French lawyer and Solicitor  CordiezSolicitors

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Leaseback issues

      What to do first










Commandement de payer



French leaseback problems? - What should be done first. rent french france lease solicitor reclaim leaseback lawyer

How to start claiming unpaid rents and charges?

Has your management company stopped paying you rent? If so there are some things you should do. You can issue a "commandement de payer" to the management company. This is a process we will manage on your behalf. If the management company does not pay you what is owed to you within 1 month after receipt of the "commandement" then you are legally entitled to ask a judge to enter judgment against the leaseback company and also break the lease.

If the management company pays what they owe you and is late with the next rent payment then you may have to issue another commandement. But there have been cases where a judge has ruled that management company behaviour of this nature is in breach of the contract and so the lease agreement has been broken. 

You have the choice to apply  to the Judge to break the lease or not. Where the lease is rescinded by the Court, you will not have to pay an indemnity to the management company and cancellation of the lease makes your leaseback revert to a standard property.

You have to consider the implications of making your leaseback a normal property. In theory it makes its value significantly higher because it is no longer attached to a commercial lease where the market price relates to the current rent. But there may not be a strong buyer's market for your property in these difficult economic times. So if you are dependent on rent you need to know if there is a good rental market and of course is it practical to do it? You will find that in many cases there are individuals or companies in the area where your property is who can hold keys and clean. There are also often websites and local marketing companies where you can advertise your property. There are however serious potenial tax implications to consider if you want to exit a French leaseback scheme.

We charge a fixed fee for issuing a 'commandement de payer' through a local bailiff. There will also be the bailiff's cost ranging from approximately €125 to €200, but that is in principle recoverable from the leaseback company. The 'commandement' will cover both your outstanding rent and the bailiff's fees.

Contact us for further details



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