How do we buy out our friends’ share of french property?

PROVIDING EVERYTHING IS AGREED AMICABLY, THE PROCESS SHOULD BE QUICKER THAN A NORMAL TRANSACTION. HELEN FULLERTON OF ASHTONS LEGAL ANSWERS A READER QUERY READER QUESTION: IN 2004, WE AND

ANOTHER COUPLE PURCHASED A FRENCH PROPERTY AS A SECOND HOME. WE NOW WISH TO BUY OUT OUR FRIENDS. EACH COUPLE AGREED TO GIVE THE OTHER FIRST REFUSAL AT MARKET PRICE. WHAT CAN WE DO TO MAKE

THIS A SMOOTH TRANSITION? As you have agreed, the transfer must be for market value. This is where you will need an estate agent to produce a written valuation. The notaire’s fees, which

include the French land registry taxes, are based on the value of the part of the property changing hands. Your friends should consider their CGT liability in both France and their country

of residence. For this amicable transaction, the parties can agree to waive the requirement to produce the file of reports (_dossier de diagnostic technique_) necessary for a sale, which

provide information relating to the condition of electrical and/or gas installations, termites, risk of asbestos or lead exposure, as applicable. SALES PROCESS IS QUICKER The formalities and

timescale are less than for a traditional full sale. There is no requirement for you to be given a cooling-off notice, nor for a contract stage, so you can proceed straight to the transfer

deed (_acte de licitation_). In our experience, the more information you agree on, gather and provide to the notaire at the outset, the smoother the transfer. In addition to the estate

agent’s estimate, confirm the price agreed by the parties. Ensure you are up to date with all payments for local taxes, utility bills and insurance, and make plans for taking metre readings

and making pro-rata payments on completion. Prepare to update your insurer about the change of ownership. Produce a summary of any works that have been carried out and provide receipted

invoices. Expect to pay the purchase price in euros via the notaire’s account. If you hope to be able to keep the purchase price in sterling, discuss this at the outset. RELATED ARTICLES

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