The property ownership tax (taxe foncière) is a local tax levied once a year by municipalities. To calculate the amount of the tax, tax authorities use the cadastral rental value of the property. This base is then multiplied by the tax rate set by each municipality. Any owner of a real estate property is liable for the property ownership tax. However, while the owner is effectively legally liable for this tax, it is permissible, under a commercial lease agreement, for the latter to pass all or part of the burden of this tax to the lessee of the property. But what exactly does the law say?
The payment of the rental debt can be deferred up to three years without it being possible to terminate the lease agreement during that period
Law n°2014-366 of March 24, 2014 on access to housing and town planning reform, commonly known as the “ALUR Law”, has introduced significant changes in the relationships between landlords and tenants. Since March 27, 2014, the modifications brought about by this Law apply to residential lease agreements entered into after said date. Lease agreements existing […]
Latent defects: Purchaser has no right to claim for the cancellation of the sale if he has been sluggish in initiating legal proceedings
The warranty against latent defects is a legal obligation imposed on the seller of a real estate property in order to protect the purchaser. When a latent defect is identified on a sold property and insofar as three cumulative requirements are met, the purchaser had so far the option to request either the cancellation of […]
Do real estate agencies now have the obligation to exercise vigilance and diligence when preparing sale/lease contracts?
Real estate agencies are appointed by the owners of a real estate property who wish to sell or to lease their property. In this respect, under applicable French legislation, the real estate agency receives a mandate to enter into a sale/lease contract with a third-party. Pursuant to an established case law, the real estate agency, […]
The tenant of a property may not be required to pay a new security deposit when the property is sold
The transfer of the lease agreement pertaining to a property sold to a purchaser occurs regardless of whether the lease agreement is a notarial deed or a private deed. Yet, the lease agreement must bear a so-called date certaine (i.e. a fixed undisputable effective date). In case of a private deed, this means that the […]
Co-ownership charges are not due and payable if the construction of the acquired unit(s) is not completed
The rules governing co-ownership mandatorily apply to any erected building, the ownership of which is divided between several people in the form of units that comprise two components: the private areas and a share in common areas (cf. Article 1 of Law n°65-557 of July 10, 1965 establishing the co-ownership status of erected buildings). As […]