1 / 26

French Real Estate and French Leaseback

Since the 80u2019s and the 90u2019s, several thousand of owners bought leaseback property in France. The operating company states the return profit would be 4 % to 5 % per year. Sometimes the builder sells himself the real estate.<br>During the 2000s, the operators marketed the French Leaseback overseas and especially in the UK and Italy. It was marketed as a risk-free and high return investment.

frenchleaseback1
Download Presentation

French Real Estate and French Leaseback

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FRENCH REAL ESTATE AND FRENCH LEASEBACK We Make French Law Understandable.

  2. BUYING / SELLING or RENTING a real estate in France can be tricky • You want to buy or sale a French Leaseback or a property. • Many issues arise when you buy and sell or rent real estate in France : • Breakdown of appliances before settlement • Rent review in France • Buying real estate in France: Preliminary agreements • Deposit after signing a preliminary agreement ? • What contract should my French lawyer review ? • Selling Real Estate in France • Choosing a Real Estate Agent in France • What kind of contract should I sign with the real estate agent in France ? • Eviction of a Tenant in France (unpaid rent) • Buying property in France that needs refurbishing • Real estate Latent Defects (hidden defects) • Can I terminate the lease ?

  3. LEASE BACK INVESTMENTS IN FRANCE ARE COMPLICATED • There are specific considerations for French lease back investments : • Termination of a Commercial Lease due to unpaid rents • Termination of a Commercial Lease in France • Charges and Commercial Lease in France • Obligations of the managing/operating company • Responsibilities for lease hold repairs. • Selling a Commercial Lease in France • Legal solutions and Litigation in France • The notice period under the French Law • What should I do if my tenant in France is not paying rent ? • 4 pitfalls to avoid when investing in a student residence • Trap: serviced residence rents which are too high • Service premises in a co-ownership

  4. French leaseback problems………... Since the 80’s and the 90’s, several thousand of owners bought leaseback property in France. The operating company states the return profit would be 4 % to 5 % per year. Sometimes the builder sells himself the real estate. During the 2000s, the operators marketed the French Leaseback overseas and especially in the UK and Italy. It was marketed as a risk-free and high return investment.

  5. The leaseback schemes were aimed to put enough renting properties on the touristic areas of France. The government and the big leaseback companies present it as a win-win solutions for operator, investor and the economy. The leaseback companies lobbied the MP’s int the French Parliament. A lot of buyers thought they will be able to have a holiday home in France after 9 years (or at least 20 years).

  6. FRENCH LEASEBACK : TERMINATION OF THE LEASE WITHOUT DAMAGES (INDEMNITÉ D’ÉVICTION)

  7. LEGAL ISSUES IN FRANCE

  8. Providing Practical Real Estate Advice and Timely Legal Counsel for English-Speaking Clients Around the World. SOLUTIONS Our Network connected to notaries, bailiffs, real estate agents, translators and the leading website for the English Speaking Community in France

  9. French Real Estate Contracts Preliminary agreements – Buying Real Estate in France

  10. Can I terminate the lease? Rent due date – Unpaid Rent – Termination of the commercial lease – Procedure in case of rent non-payment – lawyer in France French Commercial Lease Fixtures inventory and charges inventory -New Lease – Renewal of a Commercial Lease in France – Content of the Charges Inventory-Inventory of Charges and Taxe

  11. OUR TEAM LOW COST and CLIENT ORIENTED legal services in France for English-speaking clients.

  12. WHOAREWE ?

  13. English-speaking lawyers (we used to live in Sydney and we love to travel) • Doing Business mainly in Paris and on the French Riviera and are able to represent you all over the country • Partners, Members of the Paris Bar since 2003

  14. Me BRUNO TRAESCH • Born and raised in Paris, France. • Rugby (club and university and school) • International High School, Sorbonne University Law School (Paris) and Sciences-po (Paris), media. • Round the World Travel (2005) • French Ambassy (Consulate general), Sydney, New South Wales, Australia. • Member of the Bar of Paris • Phd Doctoral Thesis, Online Dispute Resolution, Sorbonne University (04-09) • Lawyer in several International Law Firms in Paris (Vaughan, Kuckenburg, Koan). • TRAESCH AVOCAT launched in 2010. • Jodo and Kobudo, Screenplay writing, French History, Contemporary Art • bruno.traesch@lesavocats.info

  15. Me ADRIENNE PROT • Yoga, mediation, simple things, happiness. • adrienne.prot @ lesavocats.info • Born and raised in Paris, France. • Sorbonne University Law School (Paris), Institute of Criminology (Paris) • Member of the Paris Bar (2003) • Round the World Travel (2005) • Lived in Sydney, New South Wales, Australia. • PROT AVOCAT launched in 2007 • Alternative Dispute Resolution International School Degree (130 hours Paris Bar course) • Non-Violent communication training Course (Paris) • Negociation training course (in English)-International Association of Lawyers

  16. WHY CHOOSE US ?

  17. Ask your question for free, we will answer by email • We know what it is feels like to be a “foreigner” and not understand the language, especially legal terminology • We answer our phones (and phone calls/skype are free!) • We are a boutique law firm. We offer personalized service. Your case will be taken care of by one of the main partner.

  18. Summary • The operator (tenant) waives the eviction compensation in the commercial lease, knowing that this waiver is not valid (not enforceable). • The judges cancel the lease. The operator of the French leaseback property (tourist residence) is not entitled to an eviction indemnity (damages called in French : indemnitéd’éviction). • The bad faith of the tenant, who drafted the commercial lease turns against him. • This case law could be a huge step forward in the right of owners of a French leaseback property.

  19. Abstract However, the operator writes the lease with bad faith. Because he pretends to waive in advance his right to damages, if the the lessor end the contract. (eviction indemnity/(damages called in French :indemnitéd’éviction). According to the French law, the tenant (lessee) cannot waive in advance and in the lease his right to an eviction indemnity in case of non-renewal of the commercial lease. He can waive this right to damages AFTER signing the commercial lease. But in this case, the operator is a pro of this industry. He waives his right knowing well that this clause has without legal ground. Even if, it was for the lessor a substantial condition of the contract, ie one main reason why the buyer agreed to the leaseback.

  20. THANKYOU FOR WATCHING OUR PRESENTATION Visit Our Wabesite https://frenchrealestatelaw-traesch.fr https://frenchrealestatelaw-traesch.fr/leaseback- indemnite-eviction/

  21. THE END

More Related