France's Kilometer Zero

One Studio's View of Notre Dame

(FOR SUBSCRIBERS ONLY)

French Property Insider

October 25, 2007
Paris, France
http://adrianleeds.com/frenchproperty/insider

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Bonjour French Property Insider Subscriber,

Today's issue of French Property Insider offers lots of valuable advice and meaty reading, so pour yourself a big glass of French wine before you peruse the topics and choose the articles that interest you most.

The main photo was taken from the balcony of a studio apartment overlooking "Kilometer Zero" -- the point from which distances are measured in France, located on the square facing the main entrance of Nôtre Dame Cathedral in Paris (48.85341° N 2.34880° E WGS 84). There, a bronze star is embedded in the pavement, marking the start of all French national truck roads and is considered the official center of the city of Paris. A legend also exists that if you step on this spot, you'll surely return to Paris another day.

This 18 square meter studio apartment is currently for sale for well over 18,000€ per square meter. Today we bring you others on the market with similarly stunning views, as a "room with a view" is easily rentable and likely to generate a good return on investment.

In our newest column, "Ask Adrian," I explain the important "Clause Suspensive" written into many "Promesses de Ventes." Be sure to file this away for future reference for the next property in France you purchase.

Friend and reader of FPI, Al Stewart, has found himself in an entanglement involving his neighbors, the homeowner's association and the future of the tiny mezzanine in his Marais apartment. The story is long and complicated, but fascinating, as he recently discovered he didn't actually own a portion of his apartment, but his neighbor did! A lesson is to be learned here, so don't miss the saga.

Conference attendees and FPI readers Pete and Liz Lismer, have a happy story to tell about their new home in Moissac, France. Pete gladly allowed us to reprint it for you, proving that the process isn't as difficult as it might seen with the right assistance. Moissac is in a part of France worth exploring, so be sure to read Wikipedia's description of the area.

Mark your calendar for November 11th to join us for the special FPI Conference Call with Steve Navaro about the Fractional Ownership Solution. It's free to all FPI subscribers, but we ask that you reserve your place as the number of callers is limited. Scroll down to learn more about it.

More tidbits in today's issue include news about the American Church spire, a report on the French property market by lender UCB and a few articles from other sources with interesting information about property ownership in France.

A Bientôt,

Adrian Leeds
Editor, French Property Insider
Email: [email protected]

P.S. The next scheduled Living and Investing in France Real Estate Conference is February 16-17, 2008 at the new Alliance Française in Miami, Florida. For more information, email Schuyler Hoffman at [email protected]

P.P.S. There will be no French Property Insider issue on the Thanksgiving holiday, Thursday, November 22, 2007.

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Volume V, Issue 42, October 25, 2007

In this issue:

* New Column: Adrian Addresses Your Property Purchase Questions
* "Promesse" of a Marais Mezzanine
* France Home Purchase Success Story
* Discover Moissac
* French Market Good for Foreign Investors
* Lighting the American Church Spire
* Own a Piece of France for a Fraction of the Cost
* Free Fractional Ownership Conference Call, November 11, 2007
* Younger Investors Interested in France
* French Economy Growing Stronger
* NEW! Living and Investing in France Conference, February 16-17, 2008, Miami
* FPI Property Consultation, Search and Relocation Solutions
* Today's Currency Update from Moneycorp
* Next Parler Paris Après-Midi: November 13, 2007
* Hot Property Picks: Studios with a View
* Leasebacks: Village de la Mer, France, Atlantic Coast, Talmont Saint Hilaire
* Managing Your FPI Subscription
* Classified Advertising: Parler Paris Apartments -- Le Penthouse Voltaire

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NEW WEEKLY COLUMN:
"Ask Adrian's Advice"

Regularly we receive interesting questions from readers whose answers would be of use and information to all the readers. You, the readers, now have an opportunity to ask Adrian anything related to investing in Paris and France real estate, lifestyle and living in France issues.

We cannot answer all requests, but will choose those questions which have pertinence to the most readers. Your question will remain anonymous. Please direct your questions of 100 words or less to: [email protected]

QUESTION

I'm about to sign a "Promesse de Vente" on an investment apartment in Paris. I cannot make the purchase without a loan, so I have begun the process to speak with French Property Loan's John Rule and the lenders with whom they work. John mentioned the importance of a "Clause Suspensive." What is that and how does it protect me as a buyer of French Property?

ANSWER

A "Clause Suspensive" is a conditional clause normally related directly to financing the property in question. The concept is such that should the buyer wish to acquire a loan and should the buyer not be able to achieve that loan within the parameters of the condition, he would default from the purchase with no penalties and therefore, the deposit would be refunded and the property would revert to the seller.

The clause is written into the "Promesse de Vente" under the title of: PRET - PROTECTION DE L'EMPRUNTEUR and reads as the following example:

Le BENEFICIAIRE s'il lève l'option déclare vouloir souscrire à un ou plusieurs emprunts à l'effet de financer partie du prix d'acquisition de l'immeuble ci-dessus désigné.

En conséquence, et conformément aux dispositions des articles L 312-1 et suivants du code de la consommation, la présente promesse de vente est soumise à la condition suspensive de l'octroi du ou des prêts ci-après qu'il se propose de contracter dans les conditions suivantes :

Montant maximum : CENT SOIXANTE DIX MILLE EUROS (170.000€)

Durée minimum : VINGT CINQ (25) ANS

Taux fixe hors assurance maximum: 5,5% l'an

It is important to understand that these are the parameters the buyer will REQUEST, not necessarily RECEIVE, to which the seller must agree. So, in this case, the buyer cannot REQUEST more than 170,000€, for less than 25 years at a maximum rate of 5.5% per year. Receipt of a loan offer under the maximums or over the minimums protects the buyer from defaulting with a loss. Should the buyer request more than the maximums or less than the minimums and be rejected, the seller is protected as the property could be returned to him and he would be allowed to keep the buyer's deposit.

The Clause Suspensive is often a bargaining too. Sellers feel more secure if there is no condition to the sale and it can be used to negotiate a better price if there is a guarantee that the sale will proceed with or without financing.

It is best to have your financing prepared prior to finding a property to purchase, so that the Clause Suspensive can be noted correctly to protect you as a buyer. For more information, or to begin your loan process, email John Rule, French Property Loan at [email protected].

Adrian

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Al Stewart's Mezzanine Mania
TIMELINE By Al Stewart
FOREWARD by Adrian Leeds

FOREWARD

Al Stewart of Business Mentors, Inc. is a long time friend of French Property Insider who has owned an apartment in Le Marais since 2000 which he has enjoyed himself several months a year and successfully rented it when he's not there. Recently, just because a potential buyer came along interested in the entire floor above his apartment (the top floor), it came to light that mistakenly, the mezzanine which had always been a part of his apartment, was in fact, another "lot" (parcel) of the apartment and actually belonging to the apartment below his -- a "débarras," or closet.

The following timeline was provided by M. Stewart. The names have been abbreviated to initials to protect those involved. There is quite a bit of French terms used, so get out your French-English dictionary for any you are not familiar with.

The reason we believe you will want to read this long and involved explanation of the issues he encountered seven years after purchasing the apartment is in the interest of protecting and preparing you as a consumer and purchaser of French property.

When a "Promesse de Vente" is drawn up, the "lots" (parcels) are outlined very specifically. The following is a sample taken directly from a very recently signed "Promesse de Vente":

LE LOT NUMERO CINQUANTE (50) :
Au premier étage, un logement comprenant une chambre, une salle de séjour, d'une surface de vingt huit mètres carrés quatre vingt dix huit décimètres carrés (28,98m²)
Et les vingt-deux / millièmes (22/1.000èmes) des parties communes générales de l'immeuble et de la propriété du sol.

In a simple translation, it notes that the property is numbered "lot" #50, is on the first floor, comprising a bedroom and living room totalling 28,98 square meters, or 22 thousandths of the entire building.

During the signing, we noticed that the bathroom and kitchen were not mentioned. They had been constructed since the apartment had been last purchased and therefore not in the original title deed. We then added wording to include the bathroom and kitchen so that all aspects of the apartment were clearly outlined.

When reviewing the "Promesse de Vente" of a property you are purchasing, be absolutely certain that all "lots" are accounted for, including any cellars, parking spaces and of course, mezzanines that you may think belong rightfully to the apartment!

Read on, as you may find this as fascinating a dilemma as I do, and keep in mind, that if you choose to go through the purchase process alone, without the assistance of professionals, as Al Stewart did seven years ago, you then risk falling into these kinds of "pitfalls" that don't seem all that apparent from the beginning. Having representation with eyes that are trained to see these errors could prevent expensive and time-consuming ramifications in the future.

AL STEWART'S TIMELINE:

Please note that this timeline begins with events prior to my purchase which affect the existing problem:

December 2000: P.P. SARL, Paris, purchased my property at XX rue Vieille du Temple from the S. family, relatives of the long time occupant/owner, Mr. C. P.P. SARL owned my apartment, prior to my purchase, from December 2000 to September 10, 2001. No one ever occupied the space as they completed a renovation in that time period.

Winter 2000: Madame G.R., my current next door neighbor on the 4th floor sees that renovation is going on in the apartment, and she notices that the door to a "débarras" (LOT 24) on the 5th floor above my apartment has been removed and the wall sealed. She knew that the "débarras" was owned by Madame G., an owner of an apartment on the 3rd floor. She knew that Madame G. rents the 3rd floor apartment to others, and that she actually lived in Belfast, Ireland. She immediately called the Syndic at that time, M. Immobilier, Paris. She suggested that they contact Madame G. to let her know that something was happening with her property. She never heard anything in return from the Syndic nor from Madame G.

June 2001: I begin working with an real estate agent, V.M., V. Immobilier, to find an apartment in Paris where I could live. After looking at over 13 properties and visiting XX rue Vieille du Temple on several occasions, I decided that the current apartment which contained not only a "chambre," but a sleeping mezzanine would meet my needs.

I found this apartment with the agent and wrote a contract proposing a purchase to P.P. SARL for 1,050,000 French Francs. The proposal was accepted. The apartment had been completely renovated and included a "cuisine," "séjour," "salle de bains," "chambre" AND A MEZZANINE. All publicity by the real estate agent included this mezzanine. As well, over four individuals from the US visited the apartment with me prior to purchase, who can testify to the mezzanine's existence. Both my real estate agent and I can provide the publicity for the apartment, if needed.

June 2001: A loan application was made to Abbey National for a loan amount in French Francs.

July 2001: A deposit was wired to L'Etude de Maître H., Paris, the seller’s Notaire, and I attended the reading of the "Promesse de Vente" in person. P.P. SARL was present for the reading along with the real estate agent, Monsieur V.

September 2001: The sum of 264,116.65 French Francs was wired to the account of Monsieur J.Le B., Le B. & Associés, in anticipation of an "Acte de Vente" on September 10, 2001. I assume that the file was moved to Le B. & Associés since they had an English speaking staff. A working relationship began with Monsieur W.B.R., in preparation for the "Acte de Vente." As well, a "pouvoir" or power of attorney was signed and sent registered mail to Monsieur Le B. as I would remain in the United States and had an appointed individual to represent me at the closing. I knew that I was buying LOTS 18 and 36. It was clear to me that LOT 36 was a cave and that LOT 18 included "la cuisine," "la salle de bains," "le séjour," "la "chambre" and a mezzanine.

September 2001: The "Acte de Vente" was culminated on September 10, 2001.

December 2001: I was approached by my next door neighbor, Madame G.R., Paris. She asked where the "placard" (closet) was that had existed on the 5th floor. She said that I had co-ownership of ("droit a la jouissance") on the 5th floor to a closet with Madame G. I responded to her that I was unaware of any closet. However, she took me up to the 5th floor to show me a door which had existed in the past and was now sealed. It was on the same wall as my mezzanine on the 5th floor. The door was 'behind' the "escalier" and on the "palier" (landing) to the right (just as the legal description reads for LOT 24 in the "Règlements de la Copropriété"). This is the point where much confusion occurred. On re-reading of my title to the property, I noted that I did have “droits de jouissance” to a "cagibi" (storeroom) with Madame G. on the 5th floor. This led me and others to gain the impression that initially my mezzanine had been created out of a "placard" or "cagibi" to which I had “droits de jouissance” with Madame G. Unfortunately, as you will see later in this timeline, that was NOT the case.

December 2001: As I reviewed my documents, I saw that I had "droits de jouissance" to a closet with Madame G., an owner of an apartment on the 3rd floor, but I was never able to find a "placard" or a "cagibi" on the 5th floor. The Règlements de la Copropriété said that the "cagibi" and "placard" were "en faces des escaliers," and nothing existed there in the form of a "placard" or "cagibi." Nothing existed on the 5th floor as I could tell. All that remained there was a sealed door, “au droit sur le palier." I explained my dilemma to the individual who was, at that time, managing the rental of my apartment when I was not in Paris, Monsieur P. LeG., Manager-Hotel S.L.M., Paris, and, together, we developed a letter in French to Madame G., who lived with her husband in Belfast, Ireland, to question the absence of a closet. The letter was mailed, and we NEVER received a response in SIX YEARS. Since we determined that this issue was not important to Madame G., we assumed that the previous owner had seized a "placard" to which she and I had "droit a la jouissance," and we did not pursue it further.

SIX YEARS LATER...

April 2007: Those owners at XX rue Vieille du Temple living on escalier B were contacted by a prospective buyer, Madame Helene Rivet-Fusil of London, about a "chambre" de bonne on the 5th floor of our building. She was inquiring about our willingness to give up a "droit a la jouissance" to a water-closet on the 5th floor. This was the event that triggered today's issue with ownership. Since all of us on escalier B have "Sani-Broyeur," it was necessary for us to have access to a "vrai toilette" (water closet) on the 5th floor in case we had problems with our "Sani-Broyeurs." In the Règlements de la Copropriété, we all had "les droits de jouissance" to this water-closet. The potential buyer needed for all of us to surrender our "droit a la jouissance" to the water closet so that she could incorporate it in her design for a renovation of her apartment. I refused to sign away my rights at that time. I thought the matter was finished.

October 2007: I attended a reunion special of our Copropriété on Monday, October 1 to discuss special requests from another owner in the building for specific renovations. Just prior to the meeting, I met with a small group of owners at a cafe, those present were the President of our Association, Monsieur C.S. and the son and daughter of Madame G.R. At this point, the R. family owns three apartments in the building including the apartment of Madame G.R. At this meeting, I was surprised to find that Madame Helene Rivet-Fusil from London was present. She had decided to once again, after four months, to attempt to buy the apartment on the 5th floor, and she was asking once again for my agreement to give up my rights to the water-closet on the 5th floor. It appeared that I was the only one not to surrender my rights to the water-closet. Monsieur S. asked me in that meeting if I would be willing to give up my rights to the water-closet, if the association had a special assessment to install a "descente" in our column of apartments to allow us to have "vrai toilettes." It was at this time, that many issues regarding the property on the 5th floor, came to the forefront. And, one of the key topics, was the ownership of my mezzanine. During the meeting, we discussed this issue, and it was determined that the ownership issue would have to be resolved before Madame Helene Rivet-Fusil could proceed with her transaction.

The son of Madame G.R., Ariel R., and I went through the Règlements de la Copropriété to try to discover what had happened to the "placard" to which I had "droit a la jouissance" with Madame G. As we reviewed the Règlements, we realized that the "placard" or "cagibi" on the 5th floor no longer existed, BUT that there had been a "débarras" on the 5th floor (LOT 24) which was owned outright by Madame G. Upon reading the legal description in the "Règlements," we were able to see "un débarras au droite sur le palier." This was now my mezzanine. The door remains, but it has been sealed.

That bring us to this point in time. Madame G. and I have a very cordial relationship. We have spoken on a number of occasions over the past three weeks regarding this situation, and I was delighted to know that she utilized the services of Monsieur Le B. in 2000 for her "Acte de Vente." However, Madame G. seems to be under the impression that she is dealing with 4m2 of space for which she needs to be compensated. In fact, you will find upon examining the photos, that the mezzanine may be 4m2 in circumference, but one can only stand up in less than 1/4 of that space. The mezzanine is tucked into the roof, and the roof descends quite severely to the right. There is space for a single bed and a small lamp, but one is not able to stand in any area except that small space at the top of the "echelle" placed at the entry point. Madame G. had spoken with her real estate agent here in Paris, and he had informed her that she was dealing with a quartier where per m2 is valued in excess of 7,500€.

October 8, 2007

After an initial phone call with M. S.B., a Notaire at L’Etude de Maître H. Upon finding this out, I contacted Monsieur S.B. at L'Etude de Maître H., the original Notaire firm where the "Promesse de Vente" had been executed. We met, and he confirmed that his firm had prepared the "Promesse de Vente," but that Monsieur J.Le B. at Le B. & Associés had managed the closing of the "Acte de Vente." I would have known that had I had my file with me from the US.

During the week of October 1, I waited for a promised return call. When none of my calls were returned, I personally went to the office of L’Etude de Maître H. on October 8, 2007, where I told the receptionist that I would wait to see M B. Within 15 minutes, he asked me to join him in his office, and spent one hour with me. He re-emphasized the seriousness of the matter and questioned whether I knew if P.P. SARL, his original client, still existed. After asking many questions to clarify the situation, he stated that, in fact, Maître J. Le B., had closed the transaction. He committed to contact him, follow up on the existence of P.P. SARL, and to follow up with me. To date, I HAVE NEVER received a returned call or letter.

October 10, 2007

After discovering that the office of Le B. & Associés, Paris, had closed the "Acte de Vente," I called to speak with Monsieur J. Le B. I asked that he call. When I did not receive a response, I went personally on the morning of October 10, 2007, to his offices. I was told that he was not in, but I met with his assistant, Mademoiselle S.K., where I explained the situation. I was told that she would have J. Le B. contact me. The next day, I received an email telling me that my situation had been referred to another Notaire, Mademoiselle A.R.

October 11, 2007

I spoke with Mademoiselle R. on October 11, 2007. We spoke for over 30 minutes where I clarified events for her. As well, I committed to send her an online copy of the Règlements de la Copropriété, this timeline and photos of the spaces in question. She committed to get back to me. Later in the day, she phoned to confirm a meeting on Tuesday, October 16, 2007 with she and J. Le B. to try to discuss possible solutions to the issue.

October 16, 2007

I arrived for the meeting at 10 a.m. on this date to find that M. Le B. would not be in attendance. It appears that he has successfully avoided every phone call and every meeting once being notified of the situation. Mademoiselle R. was quite cordial, asked a few questions, and then she said that she and M. Le B. had a solution. Her proposal was that she would give me the name of a “good avocat” (good attorney) with whom I could work to pursue monies from P.P. SARL in order to compensate me for the monies that I owed Madame G. for the stolen space. When I informed Mademoiselle R. that I had NO intention of contacting an avocat and that I had researched French law to discover that the signature of the Notaire on a title was the same as title insurance, she was not pleased. Her immediate reaction was that Le B. & Associés had not made an error. She explained that they had only acted on a file sent to them by L’Etude de Maître H. I responded that this only further reinforced my concern since now there were TWO notaries involved in this situation verifying the title on the property I bought. I also shared with her the following:

The French State confers to the Notaire an authentic power to legalize certain agreements such as real estate sales which cannot be enforced by any other means. This monopoly prevents almost any subsequent litigation concerning these contracts. However, the Notaire does not only draft and authenticate deeds. As today's legal transactions are more and more complex, counseling clients is also a major function of a modern Notaire.

How are the Contracts Secured? The Notaire is deemed a Public Official with powers delegated by the State to authenticate the deeds he drafts and provide complete security to the contracts he supervises. The authenticity of the deeds grants them an undisputable date and content in Court. The law imposes a personal liability on the Notaire for his professional acts which is more extensive than that of any other branch of the legal profession. Not only would the professional mistake be penalized immediately by a judge, but it would also mean that all of the Notaires would be held liable as they have a common insurance, providing an immediate financial guarantee to the client. The American investor is therefore facing a specialized lawyer fully liable for his deeds.

She appeared concerned and said that she could not make ANY commitments until she had a conversation with M. Le B. I only stated to her that I was a “reasonable individual”, and that rather than spending my own money that was genuinely Madame G.’s problem, I had a suggestion: “Once determining a reasonable financial settlement with Madame G., I would be happy to consider paying a portion of the sum to Madame G. as long as the two Notaires paid the last two-thirds owed."

Within one hour of my return to my apartment on this date, I had a message on my machine from M. J. Le B. I returned his call, and to date I have not heard on thing from him.

October 18, 2007

I received a voicemail from Mademoiselle A. R. asking if I would be available for a conference call with she and Maître J. Le B. on Monday morning, October 22 to discuss his “view” of the situation. I responded via email that I would be happy to accommodate this request.

FINAL COMMENTS AND QUESTIONS: I have resolved to not proceed any further with any action on my part. In truth, I view the situation in the following manner: I was the innocent victim who came along in 2001 and bought an apartment where space had been stolen. The person with the problem here is Madame G., who had her "débarras" stolen directly from her by P.P. SARL. In fact, I would think she would want to seek the services of an attorney to prosecute the owner of the company, and to recover her monies. As for culpability, it appears to me that the fault with the title lays at the feet of both Notaire organizations. I am aware that notaries in France have insurance provided by the State to cover such events. It is obvious to me that both Notaires are attempting to escape any blame, and attempting to take advantage of my status as a non-French resident, hoping that I would not have done the level of research on this matter from a legal perspective that I have.

1. How shall we arrive at a figure that will be considered fair to me and to Madame G. for the stolen "débarras"/now mezzanine so that we can draw up documents to reflect the accurate ownership?

2. How could such a thing have happened and not be detected either during the preparation of the "Promesse de Vente" or the "Acte de Vente?"

3. I understand that the sign-off on a purchase transaction in France is equal to having "title insurance" in the United States. I am then assuming that I do have some protection here regarding this matter. I will print below information that my research has provided me on the transactions of the Notaire in France. I certainly will look forward to discussing this during our meeting:

The French State confers to the Notaire an authentic power to legalize certain agreements such as real estate sales which cannot be enforced by any other means. This monopoly prevents almost any subsequent litigation concerning these contracts. However, the Notaire does not only draft and authenticate deeds. As today's legal transactions are more and more complex, counseling clients is also a major function of a modern Notaire.

How are the Contracts Secured? The Notaire is deemed a Public Official with powers delegated by the State to authenticate the deeds he drafts and provide complete security to the contracts he supervises. The authenticity of the deeds grants them an undisputable date and content in Court. The law imposes a personal liability on the Notaire for his professional acts which is more extensive than that of any other branch of the legal profession. Not only would the professional mistake be penalized immediately by a judge, but it would also mean that all of the Notaires would be held liable as they have a common insurance, providing an immediate financial guarantee to the client. The American investor is therefore facing a specialized lawyer fully liable for his deeds.

4. I assume that I will not be assessed fees for the redrawing of the legal documents on this property since the problem began long before in the legal process. Is my assumption correct?

5. What are the next steps for the pursuit of damages against P.P., who instigated the theft of property? Should legal actions be brought by me to recover any monies that I am forced to lay out for the purchase of the mezzanine or must the actions brought be joining actions by me and Madame G. since it was, in truth, her property that was stolen?

6. Could it be that the former owner of the apartment, P.P., could have thought he owned the "débarras," and that it was a part of LOT 18 as well? Could an error have existed that originated with the purchase by Madame G. of the space?

I am looking forward to a most productive meeting, and now that I sincerely appreciate FPI's assistance in resolving this matter.

Al Stewart
Business Mentors, Inc.
http://www.business-mentors.com

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One Reader's Experience Purchasing a Home in France...

Dear Adrian,

Now that the smoke has cleared and all papers signed I would like to one, thank you and your support group, including John Howell of John Howell & Co, Justin Harris of Moneycorp, and the people at Banque Patrimoine & Immobilier in Paris for all the help in our quest to purchase a home in France. And two, tell you about our quest and purchase of our new dwelling in Moissac, France.

Your conference in San Diego last fall was of the greatest assistance to us and gave us the right tools and contacts in our property search.

Justin Harris, of Moneycorp, last winter helped us to convert Dollars into Euros and deposited sums of monies into our French bank account when ever needed to provide enough funds to finalize our transaction.

Laurent Juillet, of John Howell & Co in London, spent many an hour assisting us in deciphering the French law and pointing out pitfalls before they caught us unprepared. His advice and counsel was wonderful. Thank heavens he spoke English, for I spent most of the time talking to him, and as you remember, my French is somewhat lacking. Celine Mineau, at Banque Patrimoine & Immobilier in Paris, was so helpful in helping us obtain a bank loan for the home.

I could go on for hours about their help, but needless to say the whole project from the beginning to end went very smoothly and in no small part because of their support.

I would be remiss if I did not say a few words about your part in this adventure. You were the catalyst that brought us together, you gave us vision and clarity, pointing us in the right direction, and provided the right tools to do the job. All it took for us was a lot of Internet searching and a month on the ground to find the right place. But without your advice in advance, I feel we would not have been able to complete our mission as quickly as we did. And that was to find a home in France this year. Thank you, Adrian, for all your help.

Now for the rest of the story, as someone has said. I hope I do not put you to sleep with a long missive, but I would like to bring you up to date as to what we did in our quest to find our “French Château.”

After spending a few years traveling in France, and in fact living in the southeast in La Côte St. Andre for a year, we had decided we wanted to live part time in the Southwest. We picked the southwest for various reasons. Some were: my English sister and brother-in-law live there; it is a little warmer; and its history and location. Our choice had to be near a major highway system for quick access, an international airport to fly into from San Francisco, not too large a city, a population of about 5,000 to 20,000, and all the resources for living without having to drive to them. Also, it had to be pretty and say to us, “pick me.”

Liz surfed the net for the last few years looking for “interesting” cities and towns and narrowed down our choices to an area between Carcassonne, Albi, and Cahors. We spent about 3 weeks stopping at 5 different gites in the general area and visiting the surrounding towns. We visited Circulades, Bastides, and somewhat newer towns looking for just the right location, and finally found Moissac near the end of our visit.

Moissac is located at the junction of the Tarn and Garonne rivers, west of Montauban and about a 40-minute drive on the A62 north of Toulouse. The Canal du Midi also wanders through. The city is about 12,000 with a beautiful old, 12th-century abbey and town square that is open, clean and vibrant. Given, it was July and hot, but we think the winter won’t close it down very much.

We were able to locate a charming house within the city that has three bedrooms, two baths, a large modern kitchen, garage, and walled in garden that is larger than ours here in the States. The house sits on a corner with “places” on two sides and is within walking distance of markets, restaurants and cafes, shops and a large hospital. All in all, it has everything we were looking for and we were able to lower the price to within our price range. Cool. We plan to fly there and spend 4 months next year opening it up, for it has been empty and closed for about two years. The owner, it seems, had just removed all furniture, cleaned the rooms and shut the doors. It will be fun and interesting furnishing it with a combo of Ikea modern and French antiques, for we will need a new bed, at least.

Because of assistance and information from you and others, the purchase went rather smoothly. We did have a few “I didn’t know that” thrown in for laughs and the small problem of the August holiday in France so we could not find out what the Notaire was doing or if we had gotten the bank loan until early September. Also the time difference, nine hours ahead, in France meant we would either have a very long night or an early morning when we called. The house did close near the end of September and we now own two homes, separated by about 8000 miles. That is somewhat of a shock. Our friends tell me I will recover after a dinner of duck and a good Bordeaux in the new house next year.

Well, there you are, the short and somewhat long of it. It was fun, exciting, frightening, and in the long run, well worth the effort. We hope to meet you in France some time and buy you a glass of wine and say thanks in person.

Sincerely,

Pete and Liz Lismer

Editor's Note:

Pete's and Liz's resources were:

Living and Investing in France Real Estate Conference
http://www.adrianleeds.com/frenchproperty/conference/

French Property Consultation
http://www.adrianleeds.com/frenchproperty/consultation

International Law Partnership, LLP
http://www.JHCo.org/

Moneycorp Currency Specialists
http://adrianleeds.com/frenchproperty/loan/moneycorpconvertor.html

Banque Patrimoine & Immobilier
French Property Loan
http://www.adrianleeds.com/frenchproperty/loan/lenders.html

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Moissac From Wikipedia
http://en.wikipedia.org/wiki/Moissac

Moissac is a town and commune of the Tarn-et-Garonne département, in southwestern France. It is on the ancient pilgrimage route of Santiago de Compostela. It is famous world-wide mostly for the artistic heritage handed down by the ancient Saint Peter's Abbey.

The Saint-Pierre abbey in Moissac has a 12th century tympanum, and a 15th century cloister. There is also a Centre of Romanesque Art with important documents on medieval sculpture, illumination and wall-paintings. The Saint-Pierre abbey church and cloister are listed among the World Heritage Sites of the Routes of Santiago de Compostela in France.

According to legend, the abbey was founded by Clovis (the Frankish king), but from historical information it was founded by Saint Didier, bishop of Cahors in the middle of the 7th century. The establishment of the monastery was difficult because of raids by the Moors and the Norsemen. The 11th and 12th centuries witnessed a first golden age, the result of Moissac being affiliated to the Burgundy abbey of Cluny and its accepting the famous Reformation, under the guidance of Durand de Bredons who was both the Abbot of Moissac and the bishop of Toulouse. This outstanding era witnessed the major abbots Dom Hunaud de Gavarret, and Dom Ansquitil; who had the doorway and tympanum built. In the 13th century, Raymond de Montpezat and then Bertrand de Montaigut, abbots and builders, ruled the abbey. Aymeric de Peyrac, writing his Chronicle in the 15th century in the castle of Saint Nicolas de la Grave reveals us those events.

The 15th century saw a new golden age with abbots Pierre and Antoine de Caraman, whose building programme included in particular the Gothic part of the abbey church. The 1626 secularization of the abbey caused the Benedictine monks to leave the cloister which had been a centre of Benedictine life for nearly 1000 years. They were replaced by Augustinian canons, under commendary abbots: well-known cardinals such as Mazarin and de Brienne. In 1793, the French Revolution put an end to monastic life in Moissac. In the middle of the 19th century, the laying of a railway track threatened the cloister but it was saved and listed as a historic monument. Even though the outlying buildings have suffered a lot and the appearance of the abbey has changed, this inheritance is nowadays the object of intense care as the tympanum, renowned amongst the greatest, and the most beautiful cloister in the world can still be admired.

There are important waterways in Moissac: the Tarn River flows through the centre of town as does the Canal du Midi. The latter is sometimes known as the canal des deux mers (lit. canal of two seas) as it connects the Atlantic Ocean with the Mediterranean Sea.

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The French Market Still Has Good Opportunities for Foreign Investors
From UCB, a BNP Paribas Company

Despite the high demand, the limited supply and rising interest rates, the French property market, compared with other European markets, remains particularly attractive for foreign investors. And although non-residents still dream about the capital city, they are increasingly attracted by some of the large provincial cities. The cheap and easy access afforded by low-cost companies might have something to do with it.

A steady market in Ile-de-France

* Prices in the capital city continue to rise, although the increase is slowing down. The average price per square metre is currently around 6,244€, which represents a 4.7% increase over 2006. 8% of transactions are completed by foreigners who are influencing the market for some districts and top-of-the-range properties. According to a "chambre" des Notaires survey, one in three apartments for sale in the historic Saint-Gervais and Notre Dame districts is purchased by non-residents.

Regions are increasingly attracting foreigners

* Languedoc Roussillon, upturn in the market confirmed. With a magnificent climate and lower-priced properties than in the other southern regions, Languedoc Roussillon is a great success with foreign buyers. Most properties in and around the beach resorts are sold to people from outside the region, of whom 60% are foreigners: Belgians, Germans, Swiss, English and Irish. RyanAir's decision to add Cap d'Agde to their list of destinations is no doubt one of the reasons behind this, at least as far as the English and Irish are concerned. The region also has a bright future ahead of it with the TGV high-speed rail link to Spain.

* Lille, Metz et Dijon have seen a record price increase per square metre. Lille has recorded a 10.4% price rise for the 2nd quarter. It's true that with Eurostar, the international airport and the motorway network, the city is now very centrally located in Europe. The same situation can be seen in Metz. Located at the heart of one of Europe's main motorway junctions, the city benefits from its proximity to the new TGV railway station and two airports from
which passengers can fly to and from Europe's main cities on the same day. With an 11.3% price rise per square metre, Dijon recorded the strongest increase and proof that plans to reopen the Dijon-London line are opening up new perspectives in the area.

* In the PACA region, the market is supported by English investors, young working people as well as those in retirement. The annual price rise is now around 5%, compared with previous rates from 10% to 15%. With an airport serving many European destinations, Nice and Cannes remain the most sought-after locations in Europe. Prices in Nice go up to 3,000€ per square metre, although the city is generally less expensive than Antibes or Cannes. Prices are slowing down in and around Marseilles. Cassis remains the most expensive town in Bouches-du-Rhône. Apartments are sold at 4,000€ per square metre, a price which is 25% to 30% higher than in Marseilles.

* Poitou Charentes is also doing very well. The British are particularly keen on the region. Daily low-cost flights between London and Poitiers and La Rochelle airports, not to mention Limoges and Bordeaux, have certainly helped.

Although the French property market is stabilizing, it still holds great appeal for foreign buyers. And UCB can offer you tailored solutions to finance your plans.

Interest Rate Indexes (on 01/10/2007)
3 month Euribor: 4.73%
12 month Euribor: 4.73%
TEC 10: 4.47%
Source: UCB

Exchange Rates (on 17/10/2007)
€1 = £ 0.6967
£1 = €1.4353
€1 = $1.4199
Source: Boursorama

Rented Dwellings Reference Index (Indice de Référence des Loyers - IRL) (on 17/10/2007)
2007 2nd quarter annual variation: 2.76%
Source: INSEE

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A New Spire on the Seine

The skyline of Paris has been a bit brighter since Saturday 13th October when the American Church in Paris lit its spire on the Seine for the first time ever. As part of its 150th birthday celebrations, the ACP has installed a lighting system which will illuminate the spire as a sort of beacon of hope and, as it happens, at a moment of renewal in relations between France and the US .

The lighting of the spire adds an additional cultural spotlight to the cultural treasures of the church, alongside its magnificent Beckerath organ and its precious Tiffany windows, designated a national monument by the French government. The other beautiful stained glass windows are American-designed and were cut and assembled in Chartres and Paris. The building itself, 76 years old, was constructed on the old stone foundations of a tobacco warehouse on rue Jean Nicot, named for the ambassador who introduced tobacco to France in the 16th-century.

Throughout its history, the church has provided a spiritual home and cultural centre not only for the expatriate American community, but also for residents of Paris who represent a wide range of cultures, races, languages and denominational traditions. On the weekend of October 13-15, the American Church in Paris celebrated the 150th anniversary of its founding.

More information on both the spiritual and cultural activites of the church can be found at the church website at http://www.acparis.org.

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The "Fractional Ownership" Solution...
An Update by Adrian Leeds
http://www.adrianleeds.com/frenchproperty/consultation

Those who have purchased shares in Le Jardin Saint-Paul on Rue Ferdinand Duval, 4th Arrondissement, Le Marais, will be happy to know the renovation is well underway! If you viewed the photos of the apartment prior to any work done on it, you may recall the arch leading from the living room to the bedrooms, stuccoed over and painted a bright mustard yellow.

The construction crew recreated a 17th-century classic keystone arch of beautiful stone using a "trompe l'oeil" technique! Be sure to see the video of and by Liam Gallegos in his excitement over the newly created arch! Just click here: http://www.youtube.com/watch?v=Y_Y-GuHswLc

To visit the site describing the property, visit
http://www.adrianleeds.com/frenchproperty/consultation/sales/fractional/jardinstpaul.html and to take a video tour of this gorgeous property, visit http://www.parishomeshares.net/jspvideos.html
http://www.youtube.com/watch?v=Y_Y-GuHswLc

NEW FRACTIONAL OWNERSHIP FOR SALE NEAR EIFFEL TOWER

Chez La Tour
Boulevard de Latour-Maubourg, 7th Arrondissement, Eiffel Tower
Two-Bedroom, 88.1 m2
99,500€ / 12 Shares Available
Available for Use May 2008

If you would like to receive more information on this apartment, VISIT http://www.adrianleeds.com/frenchproperty/consultation/sales/fractional/chezlatour.html

-------------------------------

FREE FPI CONFERENCE CALL!!
THE FRACTIONAL OWNERSHIP SOLUTION

As an FPI subscriber, we offer you special access to our time and knowledge with our own conference calls. The next scheduled conference call is Sunday, November 11th at 8 p.m. Paris time, 2 p.m. Eastern time. Mark your calendars now, but don't worry, we'll give you plenty of advance notice.

We will be discussing Fractional Ownership live with Steve Navaro, President of Paris Home Shares. All FPI subscribers are invited to participate.

Conference Date: Sunday, November 11th, 2007
Conference Time: 2 p.m. EST, 8 p.m. Paris time

Please RSVP to this special event and we will send you the call details. Sign up now by emailing: [email protected]

===============================

France 'Appeals to Both Young and Old'
http://www.holidaylettings.co.uk/

The continuing appeal of France means that young people are now as likely to buy property in the country as old people.

According to Ben Sanders, a spokesperson for french-property.com, France has in the past been seen as a viable investment location for Brits looking to retire in the sun.

However, in recent times he has noted that an increasing number of younger investors are turning their attentions to the French property market as well.

"Traditionally it has been people of retirement age or approaching retirement age but we've definitely seen a trend of much younger people in their 30s and 40s looking for a holiday home over there," Mr. Sanders confirmed.

"Or investment property as well, there seems to be quite a lot of interest in investment. The buy-to-let market is booming," he added.

The main appeal of France is its culture, Mr. Sanders suggested, as opposed to Spain which is favored merely as a result of its pleasant weather.

Wine is another influential factor, he said.

===============================

French Economic Growth Expected
http://www.homesworldwide.co.uk/

Investors in French property will be glad to hear that the country's economic growth will be better than expected this year thanks to solid third quarter gains, according to Christine Lagarde, Minister for the Economy.

Ms. Lagarde told journalists that she expected to see expansions between 2 - 2.5% in 2007. Industrial production, household spending and the number of new companies being created were all on the increase this quarter.

French statistics institute INSEE initially forecasted a growth of 1.8 - 2.1%, but the government is sticking to its 2 - 2.5% estimate. France's economic growth was one of the slowest in Europe, but the current news will bring a smile to the faces of property investors, who are likely to experience good returns if the trend continues.

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NEW! Living and Investing in France Real Estate Conference!
February 16-17, 2008
Alliance Française, Miami, Florida
Photo by Erica Simone

If you've always dreamed of owning your own "pied-à-terre" in Paris or home in the Provinces of France, perhaps as a future retirement home or for now as investment property rented part of the year...this power-packed two-day conference is a MUST.

Hosted by Adrian Leeds, long time resident of Paris, Editor of the Parler Paris Nouvellettre^® and French Property Insider weekly E-zine and John Howell, lead attorney for the International Law Partnership, London, these two days in Miami will point you in the right direction to make it really happen! Includes three course lunch and cocktail reception.

For more information and to register, visit: http://www.adrianleeds.com/frenchproperty/conference/

Or email Schuyler Hoffman at [email protected]

===============================

Property Consultation, Search and Relocation Solutions
http://www.adrianleeds.com/frenchproperty/consultation

Let French Property Insider expert property consultants find your dream home in France for you. We consult with you to help you make the best decisions, ferret out the finest properties to meet your criteria, schedule the visits and accompany you, negotiate with the agencies and owners, recommend the Notaires and other professionals, schedule the signings and oversee the purchase with you from start to finish! You could never do it so easily on your own. Let us take the time and effort off your hands.

FPI Offers More Relocation Solutions!

Moving to Paris? Our experienced relocation expert will make your move easy and hassle-free. We offer complete property and relocation services normally only provided by employer hired relocation firms...but at a price much more affordable for individuals.

Download Complete Brochure
http://www.adrianleeds.com/frenchproperty/consultation/fpibrochure.pdf

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TODAY'S CURRENCY UPDATE

Visit the FPI Web site and click on the link on the left panel or click here for Currency Convertor by Moneycorp: http://www.adrianleeds.com/frenchproperty/insider/moneycorpconvertor.html
for up to the minute conversions of all major currencies.

Compare currency values easily and quickly by visiting:
http://adrianleeds.com/frenchproperty/loan/moneycorpconvertor.html

Charts
http://www.Moneycorp.co.uk/members/charts.asp
The charts below are updated every ten seconds.

The prices shown are "inter bank" exchange rates and are not the rates that you will be offered by Moneycorp. Your rate will be determined by the amount of currency that you are buying. Please speak with an Moneycorp dealer or your consultant for a live quotation.

===============================

Parler Paris Après Midi
http://www.adrianleeds.com/parlerparis/apresmidi.html

Come for a drink and to meet and chat with other readers in Paris...

The next gathering is November 13, 2007, and every second Tuesday of the month.

 

 

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HOT PROPERTY PICKS: Studios with a View

Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.

As we are not a real estate agency. These properties do not constitute a sales listing. For those readers seriously interested in finding property in Paris or France, you can retain our services to do the whole thing for you. For more information, visit http://www.adrianleeds.com/frenchproperty/consultation

*** Paris, 7th Arrondissement, Studio, approx. 22m²

Near Esplanade des Invalides, with an exceptional view of the Eiffel Tower. Large studio on the top floor of a beautiful pierre de taille building, with elevator. In excellent condition.

Asking Price: 249,000€ + 2.5% Finder's Fee

 

*** Paris, 5th Arrondissement, Studio, approx. 27m²

A large studio with a magnificent view of Notre Dame Cathedral and the Panthéon. Excellent location, 50 meters from Boulevard Saint Germain. The apartment has been entirely renovated with a new bathroom and American style kitchen with an eating bar that seats four people. On the 6th floor with an elevator to the 5th. Double exposure and very bright.

Asking Price: 295,000€ + 2.5% Finder's Fee

*** Paris 4th Arrondissement, Studio, approx. 29m²

Charming studio on the 4th floor. Very bright with a gorgeous view, ideally situated on the l'Ile Saint Louis near Notre Dame Cathedral. Excellent condition.

Asking Price: 340,000€ + 2.5% Finder's Fee

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LEASEBACK NEWS FROM IMOINVEST
http://www.adrianleeds.com/frenchproperty/insider/sales/leasebacks/lb_list.php

VILLAGE DE LA MER
France, Atlantic Coast, Talmont Saint Hilaire

One Bedroom 34m² to 41m² €122,000 to €142,000

Two Bedrooms 43m² to 68m² €150,000 to €253,000

Three Bedrooms 55m² to 80m² €187,000 to €293,000

Four Bedrooms or More 99m² to 101m² €349,000 to €357,000

Guaranteed Buy to Let - Leaseback

GUARANTEED RENTAL INCOME UP TO: 4.90%

PRIVATE VILLAS WITH SWIMMING POOLS

Exceptional new build apartments as well as private villas on the French Atlantic Ocean side close to Nantes and the La Rochelle Airport. Excellent location in Vendee, a French department in west central France, on the Atlantic Ocean. The name Vendee is taken from the Vendee River which runs through the south-eastern part of the department. The area is known for its very high quality of life with beautiful landscapes and rich heritage.

The villas offer individual swimming pools and residence facilities include tennis courts, green areas, kid’s playgrounds and indoor and outdoor swimming pools. Guaranteed rental income is up to 4.9% paid net and attractive owner vacation options are available and resort exchange possible. Owners will have many investment options including Quasi Hotel allowing up to 6 months holiday use per year, the Cash Back scheme where investors will receive 9 years of guaranteed rental income in advance or traditional Leaseback where investors have the choice between maximum investment or a reduced rental income with vacation weeks added in. The developer will advance a portion of the VAT tax on the client’s behalf for a phenomenal savings immediately!

Expected completion is set for the 2nd quarter of 2009. Apartments within this resort will be invested in and sold quickly, so take advantage of this exclusive preview and cash in now on prime units while they are still available!

=============================

SEEKING A MORTGAGE IN FRANCE?

When you make a purchase as important as a piece of real estate in a foreign country, you want to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.

Let us help you secure a mortgage in France at a competitive interest rate. Visit http://www.adrianleeds.com/frenchproperty/loan for more information or contact [email protected]

=============================

Managing Your French Property Insider Subscription is Easy!

We receive many emails from French Property Insider Subscribers who want to change their email address, or update personal information. But did you know that you can make these changes yourself?

It's easy...

1. Go to http://adrianleeds.com/frenchproperty/insider

2. Click on "Manage Subscription." You'll find it under the "Subscribers Only" section in the sidebar.

3. Enter your username and password.

4. On the Welcome Page, go to "Manage Your Account" and click on "Change Password/Edit Profile"

5. Once you've made the changes, scroll down to the bottom of the page and click on "Save Profile."

Simple!

Of course, we're always happy to help, so if you do need assistance, send an email to [email protected]

================================

We wanted better guides.
So we wrote them.

Insider Paris Guides are written for people who love the City of Light. You'll get a Paris insider perspective on Restaurants... Making a Life... Black Culture... Expat Writers...

French Property Insider subscribers receive a discount of 10% off any guide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Here's how it works:

1. Click on special Web link we give you just for FPI subscribers.

2. Then order one or more guide(s) and use the promotion
code "ED762." This promotion code gives you 10% off your total
order.

3. If you order two or more guides, then an additional 15% will be
taken off automatically. There is no promotion code needed.

Here is the special "coupon" Web link just for you:
http://www.insiderparisguides.com/offer/fpi_offer.htm

================================

THINGS YOU NEED TO KNOW

To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber's Only," then type in your personal username and password.

Past issues of FPI are available on the website. You will find the
"Past Issues" link on the left under "Subscribers Only" or by going to
http://www.adrianleeds.com/frenchproperty/insider/members/content/pastissues/index.html

To receive your free French Leaseback Report or the Paris Property
Report, click on
http://www.adrianleeds.com/frenchproperty/insider/members/content/reports.html

================================

HELPFUL CONVERSIONS FOR REAL ESTATE

1 square meter = 10.7639104 square feet

1 hectare = 2.4710538 acres

For more conversions, refer to: http://www.onlineconversion.com/

==== CLASSIFIED ADVERTISING ===

PARLER PARIS APARTMENTS
http://www.adrianleeds.com/parlerparis/apartments
Email: [email protected]/parlerparis

Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments and me, Adrian Leeds.

Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible. We at Parler Paris know each and every apartment owner or manager personally, and stand behind the quality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home – and a much better alternative to an impersonal hotel!

Parler Paris Apartments is administered and serviced by the same great team as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do their best for your 100% guaranteed satisfaction.

Le Penthouse Voltaire

American comfort with French flair! Overlooking Boulevards Richard Lenoir and Voltaire, in the 11th Arrondissement. This three-bedroom, two-bath luxury penthouse with wrap-around balconies and spectacular views, sleeps 6.

Reserve now! Visit http://www.adrianleeds.com/parlerparis/apartments/rentals/voltaire.html
or email: [email protected]

================================

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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.adrianleeds.com/parlerparis

================================

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