[VAR_PAGE_NAME]

The role of the notary

A notary is a public officer appointed by the State. They derive their authority from the State to carry out a public service remit.

This remit consists, in particular, of authenticating the documents they receive in order to confer enhanced legal certainty upon them and to ensure their preservation. Consequently, whenever you wish to give a contract – of whatever nature – an authentic character, you will need to turn to a notary.

The mandatory use of a notary

In certain areas, the involvement of a notary is mandatory. Here are a few examples:

• the purchase or sale of property;
• the transfer of property by gift or inheritance;
• the creation of a mortgage to secure a loan;
• drawing up a marriage contract;
• a gift between spouses.

Other areas in which a notary can assist
you
Beyond the situations in which their involvement is mandatory, a notary can also assist you with a wide range of personal, family or professional matters. Certain areas in which a notary can assist deserve to be better known to the public. As an impartial guardian of families’ interests, a notary can help you plan ahead, particularly in the following situations (this list is not exhaustive):

• Civil partnerships (PACS) and cohabitation: even if you do not plan to marry, a notary is your ally in ensuring mutual protection in the event of death, loss of capacity or loss of independence;
• Wealth planning: the notary is a trusted partner when it comes to managing your assets, particularly in more complex family circumstances (joint ownership amongst heirs, blended families) or organising their transfer, notably through a will;
• Professional activities and business matters: whatever business structure you are considering, your notary will advise you on the legal provisions in force to protect your assets and your family, and will support you in setting up your company and throughout its existence.

Whether you are planning a property, family or business project, consulting a notary at an early stage will help to ensure your arrangements are sound and enable you to anticipate their legal, tax and asset-related consequences.

Please do not hesitate to contact your notary for personalised advice.

How much does a notary’s advice cost?

Contrary to popular belief, a notary’s advice is free of charge. As a public official, the notary performs a public service and is obliged to provide impartial and free advice to everyone. You can therefore consult your notary to obtain information or discuss your plans without being charged.

Their fees are mainly incurred when a deed needs to be drawn up or when a specific service gives rise to a fee.  In these two cases, the notary’s fees will depend on the nature of the project or the deed to be drawn up.

What do ‘notary fees’ include?

The notary is entitled to remuneration as soon as the signing of a deed is envisaged. Before the signing, they ask the client to pay an advance on costs, which corresponds to:

• his remuneration for drafting the deed, known as the ‘deed fee’;
• the ‘formalities fee’, i.e. their fee for the various formalities they are obliged to carry out in order to obtain all the information without which the deed cannot be drawn up;
• the reimbursement of ‘outlays’ or sums advanced by the notary to certain institutions or bodies to obtain information essential for the drafting of the deed;
• the various taxes and duties which the State requires the notary to collect on its behalf and to pay to it.

It is common practice to group the notary’s remuneration and the duties payable to the State under the term ‘notary’s fees’.

However, strictly speaking, only the fees for deeds, the fees for formalities and the disbursements actually constitute ‘notary fees’ and are assessed according to a regulated scale. The notary’s fees are therefore the same regardless of which notary you choose to instruct.

The duties and taxes payable to the State, which in many cases constitute the largest part of the advance payment to be made to the notary, depend on the tax regime applicable to the nature of the deed. In the case of property transfers, for example (sale, gift, inheritance), these duties and taxes will depend on the value of the property or properties being transferred.

The notary’s fees or ‘discretionary fees’

In certain cases defined by the Commercial Code, the notary is authorised to charge a fee agreed freely with the client.

Such a fee is charged, for example, in the case of property negotiations, specific transactions, or when providing support for any deeds relating to corporate affairs. Sometimes, following an initial free consultation, and in order to meet a specific client requirement, the notary may need to carry out in-depth research or draft a written opinion involving particular legal technicalities. A fee may also be agreed in such cases.

In all such cases, the amount of the fee will be discussed and agreed in advance under the terms of a fee agreement, in the interests of transparency.

The death of a loved one is a difficult time. Among the many steps to be taken, you’ll need to arrange an initial appointment with a solicitor to settle the estate. But what is the point of this?

Legally, a person’s death results in the transfer of their estate to their heirs. This transfer includes both the deceased’s assets and debts. The heirs then have three options:

• to accept the estate outright: the heirs will receive all of the deceased’s assets but will be personally liable for any debts they had incurred;
• to accept the estate up to the value of the net assets: they will receive assets only up to the amount of the debts that the estate can cover;
• or renounce the estate.

As the heirs’ choice has far-reaching consequences, it is essential that the notary is able to provide them with all the information necessary to make this decision. The purpose of the appointment to open a probate file is therefore to help the notary gather the information needed to identify the deceased and their heirs – known as the devolution of the estate – and to determine the composition of the estate, in terms of both assets and liabilities.

Who should contact the solicitor to open the estate?

There is no specific rule regarding who must contact the solicitor to open the probate file. It may be an heir, but it may also be a relative. It may also be an heir designated by mutual agreement to act as the notary’s main point of contact. In all cases, this will be the person who is most proactive and who will be able to provide the notary with the information they need to process the case.

How does the solicitor identify the heirs?

Determining who is entitled to inherit the deceased’s estate is known as establishing the ‘line of succession’. To determine who is entitled to inherit, the notary must understand the deceased’s family and personal circumstances, based on the information provided at the initial appointment, and in particular any factors that may influence the rules applicable to the case, namely:

• the deceased’s nationality
• the deceased’s place of residence
• their marital status and, where applicable, the existence of a marriage contract or a gift between spouses
• whether or not there are children or a spouse, and, failing that, the deceased’s immediate family (living parents, brothers and sisters)

Any documents supporting this information must be submitted to the notary (copies of identity cards, family record books, and the marriage contract).

Once this information has been received, the solicitor will request extracts of the birth and marriage certificates of all parties and will search for any will or gift between spouses in the Central Register of Last Wills and Testaments, which is a register maintained at national level in France.

How does the notary determine the deceased’s estate?

A crucial step in settling the estate is determining the deceased’s estate.
The aims of this process are:

• to enable the heirs to exercise their right of election as soon as possible
• to formalise the transfer of all immovable property to the heirs with the Land Registry for the updating of the Property Register
• to submit the declaration of succession to the Tax Office within the statutory time limits so that the heirs can pay inheritance tax where it is due.

The solicitor will therefore need to know: all immovable property owned by the deceased, all bank accounts held in their name, all pension entitlements, all shares in companies held by them, all life insurance policies and all claims of any kind (compensation, wages, maintenance or compensatory payments in the event of divorce, etc.). Consequently, the notary will need to know the names of all organisations to which the deceased may have known and specific debts, or debts that may become recoverable as a result of their death (for example, in respect of social assistance from the local authority).

The appointment to open the succession will be thean opportunity to provide the solicitor with evidence of all assets and liabilities, so that they can contact all relevant organisations and institutions to draw up a detailed statement of the estate for the benefit of the heirs and for verification by the tax authorities.

Sometimes, the heirs may not be in possession of certain supporting documents. The key thing, however, is to inform the solicitor, who will carry out a thorough investigation, using the resources at their disposal.

With a bit of preparation, the first appointment with the solicitor to settle the estate need not be an intimidating experience. Rest assured that your solicitor will listen to you with care and understanding. For detailed information on the documents to provide to the solicitor to open the probate file, please visit the ‘Prepare for your appointment’ page.

The law does not set any time limit for settling an estate. The only mandatory deadline is the six-month period from the date of death within which the estate declaration must be filed with the tax authorities and inheritance tax paid.

Generally speaking, settling an estate can take time for two main reasons:

• the process involves several stages
• inheritance cases vary in complexity: either because the heirs are more difficult to identify or locate, or because the deceased’s estate is substantial and takes time to value, or finally because an international element (for example: a deceased person of foreign nationality, heirs living abroad or property located abroad) which will prolong the process.

Where circumstances permit, the solicitor will endeavour to complete the main probate formalities within the six-month deadline for filing the estate declaration. However, some estates will take several months, or even longer.

Why does it take several months to settle an estate?

The duration of an estate settlement depends on many factors.

An initial appointment to open the estate will enable the notary to obtain from the deceased’s next of kin all the information needed to determine:

• the heirs
• the deceased’s estate, comprising both assets and liabilities.

This essential information will enable the heirs to make an important decision:

• to accept the estate outright
• to accept the estate up to the value of the net assets
• or to renounce the estate.

Ideally, the initial meeting to open the succession will be sufficient to provide the solicitor with all the information they need to carry out their duties. However, there are times when the notary has to carry out a proper detective’s work: a will with unclear terms may make it more difficult to identify the heirs, whilst the deceased’s estrangement from their family will make it harder to reconstruct the deceased’s estate as at the date of death, to cite just these two examples.

Once the heirs have been identified and the estate’s assets reconstructed, the notary must draw up the various notarial deeds.

The deed of notarial certification

The deed of notarial certification is generally the first document drawn up by the notary. It officially records the identity of the deceased’s heirs and their rights to the estate.

Drawing it up requires the notary to have verified the deceased’s family circumstances, gathered the necessary civil status documents and ascertained whether a will exists. Where the information is readily available, this stage is quick. Conversely, further enquiries may be necessary, which can prolong the processing of the case.

The certificate of inheritance is often requested by banks to unfreeze certain accounts or to enable the transfer of certain assets to the heirs or the surviving spouse. In certain situations, it is therefore important that it be drawn up and signed promptly to avoid any delays.

The certificate of ownership

Where a property forms part of the estate, the solicitor must generally draw up a certificate of ownership. This deed enables the Property Register to be updated so that the heirs are officially recorded as the new owners.

Preparing this deed involves, in particular, verifying the legal status of the properties concerned and the existing title deeds. Where an estate comprises several properties or properties situated in different regions, this stage may take longer.

In certain situations, particularly where a swift division of the estate is envisaged, a deed of partition may be drawn up instead of the certificate of ownership.

The inheritance
declaration
The inheritance declaration is a tax return enabling the tax authorities to claim the inheritance tax due from each of the heirs. The amount of tax due depends on the value of the deceased’s estate – comprising both assets and liabilities – on the date of death.

To draw it up, the notary must have obtained the necessary information from banks, insurance companies, pension funds, government departments and other relevant organisations. This information-gathering phase often accounts for a significant proportion of the time spent settling an estate.

The six-month deadline for filing the inheritance declaration is extended to one year where the deceased died abroad. This is the only exception. In all other situations, late filing may result in late payment interest and penalties.

A solution for every case

The affidavit of inheritance, the certificate of ownership and the inheritance declaration are among the main documents and formalities found in the majority of inheritance cases. However, as noted above, cases vary in complexity. An estate with a single heir and a bank account will generally be settled more quickly than one involving several heirs, property, companies or international elements.

There is therefore no single timeframe applicable to all probate cases. Whilst some cases may be considered closed after six months, once the declaration of succession has been submitted to the tax authorities, other, more complex cases will require the drawing up of additional documents: for example, a deed of partition to distribute the assets amongst the heirs and terminate their joint ownership, or a joint ownership agreement where the heirs wish to set out the rules for managing a property they own jointly, or even a deed of sale if an heir wishes to buy out their co-heirs’ shares in order to become the sole owner of a property.

When family harmony is at stake, the notary acts as an impartial and trusted ally to help you determine which agreement will best protect everyone’s interests. So please do not hesitate to consult your notary to work out with them which agreement will best suit your family circumstances.

The loss of a loved one raises many questions. Among these are questions relating to the costs involved in transferring assets to the heirs.
In the event of a death, heirs may have to bear three types of costs:

• debts left by the deceased;
• costs associated with settling the estate;
• inheritance tax payable to the State.

Fees payable to the solicitor for settling the estate

Settling an estate requires the involvement of a solicitor, who must identify the heirs, compile a list of the deceased’s assets, draw up the necessary deeds and complete the tax formalities.

The cost of these procedures depends on the composition of the estate and the complexity of the case. It is therefore difficult to provide an accurate estimate as soon as the estate is opened.

However, your notary will be able to provide you with an initial estimate tailored to your situation.

How can you determine whether you will have to pay inheritance tax?

Inheritance tax is a tax that must be paid within six months of the death.

It should not be confused with the fees payable to the solicitor for settling the estate, even though this tax is collected by the solicitor for payment to the tax authorities.

There are three key principles to be aware of regarding inheritance tax:

1. Not all heirs pay inheritance tax;
2. Taxable heirs generally benefit from an allowance;
3. Where the allowance exceeds the share of the estate received, no tax is due.

Not all heirs pay inheritance
tax
Not all heirs are required to pay inheritance tax. The surviving spouse and civil partner are completely exempt from tax: they inherit the deceased’s estate without paying any inheritance tax.  It is important to note that this is not the case for cohabiting partners, who remain liable for inheritance tax at a rate of 60%.

Heirs often benefit from an allowance

Inheritance tax is not calculated on the gross value of the assets transferred. The deceased’s debts are first deducted to determine what each heir actually receives. This value is then divided amongst the heirs according to their share in the estate. This sum serves as the basis for calculating the tax.
Before inheritance tax is calculated, the law allows each heir to deduct an allowance, the amount of which depends on their relationship to the deceased. This allowance depends on the degree of kinship with the deceased:

• €100,000 for a child, father or mother,
• €15,932 for a brother or sister,
• €7,967 for a nephew or niece,
• €1,594 where there is no family relationship or where the relationship is too distant.

Furthermore, a person with a disability is entitled, subject to certain conditions, to an additional allowance of €159,325.
What does this mean in practice?

1. It means that each heir can receive a portion of their inheritance on which they will not pay tax. Thus, children can receive up to €100,000 from the estate of each of their parents without paying tax. Siblings can each receive up to 15,932 euros tax-free, and so on…
2. If the share received by the heir is less than their statutory allowance, no tax will be payable.

Let’s illustrate this with an example:

A person dies, leaving a house worth 300,000 euros to their three children.

• Each of the children receives 100,000 euros.
• After applying the statutory allowance for each heir (€100,000 – €100,000 allowance = €0), no inheritance tax is payable.

The same person dies, leaving the house of the same value, but this time to their two children:
 

• Each child receives 150,000 euros
• After applying the statutory allowance for each child (€150,000 – €100,000 allowance = €50,000), a taxable portion of €50,000 remains
• In this case, each child will have received an inheritance exempt from inheritance tax up to 100,000 euros, but will have to pay inheritance tax calculated on the sum of 50,000 euros.

It is important to note that tax allowances can only be applied subject to certain conditions. Your solicitor can help you determine whether you are eligible to benefit from them in full.

Each inheritance is therefore different.

Some transfers do not incur any inheritance tax, whilst others may result in a significant tax liability.

The notary will be able to determine precisely the amounts that may be due, taking into account your family circumstances, the value of the estate being transferred and any applicable exemptions or allowances.

Many couples prefer to live as cohabiting partners and do not wish to enter into a civil partnership (PACS) or get married, even in the long term. This arrangement offers a great deal of freedom in day-to-day life, but it can have significant consequences in the event of the death of one of the partners.

Contrary to a widely held belief, the surviving cohabiting partner is not an heir to their partner. Even after many years of living together, and even if they have children together, the cohabiting partner has no automatic right to an inheritance.

The consequences for the surviving partner can therefore be considerable.

The cohabiting partner is not an heir

In the absence of any specific arrangements made prior to death, the surviving cohabiting partner receives nothing from their partner’s estate. This situation can dramatically alter the cohabiting partner’s circumstances upon death. Indeed, in the absence of a will, the law designates the family members entitled to inherit: children, grandchildren, parents, brothers and sisters, depending on the circumstances.

Where the deceased’s heirs are the couple’s children, this situation seems manageable provided there is a good family relationship between the surviving cohabiting partner and their children. However, in the case of a blended family or where there are no children, the situation can very quickly become complicated.

Will the surviving partner lose all rights to use the deceased’s personal belongings, as these are passed on to their heirs?

Where an asset was owned partly by the deceased and partly by their partner, the surviving cohabiting partner may find themselves co-owners with the deceased’s heirs. This situation of joint ownership can be a source of difficulties, particularly where relations are strained. The surviving partner’s situation becomes all the more precarious as the law provides for each co-owner’s right to withdraw from the joint ownership by triggering the division of the jointly owned property. In the case of a property, this means putting it up for sale and sharing the proceeds. If this property is, in fact, the surviving partner’s home, the consequences can be devastating.

No right to the home

In the event of the death of a married person, the law provides that the surviving spouse is automatically entitled to live in the home in which the couple lived for a period of one year, and if the spouse so chooses, this right may apply until the end of their life, even if the home was part of the deceased spouse’s family estate.

In the event of the death of a civil partner, the law provides only for the right to live in the home in which the partners have lived for a period of one year.
In the case of cohabitation, the law provides for no right to remain in the home.

If the home belonged exclusively to the deceased, the surviving cohabiting partner has no specific legal protection enabling them to remain there on a long-term basis.

Heavy
taxation
The surviving spouse, in the case of marriage, and the surviving civil partner pay absolutely no inheritance tax on the assets received from the deceased’s estate.

As a cohabiting partner is not an heir, they are treated for tax purposes as a person unrelated to the estate. The consequence of this is that if the cohabiting partner who died first was kind enough to draw up a will in favour of their partner, the latter will have to pay inheritance tax at a rate of 60 per cent on the share received from the estate.

Let us take an example to illustrate this situation:

A cohabiting couple bought a house together, each contributing half, which was worth 250,000 euros on the date of the first partner’s death.

Each had drawn up a will in favour of the other, so that half of the property belonging to them would not pass to their legal heirs, but would instead go to the surviving cohabiting partner.

Upon death, in order to receive the half of the house to which they are entitled under the will, the surviving cohabiting partner will have to pay the State the sum of 75,000 euros (corresponding to 60 per cent of half of 250,000 euros).

In the event of a partner’s death, cohabitation therefore leads to a precarious and financially worrying situation for the survivor.

Fortunately, this situation is not inevitable. The law provides couples living as cohabiting partners with several tools that can significantly improve the protection of the surviving partner.

However, these arrangements generally need to be put in place before death occurs.

Furthermore, no single solution is one-size-fits-all, and the choice of the most suitable arrangement depends, in particular, on the couple’s family circumstances, the composition of their assets and their objectives.

If you are in a civil partnership, it is strongly recommended that you consult your solicitor to explore the solutions best suited to your family and financial circumstances.

Buying a property together is often one of the first major projects for a couple. It is also a step that naturally raises many questions. Among them: do you need to enter into a civil partnership to buy a property together?

It is not compulsory to enter into a civil partnership to buy a property together. A couple can perfectly well buy a property together without being married or in a civil partnership. However, the choice between living together as a couple and entering into a civil partnership is not without consequences. It can influence how the property is owned, managed and shared, as well as the protection each partner enjoys should life not go as planned.

Before signing a preliminary sale agreement, it is therefore worth understanding what a civil partnership changes… and what it does not change.

Buying together: does a civil partnership really change anything?

By default, partners in a PACS are subject to the regime of separate property. Each partner retains ownership of their personal assets and retains the rights corresponding to their contribution to the purchase of the property. However, when they buy a property together, partners in a PACS become joint owners. Each purchaser owns a share of the property proportional to their financial contribution at the time of purchase.

Unmarried couples who buy a property together are also subject to the joint ownership regime. As with civil partners, each partner then owns a share of the property, as specified in the deed of purchase. This allocation usually corresponds to each partner’s financial contribution, but it may also be different if the purchasers so wish.

In other words, both a PACS and cohabitation place the couple under a joint ownership arrangement when the partners purchase a property together.

The benefits of a PACS

A PACS is a contract. It is precisely here that the full benefits of a PACS become apparent. The couple can set out the terms of this joint ownership in their PACS contract, and specify how the property will be managed, how differences in financial contribution will be settled, and whether each partner’s share may be subject to preferential allocation to their partner in the event of death.

The terms of joint ownership resulting from a purchase by cohabiting partners are determined by law rather than by the parties’ wishes.

In the event of a separation

When buying a property as a couple, it is natural to look to the future rather than contemplate a separation. However, it is precisely this eventuality that must be anticipated.

It must be noted that in the event of a separation:

• the cost of dividing property between cohabiting partners is higher than the cost of dividing property between civil partners;
• if one partner decides to sell their share of the property to the other, the cost of buying out the share in a cohabiting relationship will once again be higher than the cost of buying out the share between civil partners.

In both cases, the difference can amount to several thousand euros more.

In the event of death

It is in the event of death that the difference between a civil partnership and cohabitation is most striking.

Unlike a married spouse, neither a civil partner nor a cohabiting partner is an heir to their partner. In the absence of a will, the deceased’s share passes to their legal heirs, and not to the surviving partner: property acquired jointly now belongs partly to the surviving partner and partly to the heirs of the predeceased partner, a situation that can quickly become a source of difficulties for both the surviving partner and the heirs.
Both civil partners and cohabiting partners can benefit from a will to ensure that the surviving partner does not share ownership with the deceased’s family. However, whilst a civil partner will pay no inheritance tax on the share bequeathed by the deceased, the surviving cohabiting partner – who is regarded as a third party in relation to the deceased – will have to pay inheritance tax at a rate of 60 per cent, calculated on the value of the property they receive.

An additional advantage of a PACS over cohabitation is that the surviving partner is entitled to a temporary right of residence. They may continue to live rent-free in the home occupied by the couple for one year, without owing anything to anyone. A cohabiting partner, once again treated as a third party, has no right to remain in the property and will have to pay compensation for occupation to the deceased’s family if they decide to stay in the home where the couple lived.

These differences can have significant consequences for the surviving partner. They often make it advisable to plan for the transfer of ownership as soon as the property is purchased.

The notary’s role: helping you make the right choices before signing

Buying a property as a couple is a major step. The choice of legal framework should be made before signing, rather than once difficulties have arisen.

Depending on your situation, a PACS may be the most suitable solution… or it may not. In the event of death, a PACS alone is not sufficient to guarantee full protection for the surviving partner. The notary’s role is precisely to help you make this choice, taking into account your life plans, your assets and your family situation.
Please do not hesitate to contact them as early as possible in the process.

Rising property prices and stricter lending conditions are prompting a growing number of parents and grandparents to contribute to their children’s first property purchase by making a cash gift. This family support is not limited to helping with home ownership. Funding education, helping a child pursue a career, or simply the desire to share the family’s wealth whilst still alive are all reasons why people make cash gifts. Such transfers may be subject to gift tax, which is, in principle, payable by the recipient of the gift. Many people therefore wonder: up to what amount can one give without paying tax?

Customary gifts: you can give whatever you like… or almost

Before looking at the amount that can be given tax-free, it is important to note that customary gifts are not subject to gift tax. Customary gifts are presents, particularly in the form of money, given to mark a specific occasion (birthday, wedding, birth, Christmas, graduation, etc.), provided there is a clear link between the gift and the special occasion, and provided they are given on the occasion of that event and remain proportionate to the giver’s income and assets.

The importance of the family relationship: who is giving and who is receiving?

In reality, there is no single amount that can be given ‘tax-free’. The sums that can be transferred free of gift tax vary mainly according to the family relationship between the donor and the recipient.
The law provides for allowances that enable a portion of one’s assets to be transferred free of gift tax.

Currently, these amounts are as follows:

• €100,000 when a parent gives to their child;
• €31,865 when a grandparent gives to their grandchild;
• €5,310 between a great-grandparent and their great-grandchild;
• €15,932 between brothers and sisters;
• €7,967 between an uncle or aunt and a nephew or niece.

The above allowances are renewed every fifteen years.

Let’s take the example of a couple wishing to help their son buy his first home. Each parent can give him €100,000 free of gift tax. Their son can therefore receive €200,000 tax-free. However, if his father had already given him €80,000 less than fifteen years ago, the father would only be able to give him a further €20,000 whilst benefiting from the allowance.

Permanent exemption: family
gifts
In certain situations, a specific exemption applicable to family gifts of money – where the age of the donor and the recipient may be a factor – may be added to the statutory allowance mentioned above.

Thus, the law allows each parent or grandparent, up to the age of 80, to give a child or grandchild aged at least 18 the sum of €31,865, without this gift giving rise to gift tax.

This sum is in addition to the aforementioned statutory allowance, and is also renewable every 15 years.

Consequently, each parent, provided they have not made a previous gift within the last 15 years, may give a child 131,865 euros, corresponding to the statutory allowance of 100,000 euros, plus 31,865 euros in respect of family gifts.

Similarly, a grandparent under the age of 80 may pass on up to €63,730 to each of their adult grandchildren free of gift tax, provided the legal conditions are met:

• €31,865 under the allowance applicable between grandparents and grandchildren;
• €31,865 under the family gift allowance for a sum of money.

Exceptional and temporary exemption

Until 31 December 2026, an exceptional scheme allows, subject to certain conditions, the transfer of up to €100,000 per donor to help a child, grandchild, a great-grandchild or, failing that, a nephew or niece to purchase a new home or to fund certain energy-efficiency renovation works on their main residence. The sums donated must then be used within six months of the gift being made.

Recipients with a disability

A person with a disability may, under certain conditions, benefit from a specific allowance of 159,325 euros in addition to the other allowances provided for by law.

Key points to remember

Making a gift whilst you are still alive is often an excellent way to help your loved ones whilst preparing for the transfer of your estate. However, it is important to choose the solution best suited to your family situation, your objectives and the applicable tax rules.

Beyond their tax implications, gifts may also affect the settlement of your future estate and the rights of your heirs. Before transferring a significant sum, it is therefore advisable to discuss the matter with your solicitor in order to anticipate the consequences of your plan and ensure it is implemented smoothly.

When a property is sold, knowing how long it will take before the final deed is signed is often essential for organising the next steps in your plans. A seller will need to prepare to clear out the property and, in many cases, will reinvest the sale proceeds in a new property purchase, whilst the buyer will need to organise their move, any renovation work or the termination of the tenancy agreement for their current home.

In practice, it generally takes between two and three months from the signing of the preliminary contract (compromis or promise of sale) to the signing of the final deed. However, this timeframe is only an average. Every sale is unique, and several factors can extend it… or sometimes shorten it.

Why is there a waiting period?

The period between the preliminary contract and the final sale is far from being a mere waiting period. As a public official, the notary is responsible for ensuring the legal certainty of the deeds they receive. Before the deed of sale is signed, the notary carries out all the necessary checks to ensure that the sale can take full effect under the best possible conditions of legal certainty. To this end, the notary checks, in particular:

• that the seller is indeed the owner of the property and that no consent from any other person is required to sell it;
• the property’s status in relation to town and country planning regulations, as well as the possible existence of a right of pre-emption or a right of first refusal allowing a local authority, SAFER or a third party to acquire the property on a priority basis;
• that the property is not subject to easements, encumbrances or legal circumstances likely to affect its use or value;
• that any work carried out on the property was duly authorised by the necessary planning permissions where these were required.

Where the purchaser is financing the purchase with a mortgage, account must also be taken of the time required to obtain the mortgage offer and to comply with the associated statutory time limits.

The contract cannot be signed at the solicitor’s office until all checks have been completed.

What factors can extend the timeframe?

Some sales take longer.

This is particularly the case when:

• the buyer is applying for a bank loan;
• administrative authorisations need to be obtained;
• the property has a specific legal status (joint ownership, inheritance, division of title, etc.);
• certain essential documents are delayed in being provided by the seller, the buyer or an external organisation.

Conversely, where no loan is required and the paperwork is complete from the outset, the sale can sometimes be finalised more quickly.

Can the date of signing be set freely?

The seller and the buyer agree on a provisional date for signing when the preliminary contract is drawn up.
This date is a target, but it assumes that all the conditions necessary for the sale have been met. The solicitor cannot sign the final deed until all checks have been completed and all essential documents have been gathered.

Key points to remember

The duration of a property sale depends primarily on the complexity of the transaction.

In most cases, you should allow between two and three months between the signing of the preliminary contract and that of the final deed.

This timeframe is primarily the time needed to verify that everything is in order so that the seller and the buyer can sign the deed of sale with full legal certainty and complete peace of mind.

When selling a house or flat, it isn’t always clear what will be left behind. A fitted kitchen, light fittings, a ride-on lawnmower or even the furniture in a furnished let: can these items be sold along with the property? And is there any benefit in doing so?

The answer is yes… but not automatically. The seller and the buyer may agree that certain items of furniture will be included in the sale of the property. This solution can offer advantages for both the seller and the buyer, but it requires compliance with certain rules and a careful assessment of the consequences.

Furniture is not automatically included in the sale

In principle, the sale of a property covers the building itself and any fixtures that form a permanent part of it.

Furniture, on the other hand, is not automatically included in the sale. If it is to be transferred to the buyer, it is preferable for it to be expressly identified in the preliminary agreement and in the deed of sale.

An inventory, accompanied by an item-by-item valuation, helps to avoid any disputes when the keys are handed over.  

Where furniture is included in the sale, it is sold ‘as is’: the buyer cannot require the seller to repair or replace any items of furniture.

Advantage for the seller: the obligation to clear the property

When the seller sells a property without the furniture, they are obliged to hand over the property to the buyer completely cleared of all furniture. In certain situations, it may be in the seller’s best interests to include certain items of furniture in the deed of sale. These may include, for example, the bulkiest items, provided the buyer wishes to keep them.

This means the seller avoids having to move them or sell them separately.

Advantage for the buyer: reduced purchase
costs
Many buyers wonder whether it is possible to reduce ‘notary fees’ by including furniture in the sale. As well as the opportunity to acquire a property that is immediately ready for use, purchasing a property with furniture can indeed offer a financial advantage to the buyer. The registration duties paid by the buyer to the Treasury upon the sale of a property are calculated solely on the value of the property. If the price stated in the deed includes furniture, the value of the furniture must be deducted from the value of the property to determine the taxable amount – or the basis for calculation – of the registration fees. Beware of confusion: only the amount of registration fees – or transfer duties – is reduced. This is not a reduction in what is commonly and incorrectly referred to as ‘notary fees’.

Including furniture in the sale therefore allows the purchaser to pay less tax on the acquisition.

Including furniture: watch out for pitfalls

The idea of including furniture in a property sale therefore seems like a good one. However, there are three points to bear in mind:

• Existence of a right of pre-emption 

if the sale is subject to a right of pre-emption in favour of a local authority (the town hall, the county council, etc.), the authority will only be able to purchase the property for the value of the property itself. For the seller, this will result in a reduction in the sale price. To illustrate: a property is being sold for 250,000 euros net to the seller. The price includes furniture worth 10,000 euros. If the sale goes ahead as planned in favour of the buyer, the seller will receive 250,000 euros. However, if the local authority decides to exercise its right of pre-emption and purchase the property, the seller will receive only the value of the property itself, i.e. €240,000.
 

• Capital gains tax

Apart from the exemptions provided for by law – in particular where the seller is selling their main residence – the seller will be liable to pay capital gains tax on the sale of the property. This tax is calculated on the price stated in the deed of sale.

Where this price includes movable property, tax is payable only on the value of the property itself, provided that the value of the movable property is substantiated by invoices or an inventory drawn up by a court-appointed valuer. Otherwise, capital gains tax will be calculated on the total value of the price stated in the deed, including the value of the household effects. Let us return to our previous example to illustrate this: a property is sold for 250,000 euros net to the seller. The price includes furniture worth 10,000 euros. If the value of the furniture is substantiated by invoices or an inventory drawn up by a judicial officer, the capital gains tax payable by the seller will be calculated on the sum of 240,000 euros. However, if the value of the furniture is arbitrarily agreed between the parties, the capital gains tax payable by the seller will be calculated on the sum of 250,000 euros.
 

• Which items can be considered as household effects?

The inclusion of household effects in the sale, resulting in a reduction in the registration duties payable, gives the tax authorities the right to scrutinise the household effects sold and their value. This is why such inclusion is conditional upon the deed containing a detailed list of the furniture, valued item by item. It is therefore important to ensure that the items listed are indeed movable property, i.e. objects that can be moved and are not fixed to a wall or the floor. Furthermore, the value stated must correspond to the actual value of the furniture. The best ways to substantiate this are by producing invoices or an inventory drawn up by a judicial officer (which will rarely be the case, except for assets arising from an estate, for which an inventory will already have been drawn up), but an arbitrary estimate by the parties is tolerated. In the event of a manifestly exaggerated value, a tax adjustment may be made, and in such cases, payment of registration duties – which had initially been exempted due to the presence of furniture – may be required.

Furniture… a good or bad idea?

Including furniture in a property sale can be advantageous for both the seller and the buyer, provided that the conditions set out by the tax authorities are met. However, there may be a conflict between the buyer, who wishes to pay as little registration duty as possible, and the seller, who does not wish to receive a reduced sale price in the event of a local authority exercising its right of pre-emption.

It will therefore be necessary to weigh up the interests of the parties on a case-by-case basis.

Your solicitor will assist you in ensuring the sale proceeds smoothly, whilst respecting the interests of all parties and the applicable rules.