You have not yet selected a site. Here are some precautions to take:
To gather all the options in your favor, we are going to provide you here with a few pieces of useful advice that we hope will assist you in your search for your dream site:
Using the Internet, you can set up alerts with your search criteria for various building sites. You will be notified, every day, when new advertisements are placed online.
Contact real-estate agencies, commercial vendors and developers by telephone or fax. Read the small advertisements in the real-estate listings of the local, free press.
Establish a liaison with:
- Municipal Authorities
They will advise you about the tax rates that are applicable, the registration fees, and the acquisition costs.
If you have a favored location in mind, go there and note the contact details on the “For Sale” signs, and do not hesitate to ask questions in the neighborhood.
Calculate the price of the land + price of construction, and use the services of Adil (see www.adil06.org) to answer the following questions:
- You are purchasing a residential property. What are your entitlements?
- 1% housing support
- Special 1% housing support
- You want to access the property, organize a loan
- A house is valued at Euros100.000. How can you become the owner?
- Funds: Possible loans and assistance, making a tailored, financial analysis
- Contracts, insurance policies
- Contracts, insurance policies
Do not hesitate to do the rounds of several banks n order to compare their loan terms.
The fact that you want to build a house, is certainly going to distance you from the town. Ask yourself the following vital questions for your daily well-being:
- How far away are the nearest commercial establishments?
- In case your car should break down, is there a bus that serves the area?
- Where is the nearest school, and the nearest doctors or nurses?
Then, go to the town hall to obtain the following information:
- The most recent town planning certificate that indicates the constraints on architecture and height, and other limitations imposed on building in the area, the local urban plan (PLU), land use plan (POS), and the current rates of land and property tax.
- Check whether there are plans for a highway or commercial development in the area.
- Consult the POS and PLU for a presentation of the environmental development and details of the locally applicable construction regulations.
- Check out the geological composition of the terrain. Be aware that a specialist can be brought in to make a quality assessment of the ground and that it will affect the value of the property.
- Inquire about the land and property tax rates, so that you can calculate the costs of your future residence.
- Acquaint yourself, at the town hall and in the neighborhood, with the history of the land. This can also be a source of important and determining information affecting your decision.
- Check carefully the surface area and border limits of the land. The data listed in the public land registry have no legal value. If you are in any doubt, ask an expert assessor to conduct a survey.
- In isolated areas, services or connections may not be. The supply of water, electricity, gas, and so on carries with it the fees of the relevant network branches. Ask for the branching devices for relevant services, and take your available budget into account.
If your selected plot of land is situated in a building development:
The plot is always supplied with water and connected to the water, electricity and gas sources networks.
The design of the house must respect the rules of construction for this development, which are globally applicable without differentiation to all available parcels of land. These govern building height, the land area, the materials used, the orientation, and the purchasers are obliged to conform to them.
Plots within a development benefit from guaranteed construction permits from the moment they are put up for sale.
Ask for the regulations and pricing of the development, or else the development order, to find out about the provisions imposed on the site, and to compare them with your project.
In these documents, the required area and frontage widths are stated, together with details of some work for which you must accept responsibility: fences, garden plants.
If your project plan is along similar lines to the standards of this development, all the better. If not, consider together with your family the points upon which you can be flexible and those on which you cannnot before taking a decision.
As long as you have not made a firm decision to purchase a plot of land, you should sign no document, and then there is no commitment, no letter of intent and no option applicable.
The purchase process
The letter of intent
When you have made your choice, you sign a letter of intent that stipulates the conditions according to which the sale will be executed. You are entering into a firm commitment. Review the content and phrasing of the letter of intent very carefully, entrust it to your notary or other qualified professional, who is accepted both by you and by the seller.
This letter of intent is not unique, but it could be:
A unilateral promise of sale is the definition of the case where the owner makes you a sales offer and reserves an option for you to buy within a clearly defined period. This promise is then signed between the seller and the buyer, and must be registered at your local land registry office within 10 days.
Caution In this case, the purchaser has a commitment but the seller has none. You have no 7-day withdrawal period. If you not absolutely sure that you want to purchase a plot of land, do not sign this type of letter of intent.
A preliminary sales agreement or reciprocal sales contract:
This refers to a firm sale, where the vendor and the buyer are both contractually committed. Still, a clause can be added that makes provision for unilateral or reciprocal withdrawal, under certain circumstances.
In the preliminary sales agreement, the following information must be included:
- The price
- The exact description of the plot of land and its area
- Possible private and public constraints, such as the right of through passage and the right to draw water
- A declaration to the effect that the land is not the subject of any mortgage
- Date and signature to be indicated in the presence of a notary
- The total amount of negotiation fees: Real-estate agent or notary, and the individual (vendor or purchaser) responsible for their payment
For a land area under development, the following information must be indicated:
- The net surface area available for construction
- A confirmation that the buyer has duly received the purchase order and pricing, since he will be obliged to respect certain clauses in these documents once the house is built
For your protection, you are advised to request the inclusion of suspensive and settlement clauses that dictate that the sale will be executed according to certain conditions, as follows:
- If your plot of land is in a remote location: Provision of an urban planning certificate authorizing the implementation of your project
- If you are involved in a resale – purchase negotiation: Prior sale of your previous residence
- If you are taking a loan: Receipt of the loans you are requesting for the land purchase and for the house construction project
- And, of course: Provision of the building permit
Wait until you have a bill of sale in your hands before signing a building contract.
Do not take any action before the preliminary contract is signed.
At the time of signature of the preliminary contract, the vendor will ask you to deposit a percentage of the project cost, usually 10%, as a retainer for the plot of land.
This sum is only reimbursable in precisely the following 2 situations:
- The financing bodies have refused to provide your requested loans
- The terms of one of the suspensive or settlement clauses that you requested to be included, as a precaution, in the preliminary contract has not been met
The final contract of sale or legal document: You and the vendor will sign the contract in the presence of a notary (yours or theirs). If the signature takes place in the presence of the vendor’s notary, you have the right to be accompanied by your own notary. In this scenario, the fees will be shared between the 2 notaries.
Final points for verification before contract signature:
- The plot of land in question has not been modified in any way between the time of your visit and the sales contract signature.
- The timetable is known for completion of necessary network installations and sanitation work,
- In the context of a housing development, provision of a guarantee of completion of all the collective installations must be a condition of signature of the sales contract.
- The balance of the price of the plot of land is payable upon contract signature.
Final recommendation: You must keep your copy of the sales contract very carefully. The original copy of your title deed for the property should be kept by the notary, who managed the sales contract.