Property In Montpellier
The French property market is very attractive to foreign buyers as there are no restrictions on ownership, but the rules regarding the purchase and resale of properties can vary depending on the type of accommodation and area where it is located. For example, the regulations on the purchase of a vineyard will greatly differ to those for the purchase of a freehold house.
You should instruct an independent solicitor to represent your interests (preferably one that has been recommended and not attached to the estate agent). The appointment of a Notary is mandatory and they will require a copy of your birth certificate (and marriage certificate if applicable). Both documents must be translated into French.
As a guide, the Notary fee will be about around 3% of the property price. Transfer tax is 7.5% (less than 1% for new properties) and registration fees will be about another 6%. You should check if you are liable for estate agents fees before proceeding as they can be as high as 15% but more usually are between 7% and 8%.
We recommend contacting Languedoc Property Finders who are generally happy to answer any property related questions without obligation.
The buying process is as follows:
The vendor and purchaser agree a price for the property
A solicitor or notary will draw up a legal contract for both parties to sign and the purchaser pays a 10% deposit at this stage which is held in a secure account until completion
The property is withdrawn from the open market and the solicitor proceeds with the searches
When all the checks have been satisfactorily complete a final contract will be signed by both parties in front of the Notary, and the buyer pays the final balance due on the property.
More Montpellier Property Information
Rene Pallincourt, Head of the French National Association of Estate Agents (FNAIM), recently reported that increases in property prices in 2006 are likely to be similar to last year which saw them rise by 10%. In 2004 they rose by 15%. FNAIM statistics show that in the first quarter of 2006 property prices rose by 8.3% which compares to 13.6% for the same time last year.
Most of this slip can be attributed to apartment prices, which saw increases of 15.1% fall to 7.5%. The reduction in house price was less marked, as they rose 9.4% in the first three months of 2006 compared to11.7% last year.
With the cost of borrowing still low 2006 has the potential to be a good year, but the French economy needs to remain strong. Estate agents in the Languedoc region report that it is the only place in France where property prices are currently growing at a similar or better rate than last year.
