Loi Alur : Rental relationships II

The new law for access to housing, so-called French « loi Alur », required diagnostics for gas and electrical facilities for rental agreement such as already existed for sale.

Implementing decrees (decree n°2016-1104 regarding gas facilities and decree n°2016-1105 regarding electrical facilities) have been published in the Official Journal, on August 13th, 2016. 

More informations

Decree No. 2016-1104 of 11 August 2016 on the state of the domestic gas installation in homes found > Read more

Decree No. 2016-1105 of 11 August 2016 on the state of the domestic electricity installation in homes found > Read more

Real Estate Agents’ Employee or Associate : the end of the no man’s land

In a press article published in “Revue des Loyers” dated May 2005, we spoke up and voice our concern about the legal uncertainty resulting from a decision of the commercial chamber of the French Supreme Court (la “Cour de Cassation”) dated July 7th, 2004, to be faced by the Real Estate Agents.

Further to this decision, the legislator expressly recognized the commercial agent status according to article 97 of the National Commitment to Housing Act of July 13th, 2006 (Law n° 2006-872) which has modified article 4 of the Law n° 70-9 dated January 2nd, 1970 regulating activities related to real estate and business assets.

Registration is required with the Special Register of Sales Agent at the French clerk of the French Tribunal de Commerce.

Loi Alur : Rental relationships

The new law for access to housing, so-called French « loi Alur », provides for strict conditions regarding rental relationships. The Decree n° 2015-1437 dated 5 November 2015 have set out a restrictive list of documents likely to be requested to a rental applicant and its guarantor.


Last year for an energy survey or audit!

This is the last year to carry out an energy survey or audit!

The Act of 12 July 2010 (on the National Commitment to the Environment) introduced an obligation to carry out either a collective energy performance survey (DPE) or an energy audit, in buildings fitted with a collective heating or cooling system, as applicable.

This obligation must be complied with within five years of 1 January 2012, i.e., on or before 31 December 2016.

The joint liability of undeclared workers

Where undeclared workers are used, the joint liability of the client and the parties hiring the workers is subject to a strict condition.

Pursuant to Article L. 8222-1 of the French Employment Code, if a party enters into any contract that relates to an obligation in consideration for a minimum amount for performance of a piece of work or that relates to the supply of services or to the carrying out of a legal transaction governed by commercial law, then that party is required check that certain steps have been taken by the other contracting party (notably regarding the risk of using undeclared workers) and such checks must be carried out periodically until the contract has been fully performed.

A failure to check that these steps have been carried out may have serious consequences insofar as a party simply disregarding them will become jointly liable in law, with the person who used the undeclared workers, for the payment of any levies, taxes, contributions, penalties and surtaxes and, if applicable, the payment of any remuneration, indemnities and charges. That party may also be jointly liable for the reimbursement of any sums that correspond to government aid.

However, in a landmark decision of 26 November 2015, the French Court of Cassation held that enforcement of such joint liability is conditional on an official report having been issued against the other contracting party for the offence of using undeclared workers.

Free limited partnership

The Act of 6 August 2015, known as the Macron Act, introduced a new category of alternative investment fund into French law, the Société de Libre Partenariat (free limited partnership or SLP).

Following publication of the Decree of 29 September 2015, a new sub-paragraph has been added to the regulations section of the French Monetary and Financial Code, setting out the information that must appear in an SLP’s articles of association.

To take account of the specific nature of this product, the French Financial Markets Authority (the AMF) has amended its General Regulation and its Instruction DOC-2012-06 (on the procedures for declaration, modifications and drafting of a prospectus and periodic information on professional specialised funds and professional private equity investment funds). The Order of 29 September 2015 approving the changes to the General Regulation was published in the French Official Journal of 8 October 2015. It can be downloaded from the AMF’s website.

The Act for Access to Housing and Town Planning Reform (known as the Alur Act) has introduced stricter controls on the landlord and tenant relationship covered by the Act of 6 July 1989.

Decree No. 2015-1437 of 5 November 2015 sets out the list of identity documents that potential tenants and their guarantors may now be asked to provide.