OUR EXPERTISE
Real estate brokerage
Real estate brokerage for individuals
Real estate portage for individuals applies to owners of houses, apartments, or commercial premises. The principle is simple: the owner sells their property to an investor while remaining in their home, in exchange for an occupancy allowance. They then have up to 36 months to buy back their property.
This mechanism provides a solution to urgent situations, such as the need to repay debts or finance renovations. At the end of the contract, the owner has two options: to buy back the property and become the owner again, or to sell it permanently to another buyer in order to repay the amount owed.
Real estate portage for professionals, also known as acquisition portage, is often used by property dealers. In this case, an investor purchases the property on behalf of the dealer, who can then carry out renovation work or market the property without tying up their own capital. This mechanism offers great flexibility, with a period of 6 to 24 months to carry out the necessary work and resell the property. The dealer then pockets the difference between the initial purchase price and the resale price. This type of transaction allows for multiple projects without being limited by equity.
Due to the economic crisis and difficulties in the real estate market, real estate portage is becoming an increasingly popular solution. Owners in financial difficulty are looking to avoid foreclosure or repay debts, while investors see portage as an opportunity to invest with less risk.
Real estate portage offers numerous advantages for individuals and professionals :
- Quick sale without going through the lengthy process of a traditional sale.
- Possibility to remain in the property and occupy it during the portage period.
- Generation of immediate liquidity to deal with urgent situations.
For professionals, it is an effective method for increasing real estate transactions without tying up significant funds.
Real estate financing is also an alternative to mortgage loans, which can be difficult to obtain in difficult financial situations. Unlike bank loans, it does not require high financial guarantees and can be an ideal solution for those who do not have access to traditional financing solutions.
Carrying out a real estate portage requires an accurate assessment of the owner’s financial situation and the property for sale. To do this, it is essential to surround yourself with experts to ensure that the transaction is secure and beneficial in the long term.
Our team, which specializes in real estate portage, supports you every step of the way. We provide an accurate appraisal of your property and work with professional investors to offer you the best solution based on your needs.
Sale with valuation
Enhancement consists of carrying out actions on the property that are likely to increase its value. It may therefore be useful to assess the projected value of the property. The projected value is a future estimate of the resale value. It takes into account the improvements made during the enhancement process.
Property valuation represents a significant part of the property dealer’s business, who is constantly on the lookout for properties that no longer meet current standards or needs. Thanks to our expertise, we analyze these properties and present them to our clients.
A real estate dealer is a real estate professional whose job is to buy and sell different types of properties: apartments or houses with land, housing, building land, hotels. In the case of real estate dealers, valuation involves rethinking the property, carrying out compliance work on it before putting it back on the market to get the best price. With knowledge of real estate prices, their goal is to make a profit on the resale to cover all their operating costs and compensate themselves for their work.
To quickly resell real estate and generate capital gains, real estate investors turn to properties that need to be renovated or rebuilt.
There are several techniques for increasing property value. It is possible to use one or combine several :
- New construction
- Parcel division
- Creation of co-ownership
- Sale as is
- Light renovation
- Extension
Thanks to their specific analysis, these real estate professionals will rethink the property in question so that it corresponds to the existing market. As true experts in their field, property dealers optimize real estate.
Tax-free sale
Investing in new real estate to reduce your taxes
Investing to reduce your taxes is a way to put your savings to work while optimizing your tax situation. Over the years, lawmakers have created several tax measures to encourage investment, and not just in real estate. However, only real estate allows you to invest to reduce your taxes with regular income and visibility on returns. New real estate, in particular, offers many opportunities to invest in order to reduce taxes.
Because the construction sector is a powerful driver of economic activity. But also because new homes are more energy efficient than older ones. New construction therefore has the dual advantage of creating jobs and reducing energy consumption. Investors play a key role in the economy and benefit from incentives that allow them to save on taxes.
With the NPFR scheme, you can invest in a furnished rental property while benefiting from an attractive tax framework. You can choose between two tax regimes: on the one hand, the micro-BIC regime with its 50% allowance on rental income (with a minimum of €305) and, on the other hand, the actual regime. When you declare your rental income under the actual regime, you can deduct all of your expenses, which is a tax-efficient option if you estimate that your expenses exceed half of your rental income.
In addition, you can apply depreciation under the NPFR regime. This accounting technique allows you to deduct a portion of the property’s price (and the furniture it contains) each year.
This is also referred to as traditional NPFR or non-managed NPFR. This type of investment involves an investor purchasing a property themselves, furnishing it, and then renting it out through a furnished residential lease.
This scheme corresponds to investment in serviced residences. It gives you the opportunity to purchase a property in a senior residence or student residence. You then sign a commercial lease with a professional operator, who sublets the property to the relevant public. Say goodbye to management worries! Tenant move-in and move-out formalities, rent collection, minor repairs: you don’t have to deal with any of it. The icing on the cake: your rent is guaranteed for the entire duration of the lease, making this type of real estate investment an ideal source of additional income, especially for retirement.
Life annuity sale
Life annuity: how does it work ?
Are you looking to sell or purchase real estate? Have you considered a life annuity sale? Depending on your situation, this type of real estate transaction, with its very specific terms and conditions, may offer certain advantages. What are they? How does this type of transaction work? We have the answers.
A life annuity involves selling a property to a third party in exchange for periodic payments (monthly, quarterly, or annually). These payments may be accompanied by a lump sum, i.e., a sum of money paid in cash at the time the deed of sale is signed.
There are two types of life annuity sales:
- The occupied life annuity: the seller transfers ownership of the property to the buyer but retains the right to use and occupy it. They can therefore continue to live there until their death.
- Free life annuity: the seller transfers ownership of the property to the buyer, who can occupy or rent it as soon as the deed of sale is signed, without having to wait for the seller to die.
The amount of the life annuity is set in the deed of sale and must take several factors into account :
- The property’s land value
- The seller’s age and life expectancy
- Whether or not a lump sum payment is made and its amount
- Whether the property sold under a life annuity is vacant or occupied
Furthermore, a property sold under a life annuity agreement with right of occupancy necessarily incurs a discount on its land value in order to compensate for the loss of right of use and occupancy suffered by the purchaser, which lasts until the death of the seller.
The seller of a property under a life annuity agreement receives a lifetime annuity starting from the date the deed of sale is signed. In addition, life annuities enjoy favorable tax treatment. Although subject to income tax, life annuities benefit from a tax allowance, the amount of which varies according to the age of the seller at the time of the first annuity payment.
Thus, only a fraction of the life annuity is taxed, according to the following terms :
- 70% for a first payment under the age of 50
- 50% for a first payment between the ages of 50 and 59
- 40% for a first payment between the ages of 60 and 69
- 30% for a first payment over the age of 69
The lump sum is exempt from tax.
For the buyer, the advantage of a life annuity is that it allows them to spread their payments over time thanks to the life annuity. It works in a similar way to a loan, except that the buyer owes the seller rather than a bank, and therefore there are no associated costs.
However, as the life annuity is subject to the uncertainty of the seller’s date of death, there is no way of predicting whether it will be a good financial deal. In summary, a life annuity can potentially offer the advantage of acquiring a property at a price below its real value, just as it can lead to buying the property at a higher price.
The distribution of housing maintenance costs and taxes between the seller and the buyer is generally defined in the deed of sale.
In the case of an occupied life annuity, if no specific provisions are made, the seller, when retaining the usufruct, is responsible for the day-to-day maintenance of the property, energy bills, property tax, and garbage collection tax. Major repairs are the responsibility of the buyer.
In the case of an unoccupied life annuity, the seller is exempt from all charges and the buyer assumes all costs (taxes, routine maintenance, repairs, etc.).
It is essential to seek the assistance of a notary when selling or purchasing a property under a life annuity agreement. The deed of sale must be signed in the presence of a notary.
The notary will also be able to advise you on determining the amount of the lump sum and the annuity, without precluding negotiation between the seller and buyer on this subject.
Sale of bare ownership
How and why invest in bare ownership ?
Investing in bare ownership can be an attractive option, particularly for those with significant assets and taxpayers who need to reduce their tax liability.
There are many reasons to invest in bare ownership :
- The division of ownership offers, first and foremost, the opportunity to make a
“good deal” on real estate in most cases. Purchasing bare ownership allows you to acquire a property at a price below its market value. The discount on the price of the property can be as much as 30 to 50% of the property’s value. However, in order to determine whether the discount is sufficiently attractive, it is necessary to have a good understanding of the local real estate market and current prices. - Compared to a traditional real estate purchase, investing in bare ownership allows you to limit the amount of expenses. As a reminder, it is the usufructuary who is responsible for paying for routine maintenance work. The usufructuary must also pay property tax for the entire duration of the bare ownership, provided that this has been agreed in advance by the parties. In terms of expenses, the bare owner can also expect savings on management and property management fees.
- In addition, purchasing bare ownership offers tax advantages. The bare owner does not have to pay income tax or real estate wealth tax (IFI) on their real estate investment. Another notable tax advantage of bare ownership is that, in the event of resale, it is the value of the property in full ownership at the time of purchase that will be taken into account, rather than the discounted amount paid by the bare owner.
- Buying bare ownership is also very secure. The application of a tax scale makes it possible to regulate the conditions of entry. The risk of capital loss on resale is limited due to the discount applied to the price of the property at the time of purchase.
- Finally, purchasing bare ownership allows you to benefit from reduced notary fees. Acquisition costs are calculated based on the value of the bare ownership and therefore do not apply to the total value of the property.
Full ownership consists of, on the one hand, usufruct and, on the other hand, bare ownership.
The term “usufruct” is derived from Latin and comes from the contraction of ‘usus’ and “fructus.” Usus refers to use, i.e. the right to use the property. Use can therefore correspond to the right to live in the property. Fructus, on the other hand, is defined as fruit. When we talk about dismemberment of property, fructus therefore corresponds to the possibility for the usufructuary to derive rental income from the property in question.
The term “bare ownership” is more transparent. Strictly speaking, it refers to the “bare” ownership of a property, in other words, without the right to use it or derive income from it. In short, if you are the bare owner of a house, it means that you only own the walls of the house.
This division of ownership rights between two separate parties—the usufructuary and the bare owner—raises the question of how costs and responsibilities are allocated. Fortunately, the law has established rules for this allocation. It is therefore considered that routine maintenance work on the property is the responsibility of the usufructuary. This principle applies to all types of maintenance work, whether it concerns common or private areas. On the other hand, major works are the responsibility of the bare owner and are listed in detail in Article 606 of the Civil Code.
This includes repairs to :
- Load-bearing walls and vaults.
- The restoration of beams and roofing.
- The repair of dykes, retaining walls, and fences.
It should be noted that there is, however, one exception to this principle: major repairs affecting the structure of the building may be charged to the usufructuary by agreement between the two parties. An agreement is signed between the bare owner and the usufructuary. If the bare owner is responsible for major repairs, as provided for in the Civil Code, they may deduct these expenses from their other property income.
The bare owner can sell their ownership rights without selling the right to use the property (the usufruct). To sell the property, it is therefore necessary to obtain the agreement of the usufructuary. However, the bare owner cannot occupy the property or derive rental income from it.
In principle, usufruct is temporary. The bare owner is therefore entitled to become the full owner at the end of the usufruct. In the context of a bare ownership investment, the temporary investment period ranges from 5 to 20 years.
The bare owner regains full ownership of their property when the usufruct comes to an end, either due to death or the expiry of the dismemberment contract.
Buyout of joint ownership
Quickly exit joint ownership by selling your shares
Quickly exit joint ownership by selling your shares
Joint ownership is not always a choice. When it is imposed, relationships between members can become so complicated that the property becomes a major point of conflict. Even though the law allows any joint owner to exit joint ownership, this sometimes requires a lengthy legal process.
Thanks to a network of partners who provide the expertise and legal certainty required for professional investors to make acquisitions, and thanks to a resolutely human approach based on dialogue with the various parties involved, we offer you a reliable solution for joint ownership :
- Do you share joint ownership of property with your siblings ?
- Do you hold a minority stake and want to exit a joint ownership arrangement where you have no control over decisions ?
- Are you no longer getting along with the other co-owners ?
- A co-owner is blocking the sale of the property and you want to move out quickly ?
Contact our team to find out more and start the buyback process.
«No one can be forced to remain in joint ownership.» Thus, in the event of a dispute between co-owners, the party wishing to sell the property may exercise this right. Sometimes at the cost of lengthy legal proceedings.
Joint ownership is the legal situation in which several people jointly own the same property. Joint ownership may be voluntary, in the case of the acquisition of property between cohabiting partners or civil partners, or involuntary, in the case of inheritance or the dissolution of a marital community at the time of divorce.
What does the law say about joint ownership?
Prior to the law of June 23, 2006, any decision concerning jointly owned property had to be taken unanimously by the co-owners. Since then, the law has made it easier to manage joint ownership, as it distinguishes between three rules depending on the type of action concerned :
- Conservative measures intended to maintain the property in good condition (e.g., roof repairs): each co-owner may act without having to seek the consent of the others, which is not the case when it comes to terminating joint ownership.
- Acts of administration and day-to-day management (e.g., the sale of everyday furniture): these acts require a two-thirds majority of undivided rights.
- Acts of disposal that alter the composition of the estate (e.g., the sale of an asset): these acts require unanimity.
To sell a property, therefore, unanimous agreement among the co-owners is required. Nevertheless, Article 815 of the Civil Code stipulates that « No one may be compelled to remain in joint ownership, and partition may always be sought, unless it has been suspended by judgment or agreement. »
Thus, at any time, a co-owner may decide to withdraw from joint ownership. Three possibilities may be considered in this context :
- The sale of his shares to another co-owner
- The sale of the entire property, with some of the other co-owners also wishing to exit the joint ownership arrangement.
- The sale of its shares to a third party
The first solution is obviously the simplest.
Unfortunately, family conflicts and resentment too often lead some of the co-owners to oppose the sale of the property.
Since the law simplifying the law of May 12, 2009, No. 2009-526, if the persons who have chosen to exit joint ownership by selling the property represent at least two-thirds of the undivided rights, the sale may be authorized.
After verifying that the request is admissible, the notary will initiate the sale procedure and inform the other co-owners, through a bailiff, of the common desire of certain co-owners (two-thirds of the shares) to sell the property. The other owners may then adopt one of two attitudes in response to this information :
- Notify their acceptance within three months. The sale may then proceed, in which case those who wish to do so may withdraw from joint ownership as soon as the transaction is completed.
- Refuse or fail to respond (which is equivalent to a refusal within three months).
In the event of refusal, the notary will record this in a “report of difficulties.” After mediation, and if this fails, the co-owners wishing to sell will then have to apply to the District Court (TGI) in order to proceed with the auction sale.
This is a lengthy and costly procedure. Between the notary’s involvement and the court proceedings, it can take several years.
Sale of undivided shares to a third party
According to Article 815-14 of the Civil Code, the sale of undivided shares to a third party is possible: “A co-owner who intends to sell, for consideration, all or part of their rights in the undivided property or in one or more of these properties to a person outside the co-ownership is required to notify the other co-owners by extrajudicial act of the price and conditions of the proposed sale, as well as the name, domicile, and profession of the person who intends to purchase. Any co-owner may, within one month of this notification, inform the transferor, by extrajudicial document, that they are exercising a right of preemption at the price and conditions notified to them.”
Thus, before leaving a joint ownership by selling your shares to a third party, the law requires you to inform the other owners, as they have priority over the purchase of the property. This is known as the right of first refusal.
If a co-owner is interested in buying the shares, they have one month to notify you through a bailiff. The deed of sale must then be signed within two months. After this period, if nothing has happened, the co-owner must be given formal notice to sign the sale.
If this formal notice remains without effect after 15 days, the co-owner may freely sell their shares to the buyer of their choice.