7. Funding of Property Auctions in France
The purchase cannot be subject to obtaining a mortgage as is the case with a normal purchase. So you will need to organise your finances before the auction takes place.
If you do intend to bid then you will be expected to leave a deposit cheque (called a chèque de consignation) with the notaire, which can range from 5% to 20% of the reserve price. It may well need to be in the form of a banker's draft, particularly with higher value auctions.
The buyer is also normally required to meet the auction cost, which may be 1% or 2% of the sale value, although it is sometimes divided between buyer and seller. These costs are considerably lower than normal estate agent fees, which can run to around 10% and form part of the purchase price.
The fees are higher for judicial auctions because of avocat costs.
The condition does not always apply in the case of the auction of public buildings.
Next: Auction Procedure
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