Obtain mandatory environmental reports
Agency: Certified assessors
The seller obtains the mandatory environmental reports (3 in total) mentioning the presence or absence of termites and asbestos. Without these reports the seller would remain liable towards the purchaser if termites or asbestos were found in the future. Termites Certificate was made mandatory by the Law 99-471 date June 8, 1999, Decree 2000-613 dated July 3, 2000 and arreté dated August 10, 2000). Asbestos certificate is mandatory by decree 96-97 of February 7, 1996, (amended and enforced since January 1, 2002) and the certificate for natural disaster and technological risks. The obligation to submit the “Etat des risques naturels et technologiques” (ERNT) is stated in article R. 125-26 of the “Code de l’environnement”. It has to be presented on Cerfa and completed by the seller. In Paris it is obtained online by the seller’s notary. As a result of the implementation of the Power Performance Diagnostic (“Diagnostic de performance énergétique”, loi du 12 juillet 2010), it is only for information, and can be obtained online in Paris. According to the “Loi Grenelle”, passed on July 12, 2010, under article 1 which modifies the code de la construction et de l’habitation, the DPE becomes mandatory for any property sold after January 1st, 2011. The seller can be held liable later if he does not submit these diagnostics.
Time and cost: 21 days, EUR 800
Obtain the waiver of preemption rights from the Municipality
Agency: Municipality (Mairie de Paris)
The notary writes to the city mayor to obtain the waiver of the city’s preemption rights on the property. The notary informs about the transaction and the conditions agreed among the parties. It is common that many properties are subject to these requirements, since the Municipality may have the right to buy the property at the same price that it was agreed on the sale agreement. If the city does not answer in 2 months, then the preemption rights have been waived. It may be the case that the city informs the notary before the 2 months. There are some exemptions: if the building has been completed in the last 4 years or if the lot sold (used for residential purpose) is in a building where the co-ownership rules have been published at the land registry more than 10 years ago. Properties when the whole lot and building are sold will need the waiver for preemption rights. In practice it takes around 3 weeks on average to obtain this waiver.
Time and cost: 20 days, no charge
Obtain from the relevant Land Registry a non-encumbrance certificate (“Demande hors Formalité”) and a 30-year search on the property
Agency: Land Registry (Service de Publicite Fonciere)
The notary obtains from the relevant Land Registry a non-encumbrance certificate and a 30-year search on the property at the Real Estate Office (one document) (hereafter the “Land Registry Search”) using the Tele@ctes system. In 2009, notaries make the request electronically for around 80% of transactions. The payment is made on-line through the notary’s bank account “Caisse des depots” at the Banque de France. The Land Registry Search must be obtained before completion of the transaction. It is valid only for a set period and then it has to be updated. The Land Registry Search contains the following information: all transfers of ownership, mortgages, charges, and easements, on the property registered since 1956. The Land registry delivers 50 years of information, but only 30 are used by notaries.
Time and cost: 4 days, EUR 27 (EUR 12 per demand + EUR 15 copy of document referencing registration)
Obtain planning certificates (“document d’urbanisme”)
Agency : Municipality (Mairie de Paris, www.paris.fr)
The notary obtains planning certificate from the Municipality. The request can be fulfilled on the Internet in some cities like Paris in the website:
Time and cost: Less than one day (online), no cost if obtained online or EUR 120 if the demand is made by a surveyor
Obtain a cadastral certificate (“plan catastral – Modèle 1”)
Agency : Cadastral Registry (www.cadastre.gouv.fr; Ministère du Budget –Direction Générale des Finances Publiques
The notary obtains a cadastral certificate showing the reference of the property at the Cadastral Registry. This certificate is obtained by the notary immediately on the internet for all of France since January 2008 in the website www.cadastre.gouv.fr.
The document called “Modèle 1” is accessible on the internet but only for the Notaries; only this document is mandatory and is obtained immediately.
Time and cost: Less than one day (online), no charge
Obtain Kbis Extract from Infogreffe
Agency: Infogreffe
For companies, notaries will request the Extrait RCS (Kbis) online in Paris at www.Infogreffe.fr. The Kbis will include the articles of association and accounts of the company. The complete file can also be requested including the following elements: Extrait RCS (Kbis), état d’endettement (privilèges et nantissements), historique des modifications au RCS, derniers statuts à jour, résultat de recherche en matière de procédure de sauvegarde, redressement ou liquidation judiciaire.
Time and cost: Less than one day (online), EUR 2.96 (EUR 2.96 for the simple extract or EUR 65 for the complete file)
The deed of sale is prepared and signed by the parties at the notary’s office
Agency: Notary
Once the notary has completed the necessary searches and inspections, acquired the necessary information from the local authorities and the bank (if there’s to be a mortgage), and prepares the final deed of sale, the parties meet once again with him for the execution of the deed of sale.
The deed of sale must be executed before a notary. If not, the property transfer cannot be registered at the relevant Land Registry. The notary is required to completely read aloud the deed of sale to both the seller and buyer. At this moment, the notary might still amend some clause if necessary. The notary needs to make sure that both parties understand the terms of the deed. Registration fees and notaries’ fees are payable up-front.
The buyer acquires full ownership of the property immediately after the deed of sale has been signed before the notary. He can dispose of the property as he wishes by selling, leasing, mortgaging it, etc. However, only after publication at the Land registry the sale is opposable to third parties. In practice a third party will only be willing to buy a property or a bank grant a loan on it if the property has been registered.
According to law no. 2011-1117 du 19 septembre 2011, art. 1er (V), the notary must apply for registration of the deed of sale at the relevant Land Registry within 1 month of the date of execution of the deed of sale.
Time and cost: 2 days, EUR 128,582.59 (Notary fees + Registration fee)
- Notary fees ( Arrêté du 26 février 2016 fixant les tarifs réglementés des notaires):
- 3.945% (VAT excluded) for a property value between EUR 0 and EUR 6.500
- 1.627% (VAT excluded) for a property value between EUR 6.501 and EUR 17.000
- 1.085% (VAT excluded) for a property value between EUR 17.001 and EUR 60.000
- 0.814% (VAT excluded) for a property value higher than EUR 60.000.
As of 2016, notary are able to give a discount up to 10% for the fees charged for values about EUR 150,000.
- Registration fee (Paris) : 5.8% of property value + Additional tax for commercial buildings (Paris): 0.6% of property value)
Apply for publication of the deed of sale and obtain the stamped documents
Agency: Land Registry (Service de Publicite Fonciere)
Since January 2018, it is mandatory for the notary to use Tel@actes to register documents at the Land Registry. Simultaneously, the notary pays to the Land Registry the publicity tax and the salary of the registrar on behalf of the purchaser (the value added tax is paid by the company directly). The original deed of sale (called the “minutes”) remains with the notary for 75 years.
The Land Registry will verify the transaction (name and date of birth of person should coincide with the Property Registries’ records; the number of the parcel & cadastral section). The transfer of property is opposable to third parties after publication of the deed by the land registry office.
On completion, the vendor’s creditors if any, must execute a deed of discharge or release of the existing mortgages benefiting to them.
It is possible to make all transfer publication requests in France electronically (publication of the “acte authetique de vente” to make it opposable to third parties). The usage rate of the electronic system has been increasing consistently since 2009. The electronic system is faster and reduces the chances for errors, because the Property Registry employees do not have to input information manually into the system. Data is inserted electronically into the Fiji system automatically from Tele@ctes. Land registries are proactively inviting notaries to participate in the electronic system, with a positive response from notaries.
At this point, first the notary prepares the deed of sale with his own software, prints and has it signed by the parties. Then he inputs the information again in a separate screen of Tele@ctes to submit it to the Service de Publicite Fonciere for publication.
Time and cost: 19 days, EUR 1,795.35 (0.1% of purchase price)
