Notice to Quit for Owner Occupation by a SCI: The Court of Cassation Invalidates the Exemption from Rehousing Obligation

Imagine: you are a tenant of a flat in Pacé, near Rennes, for fifteen years. One day, you receive a notice to quit for owner occupation: the landlord, a family SCI, wants to house one of its members. You are over 65 and your resources are modest. The law normally protects you: the landlord must offer you rehousing. But the SCI considers that it is not obliged to do so, because it is acting for a member. Who is right? The Court of Cassation decided in 2016: the SCI cannot rely on the exemption from the obligation to offer rehousing reserved for natural persons. Explanations.

The facts: a story that happens every day

Mrs F., tenant of two flats in Saint-Malo, owned by the SCI Marjebes, receives on 30 May 2012 two notices to quit for owner occupation in favour of a member of the SCI. She challenges their validity. The SCI argues that it does not have to offer rehousing, because the reoccupation benefits a member, a natural person. The court rules in favour of the tenant: the notices are void. The SCI appeals, but the Court of Appeal confirms. Why? Because the exemption from the obligation to offer rehousing provided for by Article 15, III, paragraph 2 of the Law of 6 July 1989 is reserved for landlords who are natural persons. The SCI, a legal person, cannot benefit from it, even if it is a family SCI and acts for a member. The case goes up to the Court of Cassation, which dismisses the SCI's appeal in 2016.

The reasoning of the court — dissected

The question was simple: can a family SCI that gives a notice to quit for owner occupation in favour of a member be exempted from offering rehousing to the tenant? The Law of 6 July 1989, in its Article 15, III, provides that the landlord may repossess the dwelling to live in it himself or to house a close relative. But if the tenant is elderly (over 65) and has modest resources, the landlord must offer him a dwelling corresponding to his needs. Paragraph 2 of the same article exempts from this obligation landlords who are natural persons who repossess for themselves or for a close relative. The SCI Marjebes invoked this exemption, arguing that the member is a natural person. The Court of Cassation said no: the text is clear, the exemption only benefits a landlord who is a natural person. An SCI, even a family one, remains a legal person. The legislature intended to protect vulnerable tenants, and this protection cannot be circumvented by the choice of a corporate structure. The judges therefore upheld the annulment of the notices.

What this means for you — concretely

If you own real estate through an SCI, you cannot exempt yourself from the rehousing obligation in the event of a notice to quit for owner occupation, even if the beneficiary is a member. Concretely, if your tenant is over 65 and their annual income is below a certain threshold (approximately €22,000 per year for a single person in 2024), you must find them an equivalent dwelling in the same area. In Saint-Malo, where rents are high, this can represent a significant financial effort. If you are a tenant, this decision protects you: you cannot be evicted without a rehousing solution, even if the landlord is an SCI. In the event of a notice to quit for owner occupation, check your rights: if you meet the age and resource conditions, demand a rehousing offer. A concrete example: Mrs F. was 70 years old and had an income of €1,200 per month. Without this decision, she would have had to leave her home without any assistance. Thanks to it, the SCI had to offer her a dwelling or give up the repossession.

Four tips to avoid this type of dispute

• Before giving a notice to quit for owner occupation, check if your tenant is protected: age, resources, presence of disabled persons. If so, prepare a compliant rehousing offer.
• If you are in an SCI, do not automatically assume you are exempt: the exemption only applies to landlords who are natural persons. Consult a solicitor to assess your situation.
• For the tenant: upon receipt of a notice, examine your rights: if you are over 65 and have modest resources, reply in writing demanding rehousing. Keep all supporting documents.
• If in doubt, refer the matter to the conciliation commission before any legal action. This can resolve the dispute amicably and avoid costs.

Further details: related case law and developments

This decision is part of a protective trend for vulnerable tenants. The Court of Cassation had already ruled, in a judgment of 4 November 2010 (No. 09-69.976), that the exemption from the obligation to offer rehousing does not apply to real estate companies (SCI). The 2016 judgment confirms and specifies that even a family SCI, whose purpose is to house its members, cannot claim it. The courts are strict: they check the nature of the landlord (natural person or legal person) and are not influenced by the purpose of the repossession. For the future, landlords must incorporate this rule into their rental strategy: an SCI is not a means of circumventing the protection of elderly tenants. A legislative reform is unlikely, as the protection of vulnerable persons is a strong social issue.

Key points to remember

FAQ:
1. Can an SCI give a notice to quit for owner occupation? Yes, but it must comply with the rehousing obligation if the tenant is elderly or of modest means.
2. What are the criteria for benefiting from protection? Being over 65 (or disabled) and having resources below a threshold (approximately €22,000/year for a single person).
3. What should I do if I receive a notice without a rehousing offer? Contest the notice before the district court within two months. You can also refer the matter to the conciliation commission.
4. Does the exemption exist for SCIs? No, the exemption is reserved for landlords who are natural persons. An SCI can never rely on it, even if it is a family SCI.
5. What are the risks for a landlord who does not comply? The notice is void, and the tenant can stay. The landlord may also be ordered to pay damages.

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