Are You Thinking of Buying Property in the Principality of Monaco? Here is Your Step By Step Guide on HOW TO.
By Laurent LOCCHI 🇲🇨 Real Estate Monaco
When you want to start the acquisition process of a property that meets all your criteria, there are two necessary steps.
Step # 1- The Offer to Purchase and Negotiation
A written offer: No negotiation in the Principality can start without a written offer written by an agent. A real estate agent does not transmit an offer orally. Certain exceptional cases would justify this use. A detailed offer: The written offer makes it possible to present the purchaser, the detail and description of the goods concerned, the proposed price as well as the terms and deadlines of the acquisition. The document also shows the amount of notary fees paid by the buyer.
In the Principality of Monaco, the buyer must also pay a commission to the real estate agent in remuneration for his intervention. These fees are 3% extra, calculated on the sales price + VAT 20% (out of the 3%) – customary commission for real estate agents who are members of the Real Estate Board of Monaco.
An offer backed by a deposit: The sincere commitment and good faith of the buyer must be supported by a deposit that will be cashed by the notary once the offer accepted. This down payment shows the seller the seriousness of the offer. Agreed to a sum of 10% of the selling price in the majority of the cases, this deposit varies according to the situations. In Monaco, it is usually established with a simple check from a bank in the Principality of Monaco or a bank transfer upon acceptance of the offer. Unless otherwise indicated by the purchaser, the latter is never cashed by the notary before the agreement of both parties.
An offer with legal value:
The offer to purchase is a document that has a real legal value in the Principality of Monaco. When accepted and supported by a down payment check, the accepted offer is a firm commitment from both parties. If the buyer withdraws from the transaction after the seller has accepted the sale, the down payment check is automatically acquired. Conversely, in the face of a defaulting seller, the deposit is returned, and the notary forces the seller to pay compensation of the same amount. in this case, a procedure to compel the seller to make the sale effective may be considered.
An offer followed by a sales agreement?
The possibility is left to both parties to agree on the signing of a sales agreement. More detailed than a simple offer of purchase and preparing the authentic deed, it allows to reinforce the two parties in their respective intentions while protecting them in front of notary. This phase may be useful in the case of a transaction where the signature in authentic form is remote or when the complexity of a situation requires it.
Step 2 – The responsibility of the Notary and the Authentic Act
The notary is a public officer acting on behalf of the State. He confers on the acts he writes a pledge of authenticity. This means that he has prerogatives of public authority. The notary is above all a professional who has the power to authenticate the acts by affixing his seal and his own signature. He personally notes the will expressed by the parties and commits himself to the content and the date of the act.
The authentic deed by its formalism confirms the content of the sale and the agreement between the parties with probationer force and enforceable. This act imposes itself with the same force as a final judgement. It establishes the new property at a certain date and effectively protects your interests in a transparent manner.
In the Principality of Monaco, an agent can accompany you to the notary of your choice:
- Aureglia-Caruso Nathalie – Postal address: 4 boulevard des Moulins, 98000 Principality of Monaco – Tel. 93 10 60 60 – Fax. 93 30 50 54
- Crovetto-Aquilina Magali – Postal Address: 31 Boulevard Charles III, 98000 Principality of Monaco – Tel. 93 50 54 13 – Fax. 93 30 56 73
- Rey Henry – Postal address: 2 rue Colonel Bellando de Castro, 98000 Principality of Monaco Tel. 93 30 41 50- Fax. 93 30 05 22
Monaco Property Guy 🇲🇨 Laurent LOCCHI 🇲🇨 Real Estate Monaco
MIELLS & Partners – 📞 + 33680863201
Monaco Property Guy Connect with Laurent on social networks