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This ruling from the French Supreme Court holds that Article L. 321-2 of the Tourism Code is not contrary to the Constitution.
It provides that:
"The operator of a classified tourist residence must maintain separate operating accounts for each leaseback resort. It must communicate such accounts to the owners who so request. Once a year, it is required to communicate to all owners a balance sheet for the past year, specifying the occupancy rates obtained, the significant events of the year and the amount and development of the main items of expenditure and income of the leaseback.''
Failure to comply with the obligations laid down in Article L. 232-21 to L. 232-23 is sentenced by a fine of the fifth class (1,500 Euro). In the event of a second or subsequent offence, the penalty applicable shall be 3,000 Euro. Court of Cassation, Civil Chamber 3, February 28, 2017
This is very interesting as we are now at the point of lease renewal with our operator Vacances Bleues for a development in Divonne-les-Bains. They are offering decreases of between 10% (French owners) to 30% (foreign owners). As the turnover is now national we can not have certified figures at Divonne level.
Wow Bez! Is this true? How on earth can this not be in contravention of EU law relating to discrimination?
Yes and they also have cancelled leases for others like some UK owners.
Hi Iain,
The difficulty would be in proving that Vacances Bleues have offered differing terms on the basis of nationality, it does seem beyond coincidental but I'm not sure that's a legal argument!
Whilst discriminating on basis of nationality may appear illegal I have previously heard that discriminating on basis of tax residence is not.
That is, a French person living permanently and paying tax in U.K. could legally be treated in a different manner from a French -or Brit - living and paying tax in France. Still seems weird though . Maybe its a way the company can get a big reduction from those least likely to cause trouble-those living abroad and not speaking French, whilst asking for a small reduction from local owners.
Also the difference in treatment may not be based on nationality if ,as in the case of my property, the first batch of sales was sold in UK/Ireland and the second phase was sold on the local market. I gather that the contracts and conditions of the first fifty owners in my complex differ from those of later purchasers who were all living in France, including a coupleof non-French). Possibly, when the developers sold as many apts as possible at rip-off prices on the foreign market then the remainder went cheaper or with better conditions to the locals.
@M Cordiez
the information you've provided is very interesting. It suggests to me that the French authorities realise that they need to regulate this market. However, it seems to me that they are not changing anything useful.
The advice from lawyers is that failure to provide these accounts and information is not grounds for eviction, nor for removal of eviction compensation at the end of a lease if not renewed.
Failure to comply with the obligations laid down in Article L. 232-21 to L. 232-23 is sentenced by a fine of the fifth class (1,500 Euro). In the event of a second or subsequent offence, the penalty applicable shall be 3,000 Euro. Court of Cassation, Civil Chamber 3, February 28, 2017
Can I ask how is this law enforced ?
Is it enforced ?
Can an owner make a complaint about an operator, who fails in this legal obligation, to somewhere eg. DGCCRF ?
What can an owner do, must he go to an avocat and pay for legal action so that the operator behaves, presuming that the owner does not get his money back
In short is this law of any use to an owner ?
many thanks !
Like most French law this is pathetic, €1,500 and €3,000 are minute sums of money, they need to be €150K and €300K before they might ahve an effect. These scammers are screwing almost €1500 per month from some owners and this is meaningless. You will get nothing from French law as it is heavily favoured towards fraudulent management companies. You have to honour your lease but they don't. The only way owners will get fairness is if Europe steps in because you will get nothing from the French.
Never a truer word spoken