This document discusses issues that can arise when buying, selling, or renting real estate in France. It notes that real estate transactions in France can be complicated due to various factors like lease agreements, rental reviews, preliminary contracts, deposits, and more. It specifically focuses on problems that can occur with French leaseback investments, where foreign investors purchase property that is then leased and operated by a property management company. Some common issues discussed include unpaid rents, lease terminations, repair obligations, and high rental costs charged by management companies. The document provides historical context on the rise of leaseback investments in France since the 1980s and how they were often marketed with promises of risk-free, high returns but did not always deliver as expected.

1. FRENCH ESTATE
FRENCH

2. ESTATE
AND
FRENCH
LEASEBACK
We Make
French Law
Understandable.

5. 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 :

7. •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 ?

9. LEASE BACK
INVESTMENTS IN
FRANCE ARE
COMPLICATED
There are specific
considerations for
French lease back
investments :

11. •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

13. French
leaseback
problems

15. Since the 80’s and the
90’s, 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.

16. 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.
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 MP’s 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).

18. Tax cuts, vat refund and
rental income

20. The purchaser benefits of a VAT refund, because his
deal is funding a new build in France. The operating companies and/or the
construction company doesn’t has to finance with costly bank loans.

22. The french tax agency does not collect
VAT on these sales. This tax cut comes
from the french law voted by the
Parliament. The French government
wants to boost the real estate industry.
Construction and tourism are creating a
lot of jobs in France. The idea is to put
on the market enough holiday homes
and flats to rent for few days or a week.

24. THANKS ALL
Website
Link
https://frenchrealestatelaw-traesch.fr

25. THE END