Do I have real ownership in my home?
Yes. Owning a Fractional France property is true real estate ownership. You purchase a share in a property-specific, California Non-Profit Mutual Benefit Corporation. The home is designed and managed specifically for co-ownership.
Does it work like a regular real estate transaction?
Yes. The documents are similar to any home purchase.
Who created the legal documents for Fractional France?
All company documents were created by San Francisco-based Sirkin Law APC, the prominent international specialist in all legal and operational matters relating to fractional ownership, including most fractionals in France.
Why is ownership in a US-based entity better than direct ownership?
As a buyer, you own a share in a California Non-Profit Mutual Benefit Corporation. The US entity owns 100% of the property in France. This is done for two main reasons:
1. It's much simpler to grasp American laws than it is to understand French law, where the administrative burdens can be a lot more complex. Not to mention that everything MUST BE in French. That's where Fractional France comes in: Everything relating to the French entity is managed by us, on your behalf.
2. It's much easier to sell your shares in a US entity than to sell shares in French property.
3. French law does not allow for much flexibility in terms of what you can add to a contract or by-laws. For example, strict clauses, such as dealing with defaulting owners who don't pay their dues, are not allowed.
How does the closing process work?
1. UNDERSTANDING: We will send you the usage calendar so you know what slots are still available. We will schedule as many calls as you need to help you better understand our program and that everything is clear. If you are in Paris, we can arrange for you to visit the property.
2. LOCKING IN YOUR TIME: After signing a purchase agreement, you’ll receive Purchase and Escrow documents with a full explanation on the process and procedures.
REVIEW & SIGN DOCUMENTS: You will receive all the legal documents to review with your lawyer before signing. These include : All legal documents both for France and the U.S. Homeowner Association by-laws. Supporting documents regarding the property, such as building meeting notes from the past three years, etc. (Pertinent items will be translated into English).
4. CLOSING: Should you have a change of heart, the escrow will return your deposit immediately. Otherwise, you'll get instructions from the escrow company to wire the rest of the funds for the purpose of final closing.
Are There Limitations on the Entity Type That Can Own a Share?
Ownership flexibility extends to the type of entity that can hold a Paris co-ownership share. There are no restrictions on whether an individual, LLC, or corporation can own the property.
Entity Ownership Details:
No Limitations: Any entity type, whether it's an LLC, a corporation, or an individual, is eligible to own a fractional share of the property.
Local Preference: While there is a local preference in France for ownership to be directly in your name, there are absolutely no legal restrictions to this effect.
Are There Any Time Limitations on Keeping My Ownership?
No. There is no fixed time requirement for holding your Paris shared ownership in France beyond the initial one-year holding period. You can retain your share for as long as you wish, benefiting from ownership and the property's use according to the agreement terms. If you choose to sell after the one-year period, the process is designed to be flexible and accommodating to your needs.
Do I Need French Government Approval to Buy or Sell?
No. One of the key benefits of our ownership structure is the straightforwardness of the transaction process. There is no requirement for approval from the French government when buying or selling your share of a Fractional France Paris co ownership property in France. Our streamlined process eliminates unnecessary bureaucracy, making for a more seamless and efficient ownership experience.
What monthly costs will I have to pay?
Home operating costs, such as property management, cleaning, maintenance, taxes, and repairs, are passed along directly to owners transparently with no markup. Costs are shared pro-rata.
Can owners rent out their time on Airbnb or similar sites?
No. However, nothing stops you from lending your home to friends and family.
Does Fractional France manage each home directly?
You are the owners and have full control over your property. As such, each HOA has a board and a president. Each year, the owners choose a president, who will oversee all matters relating to managing the property. Fractional France will manage the property through its management company and will hire and oversee local third-party property managers on your behalf.
Who furnishes the home?
We have our own design team. Our goal is to create luxurious surroundings for effortless living. Each home is meticulously well-appointed with everything you need to cook, relax and play, so you can just show up and enjoy your time.
What if one of the other owners messes up the place?
Though we have always found that owners show pride in ownership and typically leave their homes in excellent condition, we nevertheless ensure that homes are inspected after each visit. Any damages beyond regular wear and tear are charged to the owner who was using the home at the time.
What if one of my co-owners misses a payment, or gets behind on their bills?
We vet each owner carefully, so this is usually very rare. Furthermore, each property has a reserve to cover such eventualities, as well as strict rules and conditions that are tailored to ensure that the other owners don't have to worry about such an eventuality. These include monetary penalties or a temporary suspension of stay rights.
What if I want to sell my ownership?
After 12 months of ownership, you can sell your share at any time and set your own sale price. If you prefer, we can manage the sale for you. We have an active network of interested buyers and can list the property on Fractional France and other websites to promote it across various marketing channels.
We offer comprehensive resale services to make the process seamless for you, but you are not obligated to use our services. You have the freedom to sell your Paris fractional ownership share independently if you prefer.
Does my share increase in value if the home appreciates in value?
Yes. The market for resales is robust. We have seen this happen with Parisian fractionals over the past 15 year. Just recently, we facilitated a resale for a property originally purchased at €120,000, which sold for €200,000.
Can I keep personal items at my home?
Yes. Each owner has individual storage space for personal items in every home.
Can I bring pets?
It depends on the location and type of property. As a general rule, pets are not allowed in city apartments, in order to avoid unnecessary neighborhood disturbances. Otherwise, owners may bring service animals to their homes, with some restrictions.
What policies must owners adhere to?
All owners must adhere to a code of conduct. For example, owners are prohibited from hosting events that would be disruptive to the neighborhood, or even simple things like changing furniture or hanging personal art without the approval of the other owners.
