Client's Question: "Why is it that French estate agents refuse to give me the address of a property I am interested in, surely it saves everyone time if I can look up a property on Google Earth, and either include it or exclude it from my selection?"

          I am often asked this question, and it is a constant source of frustration for British house hunters who are accustomed to seeing the address of a property as well as directions to it on estate agent details in the U.K. But the two markets are quite different, and when you buy a property in France, you aren’t in the U.K! There are, however, good reasons for their reluctance to divulge this information.

          Firstly, the majority of property transactions that take place in France are between private individuals, with no agency involvement whatsoever. It is very common for a French purchaser to see a property advertised by an agent, to approach the agent for further details, and then to bypass the agent and go directly to the vendor, thus cutting the agent out of the deal. Agents therefore needed to protect themselves against this kind of activity, and that is why when you visit a property with an agent you will be asked to sign a ‘Bon de Visite’, which acknowledges the agent’s involvement in the deal.

          However, it isn’t all about the agency commission. Given that the majority of houses pass through private hands, those French vendors who choose to sell through an agent, often do so because they do not want to deal directly with potential buyers, they prefer an intermediary to do that for them. The agent therefore has a duty of confidentiality to the vendor, who would understandably be furious if an agent breached that trust and gave their details out directly to casual enquirers.

          There are two solutions to this:

• Firstly be prepared to sign a ‘bon de visite’ with either the agent or their English partners, which acknowledges that you are a client of said agent, and that should a sale arise the agent will be able to claim their commission.
• Secondly, (and this is where we as a professional English based intermediary can help), tell the agent exactly what your location requirements are (proximity to towns/schools etc), and what your concerns might be for the immediate environment of the property itself (proximity of neighbours, farms, power lines etc).

          We at Clé France have a very close relationship with our French partner agents, and the last thing anybody wants to do is waste time taking clients to see properties that will not suit them! We will often know the properties personally, but in cases where we don’t, we can talk to the agents who will entrust us with the information you need to make an informed decision as to whether to view or not.

Blog submitted by: Sharon at Cle France.

 

Our top ten tips for vendors on getting your property ready for a viewing:

 1. Make sure your house is clean and tidy2. Tidy up outside areas such as gardens, balconies and terraces3. Remove any objects causing obstruction4. Tidy and arrange shelves and remove clutter5. Ensure all lights work and there are no dripping taps6. Make sure the bathroom is spotless (especially the loo)7. Ensure the house is well lit either by natural or artificial light8. If you have any pets put them to stay with friends for the day9. Air the house the day before the viewing so it smells fresh.10. Turn off the TV Blog submitted by: David at Cle France.

Client's Question: “I’d like to start a small gardening business when I move to France, just to top up my income, but I’ve heard that it’s really costly and complicated. What advice can you give me?"

It is true that setting up a small business in any country can be a bit daunting, but even more so if you don’t speak the language or understand the system. Fortunately the process has been made more accessible and simpler, with the introduction in January 2009 of the Auto-entrepreneur regime.

You could make it even easier by talking to Premier Property Care about starting up a new franchised region in their network, working with clients and looking after their holiday homes and gardens.

Prior to this a small business was charged a maximum fixed percentage of their turnover in social charges. This meant that a small business would have faced high social charges, with a yearly increase for the first three years, regardless of whether any income had actually been made, making it much more difficult to get a new business off the ground, and virtually excluding people like yourself who just wanted a little extra money. Instead under the auto-entrepreneur system you will pay a percentage of actual turnover in social charges and French income tax; in other words if you earn nothing there will be nothing to pay (apart from some small essential charges). In addition you will be exempt from income tax for the first 3 years.

Further details on the auto-entrepreneur system can be found on the following site: www.auto-entrepreneur.fr.

The regime is available to a large variety of activities including providers of services, including those that are commercial in nature, such as sales, bar/restaurant and accommodation owners. It also applies to liberal professionals, including health professionals, legal professionals, surveyors, journalists, accountants, the retired, students and entrepreneurs.

If your business activity is service-based should expect to pay 23% of their annual turnover, whilst those selling goods 13%. There is no VAT registration to worry about, but there is a limit on turnover under this regime of €80,000 for commercial businesses and €32,000 for service professionals.

This regime will be ideal for the self-employed, including British expats or retirees like yourself looking to make a little extra income from home.

Blog submitted by: Sharon at Cle France.

Legal Disclaimer: The Clé France website publishes articles and client questions & responses for free, they are for general information purposes only. They do not constitute legal or other professional advice. You should not act or rely solely upon the information contained therein. Copyright © 2013 Clé France. All Rights Reserved.

Client's Question: “I’d like to take my dog on holiday to France this year, but have heard that it takes a year to get a pet passport. What do I have to do, and does the process really take that long?”

The Pet Passport allows you to take domestic pets such as dogs and cats out of the U.K and then return without the need for a period of quarantine. If you intend to travel with your pet it is essential to follow the procedure correctly in order to avoid the unnecessary and stressful separation from your beloved family pet that quarantine would bring.

Firstly the pet must be microchipped with an ISO standard microchip, prior to rabies vaccination. Then the animal will be vaccinated against rabies with an approved vaccine, the microchip having been read by a vet just prior to giving the vaccine.

One month later the animal will then receive a blood tested, with the microchip having been read by a vet, to check that the pet has responded favourably to the vaccine and that there are sufficient antibodies against rabies. If the vaccine has no taken it will have to be given again in order to obtain a good result.

The passport can now be issued BUT the date of entry into the UK cannot be earlier than 6 months after the blood test was taken. The passport can be issued before a blood test is taken, but it is not valid for re-entry to the UK. You can have the blood test done in France at a later date.

So for instance, if you began the process on January 1st with the microchipping and the vaccine, the pet would have the blood test on the 1st February, and if the results were good would be able to enter the U.K on or after the 1st August.

You are therefore advised to allow at least 8 months for the process.  

Blog submitted by: Sharon at Cle France.

Legal Disclaimer: The Clé France website publishes articles and client questions & responses for free, they are for general information purposes only. They do not constitute legal or other professional advice. You should not act or rely solely upon the information contained therein. Copyright © 2013 Clé France. All Rights Reserved.

Client's Question: “We have been renting in Gers but are looking to buy a permanent home here. We have found our perfect property through a local agent and have been on a viewing with them to see it. However, since then we have heard through the grapevine that the vendors of the property are willing to sell it privately for a lower fee. How does the buying process work in terms of an agent having exclusivity over you once you’ve used their services? And would it ultimately be better for us to buy the property through an agent, rather than buy it privately, anyway?”

 There are two aspects to consider here, the first is the legal obligation of both yourself and the vendor. When an agent accompanies you to view a property he will ask you to sign a ‘bon de visite’. This will contain his agency details, your details and the reference numbers of the properties you are to view. The ‘bon de visite’ states that you will not approach directly the vendors of any of the properties you are to view within a given period, usually 12 months following the date of the visit.

In order for the agent to present the property for sale, the vendor will have signed a mandate with the agent, which specifies such details as selling price, agency commission, the buildings and land that are to be included in the sale and the terms and conditions of the contract between vendor and agent. These will include a clause which states that during a specified period the vendor is not to deal directly with any client the agent has previously introduced. Should a sale be agreed either privately or through another agent or notaire, the vendor is obliged under the terms and conditions of the mandate to provide the agent with the name of the buyer and the details of the notaire who will be preparing the sale documents. Should the owners decide to proceed with you on a private sale basis, they will be in breach of their mandate, and the agent will be entitled to sue the vendors for his commission.

 The second consideration is the value of the agent’s service. A good French agent will prepare the initial contract, the ‘compromis de vente’. He will guide you through the sale to completion, accompany you to the notaire’s office for signing, assist with the transfer of utilities as well as be a mine of information on local trades people, local facilities, schools etc. For a buyer with perhaps limited French, buying in an unfamiliar foreign system this support is invaluable. Whilst private sales are common amongst the French, it is a huge undertaking for anyone to negotiate their way through legal paperwork, particularly without the very highest level of expertise in the language.

 After all, when you buy property in your own country, you ensure that you have all the advice that is available; buying abroad is no different.      

Blog submitted by: Sharon at Cle France.

Legal Disclaimer: The Clé France website publishes articles and client questions & responses for free, they are for general information purposes only. They do not constitute legal or other professional advice. You should not act or rely solely upon the information contained therein. Copyright © 2013 Clé France. All Rights Reserved.