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Posted at January 9, 2020
The Civil Code leasehold is favored in several cases. The main advantage of the civil code lease is that it allows great freedom to fix the duration and the principles of the contract. Civil lease model.
Find out how the Civil Code leasehold takes effect for the following real estate transactions: :
Governed by articles 1708 et seq. ff the Civil Code, the Civil Code leasehold is a so-called “common law” lease, which allows the parties to agree on the terms of the contract. The drafting of the Civil Code lease is therefore free.
Common law describes the rules applicable to all situations which are not governed by specific rules. It is a general law that applies to everyone, except as provided by law. Concerning the furnished rental lease, the only exceptions by law are abusive clauses and penal clauses.
We also note that the Civil Code lease is subject to technical and energy expertise under the same conditions as the residential lease subject to the law of July 6, 1989.
In summary, the Civil Code leasehold is not subject to specific regulations compared to other residential, professional, and commercial leases that benefit from their rules.
The owner retains extensive rights. Thus, the civil code lease applies to owners who do not wish to commit over time. Therefore, the parties agree freely on the duration of the contract.
This contractual freedom is particularly important for owners who, for example, have gone abroad themselves and want to find their apartment when they return; others invested to house their child when he becomes a student. There are many reasons why the owner of a furnished apartment for long-term rental wishes to keep the freedom to find his property on a given date.
The parties freely fix the amount of the rent of a Civil Code lease. No rent control applies to this type of rental.
As in the classic rental governed by the law of July 6, 1989, the owner also has a responsibility of maintenance and must carry out the works and repairs of his property, other than the rental repairs which concern daily maintenance and small repairs, and are the responsibility of the tenant. Also, the lessor is required:
Decent housing corresponds to that which does not affect the health and physical safety of tenants. It must also be " free from pest and parasite infestation » ( Law Élan n ° 2018-1021 of 23 November 2018). The notion of decency is defined by decree n ° 2002-120 of January 30, 2002, which specifies the characteristics which the rented accommodation must respect. This 2002 decree was supplemented by decree n ° 2017-312 of March 9, 2017, which developed an additional criterion of minimum energy performance, this being characterized by airtightness (in addition to airtightness with water since January 1, 2018) and by sufficient ventilation (air renewal and moisture evacuation since July 1, 2018).
The “tenant” can use the property for exclusive use, and he must return the property in the state it was in when it came into use. The tenant must also ensure the payment at maturity of the rent, according to the agreed terms.
Nota bene: employees who benefit from official accommodation must pay the housing tax in respect of this accommodation since they have the possibility of occupying the accommodation at any time.
The following clauses are generally found in a civil code lease:
Civil Code lease is derogatory compared to "classic" leases, such as professional lease, commercial lease, and residential lease. Generally, these are exceptional cases where the use of the property is contrary to its nature. For example, renting residential property for professional use such as a corporate apartment.
The civil code lease allows the duration of the contract to be freely set: the lessor and the lessee jointly define an agreement. You can choose a fixed or indefinite period when signing the lease.
As the terms of the Civil Code leasehold are fixed by the parties, conditions for termination or renewal differ.
For example, the lease tacitly renews itself for the same duration as the initial one. Yet, the tenant can notify the lessor his intention to leave the premises at any moment, by registered letter with acknowledgment of receipt (AR) or by a bailiff. The lease must, therefore, provide for the notice periods since the civil code contract is unrestricted. A lease of indefinite period ends at the lessor's initiative, or the tenant's one, after a notice period defined at the start. It is customary that the lessor gives a three months notice before the end of the lease and the tenant one month at any time.
In all cases, whether the lease's term is determined or indefinite, the Lessor has no obligation to justify his termination of the rental.
The rent is set freely by the parties. In case of a civil code lease, the owner is not subject to a ceiling or rent control fixed by law.
It is possible to add a rent revision clause according to the indices published by INSEE. For official rentals and secondary dwellings, refer to the rent reference index (IRL).
The civil code lease is unrestricted compared to residential rentals governed by Law No. 89-462 of July 6, 1989, which are regulated and less flexible than civil code contracts. Thus, conventional housing leases are compulsory for the principal residence (where the tenant stays at least eight months a year). The Civil Code contract applies in cases where:
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Photo by Scott Graham
Writer: Michael HELLEU