Buying a new build property in the South of France is a tempting proposition. With land in Languedoc still cheaper than some of its Mediterranean neighbours and plenty of houses being built, now could be the time to consider buying that dream villa in the South of France.

Buying your dream villa in the South of France 

Buying a new-build property will, almost without exception, take you longer.  This is because, in most cases, you are going to buy off-plan – in other words, the property does not exist when you decide to buy it.  You will be buying from proposed plans or drawings and will use these alongside the information you have about the area.  Only once the building is delivered will the property become available.  Over these months of building, you will be making payments towards the cost of your property (see paragraph below “Schedule payments”). Staged payments mean that the costs of purchase are spread over a longer period, which make it easier for you if, for example, you are releasing money from savings plans and would rather not do it in one transaction.  With usually only 5% deposit required against 10% for an older property, the payment blow is softened from the very beginning.  Add to this the lower Notaire’s fees, typically between 2 to 3% instead of 7% on a re-sale property.

Schedule of Payments for purchasing an “off-plan” property

When buying a property “off-plan” (i.e., it has not been built yet), you will need to be prepare to wait for you property, as building does not usually start until the greater part of the development is sold.  You will, however, be able to view the site and situation of your property.

Compromis de vente

Once you have decided on the property, you sign a Contrat de Reservation or Compromis de vente and pay a deposit of 5%.  The contract will specify the building schedule and payments to be made at each stage of the construction. Payment schedules are strictly regulated by legislation and all payments are based upon the price inclusive of VAT.  A typical schedule is as follows:

 5% upon signing the Compromis de vente
29% upon signing the Acte Authentique
33% upon completion of the foundations and 1st habitable floor
27% upon completion of the partitions
 6% upon delivery

French regulations regarding purchase of new properties are very protective of the purchaser. The developers must have a bank guarantee in place as a warranty that the purchaser will get his property even if the developer runs into any financial problems.

If you are taking out a mortgage to purchase the property, the lender will pay the stage payments as necessary once you have paid your contribution – deposit – it will, however, check with you prior to handing over any money.  Your mortgage repayments are differed until you have taken possession of your property.

Maintenance Charges

The maintenance charges are to cover the costs of the maintenance of the communal areas.  As you purchasing a property with in a development or complex, you are also buying a share of the communal area.  This share is calculated pro rata on the size of your property.  A provision for the charges is normally paid quarterly, and at the end of the year a statement is issued by the management company and the outstanding balance is paid by the owners.  All maintenances charges are paid pro rata on the shares held by the property owners.

Paddy Gibbins is the Managing Partner of Buy To Let Montpellier. His company specialise in helping Property Investors find suitable investment properties in the South of France. Paddy also has extensive contacts with reputable Real Estate agents across the South of France. If you are visiting the South of France to view property, Paddy is excellent at developing property viewing schedules that meet your requirements. You can contact Paddy at: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Tel: +44 (0) 870 800 3232
Mob: +33 (0) 6 26 67 43 76
www.buytoletmontpellier.co.uk