Renting agreement : the advantages of a notarised lease

A real estate lease or a residential lease is a contract between a tenant and a landlord. The tenant is called "lessee" and the owner is said "lessor".

Different forms of lease agreement

In France there are two types of contracts:

Private contract

Private contract is written and signed by private individuals.

Notarised lease

The notarised lease an authentic deed, drawn up and signed by the notary and the parties. The lease contains the obligation to pay rent, the notary will issue the landlord a binding copy. The latter will allow him to obtain the forced execution of the tenant's commitment, in the same way as if it were a court decision. The rental agreement will thus be able to be executed, in all conditions, without the need for a court order. The unpaid owner will send the executory copy to the bailiff of his choice for prosecution and recovery.

Why choose the notarial lease agreement?

In the interest of both the lessor and tenant, and to ensure their respective security, all leases should be drawn up as notarised deed, the tenant benefitting from all the guarantees the notaire’s jurisdiction and the authentic instrument provide. With an authentic instrument, there is no danger of the tenant signing a lease that does not include all the guarantees the law offers. The sums the tenant has paid and those he has agreed to pay will be the correct amount and cannot be disputed by the owner.

Furthermore, each type of lease is currently governed by many compulsory legislative and regulatory texts. Certain failings are punishable by law and owners are increasingly being held liable.

Owners are sometimes held liable over public health issues. Situations can take a turn for the worst if the owner has overlooked a material obligation . Are you sure you know all the compulsory regulations that apply when you rent out a residential property: the notion of decent housing, minimum surface area and volume, lead, asbestos, etc.?

When you are about to sign a lease of accomodation, always remember the authentic deed . It is also apply for commercial lease, rural lease, professional lease.

Rent amount and rent review

In addition, the determination of rent is now the subject of several legal or regulatory provisions that must be followed.

During the formation of the lease :

If the unit is located in a common-called tense areas, the proposed initial rent for a new tenant must be (with exceptions) the same as that applied to the previous tenant. An increase is possible within the limits of the variation in the benchmark index of rents (IRL) only if it has not been applied in the last 12 months.

During the lease

Exceptions (especially in cases of manifestly undervalued rent), the annual increase of rent (the date agreed between the parties or, failing that, on the anniversary date of the lease) is possible only if it is expressly provided for in the lease.

It can not be greater than the change in the rent reference index (IRL), published quarterly by INSEE. This index is the average over the past twelve months, the evolution of consumer prices, excluding tobacco and rents.

Since March 27, 2014, the landlord must demonstrate its commitment to implement the review. It has a period of one year from the date to make a request. After this time, the revision of the rent for the past year is not possible.

The deposit

The landlord may require a deposit . When paid on entering the premises, the amount must be included in the lease and may not exceed 1 month of rent excluding charges for a bare (unfurnished) rental as a principal residence. In the case of rent furnished as a principal residence, the security deposit can not exceed 2 months of rent excluding charges. No security deposit may be requested if the rent is payable in advance for more than two months period.

The deposit can be financed by a third party such as a body of 1% housing. In this case, the sum is advanced as a loan and the tenant then reimburse, without interest, in 36 monthly maximum. This aid is for leases of private or social sectors. 

With VISALE system, no need to deposit!

Visale is a totally free online service:

For tenants seeking a guarantee :

  • it is open to employees of more than 30 years regardless of their employment contract (not confirmed CDI) entering a rental unit private park within six months of hire;
  • employees under 30 years regardless of their employment contract for a lease beginning in the year after taking office;
  • households together as part of a rental intermediation;
  • and to all young people under 30 seeking to accommodate (younger workers, self-employed, unemployed or students with the exception of non-scholarship students linked to the taxpayer of their parents).

For lessors looking to secure their rental income with ease

  • Visale guarantees to lessors of private park payment of unpaid rent during the first 3 years of the lease (within a certain sum fixed by the housing situation).

The tenant protection

Since the ALUR law, but also with MACRON law, tenants have seen their better protection, especially in case of leave granted by the lessor who must now justify in writing the serious and valid reasons that push to break the contract, or yet its decision to resume housing, or sell it.

Similarly, the conditions under which an owner who is purchasing an occupied dwelling may give notice to his tenant have changed. Thus, if the term of the current lease comes less than three years after the acquisition date, the lessor may give notice to the tenant for sale at the end of the first automatic renewal or renewal of the contract current rent (however, if the term occurs more than 3 years after the date of acquisition, leave for sale can be given to the term of the lease in progress). If there is a holiday for recovery and that the term of the current lease comes less than two years after the acquisition, the leave given by the lessor at the end of the current lease will take effect 2 years of the acquisition.