June 28, 2021
Introduced in 2014, the ‘bail réel solidaire’ is an economic mechanism designed to address a saturated property market, where prices are rising continuously due to a lack of supply and an increase in the financial capacity of buyers.
The solution devised involves economically separating ownership as follows: a Solidarity-Based Land Organisation (OFS) becomes the owner of a property (whether existing, to be renovated or to be built), on which it will create a special ‘real’ right under the terms of a BRS, conferring ownership of the property on the grantee at a discounted price. Access to the BRS is means-tested and subject to approval by the OFS, and the ownership obtained is perpetual as the initial term (generally around 80 years) is reset upon each sale or transfer.
The success of the BRS is being confirmed in tight property markets. The 4D Bill is expected to introduce a number of improvements to strengthen this scheme and extend the remit of the OFS. Watch this space!
In the meantime, read Xavier Lièvre’s analysis in an interview published in the Journal du dimanche on 26 June (interview conducted by Chloé Rossignol).
