THE STAGE PAYMENTS FOR FRENCH LEASEBACK PROPERTIES

Usually French leaseback properties are developments that are planned to be build in the future. In France there are a number of major companies commencing new leaseback developments every year.

The buyer will have to pay instalments at various phases of the construction process of the leaseback property. In order to reserve your leaseback, a deposit will have to be transferred to the notary’s escrow bank account. For French leaseback properties this is usually 5% of the purchase price TTC (the purchase price including VAT). You usually have to pay the second stage payment, approximately 25%, when you sign the final contract around the time the foundations are started. These costs to close the deal usually include the fees of the notary, title registry and taxes. The amount of money in the notary’s escrow account less fees and taxes for closing the deal will now be transferred into the developer’s account.

The other stage payments will have to be paid at different stages of construction. These are all clearly mentioned in the reservation contract of your French leaseback property. The following is an example of the stage payments which make up a total of 100% (including the deposit).

1. 5% Deposit when you reserve the leaseback.
2. 25% When the final contract is signed and the foundations are being commenced.
3. 5% At the completion of the foundations.
4. 10% When the first floor is started.
5. 15% When the roof is finished and the leaseback apartment is waterproof.
6. 10% When the windows have been fitted.
7. 15% At the beginning of the partitioning.
8. 5% At the completion of the partitioning.
9. 5% At the completion of the works.
10. 5% When the keys are handed over.