French Real Estate Law Archives

03 Feb 2025

Sticky Post By bruno Posted in french commercial lease, French Real Estate Law Permalink

Post-purchase discovery of hotel residence destination

Sticky Post By bruno On 3 February 2025

On January 30, 2024, the Versailles judicial court handed down a judgment concerning a real estate dispute involving Mrs [Aa] [N], SCI BTX, several notaries, a real estate agency (CPH IMMOBILIER), and the syndic ASL GESTION. Mrs [Aa] [N] had bought a studio apartment with parking in 2016, believing it to be for residential use, but subsequently discovered that it was part of a hotel residence, resulting in unforeseen hotel charges.

Legal action for fraud seeking annulment of the sale

Mrs [Aa] [N] brought an action for fraud, seeking annulment of the sale, restitution of the purchase price and damages. She accused SCI BTX of concealing from her the true nature of the property and the associated charges. SCI BTX, the notaries and the estate agent disputed these accusations, claiming to have provided all the necessary information.

Sufficient information but lack of professional advice

The court examined the documents provided at the time of sale, including the co-ownership regulations and the minutes of the general meetings, which clearly indicated the property’s status as a hotel residence. The court concluded that Mrs [Aa] [N] had received sufficient information to understand the situation of the property, but that the notaries had failed in their duty to advise her by not fully informing her of the legal and financial implications of the purchase.

The court dismissed Mrs [Aa] [N]’s claims against SCI BTX and ASL GESTION, but ordered the notaires and the estate agency to pay her 8,855.60 euros in damages, 80% to the notaires and 20% to the estate agency. The court also ordered provisional execution of the decision.

Notary and real estate agency fines

Breach of duty to advise

In summary, the court recognized that Mrs. [Aa] [N] had been partially informed, but that the notaries had failed in their duty to advise, resulting in a loss of opportunity for her to abandon the purchase of a hotel residence. The notaries and the real estate agency were ordered to pay damages to compensate for this loss.

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21 Nov 2016

Sticky Post By bruno Posted in French Real Estate Law Permalink

Real estate Latent Defects (vice caché) French Law

Sticky Post By bruno On 21 November 2016

Legal remedies Legal definition of Latent Defect

The issue of latent defect causes numerous real estate disputes

According to article 1641 of the French civil code: « A seller is bound to a warranty on account of the latent defects of the thing sold which render it unfit for the use for which it was intended, or which so impair that use that the buyer would not have acquired it, or would only have given a lesser price for it, had he known of them ». The latent defect affecting the building impairs the use for which it was intended; is latent and unknown to the buyer, and must exist before the sale.

What are the remedies available to the buyer who discovers a latent defect after the sale ?

Under the French Law, a latent defect has to affect the use of the building or so impair that use that the buyer would not have acquired it, or would have given a lesser price for it. When the buyer is not a professional, the defect is considered latent, if he may legitimately have been unaware of the defect at the time of the sale, after having inspected the building with the conscientiousness normally demonstrated by someone who is concerned with his best interests. The clause which excludes the warranty against latent defects is valid between non-professionals but it can only be used by a seller who was unaware of the defects affecting the building, in good faith (article 1643 of the French civil code). The clause cannot be used in case of gross misconduct (corrupt practices or withholding of information). If the seller was aware of the latent defect of the building, his bad faith is established. (article 1645 of civil code, Cass. 3e civ., 18 juin 2008, nos 06-20.713 et 06-21.062, Bull. civ. III, no 110). The professional seller is expected to be aware of the defects of the building, so he is considered as a seller of bad faith.

How long after the signature of the notarial deed can the buyer put forward the notion of latent defect ?

According to article 1648 of the French civil code, the buyer may take legal action for latent defect up to two years after he discovered the defect.

Buying property in France that needs refurbishing

Sticky Post By bruno On 21 November 2016

Buying a property in France that needs refurbishing – Lowering of the sale price

Buying property in France: you better be careful before signing any binding agreement.

How to negotiate the sale price when buying property that is to be renovated

Negotiate a lowered price BEFORE the signature of the prelimenary sale agreement (called under the French Law: promesse de vente)

Many buyers negotiate a lowered price taking into account the renovation work. Before buying property for a reduced price, verify if there are no hidden issues.

If an agreement is reached, the price stipulated is fixed (allowing for legal exceptions). It is crucial to carry out an evaluation in order to establish the actual cost of the work to be carried out. The evaluation helps to detect the non-conformities and to establish the actual cost of the work, and the contractor performing the evaluation will be responsible for any fault or omission. Here is some guidance about how to negotiate the price of a renovation project and avoid unpleasant surprises.

Hire an architect or a real estate expert to assess the actual costs

Firstly, we advise you to hire an architect or a real estate expert to carry out a reliable evaluation of the works. Save a lot of money and prevent unpleasant surprises (latent defects). Our second advice is to contact several potential contractors. You can compare them with the evaluation of the expert or the architect.

In this way, you will be able to select the lowest bid. Negotiate the lowering of the price during the seven day-withdrawal period after the agreement has been drafted. The withdrawal period begins with the reception of the agreement by registered mail or delivery to the addressee in person. During that time, the buyer can make a counter-proposal or abandon the sale without incurring legal penalties.

Buying Property : Hire a real estate lawyer in France

First question and first answer are free of charge

We believe that, in the end, our services are an investment to protect you and keep your total costs as low as possible. These costs are not just the initial property price, but later unexpected renovations, and complicated legal issues. Please contact us. We can offer an initial response quickly and free of charge. We hope to earn your trust and become your legal advisors in France.

Our firm believes in a first phone call or email free of charge. It is a good way for the lawyer to prove his client he knows the field. It is the best for both parties to see if the relationship can be successful.

Review the real estate contract

We can review a real estate contract for a few hundred Euros, to insure that you are protected, and to explain your obligations and those of the other party. Our lawyers practice french real estate law on a everyday basis. We know the pitfalls and legal loopholes. However, we understand our client do not want to spend to much on contract review.

Write some new clauses for the real estate contract

When buying property in France you should ask for legal advice.

A lawyer can write some clause in the contract in order to secure your investment. It could help if anything goes wrong.

A lawyer is working for his client, not for the sale

The buyer pays the notary only if the sale is signed. A lawyer is paid for his work. A lawyer works for the client, not for the sale. Feel free to ask us any question related to the French law.

Me Bruno Traesch on radio FRANCE BLEU, in FRENCH:

http://www.francebleu.fr/emissions/les-experts-france-bleu-107-1/maitre-bruno-traesch-expert-en-droit-de-l-immobilier

Housing lease: Notice period under the French Law

Sticky Post By bruno On 1 July 2016

How long is the notice period of a housing lease under the French Law?

You are lessor or tenant under a housing lease contract in France.

WATCH OUT: the landlord cannot give notice at any time and for any reason, see: Can I terminate the lease ?

HOUSING LEASE OF A UNFURNISHED FLAT

6 months for the landlord

If the flat or house is UNFURNISHED, the lease is governed by the July 6th, 1989 law. Article 15 of the July 6th 1989 law states that the notice period is six months before the end of the three-year lease if it is the landlord who wishes to terminate the lease.

1 or 3 months for the tenant AND at any time

The tenant who wants to leave his flat/house has to give a 3 months notice period, at any time during the lease.

The notice period for the tenant is 1 month if:

the apartment is in Paris (“zone très tendue”)
A first job
A new job after a recent job loss
A transfer to a far location
The tenant has a serious medical condition and has to move for medical reasons (if lease signed after 27th March 2014).
The tenant is a beneficiary of the welfare income “RSA”.

HOUSING LEASE OF A FURNISHED FLAT

Article L. 632-1 of the Code de la construction et de l’habitation

Article L. 632-1 of the Code de la construction et de l’habitation governed the lease if :

the apartment or house is furnished,

it is the main residence of the tenant.

1 month notice period for the tenant

The notice period is one month for the tenant of a furnished flat.

3 months notice period for the landlord

The notice period is three months for the landlord/lessor of a furnished flat.

Mandatory notice by registered mail

Tenant and landlord have to send the notice letter by registered mail (or by a bailiff).

Beginning of the notice period

It is only after the tenant or the landlord accepts the notification by registered mail, that the 1 month period starts.

If the tenant/the landlord does not collect the registered/return mail, the tenant/the landlord has to hire a bailiff.

Ask your question to our English-speaking lawyers for advice.

French Real Estate Law