Buying property in France at auction. Another way to obtain a quality French house
A French property for sale at auction could be yours in less than two weeks. Using this method to buy property in France might also enable you to pick up a French home for less than market value.
Are there different types of auction offering French property for sale?
There are two different types of auction at which you can buy property in France. A judicial auction following the repossession of a French house takes place at the Tribunal de Grande Instance (local county court). A lawyer is required to submit the sealed bids.
A public auction can be conducted on the instructions of the owner whilst vacant property and state-owned property in France may also be the subject of a public auction.
How can I find out about French property for sale at auction?
Public auctions of property in France are advertised by notaires in the local or national press, at their office and on the internet. It will be possible to visit the property at a specified time before the French house is auctioned off.
Notices of judicial auctions will be posted at the property in France itself, the town hall, and the Tribunal de Grande Instancer. Advertisements are placed in the local, national and trade press. The Tribunal de Grande Instance will be able to advise you of any upcoming auctions of properties in France.
What is the process of auctioning French property for sale?
In the case of the public auctions of a French house you must submit a deposit of around 20% of the opening price with the notarie. In return you will receive a badge which allows you to bid by raising your hand. It may be advisable to have your notarie accompany you, or at least a Spanish speaker who is familiar with the process.
As the end of the sale approaches two small candles are lit. If the second burns out without any more bids being received then the sale is closed. If your bid on the French property for sale is the highest then you will be declared the winner. However, the property in France will not be legally yours for another ten days, during which time an overbid of at least 10% above the winning price can be made. In rare instances when this occurs the French house is put back up for auction for a second and final time.
If this does not happen then you have 45 days to pay the remainder of the price, as well as the fees associated with the sale. If your bid is unsuccessful then you receive your deposit cheque back without any costs.
In a judicial auction you must use a lawyer to submit your bids by sealed envelope on the property in France.
French property for sale at auction might present an opportunity to secure a French house below market value but it is vital to do your homework. Visit the property and figure any renovation costs into your budget for buying property in France.
