Page 7 - Magazine Magrey

MarkreentdMagrey and Sons proposes a miscellaneous patchwork of
T information to help you figure out the recent changes and

evolution likely to occur, regarding by whom, by what and
how the luxury property market is influenced.

French property market trend: The purchase process in France
Stability returns: French property market has experienced Notary
an uneven course over the last decade but 2015/2016 saw Having found your dream home and agreed on terms and
renewed optimism which led to a significant upturn in sales. conditions of sale, the notary nominated by the State (each
The appeal for French property is still strong with a big share for party choses its own) will ensure that the interests of both
the British among potential foreigner buyers. South of France parties will be protected and undertake all relevant searches.
and the Alps are leading the way, the former for peace and Offer letter
quietness with sea view of course! And in the mountains, year- The buyer will be often asked by the real estate agent to
round life and activity! confirm in writing his intention to purchase, with the price,
The recovery is relatively fresh and buyers care little for risk. dates and period of exclusivity the buyer will be granted
They are re-rationalizing their priorities and portfolios. They before the purchase contract.
want a liquid asset that will not sit on the market for years Preliminary purchase contract
when they want to sell! Also, this is a big change for certain It will confirm every terms and conditions agreed and provide
categories of French properties which must cover their costs a completion date. Conditions precedent, if not satisfied,
and preferably bring in real returns. will allow the buyer to withdraw within a 10-day cooling off
Phenomenon that meets falling sales prices in recent years period with no penalties and full refund. Indeed, the contract
and strong rental demand. is typically accompanied by 10% deposit held on escrow with
With new-build projects, buyers like to see the structure half the notary.
way up before they commit! Completion
It is held at notary’s office with payment of the balance. The
In conclusion, remember the basics: buyer will be charged with the notary fees, registration and
Add to sought-after, peace and sea views, easy access, transfer taxes, for an amount around 7% of purchase price.
close airport, historic town, good restaurants, then you have Advice
found the perfect French recipe that will attract the next A property may be acquired and held in private name, however
generation of buyers! because of French taxation rules, wealth tax and succession,
it is strongly recommended to seek independent legal tax
advisor and/or counsel, in order to structure the deal properly!

The rich and famous are increasingly preoccupied by family and business succession issues followed by a possible raise of
wealth taxes. These are the greatest concerns for UHNWIs (Ultra High Net Worth Individuals - net worth over $30M) before the
economic slowdown in China and political economic uncertainty in many parts of the world.

Data refers to numbers of survey respondents who said each issue was of concern to their clients.
Source: the Wealth Report 2015 Attitudes Survey