Property law: legal framework and solutions

This decision provides important insight into your property law. Here is what it changes for you.

The situation

It follows from Articles L. 321-2 of the Civil Enforcement Procedures Code and L. 526-3 of the Commercial Code that the waiver by a natural person of the exemption from seizure of the rights over his or her principal residence, provided for in Article L. 526-1 of the Commercial Code, has the effect of altering the security of that natural person's creditors and is, therefore, unenforceable against a creditor who has had an order to pay constituting a seizure of that immovable property served prior to that waiver. The creditor, against whom the automatic exemption from seizure of an immovable belonging to his debtor subject to judicial reorganisation is unenforceable, has a right to pursue that immovable, which he may exercise by way of a seizure of immovable property in accordance with the rules set out in Book III of the Civil Enforcement Procedures Code. If he makes use of the option to file his claim, he may no longer exercise his right to pursue the immovable during the duration of the reorganisation plan scheduling his claim, adopted after the orientation judgment, the resulting suspension of the enforceability of the claim being such as to prevent the continuation of the seizure of immovable property proceedings.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly comply with the statutory time limits for appeals
• Keep all your supporting documents (deeds, instruments, letters)
• Be proactive: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.