French Real Estate and French Leaseback

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

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

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French leaseback problems...
Since the 80s and the 90s, several thousand of
owners bought leaseback property in France. The
operating company states the return profit would
be 4 to 5 per year. Sometimes the builder
sells himself the real estate.
During the 2000s, the operators marketed the
French Leaseback overseas and especially in the
UK and Italy. It was marketed as a risk-free and
high return investment.
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The leaseback schemes were aimed to put enough
renting properties on the touristic areas of
France. The government and the big leaseback
companies present it as a win-win solutions for
operator, investor and the economy. The leaseback
companies lobbied the MPs int the French
Parliament.
A lot of buyers thought they will be able to have
a holiday home in France after 9 years (or at
least 20 years).
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FRENCH LEASEBACK TERMINATION OF THE LEASE
WITHOUT DAMAGES (INDEMNITÉ DÉVICTION)
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LEGAL ISSUES IN FRANCE
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SOLUTIONS
Providing Practical Real Estate Advice and Timely
Legal Counsel for English-Speaking Clients Around
the World.
Our Network connected to notaries, bailiffs,
real estate agents, translators and the leading
website for the English Speaking Community in
France
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French Real Estate Contracts Preliminary
agreements Buying Real Estate in France
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Can I terminate the lease? Rent due date Unpaid
Rent Termination of the commercial lease
Procedure in case of rent non-payment lawyer in
France
French Commercial Lease Fixtures inventory and
charges inventory -New Lease Renewal of a
Commercial Lease in France Content of the
Charges Inventory-Inventory of Charges and Taxe
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OUR TEAM
LOW COST and CLIENT ORIENTED legal services in
France for English-speaking clients.
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WHO ARE WE ?
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• English-speaking lawyers (we used to live in
  Sydney and we love to travel)
• Doing Business mainly in Paris and on the French
  Riviera and are able to represent you all over
  the country
• Partners, Members of the Paris Bar since 2003

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

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Me ADRIENNE PROT

• Yoga, mediation, simple things, happiness.
• adrienne.prot _at_ lesavocats.info

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

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

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

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