The Alur Law marked a significant turning point in the French legislative landscape, particularly in terms of urban planning and housing. Enacted in 2014, its primary aim was to reform the housing market in France, particularly in terms of property rental.
Logi-Service, your high-end real estate agency in Port Grimaud, specializing in property sales and
rentals tells you more about the Alur Law.
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What is the Alur Law ?
The Loi Alur also known as the Loi for the Access to Housing and Renovated Urbanism was enacted in 2014. The major objective of this law is to regulate the real estate market by promoting access to affordable and dignified rental housing, particularly in tense areas. It provides a framework for interactions between real estate specialists, tenants and landlords.
The tenant is once again at the heart of this law, with a number of features, including :
- the creation of a standard lease contract;
- the extension of the winter truce;
- shorter notice periods;
- general rent control.
Landlords are also protected by the Alur law, thanks to the guarantee against unpaid rent in specific situations.
Although less well known, the Alur law has also had a significant impact on real estate transactions such as sales, with the obligation to add documents to the compromis de vente such as:
- documents attesting to ownership of the property, in particular property tax and title deeds;
- documents attesting to the seller's personal situation, such as a family record book or address;
- the Loi Carrez diagnosis, which provides a precise measurement of the surface area of the property for sale:
- documents indicating whether any work has been carried out on the property;
- the DDT (Dossier de Diagnostic Technique - Technical Diagnostic File), which is a compilation of all the compulsory diagnoses required by law.
The Alur Law is one of the pillars of the real estate sector.
What does the Alur Act entail ?
The Alur Law sets out a number of measures to regulate the real estate sector.
Rent control
In tense areas, the Alur Law applies rent ceilings via a Local Rent Observatory, whose data will provide the Prefect of the département with rent indicators depending on the type of dwelling and its location.
The first indicator is the median reference rent, calculated on all rents. The second is the increased median reference rent, which sets a limit on the maximum rent the landlord can charge the tenant. It is calculated by adding 20% to the median reference rent.
The third median reference rent is reduced, and appears to be below the median rent by 30%, below which the landlord can then request a rent reassessment.
Changing the length of the notice period
If a tenant wishes to leave his rental property, he must respect the notice period, i.e. he must inform his landlord of his wish to leave and must remain in the property until the end of the notice period.
In most cases, the notice period is 3 months, but can be shortened to 1 month in tense areas where there is a strong imbalance between supply and demand.
Regulating lease renewal
When renewing a lease, the landlord has the option of re-evaluating the amount of rent, while respecting the terms defined by the rent control scheme included in the Alur Law. The rent may be re-evaluated 6 months before the lease renewal date, if the rent is lower than the median rent set by the landlord. In the opposite case, if the rent is higher than the median rent increased, the tenant can then request a reduction, also 6 months before the lease renewal.
Setting the deadline for returning the security deposit
Once the tenant has vacated the property, he or she has 1 month to return the security deposit if, and only if, the inventory of fixtures matches that on leaving. If this time limit is exceeded, a penalty of 10% of the amount of the security deposit may be applied.
Combating unfit and unhealthy rental properties
To combat the excesses of certain lessors and landlords, the Alur Act prohibits lessors from purchasing any property for a period of 5 years, whether in their own name or under the name of another company if no renovation work is carried out.
The Alur Law reduces the threshold at which the matter may be referred to the judge in the event of the appointment of an independent expert to analyze the co-ownership. The threshold is reduced from 25% to 15% of outstanding payments.
Helping low-income households
To help the most modest households pay their rent, the Alur Law has created the visale guarantee, which is in fact a deposit set up by Action logement as part of renting accommodation.
The profiles concerned by the visale guarantee are:
- people on fixed-term contracts ;
- temporary workers ;
- apprenticeship students.
One of the conditions is that the rent must not exceed :
- 1,300 € per month for working people and 600 € for students throughout France;
- 1,500 € per month for working people and 800 € for students in the Paris region.
The limitation period for unpaid rent is now 3 years, instead of the previous 5 years. Penalties for rent arrears, previously applied in certain rental contracts, are now prohibited.
Extending the winter truce
It was the Alur Law that extended the duration of the winter truce, where the landlord cannot evict the tenant in view of the winter period, which can prove complicated to find alternative accommodation. It begins on November 1 and ends on March 31, as opposed to March 15 previously.
Supervise the activities of condominiums and real estate agencies
Training for real estate agents is one of the major changes brought about by the Alur Law, with the creation of a code of ethics and the Conseil National de la Gestion Immobillière.
For their part, co-ownerships must be registered on the Registre Unique National d'Immatriculation des Copropriétés.
For each property, co-ownerships must provide a summary sheet containing all the information relating to the property, which must accompany the preliminary sales agreement.
For their part, property advertisements must include a number of items of information, such as :
- the identity of the condominium and the number of lots it manages;
- the amount of annual charges;
- swhether it is listed as a co-ownership with financial or management difficulties, for example.
Logi-Service, your real estate agency in Port Grimaud
At
Logi-Service, your
real estate agency in Port Grimaud, we are committed to providing you with quality real estate services in compliance with current regulations.
As part of the Alur law, which aims to improve transparency and management in the rental and
sale of real estate, we make every effort to ensure that every transaction must be guided in an ethical manner that meets current standards.
We advise and inform you about your rights and obligations in terms of rental and sale, as well as co-ownership, so that your transaction runs smoothly.
Our objective is clear: to ensure your satisfaction and enable you to make your real estate project a reality !
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