Notary office in Saint-Jean-Cap-Ferrat - FRANCE

The energy savings imposed by the French State have entered an operational phase. Through many successive laws, the legislator has sought to strengthen the energy performance of buildings located in France. To this end, it has created a number of regulations which however differ depending on whether the building is for residential use or is “for tertiary use”. While these regulations primarily concern the owner, they cannot be ignored by bankers, since they are likely to affect the value of the property financed or given as security. Read more

During the period of renegotiation of the contractual conditions of an existing loan, the lender often wonders to what extent the notary who executed the initial notarised deed of financing will have to intervene again to accommodate the new contractual terms, including a change in interest rate (variable to fixed and vice versa, or variable to variable), and what would be the terms of their intervention. Read more

Since a law of 4 January 1978, supplemented by an implementing decree of 3 July 1978, the pledge of SCI (sociétés civiles immobilières: real estate companies) shares was subject to a regime distinct from that of SARL (limited liability company) and SNC (general partnership) shares. The first reform of the 2006 securities law modified the pledge of shares in SARLs and SNCs by making it subject to the pledge of tangible personal property. Read more

This Client Memorandum discusses the terms and conditions of the various acquisition methods, as well as the consequences of these acquisition methods on the lender's guarantees, particularly with regard to: Acquisition in bare ownership (I), Acquisition by life annuity (II), Forward sale (III). Read more

When an SCI intends to obtain a real estate loan to finance an acquisition, it is best practice, for the bank, to seek the surety bond of one or more shareholders of the SCI. Read more

In summary, the solution of renewing an existing mortgage registration by simply depositing a docket to the Land registry office services (without a new authentic deed), with a view to changing the name of the holder of the claim or renewing the existing mortgage registrations for the future, may constitute an interesting and economical solution. In any case, this technique of renewing registrations allows the parties to avoid having to instruct the notary to receive a new authentic instrument, the so-called “extension”. Read more

Part 2 - The main aspect to remember with regard to the reform of the law relating to security interests- Without claiming to be exhaustive, the reform1 of the law relating to security interests makes many changes to real estate security law, including: Read more

Part 1 - Ordinance 2021-1192 of 15 September 2021, reforming the law on security interests, amends the law on guarantees, which the previous 2006 reform did not do. Entry into force starting from the 01st of January 2022 - Under transitional provisions, Article 37 of Ordinance 2021-1192 of 15 September 2021 stipulates that the reform will only apply to contracts of guarantee entered on or after the 01st of January 2022. 1 Read more

It is not uncommon for a loan to be extended into the future under conditions identical to those of the existing loan, for a new term. Alternatively, a mortgage may be modified during a negotiation with the same bank, with new future conditions (loan amount, term, higher or lower interest rate). As regards the fate of the initially constituted guarantee during the refinancing or extensions of the loan, it is appropriate to consider, on the one hand, the scenario of refinancing by change of creditor, whether novation or subrogation (I) and, on the other, a renegotiation of the future terms of the loan between the same parties (II). Read more

The issues raised by the use of subrogation in a refinancing context have been addressed by recent reforms: - Subrogation ex parte debitoris, with or without the assistance of the creditor, has a complete transfer effect: it transmits the claim and its accessories, the first of which are the security interests;  Read more

This table is intended to help the bank determine whether the mortgage loan it grants is subject to the protective rules set out in Articles L. 313-1 et seq. of the Consumer Code. Read more

This memo is intended to assist the bank in identifying the essential points of the mortgage loan agreement, subject to the French Consumer Code. It is not intended to be exhaustive, so that it remains legible. Read more

Prior to the reform, the case law regime of inaccuracy or absence of the APR revolved around two situations, depending on whether they affected the private loan offer or the notarised deed itself. In the first case, the sanction is the forfeiture of the right to interest, in full or in the proportion determined by the court. In the second case, the sanction is the replacement of the contractual rate with the statutory rate. Read more

The choice of technique for repaying an existing loan is a considerable economic challenge in a period of competitive rates. The cost of this repayment should be optimised, while guaranteeing the security of the new lender, with a technique adapted to the refinancing situation envisaged. Read more