Transfer of Property Act at Réunion (France)
Réunion, being a French overseas region, follows French law, including matters related to property transfer. Unlike India, there is no specific Transfer of Property Act in Réunion, but property transactions are governed by French civil law.
Here’s an overview of how property transfers work in Réunion under French law:
Property Transfer Process in Réunion (France):
Preliminary Steps:
Agreement: The buyer and seller agree on the terms of the sale.
Preliminary Sale Agreement: A compromise de vente (preliminary agreement) is often signed before the final deed, outlining the terms of the property sale.
Notary Involvement:
A notary (notaire) is required to handle property transactions in France, including Réunion. The notary ensures that the transaction follows legal protocols and that all documents are valid.
The notary will check the title deed, verify that the property is free of any legal issues (like encumbrances or debts), and prepare the necessary paperwork.
Final Deed:
The acte de vente (deed of sale) is signed in front of the notary. This is the official document that transfers ownership from the seller to the buyer.
After signing, the notary will ensure the deed is registered with the French Land Registry (Service de la Publicité Foncière).
Payment and Taxes:
The buyer pays the purchase price (which may include additional fees like notary fees and registration taxes).
In France (including Réunion), there is a registration fee (frais de notaire), which typically amounts to 7-8% of the purchase price for older properties and around 2-3% for new properties.
Post-Transaction:
After the sale is complete, the notary registers the transaction with the Land Registry. The buyer will officially be listed as the new owner.
Key Points:
French Civil Code: The Code Civil governs property ownership and transfers in Réunion.
Notary Requirement: A notary is essential for the legal transfer of real estate.
Registration: All transfers must be officially registered with the land registry for the transfer to be legally valid.
Taxes and Fees: The buyer must account for registration taxes and notary fees.
Foreigners and Property in Réunion:
Foreigners are allowed to buy property in Réunion, provided they follow the same legal process. There are no specific restrictions on foreign property ownership in Réunion (though certain conditions apply in mainland France).
In comparison to India’s Transfer of Property Act, French law (including Réunion) places heavy emphasis on the role of a notary and legal documentation, and property transactions are heavily regulated and formal.
RELATED Blog
0 comments