Two days, two shocks

[Minouette]

I should have known it was all too good to be true! [:(]

In February 2004, having lived in France for nearly two years, I bought a house for renovation.  Circumstances changed drastically shortly thereafter and, a few months ago, sadly I decided I had to sell the house.  I do not live there - no kitchen or bathroom - and rent a small apartment nearby.

I spent several weeks touring the property with various agents and had just got to the point of signing non-exclusive mandates (in fact one was already signed) when my landlord's brother-in-law approached me, saying he knew a potential buyer.  The lady visited the house, fell in love with it, made me an offer, we negotiated and all seemed hunky dory. 

Shock One:  I thought I would be exempt from CGT because it is the only house I own, and I am a tax resident.  Not so, according to the tax office.  The place that I rent is considered to be my residence principale and CGT will be payable on the sale of the house that I cannot inhabit.  I dropped the price quite considerably because there was no agent involved, so there should be minimal tax to pay but even so......

Shock Two: This afternoon we were all assembled at the Notaire's office to sign the first papers.  I was informed that a new law had come into force on (I think) Monday.  Now, due to the plombe that had been discovered, there were two choices: a) Either I paid for its removal, in which case this would have to be done before signing of the Acte, or b) the buyer could agree to do it and would have a period of grace after the purchase in which to carry out the work and produce a certificate.

At this point I am not prepared to carry out the work (and we have no idea what it will cost yet) unless I can increase the price accordingly.  The Notaire is trying to tell me that by increasing the price, I will increase the CGT that I will pay.  The buyer is not happy to pay for it because it would take her over the amount the bank has agreed she can borrow.

Stalemate.  Both parties left the Notaire's office most unhappy and now await a plombe removal devis before 'maybe' going back to sign.

I feel a hangover coming on....... [:(]

 

 

[Bassman]

But surely you will only pay CGT on the difference between what you paid for the property and what you sell it for i.e. the gain

[Minouette]

Yes, I know.... and luckily the people in my local tax office are incredibly helpful.

I posted that 'shock' more as a warning to other people who might be in the same position as me, ie renting elsewhere during the initial major renovation phase and then finding they have to sell.

The second 'shock' is much the worse of the two and could stop the sale going through. [:(]  Having a holiday weekend is not helping either as the guy who did the inspection report - and from whom I am trying to get a devis for rectifying the situation - seems to have taken advantage of it and gone away for a few days.