Legal Aspects of Real Estate investments in France
Much more than the Anglo-Saxon law system, French law is predominantly based on written proof, therefore the State intervenes more in private transactions to further ensure contractual exchanges. To achieve this goal, the State delegates powers to a qualified professional such as the “Notaire” to ensure the contracts. Thus, the French Notaire authenticates the agreements. He must practice extreme caution before signing any agreement because taking a contract to court is rare.
A direct consequence of the Notaire institution in the French legal system is the lack of litigations concerning agreements performed by Notaires. In the United States, a report from the President’s council on competitiveness, dated August 1991, shows that contractual litigations have increased (+21.6%) as well as Real Estate litigations (+44.2%) costing 300 billion U.S. $ to the country. This situation is leading the U.S. Government to consider creating a new type of legal professional such as the French Notaire in order to strengthen the contractual relationships required by the economic market.
Consequently, the Notaire shall reassure foreign citizens or companies of the legal soundness of their French investment.
As many legal queries will occur during a Real Estate investment in France,
1. The Notaire’s Duties
2. The Real Estate Purchase Proceedings
3. The Documents Securing a Transaction
4. The joint-ownership notion
5. Tax Aspects of the Investment
6. The Language and Jurisdiction of the Contract