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ON THE BUS AND OFF THE HOOK

French Property Insider
Volume XVII, Issue 8
Thursday, February 21, 2019 • Paris, France

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LUXURY APARTMENT FOR SALE
 
26 rue des Francs Bourgeois, Paris 3rd Arrondissement
 
PRICE REDUCED AGAIN!!!
 
Adrian Leeds Group - Apartment for Sale
Two-Bedroom, Two-Bathroom Fully Furnished Triplex, 88m2 (950 sq. ft.)
 
The 88 square-meter apartment is in a portion of the building that was once the carriage-house of a 17th-century “Hôtel Particulier” and was designed and decorated by our illustrious interior architect, Martine di Mattéo.
 
The apartment is situated on three levels:
1) a ground level living room/dining room with fully-equipped kitchen with laundry/utility area,
2) a master suite on the upper level including an arched window that spans the entire length of one wall with a separate toilet, full bathroom with claw-foot tub, shower and sink and
3) a second bedroom and bath on the lower level, all which provide its occupants with a real sense of privacy.
 
The main entry is on the beautiful courtyard and two large mirrored windows face the street providing complete privacy.
 
The apartment is being sold with all the furnishings valued at 35,000€.
 
Reference: #115

NOW €1,170,000!
 
For more information email Carsten Sprotte: carsten@adrianleeds.com 
 

Bonjour French Property Insider Subscriber,

A Paris Bus by Erica Simone ericasimone.comA Paris Bus by Erica Simone

Bus Map for ParisBus Map for Paris

Bus Network StatsBus Network Stats

Bus Network LinesBus Network Lines

The Cour de Cassation, ParisThe Cour de Cassation, Paris

BACK ON THE BUS

Last week, I wrote about the advantages of the Paris bus system and how when looking at property, their network shouldn't be overlooked when considering a location's transportation efficiency. Too many people don't make the effort to get to know the Paris bus system, missing the advantages of traveling around town by bus in place of the Métro.

Since that article, we have some important news from the City of Paris website, Paris.fr, about significant changes in the bus schedules we can now expect in the near future. The city is calling it a "revolution" in the bus network, which will take place as of April 20, 2019. Fifty lines will evolve concerning 4,000 busstops, representing more than two-thirds of the network: 42 lines will be affected by a change of itinerary or a strengthening of the service offer, three lines will be deleted, but their routes will be taken over by other lines and five new lines will be created.

The current network is as old as 1950, so it's high time for a face-lift. On Saturday, April 20th, more than 10,000 agents will be made available to assist travelers in making the switch over. To help you make the transition, visit the interactive map. And here's a listing of the lines to discover their new routes. 

This new bus network is taking advantage of the new road improvements made all over the city to improve the buses efficiency, having created 200 new bus stops. All lines will be accessible to people with reduced mobility. The buses are equipped with a ramp and for the few stops that are still underway, travelers will be informed. Seniors and adults with disabilities are entitled to a free Pass Paris Seniors and Access as of this past June 2018. To learn more, visit: paris.fr/actualites/.

SHORT-TERM RENTALS OFF THE HOOK TEMPORARILY EUROPE-WIDE

While the City of Paris — and Nice too — has just rejoiced in the strengthening of its regulatory system to fight against the many properties that are not complying with the regulations applied to short-term furnished rentals, the European Union Court of Cassation has halted the trials of current and future proceedings for 2019. The Court of Justice of the European Union (the ECJ) has been called upon to rule on the conformity of Article L.631-7 of the Code de la construction et de l'habitation (CCH),  the cornerstone of the regulations surrounding furnished tourist accommodations. This preliminary question has important consequences, both for proceedings pending before the courts, and for furnished rentals currently in infringement, but also for the legal future of furnished rental tourist accommodations in France.

In summary, the preliminary questions before the Court of Justice of the European Union can be summed up in three key points:

1. Is furnished tourist rental framed by Article L. 631-7 of the CCH within the scope of the Services Directive? Does this type of tenancy benefit from the specific scheme framed by this directive, the guiding principle of which is the freedom of providers and absence of interference by the State, unless there are exceptions or compelling reasons.

2. If this type of furnished tourist rental falls within the scope of the Services Directive, does the authorization scheme for the furnished rental activity provided for in article L. 631-7 of the Construction and Housing Code conform to the principle (except in the case of or compelling reasons), does the State have the right to impede the freedom of establishment of the service provider which could constitute tourist furnished rentals?

3. Furthermore, the Court of Cassation questions the Court of Justice of the European Union on the validity of the text of Article L. 631-7 of the CCH in view of the very precise criteria laid down by the Directive as regards to the drafting of the authorization scheme in order to avoid arbitrary limitation of the state.

The European Directive provides that the authorization schemes set by the State must be clear and unambiguous, objective, made public in advance but still transparent and accessible. As it is now, Article L. 631-7 of the CCH contains wording which may be contrary to the criteria set out in the Directive (i.e. the text of Article L. 631-7 evokes vague terms such as "repeatedly" or "short-term" or "passing clientele."

These are in essence the issues raised in the field of short-term furnished rentals, on which the European Court of Justice will soon have to decide — the judgment suspended untill December 10, 2019, pending the position of the Court of the European Union. In practical terms, the Court of Cassation awaits the position of the Court of Justice of the European Union to render its judgment on questions of application and validity of Article L. 631-7 of the CCH.

The immediate consequences is that all the cases which the City of Paris had just seized for the non-compliance with the regulations of the furnished tourist rentals (rentals greater than 120 days in principal residence or still rentals prohibited in secondary residences) have been suspended!

Furnished apartment - Le Magenta

In conclusion, if the Court of Justice of the European Union validates the regularity of the French text and the Court of Cassation follows its position, the violators of the regulations of furnished tourist rentals will have won at least one year without having to bear a trial nor a fine imposed by the courts in the year 2019. If the text of Article L. 631-7 is declared non-compliant with the text of the European Directive, then the Court of Cassation will draw the consequences, but cases currently in the courts may well avoid any fines. If the text remains unchallenged, then the cases in the Paris courts will be reactivated, but only once the decision is known and rendered by the Court of Cassation.

How is the Mayor of Paris and the Paris Housing Department, led by Ian Brossat, going to handle this new turn of events? Nothing is certain at this moment. There is only certainty in the uncertainty! Lawyers of offenders should continue to prepare their defence in the event that the judge in the case refuses to adjudicate. And meanwhile, the courts of other major French cities subject to this legislation should align themselves with the prudent legal solution of waiting for a decision.

This question will be precisely decided by the Court of Justice of the European Union and the Court of Cassation at the end of the year 2019 or at the latest, at the beginning of the year 2020. Within this expectation, the text remains valid and the city of Paris remains justified in pursuing its findings of infringement and the implementation of the subpoenas against "fraudsters" to the regulation of Article L. 631-7 of the CCH. M. Brossat has already announced to the press that he is not slowing down the drafting of subpoenas directed against alleged offenders to the regulations of furnished tourist rentals, and is not stopping to uphold the current text until proof of a contrary decision is announced by the courts.

If the text of Article L. 631-7 were to be challenged by the Court of the European Union and the Court of Cassation, it could be assumed that the consequences could be numerous, starting with:

1. The suspension of fines for seasonal rentals in Paris;

2. The questioning of the status of Airbnb and similar platforms that could benefit from a legal vacuum to expand their activity in France;

3. The non-enforceability of a change in the use of premises;

4. The possibility of renting your accommodation more than 120 days a year without any restrictions.

In parallel, with the annulment by the Paris Administrative Tribunal of the ceiling on rents, one could imagine a decision by the Court of Cassation challenging the validity of Article L. 631-7 of the CCH framing the furnished tourist rentals and fines, thus paving the way for a real permit offered to the owners to rent their lodging as furnished tourist accommodations without the outline of the restrictions that are currently clearly defined. Similarly, would it be appropriate to question the offenders already convicted by judicial decisions in the past and their right to compensation?

In conclusion, whether or not the decision awaited by the Court of Cassation revolutionizes the interpretation given to Article L. 631-7 of the CCH or not, owners using online platforms (such as Airbnb) should seek legal advice to find reasonable solutions. (Read more on this topic.) 

Editorial Opinion:

Furnished apartment - Chez Antoine

Regardless of my position as a property owner, or agency owner and representative of furnished rentals, I have a universal viewpoint and believe the following:

1. We live in a global society where transiency is growing. This isn't going away and we need to embrace this, not battle it. This means that more and more people will need more flexible rules on housing in order to provide housing to everyone: long-term, mid-term, short-term — on an equal basis.

2. The State shouldn't have the right to legislate who someone allows into their own home and if there is compensation or not. Taxation for earnings is legitimate, but not the discrimination of who occupies the residence.

3. The homeowner body of a building is the only organization that has the right to make these decisions, by vote of the homeowners. If everyone in the building wishes to outlaw the short-term rentals, then sobeit. If there are enough in the building who wish to continue and it's voted as such, then the State has no right to deny them.

Let's hope the European Court sees it the same way!

A bientôt,

Adrian Leeds - with suitcases...at a bus stop

Adrian Leeds
Adrian Leeds Group

(at a bus stop)

 


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