When it comes to buying property in France, no-one can accuse the French of being laissez faire about laws and legal protection. The latest tranche of French property laws could give British buyers plenty to think about.

Defects insurance
Perhaps the most pertinent change relates to insurance and the renovation of property. For many years British buyers have looked to purchase French properties with a view to doing them up, either to live or holiday in, or to sell on and make a profit. However, as Keith Baker of Croft Baker Solicitors notes, "this may have to change with the new law which contains a requirement to obtain an insurance-backed 'ten year defects guarantee'."  Whilst there is nothing to say that private owners cannot carry out the work, it will have a commercial and legal impact as they will not be able to supply the insurance policy upon resale. According to Baker, "It is a narrow market for insurers to guarantee the renovation work which cannot be backdated and insurance companies are not scrambling over themselves to write this sort of business." In future, overseas property buyers will have to take into account the cost of employing local craftsmen and builders who can supply the defects insurance.

Swimming pools and inheritance
Other new French property laws cover rights to inherit and safety regulations which affect swimming pools and septic tanks. Overseas property purchasers buying a property with a swimming pool must now make sure they ask for a safety certificate – or face a fine of 45,000 euros. They also need to double-check that their septic tank has been upgraded to comply with new specifications.

In terms of inheritance, the general rule in France is that when you die you can't disinherit your children who are entitled to a specified portion of your estate. This could be a stumbling block for a surviving spouse, but since January of this year children can waive their rights to their parent's estate. Practical measures to protect a surviving owner include buying en tontine (where the property passes automatically to the surviving co-owner). Married couples can also enter into a French matrimonial contract which ensures the surviving spouse inherits the property free from any rights of children. In this situation children inherit on the surviving spouse's death.

What the changes mean
The effect of these new laws, particularly those relating to property insurance, could be to dissuade some buyers, especially those looking to buy so as to redevelop and sell on. However, Steve Emmett, Chairman of The Federation of Property Developers, Agents and Consultants believes that France will remain popular with the British. "Whilst this sort of bureaucracy does not help the property market at face value, I am still of the opinion that the joy of owning a home across the Channel will continue to have its appeal. Buyers just need to be aware of the new regulations so that they do not embark on costly renovation work without understanding the need to secure defects insurance."

There may even be pluses associated with these legal changes. Property prices could drop if owners have difficulty selling. This could mean that the cost of employing workmen for remedial work could be off set by the lower asking price. In addition, buyers looking for renovated homes can look forward to greater security and less chance of buying a poorly renovated home.

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Article published in June 2007