What is the process in buying a bare ownership property?

The purchase process is exactly the same as with a classic purchase:

  • Reservation (5% deposit to Notary) 
  • Contracts signed by both parties (7 days cooling off period) 
  • Mortgage (if required mortgage offer needs to be submit within 45 days) 
  • Signature of the acte de vente (sale of deeds signature) 
  • Stage payments (as construction progresses) 
  • Keys exchange and start of the lease.

Bare ownership properties sell very fast as you will see. We will inform you on new releases 2 weeks before the launch date so clients can declare their interests for such property in advance. On the launch date, we can option a specific unit for 48hours.  

What are the purchase costs?

Like for any French property purchase, you will have to pay the notary fees.

  • For new built:  2 to 3 % 
  • For a resale:  6 to 8% 

Please note that the notary fees are calculated only on the bare ownership price, which is a saving for the investor.

What is an institutional landlord?

In France, an institutional landlord or social landlord, is a public company funded by the regional councils or the government scheme called 1% logement. 

Their main purpose is to provide quality accommodation for civil and private workers. As a lessor , they have the sole responsibility to manage and maintain the properties they lease. 

At the end of the lease, it is also their duty to find a new accommodation for the tenants. By being the temporary usufruct buyers, the social landlords dispose of a significant housing stock and can carry out their mission while controlling their budget. 

What would I have to pay during the term of the lease?

Absolutely nothing ! all the costs are paid by the institutional landlord including the property tax (taxe foncière). As you receive no rent, you won't be liable to pay for income tax either.   

Can I resell at anytime?

Yes you can.  You can resell the bare property at anytime to another investor who will in turn have the same advantage than you. There is a resale market and properties go as fast as new property. 

Why are the properties selling so fast?

There are 3 main reasons for the fast selling of the bare ownership properties. 

  • The rarity of the properties that one can purchase under this scheme
  • The large numbers of French investors waiting to buy one 
  • The investors quick response to secure the unit once it is launched 

Once an investor has established that he wants to buy a bare ownership property, we define a budget and location. As soon as we have something matching the requirements, the investor is sent on the information ( plans, location, price list).  We can them option a unit for 48 hours. If a viewing is required the investor has plenty time to organize it between the time we reserve the property and the signature of the sale of deed. 


Can I get a French Mortgage?

At the moment we can only arrange mortgage for those who already owned a french property as the bank will take the "hypothèque " (mortgage charge) on that property - our partner bank BPI can offer our non resident clients up to 80%.