LEASE BACK INVESTMENTS IN FRANCE ARE COMPLICATED

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Welcome to Traesch Avocat
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Owners of a leaseback property bought a flats, a
parking place and a two ski storages in a
vacation building (residence of tourism in
French). The deal was funded by a bank loan. A
commercial lease is signed for 11 years with an
operator. One year later, the operating company
files a chapter 11 bankruptcy demand. One and a
half year later, the operator is liquidated and
doesnt exist anymore. The owners of the
leaseback property sue the builder, the bank and
the real estate agent. The case is based on
wilful misrepresentation, late delivery of the
real estate, latent defects and unpaid rents.
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The claimants ask for the cancellation of the
buying reservation contract, selling contract,
the bank loan contract and the refund of the paid
interests. The plaintiffs based their damages
claim on the breach of the information and advice
duty/obligation.
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Owners of a leaseback property, filed a claim
against the real estate agency specializing in
real estate leaseback investment. They claim the
real estate agent has a responsibility in the
default of the operating company of the tourist
residence or in the latent defects of
construction. The builder, the bank and the real
estate agency states it were risks that
purchasers had to take into account. The builder
and seller of the leaseback real estate The
builder and seller of the leaseback real estate
is not liable. The judges decide the company
informed well the buyers. The builder had not to
advice regarding the leaseback investment.
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The bank funding the leaseback investment. The
owners of a leaseback property (residence of
tourism in French) claim the bank advices them to
invest in this leaseback scheme. It is based on
an email stating a meeting with the manager of
the banks real estate investments department. It
is not enough for the court. According to the
judges, there is no evidence the bank was the
first to advice this leaseback investment to the
buyers. The court convicts the real estate agency
specializing in leaseback in France The court
decides that the real estate agency specializing
in leaseback in France breached its obligations
of information. Under the French law, the real
estate agent has to advice the buyers of the
leaseback. He has to inform the buyers about the
risks of the deal. These risks are especially the
operator's default and the unpaid rents.
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Damages resulting from non-performance of an
obligation. The contractual liability is based on
the contract of course, but the damages are based
on article 1147 of the French civil code A
debtor shall be ordered to pay damages, in the
proper circumstance, either on account of the
non-performance of the obligation, or on account
of the delay in performing, whenever he cannot
establish that the non-performance was due to an
external cause that cannot be imputed to him
provided, moreover, there is no bad faith on his
part.
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For More Update Visite The Website
https//frenchrealestatelaw-traesch.fr/leaseback-i
ndemnite-eviction
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