What are the Key Steps to Selling a Leaseback?

Selling your French Leaseback might seem worrisome and discouraging at first. This is why we have decided to make it easy for you! Below are seven important and outlined steps regarding the sale of any French Leaseback.

 

1. Knowing What You Want

Prior to selling a French property or leaseback, it is important to understand exactly what you want. Whether it is a specific price, a guaranteed VAT refund or a quick sale, outlining and planning the sale of your property should be done. Below are some basic questions to ask yourself prior to putting your French Leaseback on the market:

 

  • In terms of Finances

    • Do I want to make a specific percentage gain from my sale?

    • Will this price (after taxes and fees) pay off my mortgage?

    • If selling before 20 years of ownership, will I be able to cover the leftover VAT refund?

  • In terms of Selling

    • Do I want a specific type of owner? If so, what are the specifics?

    • Who do I want to represent me on behalf of my property?

      • Which French real estate company?

      • Which notary?

    • What are other French Leasebacks selling in your area?

    • What makes your property different than the other properties?

 

2. Collecting Data and Valuing Your Asset

Understanding the overall market your French leaseback would be in is crucial. Knowing the average price other leasebacks are selling for will be beneficial in pricing yours and gives you a good estimate on how much time it will take for your property to sell.

 

3. Finding a Specialized Real Estate Agency

Since you are selling a unique type of property investment – the French Leaseback – you need a broker that understands the market clearly. If you were to sell your leaseback with other regular properties, your listing gets mixed within regular houses and apartments, which your unit is not. Since not everyone is looking for an investment in French real estate, your property could attract multiple buyers that could fall through for what it is.

 

4. Finding a Buyer

With help from your specialized real estate agency, it is possible to find a buyer within 3 to 6 months from your first listing. It is important to be understanding and on your toes during this time. Markets change quickly meaning so does the price of your asset and your marketing techniques.

 

5. Finding a Notary

Once you have covered the basics of your property, it is important to have a notary. This is the person who mitigates the performance, lowers the risk of the French property or leaseback sale by drafting the pre-sale agreement or “Compromis de Vente,” and finds any faulty errors within the sale itself. Usually there is only one notary between both the buying and selling parties; however, if the buyer should request his or her own notary, this is also possible. The following is a simply list of some of the notary’s duties:

  • Authenticating the identities of both parties and previous owners of the French property

  • Authenticating the deeds of the property

  • Finding and understanding any third party rights to the property for sale

  • Existing balances due on the property

 

6. Understanding the “Compromis de Vente

When a purchase price for the French leaseback property has been accepted by both parties, the notary will prepare the pre-sale agreement or the “Compromis de Vente” This document binds the key details in the property purchase including: the location, identification and description of the property, the agreed payment amount, date of possession, and other crucial details. The document is normally signed within 7 days of the accepted offer and is prepared by the notary. Below, is a simplified list of what is included in the “Compromis de Vente:”

  • Full details and key information on both the buying and selling parties (i.e. name, date of birth, marital status…)

  • A description of the French property being sold including dimensions, confirmation of the title deeds, any outstanding charges (i.e. mortgages)

  • The agreed price between the two parties including the deposit and agency and estate fees

  • A statement of or absence of asbestos (i.e. mandatory check for termites, lead, gas/electricity…)

  • Important dates in the sale including payment and ownership transfer

  • List of any furniture or items to be bought with the sale

  • Signatures from both parties

 

7. Finalizing the “Acte Authentique

After signing the “Compromis de Vente,” both parties enter at 10-day cooling off period where the buyer can withdraw if her or she pleases. If there is no withdraw, the two parties sign the final contract called the “Acte Authentique.” This must be done in front of the buyer and seller’s notary/notaries, and all documents and funds must be in order to do so. Only then will the buyer become the new registered owner of the French property or leaseback.

 

Still have some questions regarding your French Leaseback sale? Go to our Selling Forum to see what other Leaseback owners are saying!