Demystifying the French Fog

Having recently purchased a property in France, I thought I would compile some of the information that I found most useful. When you buy an apartment in France, you first sign a 'compromis de vente', which takes the property off the market (whilst giving the buyer a 7 day reflection period).There is a section on the 'compromis' which states whether you require financing or not. If you apply for a French mortgage, and get refused, you get your deposit back. If you don't apply for a French mortgage (and apply for an English mortgage), and you don't get financing, you lose your deposit.On the compromis you have to state something to the effect: 'i plan to apply for mortgages with the following banks..'.Always apply for a French mortgage. It covers you.Interest on (french) mortgage interest, any renovations/works and transaction costs (such as agency and notaire's fee's) can be written off on tax.Capital gains tax is 16 for foreign residents.Us, French Residents, are hit for 24. Still not bad.Also remember when arranging a mortgage in France that the bank will charge you a fee for your mortgage- quite hefty too- so this has to be taken into account too. French banks love red tape, expect lengthy delays. If you can, better to go for a broker who has some English, which will help enormously!The French don't usually do surveys as we do, although there are obligatory lead, termite, flood-zone mentions on the legal side. The notaire appointed by the seller is the one to use. He/she will be completely neutral, you may wish to appoint your own UK solicitor if you are worried about inheritance issues (clause tontine etc.). You may also want to hire a translator.What you must also bear in mind is that if the property you are buying is not you primary residence, if you sell within 4 years you will be liable to a hefty Tax bill. You should therefore be very careful if you are looking to buy for a renovation project and are looking to sell quickly.The last note is to be patient - don't expect things to happem in a hurry!

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