By application of Article L

Reference decision: cc • No. 05-14.971 • 2006-01-18 • View decision →

This decision provides important insight into your property law rights. Here is how it affects you.

The situation

By application of Article L. 261-13 of the Construction and Housing Code, purchasers of a building to be constructed who, in order not to pay the sums due under a formal notice to pay that has been served on them, raise a defence of non-performance, must apply to the court within one month to seek a suspension of the effects of the formal notice, failing which the resolutory clause is automatically triggered.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

Strictly observe the statutory time limits for seeking recourse
Keep all your supporting documents (title deeds, contracts, correspondence)
Plan ahead: preventive legal advice is always cheaper than litigation

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

📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Practical use cases

First-time buyer misses deadline after finding defects

A couple in Paris purchased an off-plan apartment for €450,000. Upon receiving a formal notice demanding a €90,000 progress payment, they notice cracks and water damage in the structure and refuse to pay. They wait for the developer to respond, but do not approach the court within one month.

Practical application:

Under the case law, they were required to apply to the court for a suspension of the formal notice within 30 days. To avoid automatic contract termination and potential loss of their deposit, they must urgently file a court application (référé-suspension) with evidence of the defects. Seeking immediate legal advice is essential to preserve their rights and argue non-performance.

Investor withholds payment over construction delays

An investor bought two off-plan flats in Nice for €700,000. After receiving a formal notice for a €140,000 instalment, he delays payment, citing the developer's missed deadlines and slow progress. He does not apply to court, believing the developer’s breach excuses his non-payment.

Practical application:

The one-month deadline to seek court suspension is absolute, even if the developer is allegedly in breach. The investor must immediately instruct a French avocat to file an urgent suspension application and submit evidence of delays. Without this step, the developer can cancel the sale, and the investor risks losing both flats and being liable for damages.

Co-owner disputes final payment over common area defects

In a new-build co-ownership in Lyon, Mr. Martin withholds the final €25,000 payment on his €300,000 flat due to unresolved lift and fire safety issues in the common areas. He ignores a formal notice from the developer, assuming the co-owners’ association will collectively resolve the dispute.

Practical application:

Each buyer must act individually within one month of the formal notice. Mr. Martin should urgently file a court application for suspension, detailing the common-area defects and their impact on his flat. While coordinating with the co-owners’ association, he must not miss the judicial deadline to prevent automatic cancellation of his purchase contract.

By application of Article L

The situation

What the law says

Key points to remember

Legal information

Source

Keywords

Practical use cases

First-time buyer misses deadline after finding defects

Investor withholds payment over construction delays

Co-owner disputes final payment over common area defects

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Maître Zakine, Doctor of Law