plus French properties. I think the OP's idea is basically sound and worth trying in similar circumstances. P-D de R.
  17. I have worked in an estate agency, before setting up my own consultancy, and know many people who have worked or are working currently within agencies, both as employees (increasingly rare) or more commonly as an 'agent commercial', including using the auto-entrepreneur statute as their means of paying their tax and social charges. As you are aware, you are entirely dependent on (part of) the agency commission received on sale of a property by you and on properties you bring to the agency for sale. Your success will depend on your ability to bring in buyers - some independent 'agents commerciaux' advertise or offer themselves as property searchers. In my expereience, the level of potential buyer enquiries was linked to the amount of passing trade (agency sited in a good location) and the amount of advertising (in recent years being cut back). Both of these are generally beyond your control. Against this, you carry all your own costs - car, insurance (must be 'professional use' if you are taking clients in your car), petrol, mobile phone, computer, tax and social security. Some agencies are even charging 'rent' to their agents for 'use of the office facilities'. There is a wide difference between busy urban (especially Paris) based agencies, who may have a waiting list of clients looking for apartments, and quieter rural ones. Some may deal mainly with French buyers and sellers (difficult if you are not native French) while others rely on a decreasing share of the British, Irish and other foreign markets. The latter are more lively in, say, Paris and on the Cote d'Azur. The industry not surprisingly suffers high staff turnover, and I have seen friends give up after three or six months. You need also to check your contract carefully, as some I have read include an exclusive clause - for example, not allowing you to work for a competitor within 15 kms radius for 3 years after leaving! Probably unenforceable but most peolpe do not want to take the risk. You should also check the arrangements for allocating commissions - is everything shared, say among all the staff? Or is it dog eat dog and highly competitive? If the latter, individual agents will concentrate on trying to sell properties they have brought in (higher commission) and may not even show a potential buyer a property brought in by another colleague. A major disservice to the client but one of the faults of the system. Based on personal experiences, I hope this gives you a few pointers - P-D de R.        
  18. As always when this sort of question arises you will get a range of opinions, depending on people's personal experience or point of view. I will add my own, having both worked in a French estate agency and now as an independent adviser. The estate agent is in business to sell properties, that's his job. He will work as hard to persuade the buyer to buy as he will the vendor to sell - for example, advising the latter to accept an offer that is lower than the asking price. Their expertise can vary from many years in the business and a keen awareness of the local market, to someone who has recently joined the agency - many of them part-time, self-employed 'commercial agents'. The French property business suffers from high staff turnover, due to the current downturn in sales, which makes it difficult to earn a living. However it is highly regulated by the Government, from the requirement to be licensed and insured, to the possibility of unannounced police checks. As several have noted, the Notaire's role is to ensure that the transaction is legal and that taxes due (such as capital gains) are correctly calculated and paid. As they work from the documentation provided, they cannot be aware of everything. I have recently had to advise a Notaire that the 'cadastral plan' from which he was working did not show a two-storey dwelling (the subject of some controversy) or in another case the absence of a 'forage' (well) on a piece of agricultural land. Notaires will of course have sight of the expert reports on the building ('diagnostiques') and local plans such as those for flooding and other natural risks, and these will be included in the bundle of documents provided to the buyer. Coming to translators/interpreters and lawyers/experts based in your home country, they at best can only work from the documents supplied and if these are not correct, they will not be aware of any discrepancies and as a result their advice could be (unintentionally) inaccurate. It is not primarily the job of the estate agent or the Notaire to advise the buyer about possible reasons not to buy the property, which in any event you purchase 'in the condition in which you find it'. You can either make a judgement for yourself after visiting and viewing, consulting local plans etc or employ someone to physically visit the property - a surveyor, electrician, agricultural expert or whoever - and give you their independent professional advice. As a simple rule, I advise clients to at least return to see the property at different times of day, including evenings and weekends, and generally assess the neighbourhood for themselves. That said, many buyers 'fall in love' with a particular property which tends to blind them to any possible shortcomings...... P-D de R.
  19. Agency commissions are based on a percentage of the property's selling price, with generally higher percentages for lower value properties, reducing for higher value - the argument being it is as time-consuming to sell a cheap property as it is a more expensive one. As noted prices in the agent's window or in advertising usually include their commission and will be marked 'F A I' (not TTC) which means 'frais d'agence inclus' (= including agency fees). Their percentage commission rates must also be prominently displayed at their premises. So-called 'notaire fees' include taxes and land registration charges, which are applied even to the sale of something as small as a parking space, and again are based on a percentage of the sale price. The Notaire's actual fees are quite low, being a small proportion of the total sum described as 'notaire fees'. Hope this helps - P-D de R.
  20. Two - things. I am surprised you did not ask for and check any rental agreement (drawn up by  the letting agency?) with your tenant - after all you want to know what rental was being paid, who is responsible for what (taxes, breakages, repairs etc), what percentage the agent was taking as management charges, and what net figure is due to you. Othrwise how do you know he is not letting it for a 1,000 euros a month, say, and telling you he is only getting 500? Second, surely the tenant has a copy of the rental agreement. Can't you ask him for a copy? The Notaire will want all this sorted out in any event if and when you reach the stage of signing the "compromis de vente" (= pre-sale contract), as the tenant undoubtedly has certain rights which will have to be respected, including by any new owner. P-D de R.
  21. When I had to supply proof of my university degrees to one of the French institutions, I had to use a sworn translator ('traducteur assermenté') who interpreted my two masters degrees as the equivalent of 'BAC + 5' in each case, and wrote this on the translated/certified copies. I also had to present the English originals in person, with the university watermark visible on the paper. Hope this helps - P-D de R.
  22. The buying process is relatively simple. Once you are ready to make a formal offer on the property, you should do this in writing. If the offer is accepted by the vendor, that you can both proceed to the next stage - appointing a notaire(s) who will prepare the 'compromis de vente' (pre-contract). As the vendor is already in France, he/she will probably suggest their own notaire, who maybe handled their original purchase and who has a copy of the title deeds ('titre de propriété'). As suggested, you can appoint a second notaire to act for you, especially if you want someone who can explain the documentation in English. But a single notaire is normally adequate and he/she acts largely as an unbiased administrator for both parties. Appointing a UK based advisor is of limited value, as they can realisticall only advise you working on the documentation provided, and they have no means of verifying if this is accurate - for example, an incorrect reference on the town plan ('plan cadastre') or the state of the property next door. Agains as suggested, you can make your own enquiries on the ground, including asking at the 'mairie' about future plans, or down to meeting the neighbours and confirming you like the area, much as you would check out a UK based property and its location. You have the added assurance of the technical reports (paid for by the vendor) covering lead, asbestos, termites, gas and electrical installation, and energy efficiency. At the stage of the 'compromis de vente' you also have the chance to insert conditional clauses ('clauses suspensives') in this pre-contract, such as the purchase being subject to a building survey or obtaining planning permission (should you be thinking of undertaking major work on the property). You also have the usual 7 days or longer period of 'reflexion' (depending whether you are paying cash or the purchase is subject to your obtaining a mortgage) when you can withdraw from the purchase. Without being exhaustive, I hope these guidelines may help. P-D de R.      
  23. My advice, if you have received a written offer (on ordinary paper) from your buyer, is to agree which Notaire to use, and to contact him/her and then send all the available information you have - such as your original 'titre de propriété' (title deeds) from when you bought it three years ago. The Notaire will need all this information - cadastral reference etc plus full details of the buyer - in order to prepare the 'compromis de vente' for signature by you and your buyer. You will need the Notaire anyway to complete the sale and his/her handling the 'compromis' will not cost any extra ('frais de notaire' including taxes etc paid by the buyer). A 'compromis de vente' is a complex document, almost identical to the eventual 'acte de vente' and not something you could easily draw up yourself. Hope this helps - P-D de R.
  24. Normally when two Notaires work on the same transaction, the work and the fee element of the so-called 'Notaire costs' are divided between them, though in practice one of them will gather all the necessary documents and it would be at his/her office that everything would be signed. Coming-in later in the transaction might be a problem - best to broach the subject with your (chosen) second Notaire. However it is not normally the case that 'your' Notaire is there to 'bat for you' (unlike, say, a solicitor representing one of the parties in a divorce), his role like that of the princpal Notaire is mainly to ensure that the transaction is legal and all taxes are paid. If you feel you need someone to specifically watch over your interests, you might approach another Notaire or even a French 'avocat' experienced in property law, and employ them (at a fee) in this role. If it is a language problem, then clearly someone with a reasonable command of English will be of more help. Best regards - P-D de R.
  25. I don't think that spending money on improvements necessarily adds value to a property - that is, on the assumption that I have spent X therefore I should get Y-plus back when I sell. Expensively renovated houses in the wrong location are still hard to shift. In the immortal words of the 'Location, location, location' team 'People searching for a £500,000 house don't want to live in a £200,000 street'. Conventional wisdom is that money (over) spent on bathroms and kitchens is rarely recouped, as are other embellishments reflecting the owner's personal style. New owners like to stamp their own personality on a property. If you are investing to re-sell, then best to remain as neutral as possible and let the would-be purchasers weave their own dreams. P-D de R.
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