Quick Law Proposed for Expedited Successions and Unhindered Inherited Property Sales
Homes Sitting Vacant Due to Endless Successoral Divisibility: A French Dilemma
Byline: Christine Lejoux, Lead Real Estate Specialist
Thursday, March 6, 20XX
Last Modified: Tuesday, March 11, 20XX
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Agree, Disagree, or Disappear: The Challenges of Successoral Divisibility
Obstacles such as nostalgia, hefty property taxes, and costly co-ownership fees made Catherine and Isabelledecide to sell their inherited family apartment. However, for many French families, resolving successoral divisibility proves to be a Mt. Everest-sized challenge. This can be particularly true when properties are inherited by numerous co-owners. Unanimous consent among co-owners is essential before making decisions like selling, renovating, or renting these homes.
Disagreements and missing co-owners often extend the succession procedures for years, even decades—leaving co-owners unable to capitalize on the sale of their properties or income from rentals. Consequently, potential buyers or tenants are left waiting as properties remain vacant. Regrettably, this vaccantization of properties has increased by 60% in France over the past 30 years, with 3.1 million vacant units now representing 8% of the nation's total housing supply, as reported by INSEE.
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Lowering the Barriers of Successoral Divisibility
It's baffling that while 4.1 million French citizens are struggling with inadequate housing, thousands of properties stand vacant due to family disagreements. Minister of Housing, Valérie Léttard, recently stated, "In the face of our housing supply crisis, we cannot afford to overlook the potential of thousands of vacant properties due to lack of agreement among their inherited co-owners".
To alleviate this issue, Democratic deputies Louise Morel and Nicolas Turquois presented a proposal for a law designed to simplify the process of exiting successoral divisibility. The law, which has been passed by the National Assembly, proposes to create an abandoned properties database and modify Article 815-5-1 of the Civil Code. If disputes over property ownership arisefor successoral divisibility, the new law would allow the property to be sold to a majority of half the divisible rights instead of the previously required two-thirds.
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Testing the Alsatian-Moselle Law in More Departments
In addition, the proposed law grants departments the option to experiment with the Alsace-Moselle customary law regime for judicial partition. Unlike the general law, the local Alsace-Moselle law streamlines the resolution process for disputed successional divisions by fostering mediation and conciliation among notaries. This less costly and speedier method could alleviate legal fees and delays, offering welcome relief to partition-weary families.
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- As Catherine and Isabella chose to sell their inherited family apartment due to successoral divisibility challenges, many French families struggle with this issue, particularly when properties are inherited by numerous heirs.
- Delays in succession procedures caused by disagreements and missing heirs can extend for years, hindering the sale of properties and denying potential buyers or tenants, resulting in an increase of vacant apartments by 60% in France over the past 30 years.
- In light of the housing supply crisis, the French Minister of Housing, Valérie Léttard, emphasized the need to utilize thousands of vacant properties blocked by family disagreements for sale.
- To address this issue, a proposed law by Democratic deputies Louise Morel and Nicolas Turquois aims to simplify the process of exiting successoral divisibility, allowing for the sale of properties to a majority of half the divisible rights instead of the previously required two-thirds.
- The proposed law also enables departments to experiment with the Alsace-Moselle customary law regime, offering a less costly and speedier method for resolving disputed successional divisions through mediation and conciliation, potentially alleviating legal fees and delays for partition-weary families.
