Transfer of Property Act at French Polynesia (France)
In French Polynesia, which is an overseas collectivity of France, the transfer of property is governed by French law, as it is an integral part of the French legal system. As such, the French Civil Code (Code civil français) applies in French Polynesia, including its provisions on property transfer, both movable and immovable.
Here’s an overview of how property transfers are generally handled in French Polynesia:
1. Legal Framework: French Civil Code
The French Civil Code is the primary body of law governing property transactions in French Polynesia. It includes provisions for the acquisition, sale, and transfer of both movable and immovable property. The relevant sections for property transfers are:
Articles 711-717: Deals with the general concepts of ownership and transfer of property.
Article 1582: Defines the contract of sale.
Articles 528-550: Deals with the transfer of immovable property, including requirements for notarial acts and registration.
2. Transfer of Movable Property
Delivery and Agreement: For movable property (e.g., vehicles, personal belongings), the transfer generally happens through delivery of the property to the buyer and a contractual agreement (either written or verbal, depending on the value and type of property).
No Registration Needed: Unlike immovable property, movable property does not typically require formal registration to transfer ownership.
3. Transfer of Immovable Property (Real Estate)
For immovable property (such as land, buildings, or real estate), the transfer process in French Polynesia follows the same rules as in mainland France and involves more formalities:
Sale Agreement: The transfer of real estate requires a written sale agreement between the buyer and seller. This agreement must include key details such as the price, description of the property, and the identity of the parties involved.
Notarization: The sale must be notarized by a notary public (notaire). A notary is required to formalize the transaction and ensure that it complies with all legal requirements. The notary’s role is critical in ensuring that the property is free from encumbrances and that the transaction is legally valid.
Public Deed: The sale agreement must be executed in the form of a public deed before the notary.
Registration: The transfer of immovable property is only fully valid after it is registered with the French Land Registry (Service de la Publicité Foncière). This step is necessary to ensure that the new owner is legally recognized and to protect their ownership rights.
4. Gift of Property
Donation (Gift): Property can also be transferred as a gift. For a gift to be legally binding, it must be executed through a notarial act for immovable property.
Notarial Deed: Similar to a sale, the gift of real property requires notarization, and the transaction must be registered with the land registry.
Gift Tax: Donations are subject to gift tax. The tax rates depend on the value of the property being donated and the relationship between the donor and the recipient.
5. Inheritance of Property
In French Polynesia, the inheritance of property follows the same rules as mainland France:
Wills: Individuals can specify the distribution of their property through a will. French law allows both holographic wills (handwritten and signed by the testator) and notarial wills (executed before a notary).
Forced Heirship: Under French law, certain heirs (typically children) are entitled to a portion of the estate under the forced heirship rules, regardless of the contents of the will.
Probate: The probate process involves determining the rightful heirs, verifying the will (if any), and overseeing the transfer of property from the deceased to the heirs.
Registration: After probate, the new owners must register their title at the French Land Registry to ensure that their ownership is legally recognized.
6. Foreign Ownership of Property
Foreign Ownership: Foreign nationals can own property in French Polynesia, but there are some specific rules regarding the ownership of land, especially in sensitive or strategic areas.
Property Near Borders: For properties near international borders or coastal areas, the French government may impose certain restrictions or require special permission for foreign ownership.
Same Process for Foreign Buyers: Foreign buyers are required to follow the same legal process as local buyers, including notarization and registration of the property transfer.
7. Taxes and Fees Involved
Notary Fees: The notary's fees for property transactions typically include a fixed percentage of the sale price, which covers the notary's services, as well as some administrative costs.
Registration Fees: There are registration fees and land transfer taxes (taxes de publicité foncière) that must be paid when registering the property transfer with the land registry. These fees are typically a percentage of the property's sale price.
Property Transfer Tax: The transfer of property also involves a property transfer tax, which is generally paid by the buyer and varies depending on the value and nature of the property.
8. Summary of Property Transfer Process in French Polynesia
Agreement: The buyer and seller agree on the terms of the sale, typically in a written contract.
Notarization: The sale agreement is notarized by a notary public.
Public Deed: The notary prepares the public deed, which is signed by both parties.
Registration: The transfer is registered at the French Land Registry (Service de la Publicité Foncière).
Payment of Taxes and Fees: The buyer pays the applicable taxes and notary fees.
Title Deed: After registration, the buyer receives the official title deed, confirming ownership.
9. Real Estate Contracts and Requirements
The sale contract in French Polynesia for immovable property must contain the following:
Full identification of the buyer and seller.
Detailed description of the property being transferred.
Price of the property.
Payment terms.
Notary fees and taxes.
10. Real Estate Registration and Notary Involvement
Role of the Notary: The notary ensures that the property is free of any encumbrances and that the transaction complies with the law.
Public Deed: The sale must be executed in the form of a public deed, which is a legally binding document.
Land Registration: The final step is registering the transaction with the land registry, which is critical for formal recognition of the new owner’s rights.
Conclusion:
In French Polynesia, the transfer of property follows the same general principles as in mainland France, governed by the French Civil Code. Transfers of property, whether by sale, gift, or inheritance, require formal notarial deeds and must be registered at the French Land Registry to be legally valid. Foreigners can buy property in French Polynesia, but they must follow the same process as local buyers. There are taxes and fees involved, including notary fees, property transfer taxes, and registration fees.
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