Your Easy-To-Follow Guide To Changes In French Real Estate Law

Your Easy-to-follow Guide to Changes in French Real Estate Law


PARLER PARIS: PARIS PROPERTY INSIDER


Enhanced web-edition online at:
/parlerparis/property


October 10, 2002


Dear Paris Property Insider Reader,


Solidarité et Renouvellement Urbain (SRU), became effective June 1,
2001. This ambitious law modified eight government codes in order to
organize the development of French cities, towns, and villages based on
habitat, planning and transportation. With the help of Samina Arnoult,
we outline for you below the ways this law affects real estate
purchases.


* Period for Cancellation (délai de rétractation) Prior to SRU, a 7-day
period to cancel a purchase contract existed only for new buildings.
The period now applies also to older property as well. This is a major
development, as it allows you to go back on a decision made too
quickly… under pressure from hard selling, because other buyers were
lined up and you were afraid the property would sell out from under
you, or because you didn’t get time to do proper checks.


Regardless of the age of the property, you can use this time to get
proper information before finalizing the deal. Talk to the neighbors to
find out if other neighbors are noisy. Visit the neighborhood at
different times of the day. Contact the "syndic" (the organization in
charge of the upkeep of the building) to find out if any future repairs
are in the air, or if any co-owners are behind in the payment of their
maintenance charges (in which case you would end up paying for them).


If you change your mind within the 7 days you must send a registered
letter with acknowledgment of reception (lettre recommandé avec avis de
réception). When done following the proper procedure, you can then walk
away from the transaction.


* Down Payment to Close the Sale (versement d’argent) It is common
practice to put down a check for 10% of the buying price to close the
sale. Your check will normally be deposited straight away. The new law
states that there should be no payment before the 7 day cancellation
period is over. However, there is an exception for new buildings and
houses.


If you are going through a real estate agent (agent immobilier) and he
or she has professional insurance ("garantie financière"), they are
allowed to accept a down payment. The deposit must be refunded within
21 days if you change your mind. A private owner or "notaire" may ask
you for the down payment only after the 7 days are up.


* Promise to Buy (promesse d’achat) The document binding the buyer and
the seller is called the "promesse de vente" (promise to sell). It has
been common practice amongst real estate agents to ask the buyer to
sign a "promesse d’achat" (promise to buy), binding only the buyer who
agrees to buy at a certain price. This is usually done when the price
the buyer is agreeing to is different than that proposed by the real
estate agent. The agent then must see if the seller will agree to the
new price. Under SRU, no payment is allowed in this case. If any
payment is made, the contract will be considered null.


* Certificate of Asbestos Check (certificat d’absence d’amiante) SRU
mandates that the "promesse de vente" must have the certificate of
asbestos check attached to it, showing if there is any material in the
property containing asbestos. It is obvious you should refuse to buy
the property if there is any asbestos, or, if you choose, put a written
condition (condition suspensive) in the promesse de vente asking for
the replacement of the contaminated objects.


* Technical Diagnosis and History of Work and Repairs Done on Buildings
(établissement d’un diagnostic technique et carnet d’entretien) Any
building over 15 years of age should have a technical diagnosis
certifying that the building is in good condition. It is one of the
notaire’s responsibilities to verify this. Also, the syndic is required
to have a logbook with the history of repairs and maintenance work done
on the building. You need to ask the syndic if you want to consult this
document.


* Buying Land to Build (terrain à bâtir) There must be a legal
description of the land you’re buying, with proper reference number (in
compliance with French laws), limits, size etc.


There are many regulations and laws concerning real estate in France
that seem to work against a buyer. New laws like SRU are doing more and
more to protect the public from wrongs and abuses that occurred far too
often in the past. It is important to be aware of your rights under the
law. If you are considering a purchase here make sure you consult with
professionals who know the law before making any commitments.


If you are interested in reading the full text of the SRU law, the
official document, in French, can be found at
http://www.assemblee-nationale.fr/projets/pl2131.asp/


A bientôt,


Schuyler Hoffman
Editor, Paris Property Insider
E-mail:
mailto:propertyinsider@internationalliving.com


P.S. Thanks to S
amina for helping us out today. Samina Arnoult is an
independent financial consultant experienced in all areas of finance,
real estate, the stock market, life-insurance, etc. She is one of the
featured speakers at our upcoming Working and Living in France
Conference October 18 to 21.


* * * * * ADVERTISEMENT * * * * *


HOW TO DISCOVER THE FORTUNE HIDDEN
IN INTERNATIONAL REAL ESTATE


"Global real estate will be the only major asset class that could
deliver double-digit returns over the next five years."


— Barton Biggs, Chief Global Strategist and Chairman
Morgan Stanley Investment Management,
Pensions and Investments


Real estate in both emerging and developed markets outside the United
States offers some of the best investment opportunities in the world
right now.


In the right markets, it’s possible for you to earn returns of
200%…640%…or even 900%.


Where, specifically? And how?


Get the details here now:
http://www.agora-inc.com/reports/REL/WRELCA09/


* * * * * * * * * * * * * * * * *


*** HOLIDAY RENTAL NEAR THE EIFFEL TOUR


Spend your holiday just minutes away from Paris’ most famous landmark
in this one-bedroom 52 square meter apartment. Located in a newer
building, the renovated apartment is on the 5th floor, with an
elevator. When you stay in this furnished flat with fully equipped
kitchen, you’ll also be a only a few minutes from the Seine, elegant
shopping areas, as well as the chic 16th arrondissement. (Non-smokers,
please)


Available December 20th to January 5th and offered at 500 euro per
week.


For more details and availability, e-mail:
mailto:propertyinsider@internationalliving.com?subject=ppiStCharles


*** STUDIO IN MONTORGEUIL


Centrally located on rue Etienne Marcel (2nd arrondissement) in the
trendy and very Parisian Montorgueil neighborhood, this 26m² studio is
situated on the first floor of a beautiful 18th century building, has a
kitchen and bathroom, TV, telephone, and charming and romantic
decoration with wood floors and white painted walls. Rue Montorgueil,
just around the corner, overflows with cafés, restaurants, and several
open markets.


Offered at 450 euro per week.


Pictures and more details available at:
/parlerparis/property/rueetiennemarcel.html


For our full list of short-term apartment rentals, available
year-round, click here:
/parlerparis/property/forrent.html


* * * * ADVERTISEMENT * * * * *


THE BEST PLACES IN PARIS TO EAT, STAY, LIVE, WORK…
AND MORE


Get up-to-the-minute insider information on Paris:


* Discover the LITTLE-KNOWN corners of Paris you never knew existed…


* Learn the ins and outs of maneuvering the French legal, bureaucratic,
and tax systems…


* Experience Paris as though you lived there EVERY DAY…


* Get the insider’s take on WORKING AND LIVING in Paris…


No trip to the bookstore, no shipping to pay:
http://www.insiderparisguides.com


* * * * * * * * * * * * * * * * *


*** ROOM FOR A FAMILY OR A GROUP


Paradise in Provence: La Vernatelle… This exquisite contemporary
private residence can be your home away from home while vacationing in
Provence. Paradise for the person who appreciates fine esthetics, the
restored farm house, dating back to 1682, sits on seven acres of olive
and chestnut trees, terraces and gardens in the heart of Provence. "La
Vernatelle" is less than 20 minutes from Saint Tropez, nestled in the
forest of La Garde Freinet en Provence.


Pictures and complete details available at:
/parlerparis/property/lavernatelle.html


YOU’LL FIND OUR LIST OF PRIVATE HOMES AVAILABLE TO RENT OUTSIDE PARIS
HERE: /parlerparis/property/homerentals.html


*** BOULEVARD DU TEMPLE TWO-BEDROOM


Located in the chic and trendy Marais, this upscale two-bedroom
two-bath gem in the heart of the very "in" Oberkampf district. The
apartment is near the Picasso Museum, Place des Vosges, and the rue de
Bretagne–a neighborhood of excellent boulangeries, boucheries and
restaurants. You’ll experience elegance and comfort as you pass your
mornings sipping coffee on the terrace of this vacation get-away.


Pictures and additional details available at:
/parlerparis/property/blvddutemple.html


FOR OUR FULL LIST OF UPSCALE PARIS APARTMENTS, CLICK HERE:
/parlerparis/property/upscaleapartments.html


*** WORKING AND LIVING IN FRANCE CONSULTATION SERVICES


Living in France for several years, we have accumulated valuable
information and developed valuable contacts. We are able to assist you
as much as possible and when necessary, put you in contact with one or
more of our professional associates to provide the help you need.


– Fee of $75 an hour with a two hour minimum, plus expenses (travel,
phone charges, etc.)


– Consultation can be arranged in person, by phone, or e-mail


For more information contact Schuyler Hoffman at
mailto:propertyinsider@internationalliving.com?subject=ppiConsultation
or visit /parlerparis/services/index.html.


DO YOU HAVE AN APARTMENT IN PARIS OR HOME IN FRANCE YOU WANT TO SELL?


We can help you promote your property as well as connect you with
interested buyers we already have. Send an email to
mailto:propertyinsider@internationalliving.com?subject=ppiForSale


* * * * * * * * * * * * * * * * * * * * * *


COMING TO PARIS?


Why not stay in the finest pied-à-terre in Paris:
/parlerparis/property/mazarine.html


* * * * * * * * * * * * * * * * * * * * * *


TO RECEIVE THIS E-LETTER REGULARLY:


If you’re not a regular reader of this e-letter, and would like to be,
simply enter your e-mail address here (it’s free):
http://www.internationalliving.com/signup.cfm


* * * * * * * * * * * * * * * * * * * * * *


Know someone who would be interested in the opportunities in this
e-letter? Forward it to your friends, relatives, and associates!


* * * * * * * * * * * * * * * * * * * * * *


TO MANAGE YOUR E-LETTER SUBSCRIPTION: Go to:
http://www.internationalliving.com/manage_eletters.cfm


Copyright 2002 Agora Ireland Publishing & Services Ltd.

*******
TO REMOVE YOURSELF FROM THIS LIST, SEND AN EMAIL
TO: PParis_UNSUB@AGORAMAIL.NET OR GO TO OUR WEB INTERFACE
AT: HTTP://WWW.AGORAMAIL.NET/HOME.CFM?LIST=PParis

This entry was posted in 2002, Parler Paris and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>