A sale and leaseback in France is called a vente à réméré, or sale with right of repurchase. You sell your property to an investor, receive the cash at signature, stay in your home, and keep the legal right to buy it back within a maximum of 5 years. It is not a loan: the operation is assessed on the property, so it remains open to owners who live abroad or who have been turned down by their bank. PraxiFinance, a specialist in property-backed finance in France since 1990 with offices in Paris and Nice, structures these operations from first call to final deed.
How a vente à réméré works
The sale is signed before a French notary, like any property sale. The buyer is an investor acting under the property dealer regime (marchand de biens), which gives access to reduced transfer duties. The investor becomes the owner at signature and undertakes, in the deed itself, to return the property to you if you exercise your right of repurchase.
The right of repurchase is governed by articles 1659 to 1673 of the French Civil Code. Its maximum legal duration is 5 years, and a judge cannot extend it. In practice, most operations last between 6 and 36 months: the time needed to sell another asset, refinance, receive an inheritance or settle a debt.
How much cash can you receive?
The sale price is generally 50% to 60% of the property value, paid in full at signature. It can never be lower than 5/12 of the value: below that threshold, French law allows the seller to have the sale cancelled for lesion (article 1674 of the Civil Code). Operations start from a need of 100,000 euros, on a property worth at least 300,000 euros.
Staying in your home: the occupancy indemnity
You keep living in the property throughout the operation. In return, you pay an occupancy indemnity of 10% to 12% per year, paid in advance. It works like a rent agreed for the whole period, so you know the full cost before you sign.
What does it cost?
Costs at signature are about 8.5%. The occupancy indemnity of 10% to 12% per year comes on top. To buy the property back, you repay the sale price and the costs set out in the deed, as provided by article 1673 of the Civil Code.
Who uses a sale and leaseback in France?
- Owners living abroad, who cannot take out a French mortgage-backed loan.
- Owners registered with the French credit incident register (FICP), for whom bank lending is closed.
- Owners facing a tax debt, a seizure procedure or a bank deadline who need funds quickly.
- Business owners who need to finance their company without selling their home for good.
Documents to prepare
- Identity documents of every seller.
- The French title deed (acte de propriété).
- An up-to-date energy performance certificate (DPE).
- Photos of the property and a valuation or estimate.
- The amount you need.
- Above all, your exit plan: how you will buy the property back or bring the operation to an end.
How long does it take?
Funds are released in 10 to 20 days in Paris and 30 to 60 days elsewhere in France. The difference mainly comes from the local authority's pre-emption right, which the notary must clear before the sale (déclaration d'intention d'aliéner).
What happens if you do not buy it back?
If the right of repurchase is not exercised within the agreed period, the investor becomes the owner for good. This is why the exit plan is the first thing PraxiFinance examines with you, before any valuation or offer.
Sale and leaseback or another equity release option?
If you live in France and pay tax there, a mortgage-backed loan lets you borrow up to 70% of the value while keeping ownership. If you are 60 or over and live in France, a lifetime mortgage requires no monthly repayments. If you intend to sell rather than buy back, a deferred-price sale is the better fit. The full comparison is in our guide: is equity release available in France?
FAQ
Is a vente à réméré legal in France?
Yes. It is provided for by articles 1659 to 1673 of the Civil Code and always signed before a notary.
Can I stay in my home?
Yes, for the whole period, in return for an occupancy indemnity of 10% to 12% per year paid in advance.
How long can it last?
5 years at most by law. In practice, 6 to 36 months.
Can I use it if I live outside France?
Yes. Your country of residence is not an obstacle: the operation is assessed on the property, which must be located in France and worth at least 300,000 euros.
Is it a loan?
No. It is a real sale with a right of repurchase. Expressions such as "réméré loan" are inaccurate.
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