A Clause Must Be Deemed Unwritten

Practical application:

Under this case law, any interest rate above the legal rate (about 3–4%) on late co-ownership charges is void unless the clause states no interest is due. Sophie can refuse the excess amount by formally notifying the syndicate in writing, referencing the 1999 Court of Cassation decision. She should pay the principal plus interest at the legal rate only, and if the syndicate refuses, she can seek mediation or take the matter to the tribunal judiciaire.

Practical application:

The 1999 ruling renders clauses imposing interest above the legal rate unwritten, meaning Marc is only liable for interest at the civil legal rate (around 3–4%). He should immediately inform the syndic that the clause is unenforceable, pay the principal plus legal interest, and demand a corrected statement. If the syndicate persists, Marc can lodge a complaint with the local court. He should also review the rules of his other co-ownerships to prevent similar issues.

Practical application:

This case law confirms that such a high-interest clause is void. Léa can still buy the property but should request the clause be formally removed or amended at the next general meeting to avoid future disputes. She might use this as leverage to negotiate a small price reduction, as it indicates potentially overreaching management. Documenting the issue with her notary will protect her from future unfair demands.