What are the rules to follow when purchasing a property in France as an unmarried couple?
Buying a Property in France as an Unmarried Couple
When an unmarried couple decides to purchase a property together, it is recommended to take certain precautions to secure this acquisition in the short, medium, and long term.
Outside of marriage, any property acquired by two or more individuals automatically places them in joint ownership (indivision). While the rules governing joint ownership can sometimes be restrictive for a couple, they do provide a structured framework for property management. Additionally, the couple can establish a joint ownership agreement, in which they designate each other as the co-managers of the jointly owned property, simplifying administrative procedures during the period of ownership.
During the purchase process, it is highly advisable to clearly define each party’s ownership shares. Ideally, ownership is split 50/50, but one partner may have fewer financial resources or a lower capacity to repay the acquisition loan. In such cases, maintaining a 50/50 split is possible, but it may create a discrepancy between property ownership distribution and the actual financial contribution.
With the assistance of your notary, this issue should be addressed before the purchase to avoid any unexpected complications, particularly in the event of a separation.
Considering the Possibility of a Partner’s Death
The possibility of one partner’s passing should also be considered.
Without any estate planning measures, unmarried partners are not legal heirs of each other. In the case of joint ownership, the surviving partner will co-own the property with the deceased partner’s heirs. These heirs may request the sale of the jointly owned property at any time. If the surviving partner is unable to buy out the heirs’ shares, they risk losing ownership of the property. This situation can be especially problematic if the property serves as the couple’s primary residence.
To prevent this, it is essential for both partners to draft a will in favor of each other. At this stage, it is also crucial to consider inheritance taxes. Unlike PACS partners, who are exempt from inheritance tax, unmarried and non-PACS partners are taxed at 60% of the inherited property’s value.
How We Can Help
Chassaint & Cerclé Notaires assists both individuals and professionals with the necessary procedures for buying or selling a property.
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