Buying Tips to acquire your property in Dordogne


1. Evaluating you budget

The budget that you dispose of depends on the amount you have for the down payment and the amount you can borrow from a bank. Your down payment can be constituted by your savings or by loans from family members for example.

Calculate the amount of your regular income so as to know the amount of your resources : salary, pension, rental income... Then calculate your fixed costs : loan and credit reimbursements, rent, child support...
Banks in France calculate a debt ratio according to a specific formula, this rate should generally not exceed 30%.

Debt ratio = fixed annual costs / regular annual income

According to your situation, your needs and the debt ratio, the bank will make you a mortgage offer. You dispose of a 30 day reflection period to accept or refuse the bank's proposition, use this time to examine the offer that has been made to you.


2. Preliminary sales agreement

Once you have found a property you wish acquire, we write up the preliminary sales agreement. This is a contract in which the buyer and the seller undertake to buy and sell a property at a determined price. The conditions precedent (for example, obtaining a loan) are foreseen in this agreement. You will be asked at this time to make a deposit representing usually 10% of the sales price. You have a 7 day withdrawal period, after which you will loose the deposit if you withdraw from the sale. Only when a condition precedent has not been met is this deposit returned to you.

You may also consult the diagnostics report which must be annexed to the sales agreement. It's content (see Sell your property) depends on the age of the property and it's geographical situation.


3. Deed of sale

About 3 months later, you will sign the final deed of sale at the notary's office. You will also have to pay the balance of the purchase price at this time.

You are now the owner of your property. Do not forget to insure your house. In case of disorders, you dispose of a guarantee if the property has been built less than 10 years before and if the seller has given you a certificate of insurance works compensation.

The agents of the Valora Agency accompany you every step of the way and are at your disposal to answer any questions you may have regarding the acquisition of your property.


Notary's fees and costs

Notary's fees and costs are supplementary to the buying cost (which includes the agency fees). They generally represent 3 - 5% for a newly built property and 6,25 - 9% for old properties, depending on the price of the acquisition. They include :

  • the notary's fees
  • the registration fees for the mortgage guarantee
  • the costs incurred obtaining the necessary documents (mortgage office, land registry, planning office...)
  • duties and taxes for the state and local collectivities.

We can of course provide you with a provisional calculation of these costs to allow you to integrate them in your global budget.

Glossary of terms

Real estate agent : Agent immobilier
Deposit : Acompte
Deed of sale : Acte (authentique) de vente
Down payment : Apport personnel
Preliminary sales agreement : Compromis de vente/l'avant-contrat
Condition precedent/let out clause : Condition suspensive
Valuation appraisal : Expertise 
Mortgage arrangement fee : Frais de dossier
Notary's fees and costs : Frais de notaire
Notary : Notaire
Legal charge on property (mortgage) : Hypothèque