The French Notaires and Their Price Reporting

Next Thursday, the Chambre de Notaires will publish their report for second quarter, 2018, but for now we must wait with “baited breath” for the results. You can watch for it yourself here.

For now, what’s posted on the site are the figures from first quarter 2018.

To understand how to read the reported property prices, the Chambre de Notaires explains their methodology:

The prices calculated no longer correspond to median prices, but to “standardized” prices based on the Notaires-INSEE index method and have the advantage of being less dependent on the size and quality of goods sold.

The figures are therefore not comparable to the figures presented before third quarter 2017. Changes over three months, one year and five years are calculated in relation to the new standardized prices.

For more information (in French), click here.

If you can not install the Flash plug-in, you can check the evolution of property prices on the Ile de France here or download the pdf version. 

Opinion: The figures presenting the prices of the resale real estate (more than 5 years) in Ile-de-France come from Base BIEN (Notary Economic Information Base), database formed by the notaries of Île-de-France from the deeds of sale processed in the offices of notaries. On the basis of this information, price indexes are calculated quarterly in partnership with INSEE, known as the INSEE-Notaires index. These indexes are calculated for the region and by department. It is the valuation in euros of these indexes that is proposed on the chart.

At a more detailed level, prices by district, municipality and borough correspond to standardized prices. These standardized prices sometimes relate to low volumes and must be taken with care. However, the quality of goods traded during the quarter is taken into account to correct and “normalize” prices and determine a standardized price per municipality that is representative of goods regularly exchanged over the last five years.

The results presented are provisional values — calculated six weeks after the end of the observed period. The valuation of the final Notary-INSEE indexes is calculated three months later and is available in the documents presenting the price history in Île-de-France.

But I warn you! The prices reported by the Chambre de Notaire are still not absolute and do not take into account true market values. The reasons for this are:

1. Agency commissions are normally deducted from the selling price, if the buyer pays the commission, rather than the seller

2. Furnishings which are deducted from the gross selling price of the property further reduces the reported prices

3. Prices reported are admittedly three months out of date

4. Cash transactions (which are illegal, but do occur) are not considered

5. The quality of property varies over a district and therefore averages can be deceiving

Stay tuned for our report next week when we have the latest figures for second quarter 2018, keeping all this in mind!

You might enjoy knowing more about the history of the French notaire. The following is a reprint from the Chambre de Notaires website: 

In the third century AD, under the late Roman Empire, officers whose roles were similar to that of modern French notaires were already authenticating contracts on behalf of the State. The colonizers introduced the concept into Gaul and “Gaulish notaries” started drawing up documents, particularly land censuses designed to establish the basis for property tax. The profession disappeared after Rome fell to the barbarians, but reappeared in the 9th century by virtue of a capitulary issued by Charlemagne.

In 1270, shortly before setting off on his last crusade, King Louis IX, commonly known as Saint Louis, and King Philippe le Bel, in 1302, played an important part in developing the role of the French notary. King Louis IX appointed 60 French notaries at Le Châtelet who worked on behalf of the Provost. King Philippe le Bel extended the role of the French notary to all the lands governed by the sovereign.

France became a nation in the 16th-century. In 1539 King Francois 1st, by ordinance of Villers-Cotterêts prefigured how the civil law notary was to be organized: the deeds were to be written in French instead of regional dialects, the deeds were to be archived and a record their existence was to be kept. In 1597, King Henri IV made the French notaires keepers of the Seal of State.

The French Revolution did not challenge the notarial institution. During the final phase of the Consulate, life-consul Napoleon Bonaparte, under an Act dated 25 Ventôse year XI by the revolutionary calendar, gave French notaries a status the main features of which have remained unchanged.

At the end of the greatest war in history, the Order dated  November 2, 1945 gave French notaries their institutional bodies and founded the High Council for the French Notariat (Conseil supérieur du notariat). The profession of Notaire considerably developed since this period, made particularly vital by the need to rebuild France after World War II. The Notariat has made a major contribution to this rebuilding in the legal and tax fields.

The legal profession experienced dramatic expansion after the War as politicians reformed most of France’s institutions or created new institutions in many different fields. At the same time as these developments, town-planning regulations underwent dozens of one-off changes and two new areas of law emerged: that of protection of consumer rights and that of environmental protection.

In short, the law has seen more changes in the last half-century or less than it underwent in the previous one hundred and fifty years. However, by investing significant technical and financial resources, the Notariat has managed to cope with and adapt to all these changes.

A bientôt,

Adrian Leeds
Adrian Leeds Group

Respond to Adrian

 

 

  

 

P.S. Is making a big change in your life on your list of resolutions? Might we suggest a move or at least a long stay in France? We can help you see this resolution to fruition. With over 20 years living in France, we have learned the ins and outs and the inside information on moving, living and working here. Have a look at our Working and Living in France page and contact us today!