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. 

The 'uberisation' of property in France?

There are increasing concerns in the newly fashionable 'sharing/caring economy' of the increasing 'uberisation' of homes - taken from the word Uber which is an umbrella organisation providing websites and services such as taxis and car sharing, and best known for its Airbnb network under which owners sublet their homes for periods of a weekend or just a vew days.

Opposition has already come from hoteliers faced with this new competition and the city of Paris suffering the loss of tourist taxes (now collected by Uber users), and more recently with owner/occupiers living permanently in apartment blocks and finding their lives disrupted by the comings and goings of extremely short-term renters.

It is against this background that the estate agency network Orpi and the polling organisation Ipsos have published a survey of trends relating to property occupation and ownership. Among the trends noted are:

- Growing popularity of apartment sharing ('colocation') particularly among the under-35s

- Growing trend of subletting a room in their apartment - either long term, short term or very short term (Airdbnb etc) and using the internet to market their availability

- Decline in popularity of second (holiday) homes, described as 'not a priority' by 88% of those interviewed

- Growing trend towards purchasing the main home ('résidence principale') - 54% of under 35s would like to buy

- A home office is now seen as essential by 62% of under-35s interviewed, taking over from the dressing room.

- Also popular is a large open-plan living area, with a kitchen offering an island unit and facilities for informal meals (breakfast bar).


Source LeFigaro 05/11/2015 FrenchEntree.com 06/11/2015

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. 

Buy-to-let - flat-sharing properties

If you own a sufficiently large French property, this morning's LeFigaro on-line has an interesting article about converting it to share accommodation, or 'co-location' , popular with young people including students.

The article describes an 'ideal type of property' based in the city of Orleans which cost around 500 000 euros to purchase, convert and equip and lists among the essentials, based on nine people sharing:
- a large kitchen/diner with sufficient fridge and storage areas and two hobs, with a total area of not less than 35m²
- a minimum of four bedrooms, each not less than 13m² minimim
- sufficient bath/shower rooms and WCs

In the example shown montly rentals were based on 350 to 420 euros per bedromm.

Source: LeFigaro.fr 12 October 2015

Floods in France

The recent floods along the Cote d'Azur have highlighted the problem of serious flooding in France. It is estimated that damage to homes, businesses and vehicles will cost at least 500 million euros in compensation. The French State has qualified the event as a 'natural disaster' and will pay for repairs to the infrastructure, including several highways and bridges.

One of the lessons learned is the relative lack of safety of (private) underground car parks, where several people drowned in attempts to bring their cars to the surface as the floods struck. Many had no alternative means of escape other than the exit ramp and no doubt new reulations will be introduced to improve safety in future.

Many parts of France are officially classified as at risk of flooding and when buying property you need to check the 'plan cadastral' and verif via the Mairie what kind of evacuation plan exists in case of emergencies.

Many Mediterranean towns and villages have however excellent systems for evacuating potential flood waters. In my own area of Pyrénées-Orientales some 140 000 or 40% of the population are regarding as living in a potential flood zone.

British living in France

Statistics about the numbers of British people fulltime residents in France are somewhat confusing, particularly when contrasted with the number of home owners - permanent and temporary.

According to a 2014 estimate by the French statistical office INSEE there are around 400 000 British resident in France - more than the 250 000 French living in the UK.

Other sources indicate that of France's 2.5 million second/holiday homes (10 per cent of the country's total housing stock) just 10% are bought by foreigners - of which British make up the largest single group (25%).

This percentage can be higher in some regions known for their attractions to incomers, including over 20% of homes are owned by foreigners. This figure can be distorted by even higher concentrations in some coastal (Mediterranean) resort areas, where second homes make up the bulk of the local property market, resulting in hundrds of apartments and villas which lie empty for ten months of the year, outside the July/August peak holiday season.

If you are searching for a permanent home and particularly if you are approaching retirement, you need to examine your chosen area carefully and if possible visit it both during and outside the season in order experience the practical effects of your lifestyle of their shifting population.