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The Currency Club

Thinking of Selling your Property in France Post-Brexit? Here are Some Things you Should Know

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France has always been the ultimate vacation destination for UK citizens. So much so that about 200,000 vacation homes in France have British owners. However, ever since the pandemic struck, these houses have remained mostly unoccupied.

If you, too, are a proud British owner of a property in France, and wish to sell it due to the rising maintenance costs after Brexit, keep reading.

Before you sell your property in France, there are certain things you must know, especially considering Britain is no longer a part of the EU.

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Things to Know Before Selling a Property in France

Selling a house, be it in your home country or abroad, is a huge endeavour. Hence, the more educated and cautious your steps are, the better. Here are certain things you should know before taking that big step.

1. House Prices are Increasing

As per an article by The Connexion, house prices rose by up to 19% in the year 2021 and seems the pandemic's effect on the market is slowly diminishing.

House prices have increased even though the French economy has been impacted more than ever. So, you must research the house price growth in France, the demand for them in a particular area, and the type of property you own.

2. You "Need" a Property Agent

You can sell your property in France, through a property agent or privately.

Approximately 40% of all nationwide residential estate transactions are conducted privately. However, it would be best if you took advantage of the estate agent's local understanding and specialised skills.

Additionally, they will handle negotiations, viewings, and other crucial jobs that could not be achievable if you don't reside in France while selling your property.

While selecting one, make sure your property agent has a license and is a member of organisations such as FNAIM, UNIS, SNPI or CNAB. This way, you will ensure you are at an advantage while selling your property.

3. Appointing a Notary is Important

French estate deals heavily rely on the notary (Notaire). They take on the conveyancing solicitor role, ensuring that all the paperwork and formalities are carried out in accordance with the law.

You don't need to look around or negotiate prices because the notary is selected nationally, and rates are typically fixed.

4. Property Surveys Are Must

It is crucial to carry out property surveys, known as Dossier de Diagnostic Technique or DDT, to assess the ideal value of your house. DDT includes tests for:

Lead and asbestos

Gas installations and electrical wiring

Septic tanks (if applicable)

Energy efficiency

Termites

Natural or industrial risks

Swimming pool security (if applicable)

Note that these statutory tests must be conducted before selling the property. You must ensure that these tests have not expired before finalising the sale contracts.

5. Marketing Can Work Wonders

Private sellers must make sure they list their homes in as many places as possible, but your estate agency should handle most, if not all, the advertising.

Here are some popular estate websites in France where you can market your property:

LeBonCoin.fr

French-property.com

Frenchpropertylinks.com

SeLoger.com

Logic-Immo.com

Bienici.com

6. Capital Gains Tax Has Increased for You

If your French property serves as your principal dwelling, you do not need to pay any Capital Gains Tax (CGT).

The standard CGT levied is 19% for the French tax-paying residents and individuals from European Union member countries. Since 1st January 2021, British homeowners are no longer considered EU citizens. Hence, you would have to pay more as CGT.

Since a lot goes into calculating this particular tax, you should refer an estate tax specialist.

7. Documentation is Lengthy But Straightforward

The procedure is something like this:

An agreement to buy (Compromis de Vente) will be drawn up once the buyer's offer has been accepted.

A week after a verbal offer has been made and accepted, this is completed by the estate agent or the notary.

Any pre-sale conditions and terms the buyer and seller desire to include are discussed by their respective agents and included in the agreement. After the contract is signed, there is a 10-day "cooling off" period during which any party may decide to withdraw from the arrangement.

As a seller, you must disclose the property's hidden flaws, easements, restrictions, tenancies, licences, and planning approvals.

If you fail to do this and the property is sold with a hidden flaw, a court may deem the transaction worthless. You can even be required to give the buyer compensation.

The next step is to schedule a meeting to sign the Acte de Vente, the official purchase document, in France (at the notary's office).

The agreement should be signed in the presence of all parties, and after that, you should hand over the keys and transfer the legal title of the property.

8. Selling a Property in France is Time Consuming

The time it takes to sell a home in France can vary, but it usually takes a long time due to the needed volume of paperwork and bureaucracy.

Even if other requirements are taken care of swiftly, you should not expect the Acte de Vente to be signed before 3-4 months.

9. You Can Pay Taxes from Britain

Well, international money transfer is nothing new; however, now you do not have to pay an unreasonable fee to do so.

Stay back in Britain and send money to a French account with ease through The Currency Club. Our online assistance lets you make international payments at competitive rates in the comfort of your own home.

We are pretty confident of our exchange rates; this is why our site boasts a live comparison board, showing how much you can save via us.

So, even though you might gain immense profit if you sell your property in France now, do not jump directly into it. Instead, use this as a reference point and ensure you make appropriate decisions.

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Disclaimer

We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available

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