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CréditFoncier

Advisor

Estateagent

Notary

Vendor

It is essential to open a bank account in France, both to pay the monthly instalments on your mortgage or to settle the different bills related to your property inFrance (electricity, water, local taxes, etc.).Crédit Foncier can open an account in your name to pay the monthly repayment instalments, or help youto open a current account in a high-street bank.

> How to open an account in France:• Bring the necessary documents (see front cover).• Fill out the current account application form• The bank will then send you your account details (the so-called RIB ).You can now transfer some funds to your new account.

Bank account

Accepting the loan offer is a prerequirement to signingthe loan agreement.> Write your initials at the foot of each page, front and back> Date and sign the last page: write the date at whichyou received the offer, and the date of your acceptance.Your acceptance should come at least 11 days afterreception of the offer -for example, if you receive our

offer on the 10th, you cannot accept it before the 21st- but no more than 30 days if you want to benefit fromthe conditions included in the offer. The correspondingfunds will be released later on.N.B.: When writing the date in French, always use theday/month/year format!E.g.: January 10th, 2006 is abbreviated to 10/01/2006.

How to accept the loan offer?

The RIB, or Relevé d’Identité Bancaire (bank accountidentification slip), is provided by your bank and contains all the details about your bank account: bankID, identification of the branch holding your account,account number, control key (clé RIB), domiciliation and address of the branch. The RIB also includes your

International Bank Account Number (IBAN) and theinternational bank identification code (BIC). This identification slip is designed for your French (or foreign) creditors and debtors who need to carryout operations on your account (credit transfer, payment, etc.).

What is a RIB?

> One particular case: buying off planThere are 2 essential differences between buying anexisting property and ‘buying off plan’:> You only pay a deposit of max. 5% when you sign the preliminary contract. > All of the funds will not be paid when you sign thedeed of sale. The property developer usually draws up

a schedule for the payment of the funds; Crédit Foncier willrelease the funds when due on the basis of this schedule.Interest will then only be paid on the capital released.

NB: When the loan will be used to pay for renovation work, thefunds may be released in the same way, in stages, as and whenrequired.

It is compulsory to take out a building and contentsinsurance policy (known as assurance multi-risque habitationin French) and you will be required to present proof ofcover when you sign the final deed of sale before thenotary.Crédit Foncier can provide you with this insurance.

> How to take out a building and contentsinsurance policy?When your Crédit Foncier advisor completes yourapplication file, he or she will ask whether you wouldlike to take out a building and contents insurance policy. With us all the documents required forarranging this insurance will then be sent to theinsurance company that will contact you directly todecide the details of the insurance policy with you.

Building and contents insurance policy

> Balance of your personal contribution:

Balance of the purchase price to be settled before D-day

Real-estate agent’s feesor commission paid to another intermediary

Purchase price

Notary’s fees = Conveyance fees +Mortgage guarantee fees

10% deposit paid upon the signature of the preliminary contract(1st part of your personal contribution)

Different phases:

◗ House-hunting phase and loan simulation◗ Decision-making - signature of the preliminary contract◗ From making a decision to applying for a loan◗ From accepting the loan to transferring the funds◗ Finalizing the sale - signature of the loan contract◗ Repaying the mortgage

THE LANGUAGE OF FINANCING◗ crédit loan◗ crédit immobilier home loan, mortgage◗ crédit hypothécaire mortgage◗ co-emprunteur co-borrower◗ compte bancaire bank account◗ contrat de prêt loan contract◗ délai de réflexion “cooling-off” period◗ demande de prêt loan application◗ demander un prêt to request a loan◗ dossier de prêt mortgage application file◗ durée du prêt term of loan◗ échéances plafonnées capped instalments◗ emprunteur borrower◗ emprunt loan◗ RIB - Relevé d’Identité Bancaire bankaccount identification slip◗ frais de dossier loan arrangement fees◗ hypothèque mortgage (legal charge onproperty)◗ IRA - Indemnité de Remboursement Anticipéearly redemption fees

◗ mensualité monthly instalment◗ multi-risque habitation (assurance)building and contents Insurance policy◗ offre de crédit loan offer◗ plan de financement financingscheme/financing plan◗ prêt amortissable capital repayment loan◗ prêt in fine interest-only loan,endowment loan◗ prêteur lender◗ remboursement anticipé early redemption◗ simulation de prêt loan simulation/quote simulation◗ tableau d’amortissement monthlyrepayment schedule◗ taux capé capped rate◗ taux effectif global annualized percentagerate◗ taux fixe fixed interest rate◗ taux variable variable interest rate◗ versement de fonds transfer of funds

THE LANGUAGE OF PROPERTY◗ appartement apartment/flat◗ bâtiment/immeuble building◗ habitation residence◗ maison house◗ maison de campagne house in the country/country cottage◗ maison de village village house◗ maison de ville town house◗ propriété property (with grounds)◗ résidence principale main residence◗ résidence secondaire second home◗ résidence de tourisme lease-back property◗ VEFA home purchased from plan

USEFUL WORDS◗ acompte deposit◗ acte authentique de vente deed of sale◗ agent immobilier estate agent◗ compromis/ preliminarypromesse de vente sales agreement◗ frais de notaire notary’s fees and costs◗ notaire notary(acts for the State, carries out some, but notall the tasks undertaken by a solicitor in the UK)

� voluntary ⌧ compulsory

At what stage of the process do the different protagonists intervene?

Speaking the langage of property buying

YOU Your Crédit Foncierpersonal advisor

Compulsory deadline

Indicative deadline

The notary(public)

Banking operations

Insurance-related operations

Important

Property

Formalities carried out by the notary

Financing

Colour code

N The seller or estate agentS

* legal requirement** contractual requirement*** the monthly instalments will be debited at

a date agreed with Crédit Foncier, and notnecessarily at the anniversary of the completiondate.

� Voluntary deadline�

> Loan application

> Loan offer

> Signature of the loan contract

> Repayment of the mortgage

Complete and detailed information describingall the key stages in the process of buying andfinancing property in France

List of documents* to provide

To complete the loan application file :

> Personal details

• A photocopy of identity papers

> Income and personal assets

• Pay slips for the past 3 months

• Tax returns for the past 3 years

• A reference letter from your bank

• A summary of your assets

• Bank statements for the past 3 months

> Outgoing expenses

• Depreciation schedule for all current loans

• Receipt for past 3 months’ rent (if tenant)

> Property

• Preliminary sales contract:

To open an account in France:

> A copy of your passport or identity papers

> Proof of address

> A copy of the past 3 months bank statements

* Consult us regarding the particular terms of application.** Compromis or promesse de vente*** Or title deed proving ownership of the land

Type of transaction

• Acquisition of newproperty

• Acquisition of existingproperty

• Renovation work

• Construction work

Documents

• Reservation contract

• Preliminary contract**

• Title deed, estimate, planning permission

• 1- preliminary contract***

2- construction contract 3- full set of plans 4- planning permission

Head office : 19, rue des Capucines - 75001 Paris - France - Tél. : 33 (0)1 57 44 80 00Credit Foncier de France, lender establishment : a French corporation (société anonyme)Share capital : EUR 806 319 000,50 - Paris trade and companies register 542 029 848 RCS ParisInsurance intermediairy with ORIAS register n° 07023327

Crédit Foncier's loans are governed by the provisions of French laws and, in particular, articles L312-1 and seq. of French Consumer Law.The borrower has a ten day cooling-off period. The sale is subject to the loan being obtained and if the latter is not obtained, the vendormust repay the borrower the deposit paid. Co

see front cover

see back cover

DIFFERENT STAGESFOR BUYING IN FRANCE

creditfoncier.eu

Crédit Foncier founders, 1852

CRF_guideEtapes_UK2009:CRF_7526_NR_tableau_2006 22/12/09 10:25 Page 2

BUILDING AND CONTENTSINSURANCE POLICY*

LIFE INSURANCE**

ONCE YOU HAVE CHOSEN THE PROPERTY,YOU CONFIRM YOUR INTEREST BY MAKING A WRITTEN OFFER TO THEESTATE AGENT (OR EQUIVALENT) WHO WILL THEN FORWARD IT TO THE VENDOR

Preparingthe loan application file

Application review and loan offer

Acceptance of the loan offer

Preparing the signatureof the deed of sale

Signing the deed of sale

Signature of the preliminary contract

KEY PHASES

STAGES

DOCUMENTS

EVENTS

COMMENTS

TIMELINE

The different stages in the buying process

CALCULATING YOUR BUDGET• personal contribution• repayment capacity

Loan simulation

• borrowing capacity

You take out a life insurance policy

Crédit Foncier invites you to take out a building and contents insurance policy

MORTGAGE APPLICATION FILE

You fill out the mortgage application and health questionnaire, and provide all the documents required to examine the application file

Only when you have signed the preliminary contract will you be legally committed

LOOKING FOR THE PROPERTY

• define the criteria of the ideal propertyand study the market

• choose the property• check the local land use plan (POS) and

any condominium maintenance charges

PRELIMINARY CONTRACT

promesse de vente or compromis de vente

1: From house hunting... ...to making a decision

2: From loan application......to loan offer

3: From accepting the offer......to transferring the funds

And afterwards?4: From preparing......to concluding the transaction

A deposit of 10% (existing properties) or a max. of5% (properties purchased off plan)

• the tax incidence of the transaction (capitalgains, transfer and conveyance fees, etc.)

• the legal framework• the valuation of the property

Don’t forget your copy of Crédit Foncier's "Different stages for Buying in France" guide as well as a notebook to record all theimportant details about your purchase.

Crédit Foncier provides a simulation of yourprojected loan (“agreement in principle”)

7-day ‘cooling-off ’ period from the date ofacknowledgement of receipt of the contract

U S U S U UN U Nor U U N

THE NOTARY INFORMS AND ADVISES YOU ON

Provide the essential documents

This cover ensures repayment of theloan should the borrower dies

LIFE INSURANCE**

BANK ACCOUNT

LIFE INSURANCE**

48h� �

Looking for the property and the loan

CRÉDIT FONCIER CARRIES OUT A VALUATION OF THE PROPERTY

Possibly, request for additional medical exams and check-up inFrance or in your home country

� Between 30 and 60 days � Compulsory 10-day ‘cooling-off ’ periodfrom the date of receiving the offer

It is essential to respect the following ruleswhen returning the accepted loan offer:• no sooner than the 11th day and no later

than the 30th day after receiving theoffer,

• directly by mail* to Crédit Foncier to theaddress specified in the loan offer letter.

� Crédit Foncier sends the notary all the information he needs to draw up the deed of sale

To enable Crédit Foncier to release the necessary funds, it isabsolutely essential that we possess the following documents:• proof that you have transfered money on to your bank account

in France,• a completed standing order form,• a reference letter from your bank, • proof of your personal contribution.

DEED OF SALE

• purchase agreement• mortgage agreement

BUILDING AND CONTENTS INSURANCE POLICY*

Proof of insurance cover

You provide the notary with proof that you have takenout the necessary insurance cover

TRANSFER OF OWNERSHIP

Now,you’re the proud

owner of a propertyin France!

Moving in...Organize your move…Think about decorating your new home…

But also...Don’t forget to register at:• the town hall at your new address,• the tax office for non-residents.

Contact the local gas and electricity board, the water and telephone companies to arrange thenecessary connections, etc.

Every year...Remember to pay the various taxes due: local taxif you live in the house yourself, land tax, etc.

• If you change your bank account in France,remember to inform Crédit Foncier and provide us with your new account details inthe form of a RIB

• If you would like information about yourloan or to modify the conditions of yourloan, contact our Customer Service at:+ 33 (0) 825 30 30 31or by email at the following address:[email protected]

REPAYING THE MORTGAGE

ADMINISTRATIVE FORMALITIES

• loan application• health questionnaire• checklist of required documents

• loan offer initialled, dated and signed• signature of the standing order• RIB*� sent by mail*

ACCEPTANCE OF THE LOAN OFFER

Open your bank account inFrance

BANK ACCOUNT IN FRANCE, STEP 1

TRANSFER OF FUNDS STEP 1

� sent by mail*

LOAN OFFER

• equal to 2 monthly instalments (at least)

• the balance of your personalcontribution

You sign the loan offer and return it to the address specified in the loan offer letter

• pay money into your bank accountin France (transfer of funds n°2)

• sign a standing order form for your mortgage repaymentinstalments

• the title deeds• the existence of any prior mortgage• the existence of any pre-emptive rights, etc• the validity of the diagnostics

THE NOTARY VERIFIES

• he officially registers the deed of sale with theConservation des hypothèques (Land registry)

• he sends you a copy of your title deed 6 months or soafter the completion date

THE NOTARY COMPLETES THE FINAL FORMALITIES

THE NOTARY DRAWS UP THE DEED OF SALE AND ORGANIZES THE SIGNATURE OF THIS DOCUMENT

You take the steps necessary to settle the balance of the purchase price. You ask for a banker’s draft (or cheque) or place a transfer order with your bank at least one full week before the completion date

Crédit Foncier sends the notary:• a cheque for the amount of the loan• and all details required for drawing up the deed of sale

RELEASE OF THE FUNDS

The following amounts are debited from your bank account:• loan arrangement fees• first monthly repayment instalmentMake sure you always keep sufficient funds on your bankaccount in France!

BANK ACCOUNT IN FRANCE, D-DAY + 30***

You transfer the funds necessary to pay the balance of thepurchase price

He informs the parties of the date agreed upon for signing the deed of sale, and asks the bank to transfer the necessary funds

LIFE INSURANCE**

KEY PHASES

STAGES

DOCUMENTS

EVENTS

COMMENTS

TIMELINE

Loan simulation

LIFE INSURANCE**

BANK ACCOUNT

LIFE INSURANCE**

48h� �

DEED OF SALE

� sent by mail*

LOAN OFFER

THE NOTARY VERIFIES

LIFE INSURANCE**

KEY PHASES

STAGES

DOCUMENTS

EVENTS

COMMENTS

TIMELINE

Loan simulation

LIFE INSURANCE**

BANK ACCOUNT

LIFE INSURANCE**

48h� �

DEED OF SALE

� sent by mail*

LOAN OFFER

THE NOTARY VERIFIES

LIFE INSURANCE**

KEY PHASES

STAGES

DOCUMENTS

EVENTS

COMMENTS

TIMELINE

Loan simulation

LIFE INSURANCE**

BANK ACCOUNT

LIFE INSURANCE**

48h� �

DEED OF SALE

� sent by mail*

LOAN OFFER

THE NOTARY VERIFIES

CréditFoncier

Advisor

Estateagent

Notary

Vendor

Bank account

What is a RIB?

Purchase price

Different phases:

Compulsory deadline

Indicative deadline

The notary(public)

Banking operations

Important

Property

Financing

Colour code

> Loan application

> Loan offer

> Personal details

> Outgoing expenses

> Property

> Proof of address

Type of transaction

• Renovation work

Documents

see front cover

see back cover

creditfoncier.eu

CréditFoncier

Advisor

Estateagent

Notary

Vendor

Bank account

What is a RIB?

Purchase price

Different phases:

Compulsory deadline

Indicative deadline

The notary(public)

Banking operations

Important

Property

Financing

Colour code

> Loan application

> Loan offer

> Personal details

> Outgoing expenses

> Property

> Proof of address

Type of transaction

• Renovation work

Documents

see front cover

see back cover

creditfoncier.eu

CréditFoncier

Advisor

Estateagent

Notary

Vendor

Bank account

What is a RIB?

Purchase price

Different phases:

Compulsory deadline

Indicative deadline

The notary(public)

Banking operations

Important

Property

Financing

Colour code

> Loan application

> Loan offer

> Personal details

> Outgoing expenses

> Property

> Proof of address

Type of transaction

• Renovation work

Documents

Crédit Foncier's loans are governed by the provisions of French laws and, in particular, articles L312-1 and seq. of French Consumer Law.The borrower has a ten day cooling-off period. The sale is subject to the loan being obtained and if the latter is not obtained, the vendormust repay the borrower the deposit paid. Not contractual document. Co

see front cover

see back cover

creditfoncier.eu