Structuring real estate investments in Biarritz for expatriates côte Basque

Generally, the preliminary agreement provides for approximately three months between the signing of the preliminary agreement and the signing of the deed of sale. During this period, the purchaser must obtain financing and more specifically their loan offer. The exact time limit for the purchaser to provide evidence of this loan offer is indicated in the preliminary agreement; in practice it is between 45 and 60 days. If the purchaser does not obtain a real estate loan, if he provides evidence that the loan has been refused and that the conditions laid down in the preliminary contract have been met, he can in principle be released from all obligations and recover his security deposit. If the purchaser obtains his loan, once the loan offer has been received the borrower will have a minimum of 11 days from receipt to accept it. 

          The application of social charges to capital gains realised by non-residents is currently the subject of a procedure against the French State. The French Council of State (“Conseil d’Etat”) has also referred a question to the ECJ for a preliminary ruling on whether these social charges can be levied on persons not benefiting from the scheme that these contributions are intended to fund. To date, the issue of the payment of social charges by non-residents is still not fully resolved. However, it would appear that the Direction générale des finances publiques (the French Department of Public Revenue) has communicated guidelines to its regional branches with a view to ensuring that the Land Registry Office and local tax offices should no longer require the payment of social charges in the situations covered by the ECJ case law of February 2015 and that of the Council of State of July 2015. It would therefore seem that in the current state of the law, sales of real estate undertaken by taxpayers from a social security scheme of another Member State of the EEA will not entail the payment of social charges. However, it is necessary for the taxpayer in question to provide evidence to their notary of their affiliation to a social security scheme in a foreign Member State of the EU or EEA, by means of either a social security card or a certificate of affiliation.

The lender's preferential right is a security interest on the property. This security is unknown in most States. In an international context the PPD cannot always be used. The validity of the PPD assumes that it is recognised under the law of the country where the property is located (French law) and under the law applicable to the loan agreement. Conversely the lender's preferential right will not be recognised if it unknown in either of these two law systems. If the property is located in France and if French law is applicable to the loan agreement, a PPD may be taken

This situation is very frequent. However, it can present a number of risks: the risk of being in the obligation to buy whereas the sale of the flat has not yet taken place and the price of sale has not yet been paid; the risk of having sold whereas acquisition has been made impossible due to external factors (important legal problem in the file); the risk of being unable to coordinate sale and purchase at the same time. Once you have taken the decision to carry through on this project, you must get in touch with  the international department of  Etude ETASSE et Associes in order to be counselled well upstream. In effect, a number of clauses must be inserted at the time of signature of the sales agreement or of the undertaking to sell in order to protect yourself with regard to the conditions precedent. Moreover, it is important for you to fully understand the stakes of this purchase/resale. Lastly, the international department of ETASSE et Associes law firm, with your assistance, must study your sale file in order to have the time to bring up and iron out any possible difficulties so as not to be subject to delays that might be prejudicial to you.

  - the deed of ownership - a copy of the identity card or of the passport of each vendor - a copy of the condominium rules and regulations and of all amendments thereto - the minutes of the general meeting of condominium owners for the last three years - a copy of the last four calls for condominium fees - a document called ‘dated pre-statement’ (pré-état daté) to be filled in by the property management firm, for which you will be billed (model provided by the notary) - asbestos diagnosis in the communal parts and, where applicable, all other technical diagnoses carried out in the communal parts - a copy of the last property tax notice in your possession - the Carrez law certificate of surface area - the compulsory technical diagnoses: asbestos, lead, energy performance, statement of natural and technological hazards, electrical diagnosis (unless the electrical installation has been entirely redone in less than fifteen years and you are able to provide proof thereof with bills), gas (if there exists an installation for heating or for the production of hot water using gas and it is less than fifteen years old) as well as, for most departments, notably Paris, a report on parasites - if the property is leased or might have been leased: a copy of the lease and of the letter of notice for the lessee to vacate - all information or documents relating to the flat and to be brought to the buyer’s attention under the duty of loyalty: work carried out in the flat, defects, disputes, etc. 

The international department of ETASSE et Associes can assist its clients with incorporating a company ETASSE et Associés assists its clients with incorporating companies, particularly real estate companies (SCI), drawing up memoranda and articles of association, the choice of form of company and the best adapted fiscal option. It also assists its clients with disposals of company shares, whether a sale or a donation and ‘Dutreil’ commitments are concerned. Moreover, it will analyse the company manager’s type of matrimonial regime. For most questions relating to company law, our law frim favours team work between the various departments.