LEASEBACK IN FRANCE : COMMON EXPENSES AFTER TERMINATION OF THE LEASE (1)

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FRENCH LEASEBACK TERMINATION OF THE LEASE
WITHOUT DAMAGES (INDEMNITÉ DÉVICTION)
Welcome To Traesch Avocat
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• BUYING / SELLING or RENTING a real estate in
  France can be tricky
• 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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PITFALLS TO AVOID IN TAX-EXEMPT REAL ESTATE IN
FRANCE Annual yield and total rent for the final
client (client of the operating company) Tip 1
Be wary of promised rates of return Be wary of
promised rates of return that exceed the average
yield (3.5 and 4.5 depending on the city) of
real estate properties in France. Tip 2 Check
that the rents established by the operator match
the prices of the local rental market Tip 3 Have
a lawyer review the commercial lease Understand
the contracts you sign. A few hundred euros for
legal advice can prevent thousands of euros of
potential losses in the future. (please see our
clients review) Tip 4 Never buy real estate
sight unseen! Whether it is tax-exempt or
not! This is neither a financial transaction nor
a guaranteed tax avoidance plan , but a
PROPERTY PURCHASE, which is subject to the same
rules as any other real estate purchases (e.g.
main residence, which you would never buy sight
unseen). Tip 5 Never forget the real estate
golden rule  Location. Location. Location. No,
the operator who guarantees an annual rental
rate does not assume all the risks. If his
returns are unsatisfactory, he will not hesitate
to stop paying the rent to negotiate a
reduction! Tip 6 When to sell ? Before any major
repairs are required, for example 9 to 10 years
maximum. Tip 7 Have an exit strategy Inquire
about the resale market for this type of
property, even if it is difficult to find this
information. Have an exit strategy already in
place from the moment you invest Try to think
ahead to the resale of the property in
France. The sale of leasebacks is very difficult
and time-consuming and we can advice you on
specialists in this area.
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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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EVICTION OF A TENANT UNDER THE FRENCH LAW
1) If the tenant is not paying rent First thing
to do Notification called a Commandement de
payer (CDP) If needed, the next step is an
official order delivered by a bailiff. The
Commandement de payer is a notice that sets a
time limit for your tenant to pay you (two months
for a flat lease and one month for a commercial
lease). This official order has to be delivered
by a bailiff (our firm can hire a bailiff and
follow his work). The Commandement de payer is
mandatory before filing a case in court. It
states that if the tenant does not pay the
arrears of rent within one month (or two months)
the landlord can ask for the cancellation of the
lease in court. The CDP give the landlord
leverage and the tenant enough time to repay his
debt. If the tenant doesnt comply with the
demands stated in the CDP, your lawyer will bring
a lawsuit against the tenant (payment and/or
eviction). Watch out! If you merely change the
lock to avoid legal proceedings, the tenant may
sue you. You risk being fined by the court and
ordered to allow the tenant to stay (even if the
rent is not paid). 2 months (housing lease) or 1
month later (commercial lease) We can initiate
proceedings before the Judge des référés (quick
and simple court proceedings).
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• 3) Filing a case in Court
• In court, you can ask for past rent, as well as
  the termination of the lease.
• Quite often, the tenant pays past rent in court
  during the (oral) pleadings.
• A repayment schedule (36 months max.) can be
  decided by the Judge
• The tenant is entitled to ask for a 36 months
  term of payment (24 months max. if commercial
  lease).
• If the tenant appears the day of the oral
  pleadings in court, the judge often sets
  a repayment schedule. If the tenant doesnt pay
  on a timely basis, meaning every month, the lease
  is terminated without having to refile a claim in
  court. The landlord is entitled to evict the
  tenant, with the help of the police and a
  bailiff.
• Regarding the legal fees, the judge can require
  the tenant to reimburse all the legal fees.
• The judgment for eviction is called Ordonnance
  dexpulsion.
• 4) Eviction process (Bailiff and the Police)
• The tenant has 2 months to move out voluntarily
  (following the notice called Commandement de
  quitter les lieux).
• The bailiff and the police will forcibly remove
  the tenant from your property.
• According to the French law, no eviction can be
  enforced between November 1st and March 15th (not
  applicable to the commercial lease)

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TERMINATION OF A FURNISHED LEASE UNDER THE FRENCH
LAW FURNISHED AND MAIN RESIDENCE OF THE TENANT IF
the apartment or house is rented furnished AND
Is the tenants main residence, The lease is
governed by article L. 632-1 of the Code de la
construction et de lhabitation.
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For More Update Please visite the below website
https//frenchrealestatelaw-traesch.fr/leaseback-i
ndemnite-eviction/
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