Additional assistance with boilers, claims for drought damage: Five updates on real estate in France

Homeowners with oil-fired boilers can now receive an additional amount of up to1500 eurosto replace them with more environmentally friendly devices. This initiative, known as "Coup de boost fioul," was announced at the end of October and is valid until the end of June.2023This program covers the installation of heat pumps, biomass boilers, combined solar systems, or connections to heating systems that primarily operate on renewable or recovered energy sources. Funding is provided by the government and complements the existing "Coup de pouce chauffage" subsidy offered by energy companies as part of the energy savings certificate program in France (CEE).

All households with oil boilers can take advantage of the CEE scheme; however, the amount of the payment varies depending on the nature of the work performed and the income level of the owners. A higher bonus is provided for low-income households. The table below shows the threshold values for low-income households.2022 year, divided into the Île-de-France region and the rest of the country. If your annual income is below a certain threshold, you will be able to receive more assistance.

For the installation of biomass boilers, heat pumps, or combined solar systems, the government subsidy increases the total bonus:

• from4000to5000 eurosfor low-income households
• from2500to4000 eurosfor families with middle and high incomes

As for connecting to the heating system, the available assistance has also increased.

• from700to1000 eurosfor low-income households
• from450to900 eurosfor families with middle and high incomes

It should be noted that the new bonus is a temporary measure. The evaluation of any work must be signed byJune 30, 2023...and the work itself must be completed no later than...December 31, 2023Additionally, it is necessary to choose an energy company that participates in the Coup de pouce chauffage scheme and agree to the proposal from the supplier or their partner before signing the estimate for the work to be done. The work can only be carried out by professional specialists who hold the status of Reconnu garant de l’environnement (RGE). This status allows for the work to be conducted, keeping in mind that upon completion, homeowners must provide supporting documents to the energy company or its partner. Such documents may include invoices and a signed certificate confirming the completion of the work.

These subsidies can be combined with the MaPrimeRénov' grant, which is available to all homeowners in France who use their property as their primary residence, as well as landlords renting out properties as their main residence. The grant is also based on income level: the higher the family's income, the less assistance they receive; however, all households are entitled to some support. It should also be noted that the Ma Prime Rénov grant includes a bonus introduced earlier this year.1000 eurosfor replacing the boiler with oil or gas.

CJuly 1It has become impossible to install new oil-fired boilers in any French homes for environmental reasons.

Summer droughts can cause record damage to buildings. Insurance payouts for claims resulting from droughts this summer are expected to exceed initial estimates and set new records for natural disaster claims. The French insurance federation, France Assureurs, estimated on Monday (November 21) that the drought episodes in France will...in 2022can cost from1.9to2.8 billion eurosthat exceeds the more conservative previous estimate from1.6to2.4 billion eurosIf the damage does not fall below this amount, the payments for this drought will exceed the figures.2003 year, recording values in2.12 billion euros...which has become a record since the emergence of the "natural disaster" repository in...in 1982.

A "natural disaster" is an official status defined by local authorities in France. Its declaration requires insurance companies to make payments in the event of damage caused by unusual or severe weather events that are not covered by other provisions. The assessment provided by France Assureurs only considers damage in areas where the status of a natural disaster will be recognized and does not include damage to agricultural crops, which will be covered by separate insurance.

In July, we reported how thousands of homes in France could be left with serious structural cracks after the early summer heatwaves, as they are built on clay soil that shrinks during prolonged droughts.

The owner was forced to pay compensation to the real estate agent for independently posting an advertisement for the sale of his apartment after he granted the agent exclusive rights to sell. The court ruled that this person violated his contract by posting the advertisement on the website.four monthsafter transferring the right to sell their property to an agent, even though the property was not sold in that manner.

The court proceedings confirm that placing an advertisement is not equivalent to selling property, and the owner would have to pay and return the funds to the agent regardless of how the sale process was carried out. However, the Supreme Court (Cour de cassation) ruledNovember 16This question is not related to payment for a successful sale. The issue concerns the conditions for finding a buyer, which also implies a violation of the terms of the exclusive contract, even if the property was not sold. Thus, the plaintiff was obliged to pay the amount of the "penalty" stipulated in case of a breach of contract by one of the parties, which corresponded to the real estate agent's commission in the event of a successful sale.

The government supports tightening the law regarding the seizure of buildings. The resolutions for tripling the prison sentences and fines for occupiers are deemed "necessary" by the government. A new bill, which is set to be discussed in parliament next week, proposes increasing the penalties for building seizures.one year of imprisonmenttothreeand also the increase in fines from15,000 eurosto45,000 eurosThis will result in the measures provided for the invaders being equal to those that apply to property owners who evict them without police assistance, for example, by changing locks or cutting off electricity and water supply.

In addition to the invaders, the bill will also address tenants who do not pay rent, offeringsix months of imprisonmentand a fine in the amount of7500 eurosif they remain in the dwelling despite the court's decision. The period granted to the tenant by the judge during which they can legally stay in the premises may also be reduced from the maximum ofthree yearstoone yearGovernment representative Olivier Véran told France 2: "This is a good parliamentary project, and we will support it." "It is necessary to restore republican order, the law, and to protect tenants when they act within their rights," he added.

Nevertheless, organizations such as Droit au logement (DAL), Fondation Abbé-Pierre, Solidaires, and Attac, which advocate for the housing rights of vulnerable people, have opposed efforts to tighten existing legislation, condemning the "tendency to view squatters as criminals."

The developer has banned the rental of inexpensive real estate in new buildings. A developer in the southeast of France has prohibited future owners from renting out their homes to tourists through platforms like Airbnb. Benjamin Combe, the CEO of Primalp, a real estate development company in Annecy (Haute-Savoie), hopes that this decision will ensure year-round housing for local residents. In the Haute-Savoie region, there has been more than...3000Furnished apartments are offered on such websites. Combe reported that his decision is to prohibit short-term rentals in the co-ownership rules of his new project in the heart of Annecy, which is set to be completed inin the year 2025He acknowledges that this ban may be changed later by the co-owners at a general meeting, but believes that the current rules will help maintain this ban for a long time.

Other developers intend to continue applying this policy in other residential projects managed by their company. This could cover150 houses annuallyIn this department. However, not all of its properties will be subject to changes: "We will try not to apply this principle in resort areas, as it will be difficult to stop owners who have spent a lot of money on their apartments from renting them out later." Many other French cities in tourist areas are protesting against short-term rentals for tourists. For example, in Saint-Malo, the mayor recently introduced quotas on the number of permitted short-term rentals in different parts of the city.