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Acquirement of the real estate in France
At the initial stage of legal registration of purchase of the real estate in France between the seller and the buyer enters into the official agreement, which refers to Sous-Seing Prive (if consists at intermediary of the French agent under the real estate) or Compromis de Vente (if it is made through the notary). This agreement should be signed by both parties. At signing this document the buyer pays the deposit which makes a minimum of 10 % from cost of the got real estate and which will be placed on the special bank account of the notary and will be kept till time of entering of the remained sum or cancellation of purchase. The contract contains the description of conditions of sale, the price of object, possible credits and other. After its signing the object of the real estate will be fixed to the buyer, i.e. will be removed from advertising on sale. The deposit can be returned, if the buyer will refuse purchase of the real estate in the term established by the law - 7 days. After that term the contract can be cancelled, if one of treaty provisions obviously is not carried out. That is the buyer loses the deposit if it refuses purchase without the bases reflected in the contract. After signing the above-stated document the period in 30-90 days during which studying of the real estate should be made for revealing legal cleanliness of the transaction and every possible subquality work in the real estate and their elimination follows. During the same period of time the buyer should solve the problem full financing of the transaction. This check and other measures of the agreement in force are spent by the agent and the notary.
The notary in France does not operate in interests of any transaction from the parties, and is the official representing interests of the state. Its problem is acknowledgement of that the transaction will be purely accomplished, in conformity with all legal norms. Besides through its bank account passes financing the transaction and calculations.
Following stage of legal registration of purchase of the real estate in France is signing by the seller and the buyer of the Final Contract (Acte de Vente) at presence of the notary. The property passes to the new owner which is obliged to pay by this moment the remained part of cost of the real estate to the notary. The notary in a consequence pays to its seller. Let's note, that this sum should be transferred in the order of the notary till the moment of the conclusion of the Contract. After signing Acte de Vente the seller and the buyer the Notary assures the certificate of sale, and the property passes to the new owner. At the same stage it is recommended to solve at the Notary a question on the possible inheritance on the bought real estate that there were no problems in the further. The notary will inform you, what documents for this purpose should be prepared, and will consider this question at the closing stage of the transaction.
Having assured the certificate of sale, the Notary within several days registers the new proprietor of the real estate in a special registration bureau. The new proprietor without fail should застраховать the real estate.
The buyer should know, that it is expected with additional charges on registration of the transaction. It should pay the state payments and registration taxes which make approximately 7-8 % from cost of the real estate. These payments are paid to the notary in day of signing Añte de Vente.
Rent of the real estate in France
At rent of the real estate the lease consists in France between the tenant and the owner.
At the conclusion of the contract you should familiarize closely with its maintenance and be convinced, that it is a question of that real estate which you wish to remove (to check up the address), to make sure, that the area of a premise corresponds to the area specified in the contract, to recheck, whether municipal services, i.e. heating, the electric power, water supply enter into the specified price.
At rent of the real estate in conformity with the developed practice, the tenant should bring the mortgage which size is defined by the owner. It comes back to the tenant after the termination of term of rent.
Brief info about French taxation system
1. The tax to the real estate (taxe fonciere)
You pay this tax if you have the real estate in a private property. This tax is not fixed, and its sum varies depending on type of your real estate.
2. The tax to residing (taxe d'habitation)
If you get real estate Leas-back (the investment program), this tax is paid by the company which leases the real estate. If the real estate is intended for your private use, you should pay this tax annually.
Owners of the real estate used in commercial objectives are released from payment of the tax (for example, under hotel), and owners of the real estate classified ISHM - monuments of architecture and history.
3. Property tax (impot de solidarite sur la fortune)
This tax is paid by each physical person, whose capital in France (the real estate and the capital in bank) exceeds 732 000 euros.
4. The profit tax from resale (capital gains taxe. La "plus value")
This tax is paid from a difference in the price at resale of your property in France. If you перепродаете your real estate in the first year after purchase, this tax makes 33,3 %. Every year the tax decreases.
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