Check and doublecheck

I have read and heard all kinds of stories about people who bought their homes without first taking a good, hard look at any potential problems and then had a terrible time. I've even heard of a few wackos who bought their houses sight unseen. Can you imagine?

As for me, I'm a big believer in legwork. I wanted to find out everything I could about the history, character, stability and future prospects of this piece of real estate I was marrying. I wanted a house, not a job renovating a house. I wanted to decorate, plug in the frigo and pour a Pastis.

In the States, it is standard practice for the buyer to hire their own inspector to provide an independent, expert assessment of the property. When I suggested it in France, the sellers and immobilier found the notion terribly odd -- exactly the kind of thing you'd expect from a pushy American lady -- but they had no objections. That alone was reassuring.

Under French law, after you have signed the Compromise de Vente you have seven days to back out with no questions asked. That meant that I had a week to locate an inspector and have them examine the house. The owners had provided their own, standard "Diagnostic Immobilier" that provided assurances on lead, termites, threats from natural disasters and energy use. I wanted someone to look at the roof, plumbing, electrical systems, structure and compare what they saw to the French report. I wanted a few questions answered. It seemed like common sense.

Once again, Wendy at French Help Services came through with a recommendation, finding Martin Glover at Inextensio Restoration and Building Services, an Anglo-French construction company in the Languedoc, who was willing to drive over to see the house. So one hot afternoon, two days after making the offer, I stood with Martin and his French partner Samuel in the cave of the house staring a piece of lead pipe. Martin explained that it was the responsibility of the water company not the homeowner to change and pay for that bit of pipe, and he told me who to call.

From cave to terrasse, on all three floors, we poked and prodded, questioned the owner and checked records at the Mairie. Happily, what Martin and Samuel found confirmed the owner's report. And the additional effort also provided me with a short list of jobs that I'd need to prepare to do and budget for within the next couple of years -- a new hot water tank, waterproofing the tile on the roof, a little remortaring. Nothing urgent.

The inspection cost 500 Euros -- a small price to pay for peace of mind and an objective report written in both French and English. Afterward, we adjourned to the shady creperie on the place of a neighboring village for a few glasses of wine and conversation on the difficulty of running a small business in France.

When I checked out Inextensio online later, I discovered how hard it can be to find a company like them in France. There are a few individual tradesmen with English language sites,, as well as a few directories, but a better, broader resource may be the various online communities of expats in France that often have classifieds or places for tradespeople to advertise. When it is time to make any of the inevitable repairs that will be needed on a nearly 200-year-old house, I'll call Martin back to do them. And I could move forward with little reservation toward closing.

Now the work begins

While the owners considered the offer and before siging the "compromis," or first contract, I had work to do. I spoke with the agent, Monsieur Dumond, to doublecheck all costs. I made sure the quoted price included all fees and taxes,since the VAT can add 19.6% to the cost of the house. I checked on agent's fees since real estate agents are allowed to charge whatever they like in France and fees can range from 4% to 10% of the 'net' property price. In addition, there is the fee for the notaire, the government official who oversees the sale, and this person can charge from 2.5% to 8% of the sale price. I asked to see the plans for the property and made sure I had all the necessary documents to present at signing -- my passport, proof of divorce, birth certificate, bank statements. FrenchEntree.com once again provided useful pointers in reviewing all costs. I began searching for someone who spoke English and French to do a separate, independent inspection of the house. And then I moved into the only B&B in the village for a brief taste of village life.

My arrival coincided with the naming of the village streets. Until then, the address for all houses had simply been "au village" or "Dit, Le Village." Since it had been roughly 700 years from founding to naming the streets, I figured numbering the houses was probably some years, or centuries, off. Still, since no one seemed to know the address of the house I planned to buy -- not the agent, not the owners, not the neighbor next door -- I stopped by City Hall to check on the address and bumped into Madame Le Maire. Just the woman I wanted to see.

Finding out about the town was as important as finding out about the house. The village assets were obvious, but what were the problems? Who better to ask than the mayor?

Madame Le Maire, with steel-gray hair wearing a strawberry red sweater, gray slacks and sensible shoes, welcomed me to town. She noted the flood of Americans now in the area -- none in the village but as many as four in the outlying countryside in summers. When I asked her to tell me what problems the village faced, she conferred quietly with her secretary at some length and then the secretary replied: "les gosse."

"The kids? What's wrong with the kids?" I asked, imagining vandalism, social diseases, drinking and drugs. Like back home.

"Noise," she replied, quite irate. "They just make so much noise in the streets all afternoon. It is terrible."

Looking quite solemn, the mayor agreed, and then added another one: "le parking." She thought cars should stop parking in town and remain on the village periphery. And, no, there were no plans to number the houses. My street was to be called Le Croissiere.

Over the next two days, I visted with a Belgian-British family who owned a small house not far from mine that they used each summer. I spoke with the Portuguese proprietress of my B&B, who noted a slight tendency among villagers to be argumentative and passionate about city politics. The mayor, it turned out, was rather controversial, considered too independent and too bold. I met Dominque, the village weaver, and one or two elderly ladies resting under the Plane trees beside the fountain on the Place. And from my informal survey, I gathered the two great challenges facing the town were "too much sun" and "too much wind." Now these were problems I could live with.

A home in Provence

I never buy the first pair of shoes I try on. But after trying on a dozen pair,I sometimes find the first pair fit best.

After touring 35 houses over three weeks across Languedoc and Provence, I returned to the second one I'd seen. I'd known it was the house for me even before the trip. From the first time I spotted it online, there was something different about it, something that resonated in a way that others didn't. So, after a second visit to be sure, and a third visit with my savvy French friends who confirmed the choice, I made an offer on a maison de village in a tiny hamlet of 120 homes.

From the village, 50 minutes north of Avignon and 9 kilometers outside Vaison-la-Romaine, you can see for miles down a vine-filled valley reminiscent of Tuscany. It was this view that drew the Knights of the Templar to establish a commanderie there in the 12th century, but it was the wine-making in the valley below that has kept a village there ever since.

The house, a three-story stone cottage with rose-colored shutters, was built in 1830 a few steps from remnants of the original medieval wall. It wasn't a grand house, I'd seen better. It had no garden, although the roof terrace was private and nice. And I'd have to be creative in defining a space to eat since there was no formal dining room and the kitchen was small. But the three bedrooms were large and bright, the fireplaces all working, and rooms painted the lovliest shades of lavender, pink and green. There was space to create two more bedrooms and a second bath, if needed, and it was easy to picture my family there, and visiting friends and small parties.

In the end,of course,the decision was less about the particulars of the house than the particulars of my heart. Walking from the village down the hill and through an orchard of ancient olive trees, the wind blowing across miles of thyme, fennel and vines, I knew the search was over. I was home. The offer went in the next day.

More than just a bed

When you're hunting for a house in France, the hostess of your B&B -- or Chambre d'Hote -- may be more valuable than any immobilier.

Like an explorer scaling Everest, I moved my base camp from one bed and breakfast to the next, traveling east to west, from Apt to Pezenas, looking at 35 houses that Wendy Johnson with French Help Services had helped me arrange to see. I traveled with immobiliers in concentric circles around the places I slept, visiting houses in the wild, wind-swept Cevennes, the sun-baked coast of Languedoc, the lavender framed vinyards of Provence.

My hostesses at every stop -- Saint Hippolyte, St. Quentin-la-Poterie, Pezenas, Vaison-la-Romaine -- provided invaluable insights into the real estate markets and community, as well as introductions to local immobilier and homeowners selling their properties. They also provided fascinating conversation, warmth and hot meals just when they were needed. If you're shopping for a house, skip the hotel and stay in a Chambre d'Hote.

Of all the charming places to stay, one of the best was Les Asphodeles in Saint Hippo, run by Corinne du Royer, an artist, journalist, herbalist and gourmet with flaming red hair, a twinkle in her eye and a deep sense of place. Corinne gives workshops on medicinal herbs and papermaking using plants of the Cevennes, and her home is filled with beautiful watercolors, handmade paper and fascinating guests coming and going all the time. Dinners on her terrace included her cousin, a well-known Paris artist with a summer chateau outside the villge, artisans, botanists, authors and local aristocracy engaged in making herbal remedies. Corinne told me of houses for sale in town, introduced me to an immoblier and provided advice. It was very tempting to buy in Saint Hippo just to live nearby.

Near the village of Buisson in Haute Provence, about 9 kilometers from Vaison-la-Romaine, I stayed at La-Foutaine-au-Loup run by the beautiful Patricia Klein, whose many talents include interior design and wrangling a wayward donkey who persists in jumping the fence to dine in the vines. Patricia was huge help in selecting a house, touring with me, giving me negotiating advice and noticing important aspects of houses that I'd overlooked. We shopped the summer clothes sales in Avignon, saw a ballet performance in the Roman amphitheatre in Vaison and dined on the terrace overlooking the pool with her girlfriend from Strasbourg considering a post-divorce move to the south. In every way, Patricia welcomed me briefly into her circle and I found that her petite frame and very feminine style effectively camouflaged one tough negotiator with an eye for financial detail. Her counsel was kind and wise.

Where you stay matters. It is a glimpse into the life you will lead.

French Legal Terms

A couple of week ago, a terrific newsletter published by FrenchEntree.com, offered a glossary of French legal terms related to the purchase of property. I ran into every one of these terms and wish I'd had this little list ahead of time.

Dont' be daunted. Just remember when you bought your first home in the United States and how initimidating that seemed at the time. It's just a matter of learning the lingo.

French Legal Glossary

achat - purchase

acte authentique – deed of sale

acte de vente (also acte d'achat) - transfer or conveyance of land

attestation d'acquisition - certificate from notaire that a property purchase has been completed

avocat - lawyer/solicitor

bail - lease or tenancy agreement

bon pour achat - good for acquisition – phrase often used in contracts

cadastre – land register or registry

certificat d'urbanisme – outlines the rights and planning laws that affect a piece of land/property. This is an important one because the Frency levy a substantial minimum fine for using land for a purpose beyond what is presribed.

clause suspensive - a conditional clause in a contract that needs to be fulfilled for the sale to reach completion

clause tontine – a clause that means the property will pass automatically to the survivor on the first death. This one is a little bit complicated and should be well researched and discussed with an attorney. Since I'm single, it was not an issue for me, although I did look carefully into the inheritance laws to assure proper passage of the property to my son.

compromis de vente - contract for sale and purchase of property. This is the first formal and legally binding step in the purchase of a property. It is roughly equivalent to making a formal offer and signing a contract in the United States. It binds both buyer and seller, is usually drafted by the French real estate agent handling the sale and is the point at which you make a deposit. The French have a nifty 7-day cooling off period, during which the buyer can change his or her mind without penalty. After that, if you change your mind, you lose your deposit. Read this carefully. It contains all the basic ponts of the sale. Do not sign anything you have not read and fully understand.

conditions suspensives - conditional terms in the pre-sale agreement

constructible - land designated for building under planning rules

copropriété - co-ownership

dépôt de garantie - deposit

dévis - written quotation

droits de succession – death duties/inheritance tax

émoluments – fees, as in a notaire’s fees

états des lieux – document detailing the state of repair or condition in general of property; in an off plan purchase, for example, there is an états des lieux on the handing over the keys.

expertiser - to assess or value a property

frais de notaire – total fees, including land registration duty, paid to the notaire on top of the sale price

géomètre or géomètre expert – a surveyor appointed by the notaire to ascertain the dimensions of the property

hypothèque - mortgage/charge on a property

loi scrivener – a law protecting French home loan borrowers

lu et approuvé - read and approved – words that often appear on a contract

notaire – legal official charged by state with handling property transactions. This is a uniquely French official in a uniquely French part of the transaction. My notaire was kind, patient, diplomatic and helpful. Notaire work for the government, not for the buyer or the seller. They are key to a successful transaction, so listen carefully to their advice.

permis de construire - planning permission. Any new construction or renovation or extension of a property requires permission from local government. A very frequent comment from sellers and real estate agents is that getting the permission won't be any problem. Do not believe this until you have checked yourself. Even converting an attic to a terrace, a change you cannot see from the street, requires permission. The laws have been simplified, but they're still complex and you should seek professional counsel if you want to make any changes to your property. I found it much easier to just find something that I liked as it is.

plan cadastral – land registry plan, showing boundaries of plots of land and property

prendre l’immeuble vendu dans son état au jour de la prise de possession – where the buyer takes the property ‘in its present condition’

TTC: toutes taxes comprises - all taxes included, referrring not just to sales tax but any tax

TVA: taxe sur la valeur ajoutée - value added tax or VAT

taxe d'habitation – tax on the occupation of a property. One of two local property taxes, with the tax foncière being the higher of the two. These taxes are distributed to your region and to the local communes to pay for things like garbage pick-up, street cleaning, schools and other community facilities. You have to pay them whether or not you live in the house full time. Make sure you ask about the taxes before you sign the compromise de vente.

taxe fonciére - local property tax. The higher of the two taxes. Tax bills usually arrive in August or September and have to be paid by a specific date in October or November. By U.S. standards, these property taxes are very very low, although they vary substantially from regin to region. So, again, check.

testament - will

A la banque

If you are serious about buying property, signing up for electricity, water and phone, or even just renting for very long, you'll need a French bank account. For shorter visits or holidays, your home counry Visa, Master Card or American Express card will work fine, although there are often high fees associated with currency conversions on purchases. But for most large transactions associated with buying a home, you'll need a French bank account.

It makes sense to choose a major national bank with lots of branches. All banks will require a variety of documents: personal identification in the form of a passport, proof of your home address in France (a telephone or electcity bill less than three months old , rental agreement or bill of sale) and some written proof of income like a wage statement of a bank statement from your home bank showing balances and a small deposit to open the account. I deposted $25.

There are so many foreigners now moving to France, that many banks have special offices or representatives who speak English and are dedicated to helping a foreigner settle in. Ask friends, neighbors, acquaintances and business contacts to recommend a bank since an introduction, even from someone you don't know very well, can ease and hasten the process.

Since 2006, the French postal service, La Poste, also offers full banking services but for the services an expat needs -- currency exchanges, mortgages, investment advice -- the bureaucrats at the poste are not yet up to speed. To be fair, it really isn't their main job. La Banque Postal Website offers information in English, including a glossary of French financial terms that will come in handy no matter where you choose to bank.

Online banking is now available through the big banks, but the sites vary widely and most banks charge a monthly fee for online access, which is a little shocking if you're used to banking in the States. In fact, there do seem to be rather more fees attached to all services offered by French banks.

ATMs are ubiquitous, usually found on main commercial streets,at the entry to banks and at post offices. The "distributeurs automatique de billets" charge fees as they do in the States, but if you need Euros, this is often less costly than changing cash at a currency exchange. In France, people also pay for everything, even tiny purchases like coffee and a croissant, by check. A French check book, chequier, will make you look and feel like a local and the checks will be welcome everywhere. There are very stiff penalities for bouncing a check in France so checks are treated the same as cash. If you write a check and have insufficient funds, you run the risk of not being able to write another check for five years. Track your balance closely or arrange for overdraft protection.

Wendy recommended that I speak with Robin Boxall at Banque Chaix, a division of the giant HSBC. Banque Chaix had branches in all the southern French cities, Montpelier, Nimes, Avignon, Uzes. Robin, a British man married to a French woman, provides what is essentially concierge service for the bank's Anglophone customers.

Robin was delightful, explaining the process, promptly emailing the documents and finding a HSBC branch in Manhattan, a few blocks from my office, where I could drop off the papers to expedite opening the account. I filled out the papers, dropped them at the NY branch, and had my new French bank account open within one week. He has been consistently helpful at every step, always available by email and ready to answer questions and solve small problems. Genuine personal banking.

When I arrived to look for a house, one of my first stops was Banque Chaix in Uzes. I transferred money into the waiting account for a deposit if I found a house, picked up my crisp new checks and was on my way.

Other major French banks to consider, include:
Le Crédit Agricole
Le Crédit Lyonnais
La BNP Paribas with branches in Chicago, Dallas, Houston, King of Prussia, New York, Los Angeles, Miami and San Franciso
La Caisse d"Epargne

For the moment, I'd stay away from La Société Générale until they can figure out how they misplaced $7.2 billion. If they can lose a sum that large....

Train Tip

As I mentioned in a previous post, if you're flying to Paris and then jumping on the TGV to your ultimate destination, you can do it from under Charles de Gaulle Airport. The train is easy, buying the ticket online is not. Call me clueless (you wouldn't be the first), but it took me several attempts to figure it out. Here's the Website. Once you're on, find the field marked "Leaving from" and type in: Airport CDG 2 TGV. This should produce the schedule of trains and fares.

Be sure to check out the "promos," as well. Tonight they were offering a RT flight to Prague for 120 Euros, $175. Let's go.

French Real Estate Prices

French property prices rose 3.8 percent last year, according to a report issued by the Federation Nationale des Agents Immobiliers et Mandataires (FNAIM), France's version of the National Board of Realtors. Although the report takes a rather gloomy view, this all sounds pretty good to me with what's going on in the real estate market throughout much of the United States. And the report, of course, doesn't take into account the falling U.S. dollar.

A house purchased for the equivalent of $200,000 in August 2007 at an exchange rate of 1.37 Euros to the dollar would be worth roughly $19,000 more today, five months later, at an exchange rate of 1.46 Euros to the dollar. And that's if you sold it for the exact same price you paid -- and before adding in the non-financial benefits of life in France.

Although exchange rates fluctuate, the dollar has been losing value for a very long time. Overseas real estate in the Euro, whether in France or elsewhere seems a very good hedge. And the FNAIM report makes that clear.

Ground Support

Between holding down a job three days a week, counseling my own clients, starting another company and providing parental consulting services to a 16-year-old, it has been far too long since I posted anything here.

I wasn't much less busy last spring when I was looking for a house, which is why it was a gift from the universe to run into Wendy Johnson. Wendy, who I first encountered when I responded to a for-sale-by-owner ad on a Languedoc message board, works with French Help Services, a small company that both helps people find houses and also helps them manage the houses they own. She is smart, fast, efficient, sensible, knowledgeable and funny. She started out by answering questions about one house and ended up putting together a schedule for three weeks of house viewings -- 35 houses from Pezenas to Mont Ventoux. (I've never believed in buying the first pair of shoes I try on.)

After two months of searching listings and keeping a file of houses I wanted to see, Wendy helped me pull it all together into three well-organized binders of listings, driving directions, contact numbers and logistics. I'm sure similar services exist throughout France, but Wendy is one-of-a-kind. I recommend that anyone planning a trip to house shop find someone on the ground to provide counsel and logistical support like French Help Services did (and continues to do) for me.

Wendy also has a very entertaining blog where she sometimes has property listings, including the lovely house that prompted me to first get in touch with her -- a maison de village in Anduze, the gateway to the Cevennes Mountains. The video tour of the house that Wendy shot for me is still posted on her blog. The Anduze house is beautiful, and a steal. It was just a little farther from my friends in Avignon than I wanted. If you're looking, check it out.

More later - and I won't wait quite so long between postings. It's way too much fun.