Today is: 30 July 2010
Property law is a complex subject and you should always seek professional advice on the facts of any specific case. No liability is accepted in connection with this article.
France has been a long way behind the UK in providing property buyers with information about potential pollution, flooding and other natural risks associated with property purchases. This information is routinely obtained by conveyancing solicitors in England and is usually required before a bank will lend. However important changes took place on 1 st June 2006 when important legislation came into force in France which imposes two obligations on sellers of land and will inevitably have an impact on property prices.
The first is the obligation to inform the buyer if the land is within an area designated as subject to a plan for the prevention of natural or technological risks. The plans are or should be published on the internet sites of each prefecture. There is also a list of plans which are being considered but not yet approved. The obligation on the seller is just to state whether or not the property is within an area subject to such a plan. There is no obligation on the seller to give any further information though inevitably a buyer will seek to inspect the plans and this may result in a renegotiation of the price. The seller has no obligation to ensure that the information kept by the prefecture is correct. This is essentially an obligation of the French government.
At a practical level the plans do not necessarily contain the names of streets so comparison with, say, a map of the town and the prefecture's plan will be needed to decide if the property is within a specified area. In practice this role will be assumed by the notaire who is under an obligation to put appropriate wording in the contract clearly stating that the property is within the boundary map of such a plan.
The second obligation is a put on the seller. The seller is obliged to inform the buyer if the property has been subject to any damage resulting from a natural or technological risk which has given rise to an insurance claim. This is limited to the period during which the seller was the owner of the property.
Failure to comply with the above has fairly drastic consequences. The buyer has the right either to rescind i.e. have the sale declared null and void and recover the price or ask the court for a price reduction. The buyer does not have to show that he has suffered any damage. This looks like a future bonanza for property litigation lawyers.
June 2006