Buying Property in France: Tontine Clauses, DPE Diagnostics and Notaire’s Fees Explained

Jacques Cutting is a bilingual Apprentice Solicitor in the Stone King’s International and Cross-Border team. In this article, Jacques answers 3 popular French conveyancing queries:

Question 1: Can everyone use a Tontine clause?

A tontine clause is a clause that can be added to French property deeds. Similar to a joint tenancy, it ensures that the survivor of the joint purchase receives full ownership of the property. 

This clause can be particularly helpful if either of the joint owners has children who could make a claim against the French estate under forced heirship rules, particularly under the provisions of Article 913 of the French Civil Code. IN the UK, you have testamentary freedom and can leave your assets on death to whoever you wish. However, in France, the default position is that children of the deceased are entitled to a share of the French assets.

Please note that children can still make a claim if the Tontine clause is considered invalid. For the clause to be valid, each purchaser must contribute financially to the purchase, and there must be uncertainty as to which of the two joint owners will die first (i.e. there should be no significant age or health disparity). 

Depending on the value of the property (if it is your main home) and family situation (married or in a civil partnership), French inheritance tax may still be payable by the surviving co-owner.

Question 2: Why does the property I am buying not have a DPE diagnostic?

A DPE diagnostic report provides an indication of the property’s energy efficiency and the associated heating costs and upgrade costs.

If you are looking to buy a restoration project, you may find that the property has no heating system, or only a fireplace. In that case, the seller may not have provided you with a DPE diagnostic report. 

Unlike in the UK, it is the seller’s responsibility to provide the buyer with the diagnostics. If the seller is selling an old building with poor insulation, it may be more cost-effective for them to remove the old radiators. If the property has no heating system, then the seller will not incur the expense of carrying out an energy diagnostic and audit. 

Since March 2024, a DPE diagnostic has not been required to obtain a French government grant, ‘MaPrimeRénov‘, which helps with minor work to improve your home’s energy efficiency. However, the DPE is required for the major renovation grant. 

Please note that, from 1 January 2027, the DPE will be mandatory for every grant.

If you are thinking of applying for a grant, please note that the current limit is 13,000 applications per year.

Question 3: What are Notaire’s fees and why are some Notaires reluctant to take on inexpensive conveyancing matters?

Many people are surprised by how expensive the notaire’s fees, frais de notaire, are compared to UK conveyancing solicitors’ fees. For example, the notaire’s fees for the purchase of a €200,000 property in Dordogne would be around €16,600. However, it is a misconception that the notary will pocket the entire €16,600. In reality, the notaire collects the majority of the funds on behalf of the French tax office. In our example, €12,640 would be collected for the French tax office, €200 for registration office fees and €2,394 in VAT, leaving only €1,360 as the notary’s personal fee. 

In principle, a notary cannot refuse a client, even if the sale price is low. This is because they are required by law to assist anyone who requests their services. However, they may refuse in exceptional circumstances, such as: 

– if the deed is contrary to the law or public order.

– if they have not received sufficient provision to cover their costs. 

– if the client is disrespectful.

If the sale price is low, the estate agent may also strongly recommend using the same notary as the seller. If both parties use their own notaries, the notaries’ fees will be divided between the two notaries.

Please note that you have the right to instruct your own notary in France. Stone King can recommend competent, bilingual notaries with whom we regularly work.

If you are interested in finding out more about buying or selling a property in France and would like help analysing the options available to you, please contact the international and cross-border team at Stone King LLP either by calling +44(0)1225 337599 or by emailing [email protected]

Lead photo credit : Image by Freepik