Many parents naturally consider lending a rental property to a child, such as for studies or during a transitional period. This cost-effective option is legally permitted under your property rights, but safeguards are essential. French law offers the commodat (loan for use)—a straightforward written agreement less formal than a lease—to protect both parties.
It's common for parents to lend a property to a child with limited income. This is fully allowed by law, without needing a full lease. However, to prevent issues like property damage, fire, or disputes over vacating, formalize the arrangement.
The commodat, defined in Articles 1875-1891 of the French Civil Code, is the ideal contract: "a contract by which one party delivers a thing to another for use, at the borrower's expense, to be returned after use." Courts recognize it to enforce rights and prove no rent is received.
This agreement confirms your ownership, rules out any donation, and requires the child to return the property in good condition—crucial if family relations change. No notary is required, though consulting one ensures robust terms.
The commodat provides free use only—no payments or in-kind compensation, or it becomes a lease with stricter rules. You may include clauses for the child to cover utilities like water, electricity, or internet.
The borrower must maintain the property and secure home insurance for any damages, as they bear responsibility.
No fixed term is mandated; it ends upon vacating. Without an end date, it's indefinite, but you can terminate with reasonable notice. Omitting this risks complications.
Note: Free occupancy disqualifies the child from CAF aids like APL. If you receive family benefits and host an earning child over 6 months, declare it—your benefits may adjust based on their income.
No rental income means no tax deductions for you. The child pays housing tax if applicable. In succession, commodat obligations pass to heirs; specify the child to avoid extending to their heirs.
