BUYING a home in France is an exciting business, but for every smooth transaction there is often a tale of woe as unforeseen problems strike.
UK based law firm Grace & Co has supplied a list of key points to consider when buying abroad, saying it is important that people prepare correctly.
When buying property in the UK, arranging proper finance, instructing a surveyor and consulting an independent solicitor are par for the course.
But when the sun is shining and the heady atmosphere of French life is drifting through the vineyards, these precautions often drift off with them.
So for everyone thinking of buying property abroad, Grace & Co has these essential tips:
Independent advice
Don’t use the vendor’s or developer’s solicitor, it’s simply not in their interests to point out potential problems to you
Notary public
A notary public usually oversees the formalities and acts for both vendor and buyer, so you still need independent advice
Planning permission
Check the property has property planning permission and that add-ons like swimming pools and extensions are legal
Vendors’ property
Don’t just assume it’s the vendors’ property to sell, there could be title disputes or they may only be tenants
Property charges
There may be outstanding mortgages or unpaid taxes charged against the property, for which you’d become responsible
Inheritance laws
Foreign inheritance rules may mean children have rightful ownership, even an ex-partner’s children, which a will can’t override
Zoning problems
Make sure the area is actually zoned for development and that a rural idyll will not be re-zoned for a factory or airport
Land grab
Check the local authority doesn’t have legal powers to seize all or part of your property at a later date, without compensation
Builder’s licence
Make sure the builder or developer has an official licence and the necessary bank guarantees in case of financial problems
Rights of way
Enquire whether there are rights of way, established rights of passage or physical evidence like footpaths or a gate onto your land
Deposit payment
Apart from a returnable holding deposit to secure the property, don’t pay large sums upfront without taking legal advice
Fees & taxes
Factor in local and utility taxes, stamp duty if applicable, notary’s fees and other local add-ons into your overall budget
Contract signing
Don’t be pressurised by talk of imminent price rises and other interested buyers into signing anything without legal advice
Letting restrictions
If you plan to rent out the property to offset costs, check there are no restrictions or community rules about short-term lets
Professional indemnity
If you deal with British solicitors they have indemnity insurance that guarantees compensation, foreign lawyers often don’t
Existing tenants
You need to know the status of any occupants, they may have protected tenancies and plan to continue living there
Agent’s status
Verify that the estate agent is properly registered and actually has the vendor’s authority to sell the property
Mortgage arrangements
High street lenders often require you to take a second mortgage on your UK home, which could put that property at risk.
British solicitors
Don’t trust overseas agents and developers who say British lawyers are expensive and hold things up, they aren’t and won’t
The firm has published a free factsheet, with advice for those thinking of buying a property abroad, which is available at www.graceandco.co.uk
It also offers a fixed price pre-consultation package for those who want to check out the problems and pitfalls before going on an inspection flight or viewing foreign properties.