What is the Acte Authentique or Acte de Vente in France?

Posted on 8th December, 2024

Embarking on selling or buying a property in France is an exciting but complex process. One of the most important steps is signing the acte de vente, a legally binding document drafted by a notary to complete the sale and acquisition. This essential document, also known as an acte authentique, formalises the transfer of ownership and ensures that all legal requirements are met.

But what exactly does the acte entail? What information does it contain, and what steps are involved in its preparation and signing? Let’s explore the details to help you understand this part of French real estate transactions.

What the Notary Does Before Signing

Before drafting the acte, the notary conducts thorough checks on the legal status of the seller, buyer, and property to ensure a smooth and legally sound transaction.

Legal Status of Individuals

The notary verifies several key aspects related to the parties involved:

Identity: Both the seller and buyer must provide their birth certificate and a photo ID with a signature, such as a national ID card or passport.
Capacity to Sign: The notaire ensures that both parties can legally sign the acte. Minors or protected adults must be assisted or represented by an authorised person who will sign the act with or on behalf of them.
Power of Attorney: If the buyer or seller is absent on the signing day, the notaire verifies the validity of any Power of Attorney given to a 3rd party.
Criminal Record: The notaire checks the buyer’s criminal record to ensure they are not prohibited from purchasing residential property.

Legal Status of the Property

The notaire also conducts a detailed examination of the property’s legal status, including:

Mortgage Status: The notary verifies the mortgage status to confirm the seller’s ownership and their ability to sell the property freely.
Urban Planning Rules: By requesting a certificate of urbanism, the notaire ensures that the property complies with local planning regulations.
Cadastral Situation: The notary reviews the property’s official land registry details.
Right of Pre-emption: The notary checks for any pre-emption rights held by various entities, such as the Safer for agricultural land, local authorities for urban, commercial, or natural sensitive areas, or co-owners in cases of joint ownership.
Origin of Ownership: The notaire verifies how the seller acquired the property to ensure a clear chain of title.

What the Acte de Vente Contains

The final acte authentique must include a comprehensive information set to ensure legal validity and clarity for both parties. Here’s what you can expect to find in the document:

Personal Details: Contact information for both the seller and buyer.
Property Address: The exact location of the property.
Property Origin: Details of the previous sale, including the date, previous owner’s name, and notarised act.
Detailed Description: A comprehensive description of the property, its equipment, and any annexes.
Mortgage and Servitudes: Information on existing mortgages or servitudes affecting the property.
Sale Price: The agreed-upon price for the property.
Payment Methods: Details on how the payment will be made, including whether a mortgage is involved.
Fees: The fees for the person handling the sale and who is responsible for paying them.
Availability Date: When the property will be available to the buyer.
Suspensive Conditions: Any conditions that must be met for the contract to be valid, such as obtaining financing or completing inspections, learn more about conditions suspensives.
Copropriété Information: Details related to any copropriété or co-ownership, if applicable.
Right of Reflection: Information on the conditions for exercising the right of reflection if there was no prior promesse de vente. The absence of information on the right of reflection can result in a fine of up to €3,000 for an individual and €15,000 for a legal entity or a business.

Additionally, the dossier de diagnostics techniques provided by the seller must be annexed to the acte to ensure transparency and compliance with legal requirements.

Do the Buyer & Seller Need to Be at the Notary’s Office?

The acte authentique must be signed by both the seller and buyer in the presence of a notary. However, if one party cannot be present, they can be represented by granting a power of attorney to a third party. The representation of the absent party is indicated in the acte de vente to ensure transparency and legal validity.

How the Acte de Vente is Signed

The acte authentique can be signed on paper or electronically, depending on the preferences of the parties involved. Regardless of the format, the notary reads the acte de vente aloud before the buyer and seller sign it to ensure that all parties understand the terms and conditions.

Paper Acte

For a paper acte de vente, the notary must include the following details:

Date and Location: The date in full and the place where the acte is signed.
Notary Details: The name and location of the notary’s office.
Party Details: Full names, first names, and addresses of all parties and signatories.
Page Numbers: Each page must be numbered, with the total number indicated at the end.
Reading Confirmation: A statement that the acte was read to the parties or that they were provided with the opportunity to read it.
Blanks and Strikethroughs: The number of blank spaces crossed out and any words or numbers struck through.

The document must be drafted without any additions, interlineations, or surcharges to ensure clarity and legal validity. Any annexes must be signed by the notary, and if the parties declare that they cannot sign, this must be noted in the acte.

The notary retains an original copy of the acte, known as the minute, which is kept in the notary’s archives for 75 years before being transferred to public archives. At the end of the signing session, the notary provides the buyer with a certificate of ownership and the keys to the property.

After signing, the notary registers a copy of the acte authentique with the service de publicité foncière and the cadastre to ensure the transaction is officially recorded.

Electronic Acte

The acte de vente can also be signed electronically, known as an acte authentique électronique (AAE). This document is prepared by a competent public official, such as a notary, and has the same legal value as a paper acte.
For an electronic acte de vente, the notary must include the following details:

Date and Location: The date in full and the place where the acte is signed.
Notary Details: The name and location of the notary’s office.
Party Details: All parties and signatories’ full names, first names, and addresses.
Reading Confirmation: A statement that the acte was read to the parties or that they were given the opportunity to read it.

To ensure clarity and legal validity, the document must be drafted without any additions, interlineations, or surcharges. The notary uses a system approved by the Conseil supérieur du notariat (CSN) to ensure the integrity and confidentiality of the electronic acte.

The AAE is sent to the minutier central électronique des notaires de France (MICEN), where the acte, its annexes, and the signatures of all parties are securely stored. The notary can provide a copy of the electronic acte on paper or electronically, including the date, the notary’s secure electronic signature, and the image of their seal. Electronic copies can be transmitted electronically by the notary for convenience and efficiency.

What the Buyer Pays on the Day of Signing

On signing the acte authentique, the buyer must pay the full purchase price and notary fees. If the purchase price is €3,000 or more, it must be paid by bank transfer to ensure security and traceability. Most overseas buyers use the services of currency exchange specialists to secure the best rates and ensure the transfer of funds is received before the signing of the acte. The notary provides a receipt to the buyer and transfers the funds to the seller after registering the acte with the service de publicité foncière. This process typically takes no more than one month to complete.

If there are remaining funds after registration, the notary will send the buyer a cheque or bank transfer with a detailed statement of fees and expenses. If additional funds are needed, the notary will request them before sending the title deed to ensure that all financial obligations are met.

Notary fees are generally the buyer’s responsibility, but the seller and buyer can agree otherwise. These fees include:

Taxes and Duties: Collected by the notary and paid to the public treasury, such as registration duty, property advertisement tax, or VAT.
Notary’s Remuneration: For drafting the acte, consultations, expertise, and other services provided by the notary.
Expenses: Costs incurred on behalf of the seller and buyer, such as obtaining a cadastral extract.

The total notary fees remain the same whether the seller and buyer each have their own notary. In such cases, the fees are shared between the two notaries to ensure fairness and transparency. You can estimate the notary fees using our online simulator to help you budget and estimate the transaction costs.

Proof of Home Insurance

When handling the Acte de Vente, the notaire typically requests proof of home insurance. This requirement ensures that the property is adequately insured before the new owner takes possession. In France, comprehensive home insurance policies, known as assurance multirisque habitation, often include liability insurance. These policies cover various risks, such as fire, theft, water damage, and public liability. Having such insurance is highly recommended and frequently required by the notaire as part of the property transaction process.

When the Buyer Receives the Title Deed

After registration with the service de publicité foncière, the notary sends a copy of the title deed to the buyer by registered mail with acknowledgment of receipt or through a commissaire de justice. This copy serves as the official title deed and proof of ownership.

The delivery of this copy typically takes about six months after the signing of the acte de vente, marking the final step in the property transfer process. With the title deed in hand, the buyer can fully enjoy their new property with the peace of mind from a legally transparent transaction.

Understanding the acte de vente and the role of the Notaire in French real estate transactions is fundamental for a successful and stress-free property purchase or sale. By familiarising yourself with the process and the key elements of the compromis de vente and the acte authentique, you can navigate the complexities of French property law with confidence and ensure a smooth and secure transaction.

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