Booking rental property online.....a cautionary tale

A recent entry on one of the popular forums dealing with life in France tells a worrying story of a British couple who booked a French short-stay property online only to turn up and find the property already occupied by 'friends of the owner' - who is now unwilling to compensate them or return their 3000 euros paid. The booking was made via a well known holiday booking agency - also operating online - which has apparently so far refused to intervene in the case, on the grounds that the final booking details were made directly between the parties and they are not responsible.

In commenting on the incident, I reminded forum members of a case which occurred in Argels-sur-mer last year, when a non-existent property advertised online was booked by over 50 potential renters who had all paid in advance, and who all turned up on the same day to start their holiday, only to find that the property did not exist and that the street number advertised was entirely fictitious.

Not suprisingly the police and local tourist offices take this sort of incident very seriously, as it reflects badly on the reputation of the resort - and the holiday rental business in general.

The only safeguard I can suggest if you are booking a holiday rental in France is to use a local, reliable estate agency which has its office in the resort or nearby, and has the necessary credentials, such as membership of FNAIM, the estate agents' professional body. Being on-site they receive renters personally, accompany them to the property, check that everything is in order and remain on hand during your stay, just in case of any problems. They also have links to reliable tradesmen in case of emergencies such as a burst pipe or electrical failure.

Local tourist offices are very keen to protect the repuation of the area and may have lists of 'approved' rental properties that have been visited and approved, and if you experience problems during your stay, you should inform the tourist office.

Like all online purchases, holiday bookings via an online rental agency are subject to risks and the potential for fraud and property owners and potential renters should made all the checks they can before entrusting them with their money - and their annual holiday.

Posted by peterdanton@orange.fr

French furnished lettings - security for both owner and tenant

French furnished lettings provide a measure of security both for the owner of the property and the tenant/occupier, following a tightening of the rules in the loi Alur of March 2014, promoted by the then housing minister Cecile Duflot.

Many are based on the regulations concerning unfurnished properties but offer a briefer period of tenure - 12 months renewable, reduced to 9 months in the case of a term-time student lettings - with the option to renew the tenancy and the right of the tenant to leave the property at any time at 4 weels notice.

On signing the tenancy agreement, the owner can ask for a security deposit of two months' rent (note that the maximum for unfurnished tenancies is just one month) and other provisions using a standard contract which will include an inventory of the contents. In order for a property to be classified as 'furnished' certain basic items must be provided by the owner, including means of eating, sleeping, heating etc and listed on a standard form which will become part of the lease and agreed between the parties.

If the owner wishes to give notice to the tenant, he can justify this only on restricted grounds,such as non-payment of rent or serious misuse, or his intention to occupy the property for his own use or in order to sell it.

How much to charge? It is possible for anyone with disposable capital to buy a property which has a tenant already in place (either furnished or unfurnished) so the rent will be known. The short-term furnished market is fairly competitive, offering a wide range of choice for a prospective tenant who will normally be well informed about going rates in the locality - from agency websites and informally from friends and colleagues. In some areas, including Paris, rents can be controlled by the local authority under new regulations (2016, 2017) designed to prevent price inflation where there is a known shortgage of available properties. Universities and other institutions may also have their own rules should a property owner wish to have his property added to their housing list.

Short term renters, according to the experts*, often have a different profile from long-termers and owner/occupiers, They may be younger, prepared to live in a small space (say, 20 square metres) on higher floors with no lift, and in cental/mixed areas that might not attract long stayers but which offer quick access to public transport, local shopping and other basic amenities, And if the property is well furnished and decorated and offers something a bit special renters may be prepared to pay an above-average rent.

Furnished lets by their nature mean a higher turnover of occupants than with unfurnished properties, and will need to be constantly refreshed and furniture  replaced. It may be possible to let them on a very short basis as holiday lets (such as through AirBnb) in popular tourist areas. In the case of 9-month student let, a two to three month summer rental might be possible - if the property is large enought for at least two people. If not, you could try attracting a seasonal worker. All these options require hands-on management in order to succeed.

* "Comment je suis devenue rentière" by Elise Franck describes in detail how she became the owner of several short-term rental properties, with numerous tips, illustrations and cost breakdowns. Essential reading, along with her website which cotains a lot of useful advice including before and after illustrations and examples of successful renovations.

Posted by peterdanton@orange.fr

France - land of the bureaucrats? Not true!

There are many myths about France and among them that the country is over-run by fonctionnaires (public officials employed by the State). However a more serious analysis of the figures shows that France falls somewhere in the middle range compared with the rest of Europe - and has roughly the same number state employees as Great Britain for much the same size population.

A simple analysis shows that some 2.4 million are employed by central government - bearing in mind they have to cope with 360 different taxes, 410,000 norms and regulations, or 103 diffrent types of social aid*. Nearly two million are employed by local authorities at regional and local level (there are nearly 37,000 communes); and just over 1 million work in hospitals and the public health sector.

What do they get in return? I wrote recently about the daily sweeping and washing down of streets in the town centre where I live and I can testify to the efficiency of health services - same-day appointments with ones GP or within days with specialist services such as a blood test, X-ray or appointment with a specialist at the local hospital.......with strict adherence to appointment times.

The system however does throw up some anomalies however, such as delays in civil and some criminal courts. Even in the case of former President Sarkozy: only now is he being prosecuted (he is appealing) for alleged offenses regarding the funding of his election campaign over a decade ago. Even more curious that his former Prime Minister François Fillon is calling for a reduction of 500,000 fonctionnaires as part of his current election campaign (somewhat tarnished by allegations about sums paid to his wife as his 'parliamentaty assistant'.........).

Although they enjoy a certain job security and comparatively generous pension arrangements, compared with Britain for example, research** shows that at the lower and middle grades, the salaries of  fonctionnaires are more or less on a par with those in the private sector; while at the senior level they tend to lag behind.

Finally Britain leads in Europe with the privatisation of many public services, which the same research admits can aid the introduction of frehs talent and new ideas but requires close supervision by (established) fonctionnaires. That said, the French had recourse to 'outside' private sources for 30% of its functions in 2015 (compared to Britain's +50 per cent).

* 'On va dans le mur'  by Agnès Verdier-Molinié, Albin Michel, 2015
** 'Alternatives Economiques'  February 2017, pp 64-72

Posted by peterdanton@orange.fr

Aiding refugees and migrants - at your peril!

France seems to have an ambivalent attitude towards migrants and refugees who arrive in France, often after a hazardous journey from their home country, and take advantage of the free movement within the European Union thanks to the Schengen agreement on open  borders. Many as we all know know face a block when they reach the French channel ports and try to travel to Britain,

The result has been the accumulation of up to 10,000 refugees - including many young children and teenagers - in huge makeshift camps, which were finally cleared towards the end of last year and the occupants dispersed to 'reception centres' all over France. Not all them agreed with this policy and set up their own camps in central Paris and elsewhere, only to be dispersed again by the authorities. Reports indicate that many have also driffted back to Calais and there is increasing concern for large numbers of unaccopanied minors and young adults, regarded as specially at risk. There is a sad irony in all of this, as many wish to join their families already settled in Britain but face growing intransigence by officials and prejudice from many individuals, as the pro-Brexit vote shows.

Sterling work has been done by the acknowledged helpinng organisations such as the international Red Cross, buit private individuals have been prosecuted for 'aiding and abetting a person illegally living in France' despite another French law which also prosecutes for 'non-assistance to persons in danger' - such as ignoring a person injured in the street or driving away after a traffic accident.

Some of the individuals accused of  aiding and abetting refugees found themselves prosecuted for simple gestures such as charging mobile phones or providing temporary accomodation or food. Fortunately, such help can be provided by joining one of the recognised charity organisations but many individuals have continued to 'do their own thing' and face the verdict of the French courts and organisatons (established or hastily formed) have found themselves in difficulty. A group of jurists and some 250 voluntary organisations have banded together with two old established French campaigning organisations Gisti and Cimade and to press for changes in the law.

Web addresses: gisti.org; lacimade.org

Posted by peterdanton@orange.fr

Working in retirement - numbers up in Britain and France

The number of people electing to continue working after they have reached the 'official' rtirement age is on the increase in both France and Britain.

In France in 2016, some 450,000 retired people were recorded as working - twice the numbers ten years ago, but bearing in mind that the retirement age is lower than most other countries, at 60 or 62.

Latest reports in Britain also show a doubling of the figures for over 70s and still working - 485,000 today (compared with 271,000 five years ago) and a remarkable 42,000 still working after reaching the age of 80 (compared with 21,000 five years ago).

Looking ahead five years, France's active population has been predicted as reaching 1.2 million more people today, together with an increasingly elderly population living longer. There is also a discernible population shift to the south. Unskilled work will generally be harder to find, with increasing 'professionalism' required for most jobs. More jobs will be created in the 'care' sector looking after the elderly and more public money spent on education and training.

Compared with Britain, when continuing to work in retirement is a relatively simple process - you don't have to notify anyone and simply add your earnings to your pension and other sources of income - the French have managed to create another bureaucratic nightmare, involving declarations, investigations and restrictions too complicated to explain in this post! I may return to the subject later after more research.

Suffice it to say that France operates 37 different retirement 'régimes', largely depending on your jobs, and there are increasing reports from some areas of France where one year or more after giving up work and entering retirement, some people are still waiting for their first pension payment and/or at least what they are entitled to. If you have changes jobs during your working life, the first difficulty is assembling and verifying that contributions have been paid, iften going back decades. It is a nightmare for the bureaucrats let alone the pensioners concerned.

The organisation CIPAV has been singled out by the government - and is the appropriate régime for many self-employed - for providing no or incorrect information to its members and ordered to apologise and pay compensation.  

Posted by peterdanton@orange.fr 

The 'sharing economy' can mean savings as well as making you feel good

According to research in France by finance group Confidis, average saving of 495 euros per year can be made - over 600 euros if you are in the age 20 group to 34 and use more services.

Over 90% of the population have used at least one service over a period of 12 months - such as travelling in a shared vehicle, selling something on-line or booking an apartment through AirBnB.

Some 87% of of those interviewed said their main motivation was saving money, 76% wanted to earn money and 41% admitted 'they felt good'.

There are now nearly 300 platforms offering shared services on the internet and a report by PriceWaterhouse predicts that the market will triple by 2018.

France is second only to America in the numbers already accessing the 'sharing economy' - l'économie collaborative. 

Posted by peterdanton@orange.fr

Become an 'associate member of the European Union'....

An interesting proposal has been tabled for discussion by a Luxembourg MEP Charles Goerens that would offer a form of individual 'associate membership' of the European Union that would enable British citizens for example to retain the rights they enjoyed in Europe before (and if) Brexit goes ahead.

Such rights include free travel within the European Union (without a visa etc), the right to work and settle, and have access to healthcare. This idea echoes recent statements by European legal experts that the British, for example, who moved and settled in France while Britain was still an EU member, have certain 'acquired rights' which cannot be arbitrarily taken away following the Brexit referendum.

There are also many British - don't forget nearly 50% voted to stay - who are bitterly disappointed about the Brexit proposal and wish to retain their links with Europe, whether they actually continue to live in Britain or have settled in another EU country.

It will be interesting to see if this proposal is adopted and how simple or otherwise the process of application. Individual countries have their own rules, in France the process can take up to two years, and the information demanded includes details of your precise status, income etc which some people - such as British State pensioners - might find difficult to to satisfy.

That said, a French 'carte de séjour' has not been required for at least 10 years, so those of us living here may have another 'acquired right' noted above. The number of UK nationals living permanently in other EU states is estimated at over 1 million  - and what about all those other Europeans who have settled in Britain?

Once again a question of 'wait and see' until the British government comes up with firm proposals and their potential consequences.

Posted by peterdanton@orange.fr

France - Holiday rental fraud

Two serious cases of fraud involving holiday rentals have been reported in the local press, near the popular resort of Argelès-sur-mer on the Mediterranean coast, south of Perpignan.

The first involved a woman 'owner' who advertised a studio to let giving a false address - in a street where the highet number was 360 she gave an address at number 390. Advertising was placed on popular sites like 'leboncoin' with illustrations etc showing the property. A substantial deposit was requested 'in order to secure the property' but when holidaymakers arrived they found that no such apartmetn existed. Calls to the owner's mobile phone reached a recorded message until finally declared 'full' by the system. Visitors reporting to the local Tourist Office found they were among fifty or so others filing a complaint and with the police.

The second case involves deposits - estimated at 40 000 euros - collected on another non-existent property, again involving a private 'owner' using the popular media and the internet to advertise.

Property rental fraud of this kind is not new and prospective holiday renters should take all necessary precautions before parting with their money. Using a reliable local estate agency - member of FNAIM or SNPI - may cost a little more but offers a guarantee of security and that the renal property has been visted and checked that it reaches a required standard.

Vices cachés - hidden defects - when selling a French property

A French court has recently ruled that a vendor of a French property who did not disclose the presence of noisy neighbours to a buyers was guilty of concealing 'a hidden defect' and has been ordered to pay 9000 euros in compensation.

The court cames to its decision after finding that there was sufficient evidence in the form of written complaints by other residents and it was clear that the vendor was fully aware of this nuisance.

A 'vice caché' is a defect - most commonly physical - in a property, such as a cracked wall, hidden damp, evidence of subsidence - that is known to the vendor at the time of selling but deliberately not disclosed to a buyer, who can claim damages as a result.

French courts take the view that property buyers are expected to 'act prudently' and take the usual precautions, such as employing a surveyor,  And that vendors cannot be held responsible for defects of which they were genuinely unaware and accordingly could not disclose to a vendor. 

Buying a French property held by an SCI

The SCI is a French 'société civile' which is essentially not a trading company but one set up by a group of family members or friends to jointly invest in a property. Each member buys a number of shares in the SCI, with some shares confering different rights from others. Shareholders may dispose of their shares individually if they wish to retire from the SCI but the constitution of the SCI may be restrictive - for example, an obligation to offer the shares first to existing members of the SCI.

If as a property potential buyer you find a property for sale that is owned by an SCI it is essential to consult a Notaire as soon as possible (before making any binding commitment to purchase). The Notaire will examine the SCI to ascertain what its constituion says about selling the property to a third party and it is most likely that the consent of all the shareholders will be required. A Notaire acting for the SCI/vendor will deal with the distribution of the proceeds from a sale of the property between the shareholders, according to each one's share holding.

An SCI can be purchased or taken over, or created, should you wish to use an SCI as a method of (jointly) owning a French property, and as in all cases professional legal advice should be sought before you agree to buy. 

When does my property become my principal home?

If you decide to move to France and live permanently you should ensure that your French property is classified as your 'main and principal home' - if only to avoid paying capital gains tax if you decide to sell.

By declaring your presence and completing an annual French tax return, your new home will normally be accepted as your principal place of residence within 12 months of occupation. Any additional checks - for example, if you decided to sell within a few months of your arrival - might include checking electricity and water consumption, possession of a French driving licence and a 'Carte Vitale' which provides access to the French healthcare system.

French tax returns cover the period January to December and are issued in March/April for completion by the end of May/June. In your first year of arrival you should obtain the necessary forms from your local tax office (or perhaps the Mairie) and in future years they will be automatically sent to your French address. They can also be completed and submitted on-line. 

Simplifying the rules when buying a French apartment

Following the widespread criticism of the loi Alur, the French government has announced imminent changes to the procedures for buying and selling apartments and other types of property situated within a co-ownership complex or condominium.

Under the loi Alur, promoted by the then housing minister Cecile Duflot, owners are asked to provide large amounts of extra documentation detailing the history of the building in which the property is situated, including any works undertaken and planned, and detailed accounts going back several years. These have to be provided by the syndic (the building managers) before a would-be purchaser signs a pre-contract ('compromis de vente') and at which point he/she is entitled to withdraw - creating additional costs for the owner/vendor for the work needed to compile the dossier.

The new procedures have created serious delays, of up to three or more months, before the 'compromis' can be prepared and hopefully signed, and in some cases have increased the number of documents required from 30 to 300 or more pages.

No detailed information about the proposed changes is as yet available and is awaited in a decree promised for mid-September. The only detail announced is that documents may be sent in electronic form rather than hard copy, but their is no indication about how the quantity may be reduced. 

Creative ways to buy your French homes

It is relatively straightforward in France to acquire and pay for a house or apartment, provided you have the cash available or are able to obtain a mortgage. The vast majority of transactions follow this route, but if you happen to be - say - single or poor (or both!) there are a number of more creative ways to buy your ideal property.

I wrote some time ago on this blog and in French Property News about a new trend whereby groups of family members or friends get together to jointly buy or build a single or group of properties, and thereby create their own large or small 'co-onwership' (copropiété). This is known in French as a 'habitat groupé participartif' and can range from two or three families or more who wish to select their future neighbours and work together from planning through to occupation to create their ideal environment. The motivation behind such schemes can be financial but some aim to bring together like-minded groups such as ecologists, vegetarians, retirees - and in one case I discovered while researching this subject, a group of women. This new approach is comprehensively described, with several case studies in a book by Yves Connan entitled 'Habitat groupé partifipatif' (Editions Ouest-France) and includes detailed cost breakdowns of various sized projects.

If you find this sort of approach too daunting you may be interested in joining a smaller group, including people you may not have met before, but may find through social contacts or even the internet (yes, there are sites and forums devoted to this).  I watched a documentary on French television last night which told the story of three such individuals - a young man approaching 30, a single woman about the same age, and another in her forties. They met via the internet and had got together to buy a three story house in a fashinable part of Brussels, which they planned to convert into three seaparate apartments on each level. They all admitted that - as they said - being single they would never have attempted this on their own.

The house had belonged to a single family but the three individuals, seen at the Notaire's office, basically each bought their own section, together with a share in the building itself. This is very much the same process as when you (individually) buy an apartment in an existing multi-occupancy building - you acquire your own freehold apartment, together with a number of shares (known as 'tantièmes') in the building itself. The only practical difference here is that the three people concerned were the first joint co-owners of what was to become a shared building.

I have just bought a top-floor apartment in a building occupied by just four people - my neighbour and myself each have separate apartments on the top (third floor), a third owner who owns the whole of the first and second floors (run as a guest house or 'chambres d'hotes'), while the ground floor consists of an indoor garden and the flat-cum-fitness studio of the fourth occupant. Our shares in the building itself are in proportion to the size of our apartments (I own a modest 160 out of a total 1000) and we contribute to joint costs - such as the building insurance (in addition to that of each individual flat) - in proportion to the number of shares we each own.We manage the building ourselves, without the need to pay for professional managers that may be needed in larger multi-occupancy buildings, and meet informally to discuss any issues arising. We have recently decided to upgrade the entryphone system and will split the cost four ways once we agree the electrician's estimate.

You might consider this approach if by chance you have descovered a likely building suitable for conversion and can find one or two others that may wish to join you as futur joint owners. 

Estimating the value of a French property

If you are thinking of buying or selling a French property, you may be interested in a short article in this morning's LeFigaro which summarises the pirnciple factors that can affect the value of a property, for better or worse. Here I summarise the main points and (French) terms used.

- 'Surface' - More square metres normally cost more money! Square metres are calculated where the ceiling height is 1.80 metres or more. Mezzanines are not counted as officially  habitable space even when 1.8 metres or more in height. The 'loi Carrez' governs the sale/purchase of apartments and in all cases if the measurement of the area proves to be 5% inaccurate or more (over-estimated) a buyer may claim compensation.

'Terrain' - A tiny patch of grass or space enough to include a pool, a tennis court etc.

'Implantation' - Refers to where the property is located - urban, suburban, rural; close to local services or not; undesirtable elements such as a main road, factory entrance, noisy bar etc nearby

'Agencements des pièces' - Refers to the interior layout of the property, particularly bathroom/WC(s), wasted space (corridors, landings), inter-communicating bedrooms etc.

'Aspecte' - Which way does the property face in relation to natural light, the sun, a nice view etc

'Date de construction' - What were the applicables norms at the time compared to present day?

State of the interior 'décoration' and 'equipements' (such as kitchens etc, gas, electrics, plumbing) - and much will it cost to put right?

'Dépendances' - Presence or absence of outbuildings such as garage etc.

'Servitudes' - restrictions such as a right of way across the property

'Etat du marché - State of the local property market

To the above list I would add, in the case of an apartment or villa, within a co-ownership property ('copropriété') the level of monthly management and service charges, which can be high where there are shared extras such as a concierge, parking a pool, extensive gardens etc.

The article adds that while estate agents may offer a free 'estimation' they may pitch the price too high (to raise the owner's expectations and secure a mandate to sell) or too low (in the hope of a quick sale). An independent professional valuation will cost between 200 and 700 euros.

Source. lefigaro.fr 18 March 2015 

Selling property? Signing an agency mandate

If you are selling a property in France you  can do this either privately or using the services of an estate agency - or indeed using a combination of both. Here briefly are the options available:

1. Estate agency - 'mandat simple' (simple mandate). Signing a simple mandate with an estate agency, either French and/or British, enables you to benefit from the marketing skills of the agency, and normally also allows you to market the property yourself - or indeed use two or more agencies at the same time. The 'simple mandate' sets out the address and description of the property and the commission - expressed as a percentage of the selling price and in figures - that the agency is entitled to receive if they manage to secure a buyer and a sale results. It is generally advisable to use no more than three agencies, particularly if they are all located close to the property, as this can create confusion among potential buyers. If using more than one agent, it is sensible to agree the same advertised price with each of them, based on one or more estimates of the property's value. Using several agencies can also allow you to choose, for example, one or more local ones, and perhapss an 'international' agency that advertises to non-French buyers.

2. Exclusive mandate - 'mandat exclusif'. This is much the same as the above except that you sign a mandate with a single agency and they alone have the right to market and try and sell the property. You do not have the right to appoint other agencies or market the property yourself.

3. How long does the mandante run? In the case of both simple and exclusive mandates, most generally run for a minimum of three months, after which you have the right to cancel. In today's slower property market, an agency may ask for a longer period. If you do not formally cancel the mandate after this initial period, the mandate is presumed to continue until you decide to cancel, or lapses after a fixed period, say 12 months.

4. What if I find a buyer myself? In the case of a simple mandate you can deal with the buyer directly and the agency does not earn any commission. In the case of an exclusive mandate, it is normally agreed that the agency will receive its commission even  where you  have found your own buyer. Disagreements can sometimes arise where it is argued that a 'private' buyer has traced your property through the agency's advertising and you might prefer to negotiate a compromise (part commission) with the agency rather than face possible litigation.

5. What happens if a buyer, introduced by the agency, approaches me direct and wants to negotiate a deal direct? This can and does arise, as such potential buyers invariably wish to offer you the 'net vendeur' price - the sum you would receive after paying the agency commission. This means you are in the same position finncially as if you had sold through the agency. You would also be in breach of contract, having broken the terms of your mandate with the agency and risk being taken to court. Note that French law is very strict on this issue and the courts invariably decide in the agency's favour.

6. What happens if a buyer, originally introduced by the agency, comes back to me after I have cancelled my mandate with the agency? Again, you will find a clause in your agency mandate (simple or exclusive) covering this possibility, normally entitling the agency to its commission for a stated period after cancellation. In practice this can be for six months to two years in my experience and I would advise negotiating  the shortest period possible before signing a mandate.

7. Keeping in contact with the agency - No news generally means 'no buyers' and if your agency is silent for long periods this is invariably why and you might start thinking of changing agencies or other options. For your part, particularly if you have signed a simple mandate, you should inform the agency as soon as you have a firm offer from a genuinely client, in order to avoid wasted visits etc. This enables the agency to mark your property as 'under offer' and you should again inform them if your potential private sale happens to collapse and you want the agency to continue marketing your property.

8. Finally, note that signing a sales mandate with an estate agency means that you, the property vendor, are entering into a binding legal contract, and you need to be fully aware of the implications of the various clauses outlined above. If in doubt, best to take advice before you sign anything.

Very short term furnished rentals

I wrote some time ago about the crackdown by the Paris town hall against very short term furnished rentals, popular with tourists seeking an alternative to hotel accommodation, but disliked by many owners/occupiers of apartment blocks. Complaints of noise and other nuisances generated by a succession of visitors are provoked these actions, as well as overall concerns about the shortage of (affordable) accommodation in Paris for those who want to live and work there and the high number of properties that are owned as second homes.

A similar situation has been occurring in New York according to the website www.apartmenttherapy.com for all the same reasons, with the first expulsion of a tenant found to be sub-letting his apartment on a short term basis.

The situation in France is quite clear. If you own a property such as an apartment within a multi-occupancey building, such as a block of flats, you own te freehold of your apartment together with a number of shares (sometimes known as tantièmes) in proportion to the size of of your apartment. As an owner/shareholder you have a right to attend and vote at the annual general meeting of the co-owners. Decisions are taken by counting the numbeer of tantièmes rather than 'one man, one vote'.

Day to day management of the building complex may be handled voluntarily by a smaller committee of tenants or 'professionally' by a management company who charge for their services, each occupier contributing to the management and running costs of the building through an annual charge, again based on the size of your apartment. The co-owners have considerable powers, including to dismiss the professional managers and even oppose planning consents granted by the Mairie - and importantly to deal with issues such as sub-letting.

When you buy an apartment in a complex you will be given a copy of the rules before you agree to sign a pre-contract to purchase (the compromis de vente) and can learn abut the rules related to sub-letting. You also need to be aware of French law on the subject.

There are basically three types of rental - 'long term' unfurnished, for a minimum of threee years, with considrable rights of security for the tenant, including renewal of his/her tenancy; 'short term' furnished rentals for a mimum of one year, renewable by negotiation; and various short and holiday let arrangements where the building is recognised as being within a tourist/holiday area.

Each type of rental can cause conflicts between 'renters' and 'owners' such as noise, overcrowding, pets etc, and invariably under the co-ownership rules owners are deemed responsible for the behaviour of their tenants. I lived for a time in a building that was designed primarily for holiday letting, where just six apartments out of fifty were occupied all year round by their owners. During the ever shortening high season of July and August the building was almost full but eerily quiet for the remaining ten months of the year.  The residents committee and professional managers swiftly dealt with any form of nuisance, and just before I left voted powers enabling them to take legal action in the name of the residents in the event of serious issues arising.

Scandal of French pensions

Those of us living in France and in receipt of a Bitish state pension - which may not be over-generous but arrives on time - may sympathise with their French neighbours still waiting for  their first payment , in some cases two years after they reached the age of entitlement.

This worrying situation was revealed last night in the TV programme "C'est dans l'air" (Channel 5, 17:45) which examined the failure of every government  during the last three décades to reform the French pensions service. Not only have the French insisted for the most part that retirement starts at age 60 (when virtually every other country in Europe has raised the official retirement age to cope with shorter working lives and longer life expectancy) but the system relies on a multiplicity of semi-private providers (known as "caisses") depending on your occupation, with only public sector pensions being the direct responsibility of the government.

As you change jobs, you change pension provider, and calculating - and paying - your final pension depends on your last provider, who has the task of assembling information from all of the pensioner's previous assurers. It is this task which is causing serious delays and the programme highlighted two couples still awaiting their first pension payment two years after the husbands finished work. They are meanwhile relying on their savings, the help of family and friends, charities and state handouts. One particular "caisse" had a backlog of five thousand similar cases and had closed its office to the public in order to try and deal with the situation.

One of the programme's commentators noted that the situation was particularly critical in certain regions of France, and highlighted the north east and Languedoc-Roussillon as among the worst.

Further crackdown on (unoccupied) second homes

An unconfirmed report this morning by AFP claims that the French government is considering allowing an increase of up to 20% on the 'taxe foncière' paid on (unoccupied) second home, in certain areas of France, where there is a housing shortage and lack of affordable rentals. No-one was available to comment on behalf of the government.

The report claimed that in Paris one in six dwellings is a 'résidence secondaire' and an investigative programme on French TV last night showed an inspector from the Mairie tracking apartments let short term to visitors and tourists but registered by their owners as their main residence. In one case, a family in Bordeaux owned six or more such apartments in Paris, all let furnished short term. The Mairie has for some time been imposing fines and other penalties, and insisting owners re-classify their (rental) properties as a business, subject to the usual tax and social security regimes.

 

Selling apartment without car parking space - tips and pitfalls

I am currently selling my apartment which does not have a car parking space (I sold it several years ago just after I moved in). However the buyer of my apartment needs a parking space and to buy one separately can be costly - as the transaction costs can exceed the value of the car parking space! It is just like selling any other piece of real estate and land registration charges apply, in this case based on a minimum cost which cannot be avoided.

Fortunately the agent handling my sale had a couple of car parking spaces on his books, and to help my buyer and alleviate the transaction costs, we have associated the car parking space (owned by another individual in my building) with the sale of my apartment, using the same contract.

Everyone was happy with this arrangement until, alas, we came to sign the compromis de vente or pre-contract, which had taken five weeks to prepare under the new Duffflot/Alur rules I talk about in the post below. At the last moment the owner of the parking space decided he did not wish to sell, and as a result the whole transaction collapsed - just as I was putting an offer on aother flat in a nearby town.

Despair and annoyance all round, until my ressourceful estate agent said he had another seller, with another car parking space on his books - and willing to sell! As a result our notaires are now urgently preparing a a new compromis de vente (the first one has had to be scrapped) and both the buyers of my apartment and the seller of the car park space have agreed to give power of attorney (in French a procuration) to save time and avoid unnecessary visits to the notaire's office, until we all meet again in a few weeks to sign the acte finale and complete the purchase.

I alerted the agent handling my purchase and happily its resolution, and my offer has been accepted, and the notaires are now also preparing the compromis for my purchase.

What started out as a gesture to help my buyer in the event could have led to the collapse of the whole transaction, but thanks to my agent we are now back on course. I know from experience that every transaction can be complicated and my own has been no exception!

 

Apartment sale (2)

Further to my post of 30 May below, I am now in the process of selling my apartment under the new regulations required by the loi Duflot/ALUR , which requires the vendor provide a lot of additional information about the property, some of which was normally made available only at the signature of the acte finale (final document completing the sale) but which now has to be available to the potential buyer before he/she signs the compromis de vente (or pre-contract) and is asked to make a down payment on account, normally based on 10% of the sale price.

As noted below, the new procedures can delay the preparation and signature of the compromis de vente by, according to some estimates, 4 to 6 weeks - leaving the vendor in a position of uncertainty as to whether he has a genuine sale or not. As I wish to buy another property as soon as my present one is sold, it is difficult to agree any firm offers as my purchase will depend on my sale. Working closely with my agent and in cooperation with the buyer, we have taken the following steps which I would recommend to others involved in selling their apartment within  a co-ownership (copropriété) building:

1. I have confirmed with the syndic (building managers) that the charge they will make for supplying the documents required related to the history and management of the building - this will be made of a charge of €400 frais de mutation (change of ownership of the apartment) and an additional €250 for providint eh remaining documents.

2. I have signed and the buyer has countersigned a 'letter of intent to buy'  (lettre d'intention d'achat) which sets out the main terms and conditions that we are asking the notaire to include in the comromis de vente, including:
- Détails of the buyer and seller, description and address of the property
- Confirmation of the sale price including the agent's commission
- Confirmation that the buyer intends paying cash and is not seeking a bank loan or mortgage (this ensures that his cooling-off period (droit de réflexion) will be just seven days after signature of the compromis.
- Confirmation of the likely timescale for preparation and signature of the compromis and if all goes well, final completion.

This is very helpful for me as vendor and once the compromis is signed and a deposit lodged with the notaire, I am in a better position to start looking for another property and making a tentative offer using the above procedure. As my buyer does not wish to move in until early September, I am hoping to complete my purchase to coincide, thus avoiding the need to put my furniture in storage, and hopefully I will move directly from my old apartment to my new one. Fingers crossed!

I will post more information over the coming weeks as it happens.