The Role of a French Notaire
Originally posted on & updated on 30th October, 2024
Notaires in France are important people, while their role is steeped in legal matters, he or she is different to a solicitor. Commonly charged with drawing up contracts between parties, you may find yourself in need to visit a Notaire for either family or business purposes. Readers of this blog are more than likely to come across a Notaire for the first time when they buy a property.
Is a Notaire the Same as a Solicitor?
There are approximatively 15,000 Notaires in France, which are dotted all over the country. Unlike most other professions, they have a monopoly over their duties. They are effectively civil servants and are charged by the Ministere of Justice (Ministère de la Justice) for receiving all the “actes” and contracts that require a seal of authenticity, date assurance, safe-keeping and authentic copies.
When it comes to buying a house in France, it is the Notaire that will prepare the final deed and will obtain all the searches regarding the property in question. He will do all the necessary checks regarding right to sell and right to purchase. He will also check the title of the property to make sure it doesn’t contain any clauses that might cause a problem in the transaction or might have an adverse effect on the value of the property either at the time of purchase or in the future. He will also make sure that there are no mortgages outstanding on the property.
When the day of purchase comes, the Notaire will read the deed through to both the buyer and the seller to make sure they are in agreement and will be responsible for making any necessary amendments. At that point, the purchaser will have transferred the money over and will take receipt of the keys. Post purchase, it is the Notaire who is responsible for registering the title deed at the Land Registry.
Can I Appoint an English-Speaking Notaire?
Many homebuyers in France who are making a purchase for the first time are of the notion that they need to work with the same Notaire as the seller. This is not in fact the case; you are free to choose any Notaire you wish. If your French isn’t all that great, seeking out a Notaire who speaks English might be a priority, and while most Notaires speak some English, if you’re buying in a particularly rural area, you may find that the local Notaire isn’t particularly fluent. In this instance, it may be prudent to pay for an interpreter to be present at any meetings you have with the Notaire. In many cases it is sensible to seek legal advice in your home country so you are aware of any implications of buying property abroad.
Signing by Proxy (Procuration) or Power of Attorney
In France, granting power of attorney at the Notaire, known as procuration, allows someone to act on your behalf during a property transaction or other legal matter when you cannot be physically present. This legal authorisation is meticulously prepared and validated by the Notaire to ensure it meets all legal requirements and protects your interests. With recent technological advancements, it is now possible to sign power of attorney documents online using secure digital platforms. The Notaire will guide you through the process, ensuring that your digital signature is legally binding and that all necessary steps are completed correctly. This convenient option enables smooth, efficient transactions, even from a distance, providing flexibility and ease for clients.
Providing Family & Legal Services
In addition to carrying out the legal obligations in terms of house purchase, the Notaire is also responsible for preparing acts between family members, such as inter-spouse transfers, gifts, wills and inheritances. He is also the person best placed (apart from your personal accountant if you have one) to advise you on capital gains and inheritance taxes. Furthermore, if there is a disagreement between two parties, on a business or personal footing, the Notaire has the capacity to act as an independent arbitrator to help find a solution.
The Notaire will charge fees for organising the purchase of a property for example and those fees will range from a figure just short of 5% to under 1% for a simple transaction, depending on the total price of that transaction. Notaire’s fees are subject to VAT and rise with complexity. So, for example if there is a mortgage involved in the purchase, or the purchase is being made as part of a company (Société Civile Immobilière or SCI), then the fees will be higher.
How to Calculate the Legal Fees?
Notaries, as already stated, are also responsible for collecting stamp duty, registration taxes and disbursements. No matter how nervous you might feel in the company of a Notaire, you shouldn’t be shy in asking how much fees will be upfront, nor should you be afraid to negotiate. While some Notaires will refuse point blank to reduce their fees, few keen to do business may negotiate to a certain point. It is always worth asking, but do be aware that the Notaire can only negotiate his or her own fee; stamp duties and the likes are non-negotiable. You can easily estimate the Notaire fees will be with our legal fees calculator.
Tackling Money Laundering with TRACFIN
Notaires play a crucial role in preventing money laundering by following French laws and regulations. They must comply with TRACFIN (Traitement du Renseignement et Action contre les Circuits FINanciers clandestins), the French anti-money laundering and counter-terrorist financing authority. Notaires meticulously verify the identities of all parties involved in a transaction and scrutinise the source of funds to ensure they are legitimate.
This involves checks on the financial background of buyers and sellers, analysing financial documents, and identifying any suspicious activity. If a Notaire detects potential money laundering or irregularities, they must report it to TRACFIN. This vigilance helps maintain the integrity of the French property market and ensures compliance with national and international anti-money laundering standards. Our foreign exchange partners can assist convert most international currencies for a property purchase, or for living abroad, for more information visit our currency page.
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