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"Three At Half Price, Three At Auction, Three At Heart"

Volume I, Issue 34

Just this past August, I wrote about a building on rue Charlot just behind my own apartment where one owner had sold off six apartments at once, all of which fell under the rent control law number 48-1360 of September 1st, 1948.
 
I was wrong. The sale fell through and now he’s placed them on the market again.
Rue Charlot is one of the plum streets of the 3rd arrondissement. A 5-star Costes hotel is scheduled for construction in the near future just a couple blocks away. This building is just off rue de Bretagne with four small buildings surrounding a lovely courtyard.
The law, which has been changed as recently as October 2002 to phase out properties with this restriction, maintained the rents at their 1948 values plus allowing for small cost of living increases, so in most cases, the rents landlords achieved didn’t even cover their costs — taxes, utilities, maintenance.
Tenants cannot be evicted! And only the surviving spouse, the ascendants, handicapped or minors can inherit the lease if they lived with the primary tenant more than one year. Article 17 of the law specifies that “the habitation of the property is a right exclusively attached to the person and is non-transferrable.” The amendments to the law enable the owner to offer similar accommodations in another property and the tenant must be willing to relocate.
Buying an apartment in which the tenant has a lease of this nature can be profitable under the right circumstances. For an investiment that just sits there and grows, in a few years, once the leases are up or the tenant dies (sorry to say, but this is one way out), or if you can negotiate with the tenant to leave sooner than the end of the lease, you can own a property worth much more than double what you paid.
We have happened into the right circumstances. Three of these apartments have been offered to us at French Property Insider! This is an opportunity that doesn’t come often…these apartments are not represented by agencies and are not on the open market. We know about that because of the relationships we’ve built with property owners. And now this is your opportunity.
For complete information about these properties, be sure to read today’s HOT PROPERTY below.
A bientôt,

Adrian Leeds
Editor, French Property Insider
Email: [email protected]
P.S. For a more detailed information about the Law of 1948, contact us to connect you with the professionals we recommend (notaires, attorneys and legal advisors) by emailing me
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Volume I, Issue 34, October 2, 2003
In this issue:
* A French Artisan Reconstructed the Interior of a Louis XIV Fireplace
* The World of Antiques Starts October 9th
* More Brits Than the 100 Years War
* French Inheritance Laws and Other Q’s and A’s by Taquet
* Going Once, Going Twice, Gone! — Three Apartments Hot on the Auction Block
* What’s the Latest Rate of Exchange, in Dollars, Euro and Pounds
* Hot Property: Three Apartments at Half-Price
* Property For Sale: Three Apartments in the Heart of Paris
* See You on October 14th for an Afternoon Celebration
* General FPI Information…
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THE ARTISTIC RECONSTRUCTION OF THE INTERIOR OF A LOUIS XIV FIREPLACE
Last week, Porter Scott wrote about Alain de Tuoro’s artistic ability to take an 18th-century fireplace mantle that had several layers of paint covering its beautiful original limestone and had been buried below the surface of the floor by about 20 cm, add old used brick to build the fireplace and turn it into a work of art.
And he did. If you want to see his impressive work, visit the page about the rue de la Huchette apartment
Stays of one week or more are now being reserved as of November 1, 2003. If you’d like to reserve your special Paris holiday at the rue de la Huchette apartment or the IL apartment on rue Mazarine in Paris, visit https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apartments or email us
To learn more about Alain di Tuoro, visit his site
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MORE GOOD NEWS FROM THE MARCHE AUX PUCES…
LE MONDIAL DE L’ANTIQUITE

The fifth festival of the Marché aux Puces Saint-Ouen opens October 9th running through the 12th with antique dealers and art lovers from all four corners of France and many parts of Europe occupying 7 hectares of show space. It’s being called the “Mondial de l’Antiquité” by virtue of its size and diversity, originality and the quality of the objects you’ll find there.
October 10th, merchants and guests will take part in the “Nuit des Puces” on the topic of the Light, Image and Sound…an evening that inaugurates the weekend of festivities, conferences, expositions and concerts open to the public.
This major event is possible thanks to the 2500 merchants, the streets, the 12 markets and the institutions such as the Chambre de Commerce et d’Industrie de Paris et de la Seine Saint-Denis, the Mairie de Paris, the Mairie de Saint-Ouen, the Conseil Général, Maison de la France, the CDT 93, the SNCAO and of course, the investment of l’ADPPPSO its dynamics chairman, François Bachelier.
For more information, the best site of all about the Marché aux Puces Saint-Ouen, click here:
http://www.parispuces.com/en/Default.asp?frame=centre_marches.html
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THE BRITISH ARE COMING
The British consulate states that the official estimate of of British citizens living in France f
ull time is 120,000 and around 200,000 French citizens are living in the UK full time. This represents the largest French presence in the UK since the fleeing of the Huguenots in the 17th century. Also according to a study by the Federation nationale de la propriete agricole, almost 3% of the French
countryside is owned by British citizens the greatest percentage since the 100-year war.
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UNTANGLING FRENCH INHERITANCE LAWS…REAL ESTATE IS RULED BY THE COUNTRY OF LOCATION
The following is an excerpt from Jean Taquet’s October 2003 Column…
A reader challenged a statement I made several months ago regarding the exemption from capital gains tax when selling real estate in France as a non-resident at the time of sale. This reader’s notaire stated that such an exemption was not possible.
As I am far from being an expert on fiscal matters, I went to the special tax office for non-French residents, located on rue d’Uzes in Paris, and put this question to an inspector in charge of capital gains taxation for non-residents. I learned that my answer had indeed been misleading because certain information was missing. So, here is the complete story.
If:
– you have never sold French real estate before;
– you have owned the property for more than five years,
– you (directly or not) are not the owner of your primary residence in the US;
– you did not sell that primary residence less than two years ago;
– you have been, for at least one year in your lifetime, a French fiscal resident;
then you are entitled to the tax exemption.
The definition of French fiscal resident is: “one who falls under the French fiscal laws for one reason or another.” Here is a list of the things that would qualify you as a French fiscal resident:
– living in France more than six months a year;
– having a French employer;
– running a French business;
– having the rest of the family staying in France more than six months a year.
So, the bottom line is, either you have had at some time in your life a document called an “avis d’imposition ou de non imposition,” in which case you have been a French fiscal resident and could therefore qualify for the exemption; or you have never received this document, in which case it would be just about impossible to prove that you were a resident at a given time but cheated the system by not declaring.
In the course of getting this information, I experienced once again how helpful and courteous French tax inspectors can be. I walked out with the related forms, a printout of the relevant tax provision and the name and direct phone number of the inspector. I should also mention that I just walked into the office without an appointment, and it was just before lunchtime! People say that dealing successfully with civil servants is largely a matter of how one talks to them, and this is definitely true.
Best regards,
Jean Taquet
QUESTION
I am a UK citizen, married (with a “contrat de mariage”) to a Frenchman. We have one daughter with dual nationality. My husband and I jointly and equally own property in France (purchased since our marriage), and have drawn up a “don au dernier vivant” with our French notaire. Since then, I have been given land in the UK (a legalized gift from living persons), which I own jointly and equally with my two sisters (both UK nationality). We three sisters would like to ensure that this British land stays in the family. As such, I would like to leave my share solely to my daughter, and in the event of her death, equally to my sisters, and then to their children. However, I would like to ensure that any liquid assets which are in my name only, in the UK, be included in the estate left to my daughter and husband. What procedure will ensure that such wishes will be respected, without bringing any prejudice to bear on the arrangements my husband and I have drawn up for our French property and assets?
ANSWER
French estate law is very complex, and answering your question thoroughly requires that I address most of the issues dealing with how an estate is split in France before I can address your specific question.
First, real estate (which includes land) is almost always ruled by the country of location: your French property comes under French law, while the British land comes under British law. Therefore, you should have two wills, one for each country, and they need to be compatible with each other.
The “don au dernier vivant” serves as a will, since it states that, upon your death, all you can bequest will go to your surviving husband (or vice versa). In France, however, it is impossible to disinherit the children, parents and surviving spouse. So, in reality, half your French estate will go to your husband and half to your daughter. Should your daughter die before your husband, then he, as the father, will inherit at least half her estate.
The complexity lies in the fact that, in the British will, a precise right of ownership is defined, whereas the French one gives a ratio of ownership.
Therefore, there are two potential problems. One would occur if 50% of the entire estate that your daughter is entitled to is worth much more than the British property. The other one would occur if the 50% your husband is entitled to included a portion of the British estate. The “don au dernier vivant” only gives the right to the other half to your husband. The way to correct this situation is to compensate the other party with cash. This means seeing to it that you have enough life insurance to cover both potential problems.
Please talk to your notaire about this project and present all the necessary information about your worldwide assets, and make sure you maintain a balance between the two halves that each of your legal heirs is entitled to.
Editor’s Notes:
Jean Taquet is a French jurist and associate member of the Delaware Bar Association, specializes in civil, criminal and commercial law. He frequently gives courses about the legal system in France and will be speaking at the upcoming International Living Working and Living in France Conference in Paris October 24 – 27. He is also well known for his informative Q and A columns in past Paris Free Voice magazines, which can now be purchased in one document as “The Insider Guide to Practical Answers for Living in France
Thanksgiving 2003 will be the tenth anniversary of Jean Taquet’s column as a concept. The first column was actually published in the March 1994 issue of what was then called the Paris Free Voice. To celebrate this event, Jean will include testimonies and comments from previous readers in the November 2003 issue. If you have any contributions, please send them to him
To subscribe to his monthly newsletter or to contact Jean Taquet for a personal consultation, email Jean Taquet
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“DR. DEREK’S” ARCHITECT’S ADVICE AND SERVICES
If you have basic questions concerning apartment and home renovation, contact our resident expert Derek Bush by visiting https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/services.html
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PROPERTY AUCTIONS, AN ALTERNATIVE WAY TO BUY PROPERTY
By Schuyler Hoffman
“Les Ventes aux Enchères des Notaires…” notaire auctions. The “séances” (auctions) are held twice a month at the Chambre des Notaires de Paris, at Place du Châtelet.
The large room is usually packed, with people standing in the back and along the walls, most of them wearing tags with their bid number. At the front of the room, above the table where the auctioneer and other officials sit, is a big projection screen used to show each property and its information. The screen also showed the bids as the sale of each property progressed.
There is also a person at the table responsible for “les bougies.” This is a traditional system of timing the bidding for each property, “to give everyone a fair chance.” One main tall candle is lit. When the bidding stalls, the auctioneer calls for another candle to be lit. This is actually a wick, which burns for just a few seconds, lit from the main candle and placed in a two-candle candelabra. If no further bids are made by the time the wick burns out a second one is lit, and he calls out “dernier feu!” Literally, “last fire.” If no one makes a bid before that wick goes out the bidding is closed on that property. If a bid is placed before either of the two wicks go out, the process starts over again.
It was surprising how quickly the entire auction proceeded. It took no more than three or four minutes to auction off each of most of the properties.
You can arrange to see the properties prior to the auction through the notaire representing each property. If you’re interested and want to be able to bid on it, you must present a check to the notaire for the “consignation,” the deposit amount, the day of the auction (for the properties in this auction this ranged from 1,500 euro to 13,200 euro). You must also arrange for financing in advance and provide this information to the notaire.
The thing that originally caught my eye about the auctions was the prices for the starting bids…seemingly low based on the descriptions and photos of the properties. Naturally, the prices are bid up considerably.
While these auctions can be a good alternative method of buying an apartment here, even for foreigners, there are a few things to keep in mind. In addition to the final cost of the property and the notaire fees, you will pay a fee of 1% of the price (minimum 387.50 euro). This fee goes to cover the costs of the auction and its promotion. The deposit, of course, is applied to all this (if you are not successful in your bid, your deposit check is returned to you that day). A successful bidder has 45 days to complete financing and pay the balance on the property.
One of the most important things to be aware of is that this type of purchase does not allow a conditional clause for financing in the sales contract nor does the normal seven-day period to reflect on your purchase apply. Essentially, when you buy at auction it is yours.
Additional information on Les ventes aux Enchères des Notaires can be found on the website at http://www.encheres-paris.com/ (in French). Though the site has a button for an English version, it isn’t reliable to work.
Upcoming Auction Picks:
HOUSE
273,00 sq. m.
– 14 – La Chapelle Haute Grue et Ste Foy de Montgommery
Reference 2003-23-01
Auction on October 21, 2003
Period of construction : XVIIIe
Fixed price : 530 000,00 Euro
http://www.encheres-paris.com/uk/?PHPSESSID=db01e0edf2f731ca1f7a3e84bf96be0b
FLAT
156,18 sq. m.
5 rue Condé – 75006 – PARIS 6eme
Reference 2003-22-01
Auction on October 14, 2003
Number of floors : 5
The building has an entry code, an interphone
Type of property : flat
Surface area : 156.18 sq. m.
Floor : 3rd
The property contains 4 room(s): 1 entrance(s), 1 living room(s), 1 bathroom(s) with toilet, 1 dining room(s), 1 cellar(s), 2 bedroom(s), 1 kitchen
Fixed price : 915 000,00 Euro
http://www.encheres-paris.com/uk/?PHPSESSID=db01e0edf2f731ca1f7a3e84bf96be0b
FLAT
49,18 sq. m.
19 rue Monsieur – 75007 – PARIS 7eme
Reference 2003-23-02
Auction on October 21, 2003
Period of construction : 1930
The building has a lift, a caretaker, an entry code
Type of property : flat
Surface area : 49.18 sq. m.
Floor : 3rd
The property contains 2 room(s): 1 living room(s), 1 bathroom(s) with toilet, 1 bedroom(s), 1 balcony(ies), 1 kitchen
Fixed price : 140 000,00 Euro
http://www.encheres-paris.com/uk/?PHPSESSID=db01e0edf2f731ca1f7a3e84bf96be0b
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TODAY’S CURRENCY UPDATE
A service of http://www.xe.com
Subscribe for free at: http://www.xe.com/cus/

Rates as of 2003.10.02 20:06:31 GMT.
1 U.S. Dollar equals Euro 0.855461 (0.869683 Euro last week)
1 Euro equals U.S. Dollar 1.16896 (1.14984 last week)
1 U.K. Pound equals Euro 1.66978 (1.44325 Euro last week)
1 Euro equals U.K. Pound 0.598881(0.692882 last week)
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* FOR SALE: FPI HOT PROPERTY OF THE WEEK
We are constantly looking at properties for sale to offer to our subscribers only. Each week we will be bringing you one or two properties we believe are especially worth your consideration. As a subscriber, you will have an exclusive first look at these before they are added to the listings on
our website.
THREE 1948 LAW PARIS APARTMENTS FOR SALE AT HALF THEIR VALUE
These are investment properties. All three apartments are occupied. We cannot guarantee that you will be able to view the apartments or speak with the tenants before purchasing.
There is a 1000 euro introduction fee on each and a 2% finders fee should you purchase any one of these apartments. Expect some additional attorney fees for advice on the handling of these properties.
Photos and plans of these properties are on the FPI Web site
1. DUPLEX
32 square meter duplex on the second floor without an elevator on the courtyard. Newly renovated. It is currently occupied by a family with a six-year lease and a monthly rent of 257 euro. The copropriété charges are approximately 400 euro per year.
Asking Price: 100,000 euro
Serious inquiries can be directed to 1948 Duplex
2. STUDIO
24 square meter studio with 3 windows overlooking the courtyard from the second floor without an elevator. Needs renovation. Currently occupied by a woman in her mid 50’s who pays about 700 euro per year in rent. The copropriété charges are approximately 120 euro per year.
Asking Price: 60,000 euro
Serious inquiries can be directed to 1948 Studio
3. 47 square meter one-bedroom on the courtyard and with a terrace on the rez-de-chausée, newly renovated. Currently occupied by an elderly gentleman and his daughter who pay approximately 2000 euro per year. The copropriété charges are approximately 120 euro per year.
Asking Price: 143,000 euro
Serious inquiries can be directed to 1948 Terrace
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* FPI PROPERTY LISTINGS – SALE
All of the following apartments are for sale by owner. There are no agency fees incurred with the exception of a finders fee we place to connect you with the owner and assist you in the purchase. We have chosen two very high level properties and two very low level properties, but both in very rentable areas of the city, should you wish to make your investment profitable.
The prime rental neighborhoods are the 1st – 8th arrondissements, but each depending on location within each arrondissement. The most requested is the Ile Saint-Louis, second the 6th, third the 4th. The most expensive property in the city is the Place des Vosges in the 4th, Ile Saint-Louis (also 4th) and the 6th arrondissement.
— PARIS, 4TH: BARGAIN NEAR THE TOUR SAINT-JACQUES
On rue de la Tacherie between rue de Rivoli and avenue Victoria in the 4th arrondissement and the very heart of Paris, this 50 square meter one-bedroom air-conditioned apartment on the first floor (no elevator) has a fireplace, murphy bed and a contemporary kitchen…with a little renovation work, it would make a great short-term rental unit. At this price, it’s well below market value.
Asking Price 290,000 Euro + 2% finder’s fee
Serious inquiries can be directed to Tacherie
— PARIS, 5TH: IN THE HEART OF THE FIFTH NEAR SAINT-GERMAIN
On rue de Poissy between boulevard Saint-Germain and rue des Ecoles, this 50 square meter one-bedroom apartment in a Haussmannian building has parquet, an American cuisine, two Prussian fireplaces, high ceilings with moulding, a large salon, situated on two courtyards and was recently renovated.
Asking Price: 439,000 Euro + 2% finder’s fee
Serious inquiries can be directed to Poissy
— PARIS, 5TH: TWO BEDROOMS WITH A GRAND DOUBLE SEJOUR
On rue du Cardinal Lemoine near rue des Ecoles in the 5th arrondissement, 61 square meter two-bedroom apartment on the second floor with an elevator, fireplace, parquet floors and grand double séjour.
Asking Price: 426,000 Euro +2% finder’s fee
Serious inquiries can be directed to Cardinal_Lemoine
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PARLER PARIS APRES MIDI MEETS TWICE A MONTH
NEXT MEETING: October 14, 2003 (celebrating Adrian Leeds’ birthday), 3 p.m. to 5 p.m. AND EVERY SECOND AND FOURTH TUESDAY OF THE MONTH
This is your opportunity to meet twice a month, often with local professionals who can answer your Working and Living in France questions. You are invited to come for drinks and share your questions and comments about what it takes to create a life here, own property and enjoy what France has to offer. It is also an opportunity to network with other Parler Paris readers.
For a detail description of the past meeting and for more information about Parler Paris Après Midi, visitb https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apresmidi.html
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INSIDER PARIS GUIDES DISCOUNT FOR FPI SUBSCRIBERS
Don’t forget that with your FPI subscription you are entitled to a discount on the purchase of any Insider Paris Guides. You’ll find details of the guides at http://www.insiderparisguides.com. When ordering, a box will pop up allowing you to enter the following username/password
Order more than one guide at a time and you will receive an additional discount!
Username: propertyinsider
Password: liveinfrance
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RENTING AN APARTMENT IN PARIS OR HAVE AN APARTMENT TO RENT?
If you are seeking to rent a furnished apartment for a week, a month or a year or you have an apartment you wish to rent, there are a couple of ways we can be of assistance. Click here for more information: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/forrent.html
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THINGS YOU NEED TO KNOW
– FPI Website: To access any password protected pages, the username is: fpiuser and the password is: paris1802. If your computer utilizes cookies, once you log into a subscriber only section, the login information will remain active for seven days, after which you will have to login again.
– Past issues of FPI are available on the website. You will find the “Past Issues” l
ink on the left under “Subscribers Only” or by going to https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/archives.cfm
– To receive your free French Leaseback Report or the Paris Property Report, click on https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/subscribersonly/reports2003.cfm and download the pdf versions.
 
– Instructions for upcoming conference calls are on the FPI website. You’ll find the link under the “Subscribers Only” section on the left of any page.
– Get In On The Discussion: Care to weigh-in on current HOT topics of discussion on France? Get in on or start your own thread on our bulletin board at http://www.agora-inc.com/forums/index.cfm?cfapp=15
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CLASSIFIED ADVERTISING
==APARTMENT RENTAL==
Stay in your own 17th-century pied-à-terre in the heart of Saint-Germain-des-Prés, Paris, by the week or month. Sleeps 4. Newly furnished and redecorated. Totally charming. From $150 per night. Visit https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/rentals/mazarine.html or contact Rendez-Vous à Paris
==APARTMENT RENTAL==
Total Elegance at the Doorstep of Notre Dame and the Famous Shakespeare and Company…in the heart of the Latin Quarter on rue de la Huchette… This is another of International Living’s very own Paris pied-à-terre in the finest location possible. You’ll find yourself just right at Notre Dame, Kilometer Zero (from which all distances in France are measured) and one-half block from the famous Shakespeare and Company bookstore (where Sylvia Beach and English literature in Paris all began) in the heart of the Latin Quarter. The RER station from Charles de Gaulle and Orly Airports is just at the next corner — Place Saint-Michel. For more information, visit: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/rentals/huchette.html or contact us
==APARTMENT RENTAL==
Guest Room or Two-Bedroom Apartment…ENTIRE APARTMENT AVAILABLE OCTOBER 31 – NOVEMBER 10, 2003
Located in a 17th century Le Marais Hôtel Particulier, this 70 square meter apartment two-bedroom apartment with lots of light is nicely furnished and is perfect for a single woman in the freshly renovated guest room when owner Adrian Leeds is in or for up to 4 people when she’s traveling.
The Guest Room is offered at $575 per week ($250 deposit required). The Entire Apartment is offered at $875 per week ($350 deposit required). References are mandatory. Pictures and more details available here
For information and reservations contact Adrian Leeds
== FOR SALE ==
DUPLEX ON THE LEFT BANK
Paris Left Bank — 13th arrondissement bordering the 5th, duplex on the 3rd and last floor plus a loft, total 87 m2 with 71m2 Loi Carrez (above 1.8m2). Quiet, sunny, lots of character (wood beams, traditional staircase) with stairs from living room to loft. Main bedroom downstairs overlooking east courtyard and living room overlooking rue Pascal. Two rooms upstairs, living room 27m2, toilet/shower/bath separate, equipped kitchen, storage room, cellar, double glazed windows and pine wooden floors. Rental history 1850 euro per month.
Asking Price: 445,000 euro
Call for private sale: +33 (0) 6.74.98.08.27 or Email: Duplex_on_the_Left_Bank
==APARTMENT RENTAL==
2 lovely apartments in the 1st arrondissment across the street from the Tuileries Gardens, 3 minutes form the Place Vendome. Available for rent by the week or longer term: 6 months to 1 year. 2-3 bedroom duplex w. 2 baths/ Tuileries view. OR 1-2 bedroom same building. Both are elevator accessible, non-smoking and no pet properties.
To check them out and for reservation and contact information go to http://www.youlloveparis.com.
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SEEKING A MORTGAGE IN FRANCE?
The International Living Paris Office can help you secure a mortgage in France with interest rates as low as 3.35%.
Contact [email protected]?subject=Mortgage for more information.
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HELPFUL CONVERSIONS FOR REAL ESTATE
To convert square meters to square feet, multiply 10.763 by 3.281 and for more conversions, refer to:
http://www.onlineconversion.com
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SUBSCRIBE TO PARLER PARIS
If you’re not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it’s free!): http://www.internationalliving.com/signup.cfm
* * * * * * * * * * * *
Copyright 2003, Agora Ireland Publishing & Services Ltd.

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