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'LE
PRÊT À USAGE'
This
issue of the week looks at a possible arrangement for land owned in
France
. Purchasers
of French property often select properties in the countryside with land
and it can be advantageous for them to have the land looked after in their
absence or simply should there be too much.
However, there is always a concern about such arrangements,
particularly due to the law on rural leases which can severely restrict
and bind the owner of agricultural land.
The ‘prêt à usage’ is one method whereby an arrangement can
be established which caters for the desire to have the land looked after
whilst avoiding other related problems and constraints.
‘Prêt
à usage’ translates as ‘loan for use’ (the other term for it is ‘commodat’).
It is a contract whereby one party (the lender) puts property at
the disposal of another (the borrower) for free.
As a consequence of the lack of consideration (e.g. no payment of
whatever kind), articles 1875 and following of the Civil Code apply rather
than the law on rural leases.
Unlike
the rural lease, the time period for the loan is freely established.
To avoid dispute it is advisable to agree upon the length of the
lease and notice period. One
point of reference would be the period over which the land is cultivated
(generally speaking this runs from September to September but clearly
varies, mostly due to the weather). The
lender cannot recover the loaned property until the end of the agreed time
period.
The
borrower bears maintenance costs but not other charges (e.g. the land tax
remains payable by the lender).
The
borrower is legally obliged to return the property and the end of the loan
period and to look after it as a ‘good family man’.
As
with any such arrangement, it is advisable to agree upon the terms in
writing to avoid future disputes.
This
mechanism is ideal for a property owner who wishes for land to be used
(and thus looked after) but without wanting to run the risk of a rural
lease. In certain parts of
rural
France
,
many farmers are currently lacking good agricultural land so this is a way
of freeing up land whilst protecting the owner.
02/12/2004
- Issue of the week
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