Dear Tony,
We are going over to France next week to view a gite for sale. We have been asked by the English estate agent (who also have an office in France) to sign an agreement form prior to our visit that guarantees them 3% introductory fee for the property. Is this usual practice? Apparently the fees only become payable if we proceed with the property purchase. They would also arrange their own notaire in France. We would be glad to receive your advice.
Regards,
Margaret & Nigel

---

Margaret & Nigel
Asking for this mandat is normal practice although one I think is disgusting and one which I would never agree to and which a good agency does not ask for. You will find that the price is often higher than advertised elsewhere and you cannot negotiate. You are under no obligation to have a Notaire forced on you - this is illegal - you can choose any Notaire you wish.

My advice is always to keep agents at arms length - only use them, if you have to, when you have definitely decided where you want to live - most property in France is still sold privately - I would advise taking time - sitting in cafes and asking local people what is for sale. There is no legal compulsion to sign this agreement - if the agent does not trust you, it says more about the agent than you, I work with an agency in Nice and we do not ask for this mandat.
Bonne Chance
Tony

---

Tony, many thanks for responding so quickly to our e-mail and your comments are noted! We have made contact with the owners of the gites complex we are thinking of buying in Brittany and will be visiting it next week. The owners are British based and have not registered the gites as a business and as such they are not selling it as a going concern. We would like some advice over mortgage matters and would be grateful if you could advise the best people to contact whilst we are in France? Also the complex is advertised in British pounds and the owners want paying into a British bank account as they are not residents of France. Will this pose any problems for us? regards,
Nigel & Margaret

---

Margaret & Nigel
Be very very careful - the property is in France and there is no way the present owners can avoid capital gains taxes - you have to buy it in France through a Notaire and pay through a French bank in euro and pay the Notaires fees plus a government purchase tax when buying a property - any problems and you could end up paying the previous owners taxes, fines and fees.

Borrowing money for a house purchase is simple - the best deals are from French banks - all they need is proof of your income - there is no survey and rates are low, you can borrow up to 70% easily and often more.

Do not under any circumstances be tempted to do any deals out of France - if you pay cash or part cash - you could end up paying a huge tax bill if you resell.

If the gites are not registered and they have been renting them - you may also find a lot of back taxes will be due - the authorities are not stupid and all rental property is known about. They are beginning to clam down on illegal operators.

Do be very careful and don't believe anyone who says "it's all right, no one knows about it" - there is no limit on back taxation

Tony

---

Tony
We owe you a large drink for your advice. Do you know a "professional person" in the Dinard area of Brittany who we can contact to advise us about our proposed purchase? The property is situated in Ille et Vilaine. regards.
Nigel & Margaret

---

Margaret & Nigel The best person is a local Notaire - they are civil servants and only charge their fee when involved in a purchase - we don't have any agents there at present.
I look forward to the large drink

---

Hi Tony,
Nigel is on his way home from looking at the gites with his French aunt. He is very disappointed nothing as described as he is in construction he was amazed that health & safety allow the gites to be rented. I couldn't go due to waiting on my passport, its sad really because the owners are English who do you trust know? Will let you know more tomorrow, we are not put of will just start looking again. We really have appreciated all your help and hopefully next trip we can all meet up. Margaret & Nigel

---

Margaret & Nigel
Investing in France and being involved in property here is now a very "delicate" and tricky business - so many thousands of people are now planning to start a business and a new life here that it is attracting fools and rogues (more fools as usual but the rogues profit from them very easily).

It has taken me 15 years to find an agent I not only trust, but respect. The problem is that to be in the French system is a time consuming and expensive process - a lot of paperwork and taxation - therefore it is all too tempting to ignore this and try to apply the much more liberal attitude to British or American business - but ignore it at your peril - the tax people can wait and even after 30 years can enforce back taxes and penalties - and they will, you lose your home and your children their inheritance. There is a lot of tightening up now and things will change - taxing investments and pension funds is becoming biggest growth industry in the world.

In general building standards in France are excellent and the techniques and materials are the best I have seen, but there are few controls. All good rental (like us and Meon travel for example) companies insist on Co2 detectors, fire blankets alarms, extinguishers and a full inspection for safety. But tens of thousands of private renters get away with murder at present, again the controls are coming and anyone trying to cheat the system now will pay dearly later.

Our interests are currently only in the south and I can certainly help you here, we are looking for good people in the North.

I will be using our newsletters and online magazines to say a lot more, you can also keep watch on our WebLog at

GoTo-France.com

Where I talk about some of the good people and ideas, sites etc.

Hope to see you soon

Tony

---

Dear Tony,
I have just returned to the UK from France. My aunt and I have been visiting a gites complex in North Brittany with a view to buying it. Having now seen the property it regrettably did not match up to our expectations and did not resemble the pictures in the brochure. However we have not given up and want to continue our quest to find a lettings business that we can run all year round.

We are disturbed at the thought that families with children being misled by the advert details and little regard for standards. Clearly it has not been vetted since it is not registered.

We will contact the new "tenanted business" scheme you have suggested as this does seem to have major benefits for people like ourselves.

Thanks for forwarding the details.
Regards,
Nigel & Margaret.

---

Dear Nigel and Margaret
Unfortunately your experience is all too common. The attraction of living in France have also attracted a lot of people who are looking to turn a pile of rubble into a palace for a penny and then it to some mug for a fortune.

I am naturally skeptical about investment schemes, but since working on some websites for real estate in France, I do believe this French Government supported investment idea to develop tourism and property development is a very good thing.

My main question was "why are they doing it" governments are not known for giving taxes away - I think your experience gives part of the answer. Not only are they attracting inward investment, but by keeping these properties in registered management companies, the French government is, at a stroke, offering better and regulated vacation accommodation than the thousands of tax evading, poorly equipped and out-right fraudulent operators, owners and real estate agents.

Through the registered management companies the French authorities can collect their taxes on rentals, ensure safety and quality standards are maintained and, by giving subsidised building and investment tax benefits, the rentals prices can be better regulated, the supply better managed and investment focused on areas needing investment in infrastructure and employment.

As an investor you get much more for your investment, guaranteed income and excellent capital growth potential as all these plans are in areas with strong growth.

I am working on a new website at

Azur property Investments>

You can contact them direct - I will have a lot more information on soon.

Do let me know how you get on.

best wishes

Tony