A block sale (vente a la decoupe) refers to the individual sale of units in a building that previously belonged to a single owner, often an institutional investor, an insurance company or a property fund. In Paris, this practice mainly concerns Haussmann-era buildings in central arrondissements, and it is strictly regulated by law to protect sitting tenants.
The legal framework for block sales
The law of 31 December 1975 and the collective agreement of 9 June 1998 (renewed and strengthened since) govern this process. Before selling units individually, the building owner must establish a co-ownership structure, draw up co-ownership regulations, carry out all mandatory technical surveys and notify each tenant individually.
The collective agreement imposes specific conditions. The owner must carry out a comprehensive technical survey of the building. Tenants over the age of 70 whose income falls below a threshold (1.5 times the minimum wage) benefit from enhanced protection: they cannot be forced to leave.
The City of Paris also has its own urban pre-emption right, which it regularly exercises on block sale operations in arrondissements where property market pressure is strong.
Tenant rights
Each tenant benefits from a pre-emption right. The owner must send them a sale offer by registered letter with acknowledgement of receipt, stating the price, the conditions of sale and a precise description of the unit. The tenant has two months to accept or refuse.
If they accept and apply for a mortgage, an additional two months are granted to secure financing. During this entire period, the unit cannot be offered to a third party.
The price offered to the tenant must correspond to market value. If the owner subsequently decides to sell the unit at a price lower than that offered to the tenant, they must notify the tenant again: this is the subsidiary pre-emption right.
The lease of a tenant who does not wish to purchase continues under existing conditions. A notice to vacate for sale can only be served at the normal lease expiry, with six months’ notice, and in compliance with the legal pre-emption right provided by the law of 6 July 1989.
The opportunity for external buyers
Units not purchased by tenants are then put up for sale on the open market. These properties often offer good value for money: institutional buildings have generally been well maintained (roof, stairwell, facade) and the units benefit from generous floor areas, characteristic of pre-1950 buildings.
The price per square metre can be 5 to 15% below the neighbourhood market rate, particularly when the block sale involves a large number of units being sold simultaneously. The volume effect works in the buyer’s favour.
However, the interior condition of apartments varies considerably. Long-term tenants may have done little maintenance, and bringing the property up to standard (electrical, plumbing, insulation) can represent a significant investment. A thorough visit is essential.
Points to watch
The first concerns the newly created co-ownership. Co-ownership regulations drafted as part of a block sale may contain provisions that are unfavourable to individual co-owners, particularly regarding the allocation of charges. These must be analysed carefully before committing.
The second point relates to remaining tenants. If some units are sold with sitting tenants, managing the co-ownership can prove complex, with landlord-owners and owner-occupiers whose interests sometimes diverge.
Finally, the timeline for a block sale is lengthy. Between notifying tenants, pre-emption deadlines and marketing the remaining units, several months pass. A property hunter monitors these operations in advance and positions clients as soon as units become available, often through the off-market network before public marketing begins.
To be alerted about upcoming block sales in Paris, contact our team. Our property hunters monitor these operations continuously.
Frequently asked questions
Is a tenant obliged to buy their home during a block sale?
No. The tenant has a pre-emption right, meaning priority to purchase their home, but they are never obliged to exercise it. If they choose not to buy, their lease continues under the original terms. They cannot be forced to leave solely because of the block sale.
What are the deadlines for the tenant's pre-emption right during a block sale?
The tenant has two months from the notification of the sale offer to make their decision. If the tenant accepts the offer but applies for a mortgage, an additional two months are granted to secure their financing, making four months in total.
Can you buy a unit in a block sale without being a tenant in the building?
Yes, but only after the sitting tenant has waived their pre-emption right. Vacant units or those whose tenants have declined the offer are then put up for sale on the open market. This is often the stage at which a property hunter steps in to identify these opportunities.
