Download
1 / 19
190 likes | 195 Vues
Buying a French leaseback property does not means buying a financial product « guaranteed » by the French government. It is a real estate deal like when you bought your house/flat. Location. Location. Location.
E N D
10 Mistakes to avoid when buying a French leaseback property on the first market
Buying a French leaseback property does not means buying a financial product « guaranteed » by the French government. It is a real estate deal like when you bought your house/flat. Location. Location. Location.
Buy in a town or area in a good real estate market (big cities, on the sea, ski station in the Alpes). Why ? Because, you have to be able to resale it or rent it yourself if the operating company files for bankruptcy or do not renew the contract after 9 years.
Do not buy without visiting the real estate. French leaseback property or not.
Damages are due to the operating company when not renewing the commercial lease, after 9 years (eviction compensation called « Indemnitéd’éviction », it can be 3 years of EBE).
The tenant is allowed to ask a judge to review the rent after 9 years.
Usually, the buying price and the rent are too high in order to make you sign the leaseback. After 9 years, the operator manages through negotiation or litigation to decrease the rent.
Under the French law, a commercial lease, the one you sign in a leaseback scheme, is very protective of the tenant (usually the weak party in the negotiation.
The rent of a French leaseback property can be increased every year following an official index number (and not more). Sometimes, the rent can decrease, depending on the chosen index in the contract.
Sometimes the tenant pretend in the lease contract to waive his right to damages in case of non-renewal of the lease. This clause is not enforceable ! It is a wilfulmisrepresentation. However, there a case law under which the commercial lease can be cancelled in this case. It means the tenant has lost his right to damages in case of a non-renewal of the lease (indemnite d eviction)
When buying a French leaseback property, you have to remember that the notaire is paid only if the deal is signed. Furthermore, he cannot protect you efficiently enough, because he has not to visit the property or to check the financial health of the operating company. He is just liable of the enforceability of the contract and the legal advertisement of the sale.
There are solutions. Usually not quick one, but they does exist. Our firm is specialized in assisting and representing overseas and French owner of a leaseback.
French leaseback property can arise several main issues Unpaid rents by the operator • Rent review by the tenant (negotiation or litigation) in order to decrease the rent • Non-renewal of the lease • Termination of the lease • Judicial expertise regarding the indemnite d eviction (damages, ie how much would have the lessor/landlord to pay to the tenant in case of a non-renewal of the lease)
Leaseback properties in France. Private individuals agreed to a leaseback scheme in France (buying and renting to an operating company) Leaseback Properties Contract written with wilful misrepresentation (indemnited’eviction)
For More Information about FRENCH LEASEBACK Visite The Link https://frenchrealestatelaw-traesch.fr/leaseback-indemnite-eviction/
