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Selling a rental unit: what are the rules?

Verified 04 May 2021 - Directorate for Legal and Administrative Information (Prime Minister)

When the landlord wants to sell a dwelling inhabited by a tenant, he has 2 options: wait for the end of the lease or sell the dwelling during the lease. Depending on the type of dwelling, empty (that is to say rented without furniture) or furnished, the rules to be respected are different.

Empty

The landlord may choose to sell the property after the tenant has permanently left the premises.

Give the tenant leave

To do this, the owner must to grant leave (notice) to the tenant for the end date of the lease. The leave letter must indicate the reason for the leave, i.e leave to sell. The letter must reach the tenant at least 6 months before the end of the lease. The tenant must then leave the accommodation and return the keys to the owner at the latest at the end of the lease.

FYI  

the owner must comply with the rules of the leave to sell (content of the letter, period of notice...). Otherwise, the tenant can challenge the leave before the judge.

But the landlord cannot give the tenant leave, in certain situations:

  • When the tenant is old and has low incomes, the tenant is protected. The landlord may not grant leave or may do so only under special conditions.
  • Where the landlord has recently purchased the dwelling with a tenant, the landlord cannot give leave at the end of the lease. This is the case when the landlord purchased the property less than 3 years before the end of the current lease. The landlord can then only grant leave for the end of 1er renewal or 1re renewal of the lease in progress.
    For example, if the landlord purchased the unit on 1er march 2021 and the lease ends on may 31, 2023, the lessee may be granted leave to vacate the premises no later than the end date of the 1re reappointment, which takes place on May 31, 2026.

If the landlord gives the tenant leave on fraudulent grounds:

The tenant can challenge the reason for the leave (notice) given by the owner.

To do so, it must have proof that the owner did not intend to sell the housing (for example, the sale price of the housing is excessive).

He must then refer the protection of the court on which the dwelling depends to the litigation judge. He must ask the judge to award him damages for the damage suffered.

The judge may also order the owner to pay a criminal fine of €6,000 maximum (€30,000 maximum when owner is a legal person).

Who shall I contact

Offer of sale to the tenant

The leave to sell is an offer of sale to the tenant. The tenant may be the purchaser of the dwelling.

Tenant's right of first refusal

The tenant benefits from a right of first refusal. It takes precedence over other buyers to buy the house.

If there are several tenants, everyone has a right of first refusal.

But the tenant's right of first refusal does not apply where close relative up to and including 3rd degree of the owner shall be the purchaser of the dwelling, to live in it (principal residence) for at least 2 years after the end of the notice.

Acceptance of the offer to sell

The offer of sale to the tenant is valid for the first 2 months of the notice.

If the tenant accepts the sale, he must:

  • inform the owner by registered letter with notice of receipt, at the latest within the first 2 months of the legal notice of the owner
  • indicate whether he will apply for a mortgage, if so.

If the tenant accepts the offer to sell the house within the set time, any promise of sale signed by the owner and another buyer is canceled.

From the date of sending his reply to the owner, the tenant has a period of 2 months to sign the bill of sale. If the tenant applies for a real estate loan, the time allowed to sign the bill of sale is 4 months.

The period of notice shall be extended until the expiry of the period for completion of the sale.

Refusal of the offer to sell

The tenant refuses the offer of sale in the following cases:

  • He sends a refusal to the owner
  • It does not respond to the owner within the first 2 months of the notice
  • He makes a counter-proposal that the owner refuses

Consequently, the tenant must leave the premises at the latest on the last day of notice.

However, he can leave the premises at any time during the period of notice, he is then only obliged to pay the rent and charges until the date of delivery of the keys to the owner.

The landlord may offer the unit for sale, even if it is inhabited by a tenant.

The tenant can buy the house, but they don't have priority to do it. He has no right of first refusal, except in certain situations (e.g. sale of the building).

When the unit is sold to a new owner:

  • The new owner must inform the tenant of his contact details
  • The tenant stays in the premises and sees his lease continue under the same conditions with this new owner. In particular, the new owner will have to return the security deposit if the lease ends.
  • The guarantor shall not be released from his obligation unless otherwise stipulated in the guarantee document.

When the new owner wants to live in the home or sell it in turn, he or she may have to comply with a specific period before granting leave (notice) to the incumbent.

Video: Does your landlord have to offer you the purchase of the house​ in case of sale?

Vidéo - Sale of a rented accommodation - is your landlord obliged to offer it to you for purchase: received idea
Credits : Public Service (DILA)

Conversation with friends, via SMS:

I just saw your ad for the sale of your apartment

But what? My lease isn't over! I don't know!

But yes, of course! Your landlord must offer to buy it before you sell it

Received wisdom: is your landlord obliged to offer you the purchase of the house in case of sale?

No, your landlord doesn't always have to offer you the purchase of his home. He can sell his rented accommodation to whomever he wants, without informing you, as long as he sells it rented.

They only need to notify you so that they can show potential buyers around the property. This right of visit is limited to 2 hours a day, except on Sundays and public holidays (no visits on those days).

Once the property is sold, your rental contract will automatically be transferred to the new owner. He will not be able to change your contract without your consent. However, if he wants to sell his accommodation free of any occupation, you will have to receive his letter of leave at least 6 months before the end of your lease. Among other things, the owner must tell you the price and conditions of the sale because you have priority over the purchase. You then have 2 months to give your decision. If you refuse the purchase, you will have to vacate the accommodation no later than the end date of your lease without having to give notice.

Furnished

The landlord may choose to sell the property after the tenant has permanently left the premises.

Give the tenant leave

To do this, the owner must to grant leave (notice) to the tenant for the end of the lease. But the owner may be prevented from doing so, when the tenant is protected (depending on the age and resources of the tenant).

Please note

the owner of a rented accommodation with a mobility lease does not need to give the tenant leave (notice) for the end of the lease.

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General case

The leave letter must indicate the reason for the leave (leave to sell). It must reach the tenant at least 3 months before the end of the lease. The tenant will then have to leave the accommodation and return the keys to the owner at the latest at the end of the lease.

Warning  

the owner must comply with the rules relating to leave to sell (content of the letter, period of notice...). Otherwise, the tenant can challenge the leave before the judge.

Protected tenant (under 65 years)

The tenant under 65 (at the end of the lease) is protected if he meets the following 2 conditions:

  • He is dependent on a person over the age of 65 (at the end of the lease)
  • The cumulative amount of resources (as of the date of receipt of the letter of leave) of all persons living in the dwelling is less than the following:
Tableau - 2021 revenue not to be exceeded - lease concluded in 2023

Number of persons

Types of people

Île-de-France

Other region

Paris or the city bordering Paris

Other municipality

1

1 person alone

€25,165

€25,165

€21,878

1 single person with mobility card disability inclusion

€37,611

€37,611

€29,217

2

2 people

€37,611

€37,611

€29,217

Special situation:

  • Young couple
  • 2 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 1 dependent
  • €49,303

    €45,210

    €35,135

    3

    3 people

    €49,303

    €45,210

    €35,135

    Special situation:

  • 3 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 2 dependants
  • €58,865

    €54,154

    €42,417

    4

    4 people

    €58,865

    €54,154

    €42,417

    Special situation:

  • 4 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 3 dependants
  • €70,036

    €64,108

    €49,898

    5

    5 people

    €70,036

    €64,108

    €49,898

    Special situation:

  • 1 person with 4 dependants
  • 5 persons of which at least 1 has the mobility card disability inclusion
  • €78,809

    €72,142

    €56,236

    6 and above

    6 people

    €78,809

    €72,142

    €56,236

    Per additional person

    + €8,782

    + €8,038

    + €6,273

    Reminder

    The municipalities bordering Paris are: Aubervilliers, Bagnolet, Boulogne-Billancourt, Charenton-le-Pont, Clichy, Fontenay-sous-Bois, Gentilly, Issy-les-Moulineaux, Ivry-sur-Seine, Joinville-le-Pont, Le Kremlin-Bicêtre, Les Lilas, Le Pré-Saint-Gervais, Levallois-Perret, Malakoff, Montreuil, Montrouge, Neuilly-sur-Seine, Nogent-sur-Marne, Pantin, Puteaux, Cloud, Saint-Denis, Saint-Mandé, Saint-Maurice, Saint-Ouen, Suresnes, Vanves, Vincennes

    If this is the case, the lease renewal is automatic, unless the owner is in one of the following cases:

    • He is over 65 years old (at the end of the lease)
    • He has resources (on the date the tenant takes possession of the letter of leave) less than the same maximum amount
    • It offers the tenant, during the period of notice, an alternative accommodation corresponding to his needs and possibilities, and located nearby.
      If the municipality is divided into arrondissements, the new dwelling must be situated in the same arrondissement or in the neighboring arrondissements or in the neighboring communes of the borough.
      If the commune is divided into cantons, the new dwelling must be located in the same canton, or in a neighboring canton belonging to the same commune or to another commune divided into cantons.
      In other cases, the new dwelling must be within a radius of 5 km.

    Protected tenant (over 65 years)

    The tenant over 65 years of age (at the end of the lease) is protected if his resources (at the date of notification) are less than the following:

    Tableau - 2021 revenue not to be exceeded - lease concluded in 2023

    Number of persons

    Types of people

    Île-de-France

    Other region

    Paris or the city bordering Paris

    Other municipality

    1

    1 person alone

    €25,165

    €25,165

    €21,878

    1 single person with mobility card disability inclusion

    €37,611

    €37,611

    €29,217

    2

    2 people

    €37,611

    €37,611

    €29,217

    Special situation:

  • Young couple
  • 2 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 1 dependent
  • €49,303

    €45,210

    €35,135

    3

    3 people

    €49,303

    €45,210

    €35,135

    Special situation:

  • 3 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 2 dependants
  • €58,865

    €54,154

    €42,417

    4

    4 people

    €58,865

    €54,154

    €42,417

    Special situation:

  • 4 persons of which at least 1 has the mobility card disability inclusion
  • 1 person alone with 3 dependants
  • €70,036

    €64,108

    €49,898

    5

    5 people

    €70,036

    €64,108

    €49,898

    Special situation:

  • 1 person with 4 dependants
  • 5 persons of which at least 1 has the mobility card disability inclusion
  • €78,809

    €72,142

    €56,236

    6 and above

    6 people

    €78,809

    €72,142

    €56,236

    Per additional person

    + €8,782

    + €8,038

    + €6,273

    Reminder

    The municipalities bordering Paris are: Aubervilliers, Bagnolet, Boulogne-Billancourt, Charenton-le-Pont, Clichy, Fontenay-sous-Bois, Gentilly, Issy-les-Moulineaux, Ivry-sur-Seine, Joinville-le-Pont, Le Kremlin-Bicêtre, Les Lilas, Le Pré-Saint-Gervais, Levallois-Perret, Malakoff, Montreuil, Montrouge, Neuilly-sur-Seine, Nogent-sur-Marne, Pantin, Puteaux, Cloud, Saint-Denis, Saint-Mandé, Saint-Maurice, Saint-Ouen, Suresnes, Vanves, Vincennes

    If this is the case, the lease renewal is automatic, unless the owner is in one of the following cases:

    • He is over 65 years old (at the end of the lease)
    • He has resources (on the date the tenant takes possession of the letter of leave) less than the same maximum amounts
    • It offers the tenant an alternative accommodation corresponding to his needs and possibilities and located nearby.
      If the municipality is divided into arrondissements, the new dwelling must be situated in the same arrondissement or in the neighboring arrondissements or in the neighboring communes of the borough.
      If the commune is divided into cantons, the new dwelling must be located in the same canton, or in a neighboring canton belonging to the same commune or to another commune divided into cantons.
      In other cases, the new dwelling must be within a radius of 5 km.
    In case of fraudulent leave

    The landlord must respect the reason for which he gave the tenant leave. If he doesn't, he gave a fraudulent leave to the tenant.

    The tenant can challenge the reason for the leave (notice) given by the owner.

    To do so, it must have proof that the owner did not intend to sell the housing (for example, the sale price of the housing is excessive).

    He must then refer the protection of the court on which the dwelling depends to the litigation judge. He must ask the judge to award him damages for the damage suffered.

    The judge may also order the owner to pay a criminal fine of €6,000 maximum (€30,000 maximum when owner is a legal person).

    Who shall I contact

    The owner of a furnished rented dwelling can sell the dwelling, even if it is inhabited by a tenant.

    The rules differ depending on whether the accommodation is rented with a mobility lease.

    General case

    The tenant can buy the house he lives in, but he is not a priority to do so. He has no right of first refusal, except in certain situations (e.g. sale of the building).

    When the unit is sold to a new owner:

    • The new owner must inform the tenant of his contact details
    • The tenant stays in the premises and sees his lease continue under the same conditions with this new owner. In particular, the new owner will have to return the security deposit if the lease ends.
    • The guarantor shall not be released from his obligation unless otherwise stipulated in the guarantee document.
    Mobility lease

    If the owner sells the accommodation, or gives it away free of charge, during the mobility lease, the new owner must provide the following information to the tenant:

    • Its name or name
    • His domicile or registered office
    • Name and address of the real estate agency (if necessary)

    The tenant stays in the premises and sees his lease continue under the same conditions with this new owner.

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