Avoiding common mistakes when buying property in France
Don’t let your dream of buying a home in France turn into a nightmare. Take the time to understand the common pitfalls of buying there and how to avoid them.
Buying a home in France is an exciting adventure – whether you have your heart set on a charming stone cottage in Provence, a chic apartment in Paris, or a coastal retreat along the French Riviera. Despite benefitting from a secure and legally protected buying process, you’re never far from a potential pitfall on your journey – from taxes and contracts to currency exchange.
Don’t fret. You can prevent costly delays and achieve a smooth purchase by working with trusted, bilingual professionals and understanding France’s unique property rules. To give you a head start, I’ve compiled some of the most common pitfalls that overseas buyers face when buying in France, along with tips on how to avoid them.
French contract confusion
In France, there are two main types of preliminary property purchase contracts:
- Compromis de vente – the most common contract is a bilateral agreement between the buyer and seller where both parties are committed to the sale after a 10-day cooling-off period. Once signed, you can’t back out, unless one of the legal conditions, such as mortgage refusal, applies.
- Promesse de vente (or promesse unilatérale de vente) – a unilateral promise by the seller to sell to the buyer at a set price within a specific timeframe, giving the buyer an option to proceed.
The legal obligations and financial consequences – like deposits, withdrawal rights, or penalties – of both contracts differ. Misunderstanding which contract you’re signing can cause confusion, delays, or even financial loss. Therefore, legal advice is essential.
Hidden property problems
In France, property sales operate largely on a “buyer beware” basis, meaning the responsibility lies with you to identify potential issues. Sellers must provide diagnostic reports known as Dossier de Diagnostic Technique (DDT) – covering areas like energy efficiency, asbestos, lead, and termites – but they are often limited in scope and may not reveal deeper structural or compliance issues.
Older or rural homes can hide costly surprises such as non-compliant septic tanks, unauthorised extensions, or boundary disputes. To avoid unpleasant surprises after completing on a property, it’s advisable to arrange an independent survey. While this isn’t a legal requirement, it can save you significant time, stress, and money later.
French tax oversight
France has several property-related taxes that foreign buyers sometimes overlook. You must budget for annual ownership taxes (taxe foncière and possibly taxe d’habitation) and be aware of capital gains tax when selling and potential wealth tax on high-value homes – otherwise you will be hit by an unwelcome financial surprise. It’s best to get advice from a cross-border tax specialist before buying – or selling – property in France, especially if you plan to rent out or live in the property part-time.
Overlooking energy efficiency costs
Energy performance has become a major consideration for property buyers in France. Homes with lower DPE ratings, particularly those graded F or G, are now under greater scrutiny, with potential limits on future rentals and even mandatory renovation requirements – although ski properties have been given an exemption.
When a property’s rating falls below the legal threshold, the seller must provide an energy audit outlining the work required to bring it up to standard. These upgrades – from insulation to heating systems – can quickly add up, so be sure to budget for improvement costs, especially if you intend to rent or resell the property.
Romanticising rural life
Many buyers are understandably drawn to the charm of rural France, but life in the countryside isn’t all bucolic bliss. Limited local services, high renovation and maintenance costs, and strict planning rules for building work can all pose challenges. It’s advisable to visit in the off-season to see what rural life is really like before committing.
Not understanding currency risk
Fluctuating exchange rates have the potential to create one of the biggest hidden costs when buying property in France. While the agreed price of your property in euros stays the same, the amount it costs in pounds constantly changes as the exchange rate moves. Even small currency fluctuations between your offer being accepted and completing the sale can drive up the price significantly – particularly in the two to three months between signing the Compromis de Vente and the final Acte de Vente.