Co-owners Secure Judicial Enforcement of a €1 Property Sale

Off-Market Property Sale: Court Enforces €1 Transfer of a Condominium Swimming Pool

French Court Upholds Sale Agreement Despite Absence of Notarised Deed

Summary of the judgment of the Bordeaux Judicial Court (7th Civil Chamber) – 28 April 2026, No. 22/08711

The Association of Co-owners of [Address 1] (plaintiff) brought proceedings against the Swedish company SCALAB (defendant) to obtain the compulsory execution of a notarised deed of sale for lot no. 575 (a swimming pool and its surroundings) in a residential complex located in [Town 6]. SCALAB, the owner of the plot, had proposed in April 2019 to sell it to the Association for a symbolic €1, subject to the opinion of a property valuer and compliance with the law of [Location 8]. This proposal had been approved at the general meeting of co-owners on 29 June 2019, but the sale had not been finalised. SCALAB subsequently promised to sell the lot to other co-owners in September 2020.

Claims of the parties

• Association of Co-owners:
  • To declare the sale valid (agreement on the subject matter and price, Art. 1583 of the Civil Code).
  • Order the compulsory execution of the authentic deed or, failing that, that the judgment shall take the place of the deed of sale.
  • Order SCALAB to pay €3,000 pursuant to Article 700 of the Code of Civil Procedure and to pay the costs.
• SCALAB:
  • Contest the existence of a valid agreement: The phrase ‘subject to the opinion of a property valuer’ in its initial proposal would create a condition precedent (Article 1304 of the Civil Code).
  • Seek the nullity of the sale on the grounds of unfair price (€1, Article 1169 of the Civil Code).
  • Claim for damages:
    • €50,000 for loss resulting from the inability to sell the property.
    • €10,000 per year from April 2021 for the use of the swimming pool by the Owners’ Association.
  • Order the Owners’ Association to pay €6,000 (Article 700) and costs.

Court decision

1. On the validity of the sale:
   • The court recognises the validity of the sale (Article 1583 of the Civil Code):
     • Agreement on the subject matter: Lot No. 575 (swimming pool and surrounding area).
     • Agreement on the price: €1, proposed by SCALAB itself.
     • Mutual consent: Evidenced by the favourable vote of the general meeting of 29 June 2019 (a resolution separate from that relating to lot 576, which was rejected).
     • Absence of a condition precedent: The phrase ‘subject to an expert’s opinion’ is not a valid condition, because:
       • It is not specified (subject of the expert assessment, responsible party).
       • It does not legally bind the two resolutions (separate vote).
2. Regarding the claim for nullity on the grounds of a derisory price:
   • Dismissal: The price of €1 is not derisory in view of:
     • The context: The Owners’ Association was already responsible for the management and maintenance of the swimming pool, which is accessible to all co-owners.
     • The location: The swimming pool is situated at the heart of the residential complex and has no independent market value.
3. Measures ordered:
   • Compulsory execution: SCALAB must regularise the authentic deed before a notary within 4 months of the judgment being served.
   • Substitution: Failing this, the judgment shall be deemed a deed of sale and shall be published at the Land Registry.
   • Orders:
     • SCALAB must pay €2,500 to the Association (Article 700).
     • SCALAB shall bear the costs.
   • Provisional enforcement: Rejected due to the nature of the dispute (property sale).

Legal issues

• Boundary agreement in co-ownership: A vote at a general meeting may constitute an irrevocable agreement, even in the absence of a formal signature.
• Condition precedent: A vague statement (e.g. ‘subject to an expert’s report’) does not constitute a valid condition if it is not precise and binding.
• Nominal price: A symbolic price (€1) may be valid if it fits within a coherent economic context (e.g. property with no independent value, management already undertaken by the purchaser).