Civil Law Notaries :

The profession in France

Guarantors of public interest legal services

Notaries are lawyers. They are named as Notaries are lawyers. They are named as judicial judicial officers by the State to confer official officers by the State to confer official character to private documents. They draft deeds, character to private documents. They draft deeds, contracts and testaments and furnish impartial contracts and testaments and furnish impartial counsel to all or either of the parties in a counsel to all or either of the parties in a transaction. transaction.

This act has the same effect as a court order. This act has the same effect as a court order. Notaries’ acts are binding for immediate Notaries’ acts are binding for immediate execution: No further legal procedures are execution: No further legal procedures are required. The acts are archived by each notary required. The acts are archived by each notary and are the full equivalent of public record. and are the full equivalent of public record.

French notaries have long been the privileged French notaries have long been the privileged advisorsadvisors

of families at life’s important moments. In marriage, in of families at life’s important moments. In marriage, in estateestate

planning and probate and in the purchase of a house or theplanning and probate and in the purchase of a house or the

creation or incorporation of businesses, notaries provide creation or incorporation of businesses, notaries provide thethe

legal security expected by those who call upon the lawlegal security expected by those who call upon the law..

The law requires these to be located throughout The law requires these to be located throughout thethe

country, to ensure that all citizens have full access to country, to ensure that all citizens have full access to impartialimpartial

legal services.legal services.

The authentic act : a guarantee of legal security to

contracts and deeds French notaries receive a delegation of judicial French notaries receive a delegation of judicial

authority from the Minister of Justice, authority from the Minister of Justice, symbolized by the personal seal affixed by the symbolized by the personal seal affixed by the notary to each authenticated actnotary to each authenticated act..

Notaries' Notaries' authentic actsauthentic acts are binding with respect are binding with respect to the contracting parties’ mutual obligations.to the contracting parties’ mutual obligations.

The acts are kept indefinitely and are the The acts are kept indefinitely and are the equivalent to public archivesequivalent to public archives

They are binding and require no subsequent They are binding and require no subsequent procedure before execution by an officer of the procedure before execution by an officer of the courtcourt

The authentic act is admissible as evidenceThe authentic act is admissible as evidence. A . A notarial act thus has the same effect a court notarial act thus has the same effect a court order.order.

A trusted advisor to families

Notaries are legal specialists in contract, Notaries are legal specialists in contract, real property, family and estate law, but real property, family and estate law, but they are above all generalists, with an they are above all generalists, with an overall vision of clients’ interests and overall vision of clients’ interests and needsneeds..

The notary can thus often contribute to The notary can thus often contribute to the settlement of estates without the settlement of estates without acrimony, and without recourse to costly acrimony, and without recourse to costly adjudicationadjudication

The fields of notarial activities

a. 45% Restate title, negotiation andsales

b. 29% Family law, probate andcontracts

c. 15% Contracts for mortgage andcommercial real estate loans

d. 11% Estate management and tax law

dc

b

a

An expert in real estate matters, the notary draws up deeds of sale of all forms of real property, assures title and ensures closing

A profession organized to ensure the highest standards

Notarial ethics and high standards serve to reinforce Notarial ethics and high standards serve to reinforce public trust.public trust.

Notaries' ethics are rooted in a humanistic vision of the Notaries' ethics are rooted in a humanistic vision of the Law as a means to ensure justice and the protection of Law as a means to ensure justice and the protection of the weakestthe weakest..

As judicial officers, notaries are sworn to uphold the As judicial officers, notaries are sworn to uphold the fundamental values of impartiality, integrity, fundamental values of impartiality, integrity, confidentiality, responsibility and confidentiality, responsibility and solidaritysolidarity. This is the . This is the basis for the trust conferred on notaries by clients – a basis for the trust conferred on notaries by clients – a broad public trust in contracts sought by the Lawbroad public trust in contracts sought by the Law..

Procedure and education for notaries

Becoming a notary requires the Becoming a notary requires the candidate to acquire thorough and candidate to acquire thorough and detailed knowledge of the law along with detailed knowledge of the law along with solid professional experience. Notaries solid professional experience. Notaries are lawyers with specialised post-are lawyers with specialised post-graduate degree and two years training in graduate degree and two years training in notarial practice.notarial practice.

The qualification as a notary can be obtained after The qualification as a notary can be obtained after seven years, following the French « baccalauréat » or seven years, following the French « baccalauréat » or high school degree : high school degree :

» To become a notary, the candidate must To become a notary, the candidate must complete a Master degree in legal studies and a complete a Master degree in legal studies and a postgraduate « DESS » Degree in notarial law at postgraduate « DESS » Degree in notarial law at one of 18 accredited universities.one of 18 accredited universities.

» The « DESS » can also be earned through a The « DESS » can also be earned through a special program including courses and practical special program including courses and practical training, following the Masters degree. It is a training, following the Masters degree. It is a one year program provided by a one year program provided by a Centre de Centre de formation professionnel notarial (CFPN) formation professionnel notarial (CFPN) and and closed by a specialised exam.closed by a specialised exam.

The The CFPN CFPN is a postgraduate study and is a postgraduate study and training center sponsored by the training center sponsored by the profession.profession.

» In both cases, two years of training In both cases, two years of training in a notarial office, combined with in a notarial office, combined with law courses, leads to the law courses, leads to the diplôme diplôme supérieur du notariat.supérieur du notariat.

» Experienced notarial clerks can also Experienced notarial clerks can also obtain the obtain the diplôme supérieur du diplôme supérieur du notariat notariat through internal promotion.through internal promotion.

Admission to the profession may also be granted by Admission to the profession may also be granted by the the Conseil supérieur du notariat Conseil supérieur du notariat (CSN) to highly (CSN) to highly experienced legal specialists (magistrates, experienced legal specialists (magistrates, attorneys, teachers in law schools, corporate attorneys, teachers in law schools, corporate lawyers) who share notaries’ conception of public lawyers) who share notaries’ conception of public service.service.

Vocational training is provided through the Vocational training is provided through the Institut Institut national de formation notariale (INAFON) national de formation notariale (INAFON) (National (National training institute for notaries) and through the training institute for notaries) and through the Université du notariat Université du notariat (Notarial summer (Notarial summer university), both of which provide accredited university), both of which provide accredited continuing education to notaries and their staffs.continuing education to notaries and their staffs.

II. “DESS” postgraduate degree in notarial law

TWO PATHS TO A NOTARY DEGREE

I. Masters Degree in Law

A University path for law students

ThesisIII. Thesis

IV. NOTARY DEGREE

A 2-year seminaryprogram

2 years training A 2-year University program

A work-study path for working professionals

CFPN* work-study programDiplôme d’Aptitude aux Fonctions de

Notaire

The Profession also sponsors several The Profession also sponsors several specialised research and training specialised research and training institutes: institutes:

--   The    The Institut notarial de l'entrepriseInstitut notarial de l'entreprise (INE)(INE) (Notarial institute for business law) (Notarial institute for business law)

--   The    The Institut notarial de l’immobilier (INDI)Institut notarial de l’immobilier (INDI) (Notarial Institute for Real Estate Law). INDI (Notarial Institute for Real Estate Law). INDI establishes the Profession’s national real estate establishes the Profession’s national real estate markets indexmarkets index

--      The The Institut notarial du patrimoine (INP)Institut notarial du patrimoine (INP) (Notarial institute for estate management). (Notarial institute for estate management). INP INP encourages notarial counsel in estate management.encourages notarial counsel in estate management.

Role of the Role of the notaries’Associationnotaries’Association

French law creates various national, departmental French law creates various national, departmental and regional governing bodies for the profession. and regional governing bodies for the profession. They regulate ethics and professional practice of They regulate ethics and professional practice of notaries and control their implementation. These notaries and control their implementation. These bodies represent the profession nationally and bodies represent the profession nationally and internationally. internationally.

The Departmental Chambers of Notaries represent all The Departmental Chambers of Notaries represent all notaries working in the same Dnotaries working in the same Département.épartement. Working Working in close collaboration with the Attorney General, each in close collaboration with the Attorney General, each chamber has authority to recommend disciplinary chamber has authority to recommend disciplinary sanctions in case of breach of professional ethics. sanctions in case of breach of professional ethics. These Departmental Chambers are gathered into 33 These Departmental Chambers are gathered into 33 Regional Councils representing the notaries of a Regional Councils representing the notaries of a RégionRégion (a group of (a group of DépartementsDépartements which also which also corresponds to the regional administrative structure corresponds to the regional administrative structure in France (the French Appeal Courts).in France (the French Appeal Courts).

On national level, the On national level, the Conseil supérieur du Conseil supérieur du notariat,notariat, or High council of notaries, or High council of notaries, determines and implements the profession’s determines and implements the profession’s policy, proposes legislation and represents policy, proposes legislation and represents the profession. The CSN executive board is the profession. The CSN executive board is elected by notaries, and names a President elected by notaries, and names a President for two years. The CSN has a permanent staff for two years. The CSN has a permanent staff of 80 professionals and employees. of 80 professionals and employees.

Election of the notarial organisations in France

Departmental Chambers

Notaries of France

Regional Councils

Delegates of the Conseil supérieur du notariat (High council of notaries)

President and executive board of the Conseil supérieur du notariat

elect

elect

elect

elect

The CSN manages research and training The CSN manages research and training institutes in behalf of the profession. institutes in behalf of the profession. They provide legal studies, vocational They provide legal studies, vocational training for notaries and intervene in the training for notaries and intervene in the dialogue with Government officials and dialogue with Government officials and lawmakers.lawmakers.

Legal form of notarial officesLegal form of notarial offices French notaries often work together in an office as a French notaries often work together in an office as a

partnership. However, some notaries manage their office partnership. However, some notaries manage their office alone.alone.

Different forms of partnership exist in France :Different forms of partnership exist in France :--       Since 1966, a notary can be partner and exercise his profession  Since 1966, a notary can be partner and exercise his profession

with other notaries in the frame of a Civil Professional Society. with other notaries in the frame of a Civil Professional Society. This type of society manages only one office.This type of society manages only one office.

--   Since the Law of 31 December 1990 and the Decree of 13    Since the Law of 31 December 1990 and the Decree of 13 January 1993, the notaries can found a Liberal Exercise Society. January 1993, the notaries can found a Liberal Exercise Society. The Corporate Law is nearly entirely applicable to this type of The Corporate Law is nearly entirely applicable to this type of society, except some dispositions. society, except some dispositions.

--     Partnership Society. This type of society cannot own the office.      Partnership Society. This type of society cannot own the office. Each notary works in his own office for his own interest; The Each notary works in his own office for his own interest; The society is only a form of cooperation between its members.society is only a form of cooperation between its members.

Laws and regulation about Laws and regulation about notaries and notaries officesnotaries and notaries offices

The notarial profession has been created by the The notarial profession has been created by the Law Ventôse An XI of the 17 March 1803. The Law Ventôse An XI of the 17 March 1803. The profession was regulated by ordonnance of 2 profession was regulated by ordonnance of 2 November 1945. The code of professional ethics November 1945. The code of professional ethics is fixed by different laws and regulations, for is fixed by different laws and regulations, for example :example :

--              Law of 17 March 1803,Law of 17 March 1803,

--         Ordonnance of 2 November 1945,         Ordonnance of 2 November 1945,

--         Decree of 3 November 1967,         Decree of 3 November 1967,

--         Decree of 26 November 1971,         Decree of 26 November 1971,

--         Decree of 24 December 1979.         Decree of 24 December 1979.

  

According to the article 13 of the decree of 19 According to the article 13 of the decree of 19 December 1945, it is prohibited for a notary December 1945, it is prohibited for a notary to practice a commercial activity. In the same to practice a commercial activity. In the same way, the notary is limited in his financial way, the notary is limited in his financial activity. Since the decree of 20 July 1964, the activity. Since the decree of 20 July 1964, the notary can not participate in a credit notary can not participate in a credit operation unless it is recorded in an operation unless it is recorded in an Authentic Act. Some rules of Criminal Law Authentic Act. Some rules of Criminal Law are specially applicable to notaries in order to are specially applicable to notaries in order to penalise misappropriation of corporate funds, penalise misappropriation of corporate funds, breach of trust or an act ultra vires. breach of trust or an act ultra vires.

Regulations of Regulations of notaries’management and notaries’management and

their associationstheir associations The Ordonnance of 2 November 1945 is the The Ordonnance of 2 November 1945 is the

main and fundamental regulation of main and fundamental regulation of management of Notaries’ Association. management of Notaries’ Association.

Moreover, the notarial profession also has Moreover, the notarial profession also has to apply important principles to its activity. to apply important principles to its activity. Indeed, as judicial officers, notaries have to Indeed, as judicial officers, notaries have to respect the fundamental values of respect the fundamental values of impartiality, integrity, confidentiality, impartiality, integrity, confidentiality, responsibility and responsibility and solidaritysolidarity. That is why . That is why clients trust notaries – a broad public trust clients trust notaries – a broad public trust in contracts sought by the Law. in contracts sought by the Law.

Measures and solutions for Measures and solutions for preventing competition preventing competition

between notariesbetween notaries The National Regulation and the Inter-courts The National Regulation and the Inter-courts

regulation following the Decree of 26 November regulation following the Decree of 26 November 1971 establish the bases of relationships between 1971 establish the bases of relationships between notaries.notaries.

Notarial cooperation has to comply with the Notarial cooperation has to comply with the

principles of mutual help and fraternity. Different principles of mutual help and fraternity. Different rules are foreseen: rules are foreseen:

--     The free choice of a notary for the client,     The free choice of a notary for the client,

--     The prohibition of advertising for the notary,     The prohibition of advertising for the notary,

--     The use of the title of notary is regulated,     The use of the title of notary is regulated,

The notary has to respect the fees determined by The notary has to respect the fees determined by DecreeDecree

How do the notaries pay How do the notaries pay their taxes ?their taxes ?

For a deed executed by a notary, a For a deed executed by a notary, a proportion is assigned to the payment of proportion is assigned to the payment of their taxes. The taxes are assigned for the their taxes. The taxes are assigned for the State, Local Communities ( State, Local Communities ( Communes, Communes, Régions, DépartementsRégions, Départements), V.A.T, ), V.A.T, Registration Taxes and Excise Stamp. This Registration Taxes and Excise Stamp. This proportion represents 8/10 of the sum of proportion represents 8/10 of the sum of the deed. Public Taxes vary with the type the deed. Public Taxes vary with the type of deed. of deed.

Ressources of revenue and Ressources of revenue and expenditure of notary officesexpenditure of notary offices

The revenues are composed of fees and The revenues are composed of fees and compensations. Revenues represent 1/10 of the compensations. Revenues represent 1/10 of the sum transferred by the deed the notary executes. sum transferred by the deed the notary executes. The decree of 8 March 1978 fixes the fees of the The decree of 8 March 1978 fixes the fees of the profession. The remuneration is the same for all profession. The remuneration is the same for all notaries throughout the country. The Decree sets notaries throughout the country. The Decree sets different types of deeds, each one with a different different types of deeds, each one with a different table of prices. Expenditures are the sums paid by table of prices. Expenditures are the sums paid by the notary to obtain documents so as to ensure the the notary to obtain documents so as to ensure the security of the deed (Urban documents, Cadastre security of the deed (Urban documents, Cadastre documents, Mortgage Registry documents, documents, Mortgage Registry documents, Geometer documents… ). Expenditures represent Geometer documents… ). Expenditures represent 1/10 of the sum transferred by the deed. 1/10 of the sum transferred by the deed.

The responsability of The responsability of notariesnotaries

Notaries’ clients are protected through a system of Notaries’ clients are protected through a system of mutual solidarity of all French notaries. Notaries are mutual solidarity of all French notaries. Notaries are thus jointly accountable to their clients. The profession thus jointly accountable to their clients. The profession maintains national and regional guarantee funds which maintains national and regional guarantee funds which complement the commercial insurance required of each complement the commercial insurance required of each notary and office.notary and office.

When errors occur, when a notary does not comply with When errors occur, when a notary does not comply with notarial ethics and rules or when some of his deeds notarial ethics and rules or when some of his deeds disappear or deteriorate, the profession provides a disappear or deteriorate, the profession provides a collective guarantee for its clients on two levels :collective guarantee for its clients on two levels :

--    The notaries of each region jointly fund a regional guarantee The notaries of each region jointly fund a regional guarantee fund.fund.-- The national guarantee fund is attached to the  The national guarantee fund is attached to the Conseil Conseil supérieur du supérieur du notariatnotariat (CSN). (CSN).

Within the legal professions, this Within the legal professions, this mutualisation of professional risk is mutualisation of professional risk is unique. Notaries are the only legal unique. Notaries are the only legal profession whose members are both jointly profession whose members are both jointly and individually accountable to their and individually accountable to their clients.clients.