The French property market remains shaped by mortgage rates that have fallen significantly from their recent peaks, while the zero-interest loan (PTZ) has been extended nationwide.
Regulations governing energy assessments continue to evolve, with a new method for calculating the DPE for homes heated by electricity and the gradual introduction of mandatory energy audits for the least energy-efficient properties. This changing landscape has a direct impact on how a property purchase is prepared, financed and secured.
Energy assessments and audits: what buyers need to know
Most property-buying guides treat the DPE as a mere formality. In practice, recent regulatory changes make it an important technical consideration in its own right.
The method for calculating the DPE has been revised for homes heated by electricity. Owners can now obtain a certificate updating the rating on an existing DPE without a new visit from the assessor. For buyers, this means they need to check the date of the DPE and the calculation method used before comparing two properties. A DPE prepared under the old rules and an updated DPE do not measure the same thing.
In a condominium, the situation is more complex. The building-wide DPE, which is mandatory for the property as a whole, does not replace the individual DPE for the unit being sold. The two documents provide information at different scales: one covers the performance of the common areas, the other the individual home. An apartment rated D in a building rated F may indicate upcoming communal works, with funding calls approved at a general meeting.
Before committing, it is worth exploring property listings on Striana to compare the information available for a given area.
The mandatory energy audit, which is separate from the DPE, applies to the least energy-efficient homes put up for sale. This document must be reviewed before signing the preliminary agreement. It sets out recommended renovation work and its estimated cost, which directly affects the true purchase budget.
Property purchase budget: look beyond the asking price
The sale price of a home represents only a fraction of the total cost. Notary fees, condominium charges, property tax and any work needed to meet energy-efficiency standards all add up to a total that many buyers underestimate while searching for a property.
Borrowing capacity and debt-to-income ratio
Banks calculate borrowing capacity by subtracting fixed expenses from net income. The maximum debt-to-income ratio generally used by banks is a ceiling, not a target. A loan application close to that limit leaves little room to absorb higher costs or unexpected expenses.
Running the numbers on your financing plan before you start looking for a property helps establish a realistic price range. Mortgage brokers and banks offer online tools to estimate monthly payments based on the loan term and interest rate.
PTZ extended nationwide
The zero-interest loan has been extended to all municipalities in France. Buyers who had not checked whether they were eligible because they were looking in a municipality outside the areas previously covered can run a new simulation. This extension of the PTZ is scheduled to remain in place until 31 December 2027. Eligibility depends on income criteria and the type of property, so an individual assessment is essential.
Purchase offers and preliminary agreements: contractual pitfalls
A purchase offer commits the buyer as soon as the seller accepts it. The offer should be drafted carefully, with particular attention to three points that are often overlooked:
- How long the offer is valid: if the period is too long, it ties the buyer down without any guarantee; if it is too short, a seller comparing several offers may ignore it.
- Conditions precedent: obtaining a mortgage is the most common, but the buyer can also make the purchase conditional on there being no undisclosed easements or on receiving a satisfactory energy audit.
- The amount of the deposit paid when signing the preliminary sale agreement, generally between five and ten per cent of the price. The funds are held by the notary and returned if a condition precedent is not met.
The preliminary sale agreement (promesse de vente or compromis de vente) sets out the final terms of the transaction. The statutory ten-day cooling-off period begins when the preliminary agreement is notified to the buyer. After this period, withdrawing without a valid reason may result in the loss of the deposit.
Signing the deed of sale at the notary’s office: final checks
The deed of sale is signed several weeks after the preliminary agreement. In the meantime, the notary carries out administrative checks, including the mortgage status, urban pre-emption rights and compliance with mandatory assessment requirements.
The buyer is entitled to receive a draft of the deed of sale before the signing appointment. Reading it in advance makes it easier to spot any discrepancies with the preliminary agreement.
- Check that all assessments (DPE, asbestos, lead, electrical and gas) are up to date and comply with the regulations in force at the time of sale.
- Confirm that all conditions precedent have been met, particularly mortgage approval.
- Make sure the property description (floor area, outbuildings and easements) matches what you viewed and negotiated.
The bank transfers the funds directly to the notary on the day of signing or in the days beforehand. Any delay in sending the accepted mortgage offer may postpone the signing date and put the transaction at risk.
A successful property purchase depends less on moving quickly than on carrying out thorough checks at every stage. Recent changes to the DPE, the nationwide extension of the PTZ and the contractual details of the preliminary agreement can all help protect a purchase, provided they are reviewed before making a commitment.
