What is a gradual exit lease from the 1948 law?
Verified 11 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)
The owner of a dwelling subject to the 1948 law may decide to terminate this scheme and rent it at market price, subject to certain conditions (depending on the category of dwelling and the resources of the tenant). To do this, he must sign with the tenant a gradual exit lease from the 1948 act, of eight years' duration. Then, the landlord and the tenant can sign a new lease, with a rent corresponding to the market price.
The dwelling must be classified as Category II B or Category II C.
These categories include accommodation of good quality, and even of fairly good quality.
The landlord is allowed to make a proposal for a phased-out lease when the resources of the people housed exceed a certain amount.
This amount depends on the number of people housed:
General case
1 person
The resourcing amount of the person accommodated must exceed €31,703.
These resources correspond to the net taxable income received during calendar year preceding the proposal.
2 people
The cumulative amount of the resources of the 2 persons accommodated must exceed €38,688.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
3 people
The cumulative amount of the resources of the 3 persons accommodated must exceed €45,674.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
4 people and more
The combined resources of the 4 persons accommodated must exceed €52,659.
This amount shall be increased by €6,985for each additional person.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
In Île-de-France
1 person
The resourcing amount of the person accommodated must exceed €42,271.
These resources correspond to the net taxable income received during calendar year preceding the proposal.
2 people
The cumulative amount of the resources of the 2 persons accommodated must exceed €51,584.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
3 people
The cumulative amount of the resources of the 3 persons accommodated must exceed €60,897.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
4 people and more
The combined resources of the 4 persons accommodated must exceed €70,212.
This amount shall be increased by €9,313 for each additional person.
These resources correspond to the total net taxable income received by the tenant and other occupants during calendar year preceding the proposal.
Determination of rent
The rent must be determined by reference to the prices usually charged in the neighborhood, over the last 3 years and for comparable dwellings.
FYI
this rent will be phased in gradually. The difference between the old rent and the new rent will be spread over the entire term of the phased exit lease (8 years).
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Up to 1 million inhabitants
The landlord must rely on at least 3 rental references.
Certain references (period of construction of a building, type of dwellings...) can be obtained from the network of local observatories.
FYI
these references must be mentioned in the proposal for a gradual exit lease to be sent to the tenant.
Agglomeration of more than one million inhabitants
The landlord must rely on a minimum of 6 rental references.
Certain references (period of construction of a building, type of dwellings...) can be obtained from the rent observatory of the Paris agglomeration (Olap) or to the network of local observatories.
FYI
these references must be mentioned in the proposal for a gradual exit lease to be sent to the tenant.
Sending proposal by owner
The landlord who wishes to discontinue this plan must send the tenant a proposal for phased exit lease by registered letter with notice of receipt or by deed Commissioner of Justice (formerly an officer of the court).
The lease proposal must include the following information:
- Name or surname of the owner, his permanent address or registered place of business, and those of his authorized representative, if necessary
- Effective date of the phasing-out lease and its duration (8 years)
- Property concerned and its destination
- The accommodation concerned and, if necessary, a list of the facilities and common areas to which the tenant has access
- Rent amount, method of payment and annual review rule
- Amount of security deposit, if necessary
- Living area of the dwelling concerned
- Reproduction in writing of article 25 and articles 28 to 33 of law 86-1290 of 23 december 1986
- List of references used to fix the rent (at least 3 or 6 rental references, depending on the size of the agglomeration where the dwelling is located)
Tenant Response
Within 2 months of receipt of the proposal for a phased exit lease, the tenant can do one of the following:
- Respond to owner that resource conditions allowing a phased exit lease are not met. The tenant must then provide the necessary supporting documents.
- Refuse the landlord's proposal and, if the tenant has made at his own expense work that has substantially improved the comfort or equipment of the dwelling, request their reimbursement
- Accept the landlord's proposal and, if the tenant has made substantial improvements to the comfort or equipment of the dwelling at his own expense, request their reimbursement
The tenant must send his answer by registered letter with notice of receipt or by document of the Commissioner of Justice (former judicial bailiff and auctioneer).
If the tenant chooses not to respond to the landlord, this lack of response is deemed a refusal.
Procedure according to the tenant's response
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In case of agreement
The phasing-out lease takes effect 6 months after the date of the proposal sent by the owner, except in exceptional cases.
The new rent does not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by the eighth year, that is to say over eight years.
The annual review in the light ofIRL: titleContent may be applied provided that a clause in the lease so provides.
If the tenant has requested the reimbursement of works, the amount is fixed and the reimbursement is made when signing the contract. phased exit lease. At the request of the owner, repayment may also be phased in during the phasing-out lease. If the debt still exists at the end of the lease, the landlord then pays the balance to the tenant.
In case of disagreement or no response from the tenant
Within 3 months of receipt of the proposal by the tenant, the landlord or tenant may refer the matter to the departmental conciliation commission. This procedure is not mandatory, the protection litigation judge can be seized directly.
The judge may be seized within 6 months of the owner's proposal.
Warning
if the judge is not seized within 6 months of the owner's proposal, the dwelling remains subject to the 1948 law.
The judge decides on the applications of the tenant and the landlord and fixes the amount of the new rent.
The phasing-out lease is considered to be concluded under the terms and conditions set by the judge.
The new rent will not apply immediately. The increase between the old rent and the new rent is gradual. It must be spread out by the eighth year, that is to say over eight years.
The annual revision of the rent amount based on theIRL: titleContent may be applied, provided that a clause of the lease so provides.
At the end of the phased exit lease eight years old, a new lease must be concluded.
This new lease is subject to the Law of 6 July 1989.
The rent is set freely by the landlord, in compliance with statutory provisions.
However, if the tenant who at the end of the 8-year lease is over 65 or is disabled, the landlord will not be able to release the tenant. And he won't be able to raise the rent when the lease is renewed.
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