Newsletter | Real Estate

Newsletter | Real Estate

5 minutes de Smart Law | January 2025

Our Paris Real Estate team offers you an overview of legislative developments, analyzes new regulations, and highlights court decisions shaping the real estate landscape.

REAL ESTATE TAX

Extension of the corporate purpose of SCPIs and OPCIs to renewable energies

The Order of 3 July 2024 gives SCPIs and OPCIs the option of holding any type of production of renewable energy with a view to renting or operating them, enabling these vehicles to participate in the energy transition. The ratification bill submitted on 1 October 2024 gives the ordinance legislative force. Read our recent article on this subject, published in Option Finance.
Sandra Fernandes | Sarah Kesy

CONSTRUCTION

Admissibility of an action by a syndicate of co-owners to seek reparation for damage to certain private areas

A syndicate of co-owners is admitted suing for compensation for damage originating in the communal areas (façade renovation) and affecting certain private areas, regardless of the amount of the weak number of private lots affected. It is not necessary for the loss, whether material or immaterial, to be suffered equally by all the coowners.
Cass. 3rd civ. 7 Nov. 2024, no. 23-14.464
Aurélie Dauger

What is the starting point for the limitation period in an action for liability for abnormal neighbourhood disturbance?

The Highest Civil Court points out that the fiveyear limitation period to which an action for liability for abnormal neighbourhood disturbance is subject runs from the first occurrence of the disturbance. This means that the mere repetition of the disorder over a long period of time does not trigger a new limitation period.
Cass. 3rd civ. 14 November 2024, no. 23-21.208
Aurélie Dauger

RÉSIDENTIEL

The Energy Decency Obligation is extended to furnished tourist accommodation

Law no. 2024-1039 of 19 November 2024 (OJ 20.11.2024) makes it compulsory for new furnished tourist accommodation to have an energy certificate of at least classification F (2025) and then at least E (2028) (new art. L.324-2-2 of the Tourism Code). The aim is to provide a response to the housing crisis in tense areas by preventing properties that are indecent and not suitable for letting as a main residence from being rented out as furnished tourist accommodation.
Sidonie Fraîche-Dupeyrat

Does the Conseil d’Etat call into question rent limitation in Paris?

In a ruling dated 20 November 2024, the Conseil d’Etat (Highest Administrative Court) overruled the decision of the administrative Court of appeal which had validated the municipal order dated 28 May 2019 instituting the yearly rent limitation in Paris. It refers to a future court ruling on this order. In the light of this decision, the 2019 order remains applicable, as does rent limitation in Paris more generally. The Conseil d’Etat’s decision does not provide any definite grounds for calling into question the rent limitation system. To be continued…
Sidonie Fraîche-Dupeyrat

Towards a softening of decency requirements coming into force on 1 January 2025?

A draft law submitted to the Assembly aims a.o. at (i) not applying the ban on renting out G-rated accommodation entering into force on 1 January 2025, to current leases, and at (ii) suspending the application of the energy decency obligations in the event of a blocking situation in a general meeting of co-owners or a general meeting of tenants.
Sidonie Fraîche-Dupeyrat

URBAN PLANNING

The Bioclimatic Local Urban Plan of Paris (PLU-B) came into force

Paris‘ PLU-Bioclimatic (PLU-B) (new planning rules) was approved by the Paris Council at its meeting on Wednesday 20 November 2024 and published online on 29 November 2024. It is now fully applicable.
Hélène Cloëz

An incomplete permit application does not preclude benefiting from the „crystallizing“ effect of a land use certificate

In this decision, the Conseil d’Etat (Highest Administrative Court) considers that a petitioner of a planning permission benefits from the crystallisation of town planning rules when he files within the 18-month period from the date of issue of the planning certificate, even if the application is incomplete and is completed after the 18-month period has expired.
CE, 18 November 2024, no. 476298
Hélène Cloëz

COMMERCIAL LEASES

Law to simplify economic life, adopted by the Senate on 22 October 2024

This law aims to protect the cash flow of the retailer (monthly rental payments, validation of tunnel indexation clauses), but conditions the granting of extensions to the tenant’s ability to settle its debt and pay the current rent in full before the first hearing. It also defines the commercial and craft premises covered by the „Pinel“ right of pre-emption.
Géraldine Piedelièvre

INVESTMENT

Can a unilateral promise to sell entered into before 1 October 2016 be enforced?

The Highest Civil Court now grants the right to the beneficiary of a unilateral promise to sell entered into before 1 October 2016 (date of implementation of the reform of 10 February 2016), of obtaining enforcement of the property. Until now, such a situation only gave entitlement to damages. In addition, the ruling specifies that the fairness of the price is assessed at the date of the promise and not at the date of the sale.
Cass. 3rd civ., 21 November 2024, no 21-12.661
Sidonie Fraîche-Dupeyrat, Céline Rifflet

FINANCING

Integrating crypto-assets into French law

The order no. 2024-936 of 15/10/2024 continues the process of incorporating crypto-assets (bitcoin and ether are the most traditional) into French law. Crypto-assets are described as „goods negotiable intangible assets“. Ownership is transferred when they are registered in the blockchain for the benefit of the purchaser. Further details have been provided on the rules governing canvassing.
Vincent Danton

100 practical factsheets on real estate law

Up to date with the „Climate and Resilience“ and „Green Industry“ laws, this book of 100 practical fact sheets, co-edited by LPA Law and Cushman & Wakefield, offers a methodology for setting up a real estate transaction. The fact sheets, with advice and regulatory focus, are enhanced by tables and figures to explain the mechanisms and summarise the key data.
For more information, click here.

Silke Nadolni

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Pauline Maurus joins the team as Counsel

Pauline Maurus assists customers in setting up renewable and low-carbon projects, reducing GHG emissions, and the entire value chain: selfconsumption, energy communities, PPA, support, connection, flexibility, trading, CPE, CEE, DPE, Décrets Tertiaire et Bacs.

Click here to discover her profile : Pauline Maurus

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We remain at your disposal for any further information or assistance you may require in your projects.
The Paris Real Estate team
LPA Law