President of France, Nicolas Sarkozy, Bastille Day 2011
French Property Insider
Volume IX, Issue 28
July 14, 2011
Paris, France
FrenchPropertyInsider.com
Bonjour French Property Insider Subscriber,
On TV channel TF1, the President of the Republic Nicolas Sarkozy prepares for the annual Bastille Day parade along the Champs-Elysées. The troops are lining up, the officials are in the grand stands and the jets are rolling down the runway awaiting take off. The sun is shining brightly, the French flag is waving proudly under the Arc de Triomphe and the spectators are getting close to the barricades to get a good look at the soldiers, the tanks, the horses, etc. that are about to head down the famous avenue.
No one is thinking of much, but enjoying the holiday that celebrates the liberation of French people from the tyranny of the monarchy. Subsequently they instituted Napoleonic code (1804) forbidding privileges based on birth, allowing freedom of religion, and it specified that government jobs must go to the most qualified. It was the first modern legal code to be adopted with a pan-European scope and is thought to have influenced the whole world. Interestingly, "Louisiana's civil code has kept its Roman roots and some of its aspects feature influences by the Napoleonic Code, but is based more on Roman and Spanish civil traditions. As a result, the bar exam and legal standards of practice in Louisiana are significantly different from other states, and reciprocity for lawyers from other states is not available." (Wikipedia.org)
As the ceremonies progress on the Champs-Elysées and Place de la Concorde, I am reminded of the strict enforcement of the laws in France that are designed to be as fair and equitable for the common man as they deem it possible, including quite a lot of consumer protection laws may differ from the way our own Anglo Saxon systems view equality. In the realm of property ownership, protecting the rights of the common man includes forced heirship, squatting rights and time set aside to consider buyer's remorse.
One of the laws that protects purchasers of property in France is the seven-day period known as the "délai de réflexion" -- a seven-day cooling off period, following the signing of the sale and purchase agreement. This provides the buyer (only) with an option to retract his purchase within seven days of the purchase with no legal or financial ramifications.
Laws of this nature apply to many kind of purchases or commitments to contracts, but in this case, we're dealing solely with the decision to purchase a property, but not including a plot of land, garage or other ancillary buildings. It is also not available to purchases made through an "SCI" (Société Civile Immobilière) or real estate company.
The period starts from the point you receive the final signed contract. If you personally sign in front of a Notaire, then you will normally be given a copy of the contract, and the seven day 'period of reflection' begins the following day, or if that day is a holiday or weekend, then it starts the first working day. If the Notaire or other party has signed on your behalf, then the period begins the day after you have received the document by registered mail.
The presale agreement includes a statement certifying that you are aware of the seven day cooling off period.
In order to retract your purchase, prior to the expiration of the cooling off period, you will need to send a registered letter to the Notaire giving official notice, but you are not obligated to give a reason for the retraction.
We do not advise anyone to enter into a contract for the purchase of a property with the idea that retraction is easy. This kind of consumer protection provides a period of time to reflect fully on the purchase and ensure that all conditions meet your requirements.
Very few of our clients have taken advantage of the right. I was one of them -- having retracted the purchase of an apartment in Nice after two contractors saw potential problems with the staircase leading to the apartment.
In another case, our client was concerned that his investment wouldn't provide the return he was expecting and let his fears dictate the decision. That same apartment sold to another one of our clients three months later. Well located and beautifully renovated, she, on the other hand, has reaped tremendous reward, not only from the rental revenues, but from the sheer enjoyment of the use and big changes in her life now that she spends so much more time in Paris.
For more information about the various periods of reflection offered by French law, visit:
http://www.economie.gouv.fr
A bientôt and Happy Bastille Day!
Adrian Leeds
Editor, French Property Insider
Email: fpi@adrianleeds.com
P.S. For a full report on Tuesday's Parler Paris Après Midi, visitparlerparis/apresmidi.html and be sure to read this coming Monday's Parler Paris Nouvellettre® for a full report of this year's Bastille Day celebrations at parlerparis.com
