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

1. French Leaseback

2. 10 Mistakes to avoid when buying a French
leaseback property on the first market

4. 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.

5. Do not buy without
visiting the real estate.
French leaseback property
or not.

6. Damages are due to the operating company when not renewing the
commercial lease, after 9 years (eviction compensation called « Indemnité
d’éviction », it can be 3 years of EBE).

7. The tenant is allowed to ask
a judge to review the rent
after 9 years.

8. 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.

9. 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.

10. 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.

11. 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 wilful misrepresentation. 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)

12. 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.

14. 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)

15. Leaseback Properties
Contract written with wilful
misrepresentation (indemnite
d’eviction)
Leaseback properties in France.
Private individuals agreed to a
leaseback scheme in France
(buying and renting to an operating
company)

17. For More Information about
FRENCH LEASEBACK Visite The Link
https://frenchrealestatelaw-
traesch.fr/leaseback-indemnite-eviction/