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Buying a property with a Pacs relationship

My partner and I are in a Pacs relationship and want to buy a property together. Can you tell us what the different régimes mean for ownership in our situation? A.L.

Pacs partners are subject, in principle, to the régime of séparation where each party retains ownership of whatever they bring into the partnership... if one owns a property they could evict the other in a fall-out.

If they decide to buy a property together, this will be held in indivision which splits the home into two equal halves or in the proportions of what each party puts in to the purchase.

They can opt for indivision at the time of the Pacs contract, meaning all assets owned or bought subsequently are owned together – even if one partner has not paid in financially.

Banks, however, can reclaim unpaid mortgage funds from either of the two parties to the purchase.

Partners may also opt to add a tontine clause (pacte tontinier) which allows that, in the event of death, the surviving partner becomes sole owner with no need to “buy out” the deceased partner, and also means “reserved” heirs have no rights on the property.

There is a tax advantage as the property, or other goods, are seen as being bequeathed by will and not subject to inheritance rights, although there is a fee of 5.09% for droits de mutation.

 

Question answered by Sarah Bright-Thomas of Bright Avocats

Tel: 05 61 57 90 86 - www.brightavocats.com contact@brightavocats.com

If you have a legal query send it to news@connexionfrance.com

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