Joint ownership of property in France
Ownership en indivision (similar to tenancy in common)
The most common option and the way in which the notaire will automatically draft the deed of sale if no other request is made, is to buy the property with ownership en indivision.
On the death of the first owner, his / her share of the property will devolve according to French inheritance law. Even if the deceased left a valid Will, should its terms conflict with French law, it would only have partial effect.
For example, Mr & Mrs Smith are married. They do not have any children in common although Mr Smith does have three children from a previous relationship. Mr Smith makes a Will leaving the property in France to his wife. On his death Mrs Smith learns that under French inheritance law the French house cannot pass to her entirely and her step children will automatically receive three-quarters of their late father's estate equally between them. Mrs Smith ends up owning her half plus a quarter of the deceased's half (only). The remaining portion is shared equally between the children.
Ownership en tontine (similar to an English joint tenancy)
If both purchases would prefer to have the survivor inherit everything and have full control of the property, they could acquire it en tontine. The tontine clause may only be inserted before completion and cannot be added retrospectively. Each owner would then be a tontinier and on the death of the first owner the entire property would be vested in the survivor although French inheritance tax is still payable.
The tontine does have a number of disadvantages and is by no means the definitive answer to the problem of reserved rights of heirs (children and parents) under French law. For married couples, it is also less flexible than a change of matrimonial regime.
To arrange a discussion with a French property solicitor click here or call us on 0800 840 4929. We are available to take your call twenty four hours a day, seven days a week.
