FRANCE Law and Practice Contributed by: Antoine Mercier, Myriam Mejdoubi and Gabriel Dalarun, DLA Piper France LLP
facilitate the implementation of objectives to combat land artificialisation and strengthen support for local elected officials to progres - sively achieve net zero artificialisation of land by 2050; • the “Green Industry” law of 23 October 2023 to finance green industry, accelerate industrial start-ups, rehabilitate brownfield sites and in favour of green public procurement; this law covers innovations, such as the creation of major urban planning operations in which (i) pre-emption rights may be included when implemented in areas of economic activity; (ii) there may be an exemption from the require - ment to obtain a business license for consoli - dations of stores; and (iii) derogations to the applicable urban planning documentation are possible; and • the decree of 23 July 2019 (often referred to as the “décret tertiaire”) according to which all existing buildings for tertiary use with a floor area exceeding 1,000 square metres must implement measures to achieve a level of energy consumption reduced by 40% in 2030, 50% in 2040 and 60% in 2050; such rules and objectives have a direct impact on the negotiation of commercial lease agree - ments since the landlords and their tenants must implement relevant measures enabling the leased premises to achieve the aforesaid energy consumption objectives.
ship without the right to use and derive profit from the property). 2.2 Laws Applicable to Transfer of Title Varying legal regimes apply to transfers of title in different kinds of real estate, and there are a number of different tax regimes. There are no specific provisions linked to the industrial, office or retail sectors. 2.3 Effecting Lawful and Proper Transfer of Title Ownership of real estate must be recorded at the locally competent mortgage office registry. Institutional non-domestic investors have shown a growing appetite for title insurance policies, although their use remains essentially limited to specific identified risks. 2.4 Real Estate Due Diligence Lawyers and notaries share the responsibility for conducting due diligence investigations, with the former handling tax, social, leasing and insur - ance matters, and the latter title, zoning, con - struction and commercial status. 2.5 Typical Representations and Warranties French law imposes the following obligations and warranties on the seller: • an obligation to transfer the property in accordance with the specifications set out in the deed of sale; • a guarantee of eviction: the seller must ensure that the buyer does not suffer any nuisance from the seller or third parties in relation to rights such as easements or leases relating to the property; • a guarantee against hidden defects ( vices cachés ), which may affect the normal use of the property; and
2. Sale and Purchase 2.1 Categories of Property Rights
In addition to exclusive ownership and time - share arrangements, ownership can be divided between the right of usufruct (the right to receive the income and produce from real estate without outright ownership) and bare ownership (owner -
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