The Civil Code lease is a type of rental contract that is still little known, yet widely used in certain specific situations. Unlike classic residential leases subject to the 1989 law, the Civil Code lease contract is based on the principle of freedom of contract. It offers more flexibility, but also implies fewer protections for the tenant.

What is a Civil Code lease, in which cases can it be used, what are the rules to follow and the risks to anticipate? Here is a complete guide to understanding how the civil law lease works and determining if it suits your situation.

Definition of a lease under the Civil Code

A Civil Code lease is a rental contract governed exclusively by articles 1708 et seq. of the Civil Code. It is a common law lease, as opposed to residential leases subject to special laws (law of July 6, 1989, mobility lease, commercial lease, etc.).

In a residential Civil Code lease, the parties have great freedom to set:

• The duration of the lease

• The rent amount

• The termination conditions

• The respective obligations

This type of Civil Code rental is therefore not subject to the protective rules of housing used as a primary residence.

In which cases should you use a civil lease?

The Civil Code lease is used when the accommodation does not constitute the tenant's primary residence. It applies in particular in the following situations:

• Secondary residence

• Company housing

• Rental to an expatriate

• Rental to a legal entity

• Accommodation occupied temporarily without establishing a primary residence there

In these cases, Civil Code residential leases are perfectly legal, provided that the use of the accommodation is clearly defined in the contract.

Legal obligations of the parties in a common law lease

Even if the civil law lease offers great flexibility, it imposes minimum obligations on both the owner and the tenant.

Engagements and responsibilities of the owner

In a Civil Code lease contract, the lessor must:

• Provide decent housing

• Guarantee the peaceful enjoyment of the property

• Ensure repairs other than rental maintenance

• Provide mandatory diagnostics

These obligations stem directly from the Civil Code and apply to any Civil Code rental.

Obligations and duties of the tenant

The tenant is required to:

• Pay rent and charges on the scheduled dates

• Use the accommodation in accordance with its intended purpose

• Maintain the property

• Return the accommodation in good condition

Even with a residential Civil Code lease, the tenant is liable in the event of damage or non-compliance with the contract.

How to draft a compliant and secure Civil Code lease?

The drafting of a Civil Code lease must be particularly rigorous. The absence of a strict legal framework means that all important clauses must be precisely planned.

A Civil Code lease contract must in particular mention:

• The identity of the parties

• The description of the housing

• The duration of the lease

• The rent amount and charges

• The terms of revision

• The termination conditions

Imprecise drafting can lead to the reclassification of the contract as a residential lease subject to the 1989 law.

Download our Civil Code rental lease agreement template (secondary residence / company)

Setting rent in a civil lease: freedom and limits

In a Civil Code lease, the principle is the freedom to set rent. The owner is not subject to the classic rent control rules applicable to primary residences.

However, this freedom has limits:

• The rent must not be excessive

• The contract must not disguise a primary residence

• The tenant's consent must be informed

In Paris, particular vigilance is required to avoid any reclassification of the residential Civil Code lease.

Rent review for a lease subject to the Civil Code

Rent review is only possible if it is expressly provided for in the Civil Code lease contract. In the absence of a clause, no increase can be imposed.

It is common practice to provide for:

• An indexation to the IRL (Rent Reference Index)

• An annual review

• Precise calculation methods

Without a clear clause, any attempt at review can be contested.

Termination of a common law lease: conditions and procedures

The termination of a civil law lease depends exclusively on the clauses provided in the contract. There is no legal minimum duration or notice period imposed by law.

The contract must specify:

• The notice period

• The notification methods

• Any indemnities

In the absence of a clause, termination must respect a reasonable notice period assessed by the courts.

Using a civil lease for a furnished rental in Paris: framework and precautions

The Civil Code lease is sometimes used for furnished rentals in Paris, particularly for:

• Expatriates

• Company housing

• Temporary rentals

However, the risk of reclassification is high if the accommodation actually constitutes the tenant's primary residence. In this case, the 1989 law automatically applies, even if the contract mentions a civil law lease.

Civil lease or mobility lease: which solution to choose according to your situation?

The choice between a Civil Code lease and a mobility lease depends on the use of the housing.

The mobility lease is regulated by law, limited in time, and reserved for certain profiles (students, employees on temporary assignments).
The Civil Code lease, on the other hand, offers more freedom but less legal security.

Making the wrong choice can have significant financial and legal consequences.

Advantages and disadvantages of the Civil Code lease

Advantages:

• Great contractual freedom

• Flexible duration

• Rent freely fixed

• Suitable for atypical situations

Disadvantages:

• Risk of reclassification

• Less protection for the tenant

• Complex contract drafting

• Possible disputes

The residential Civil Code lease must therefore be used with caution.

Common mistakes to avoid when signing a civil lease

Among the common mistakes:

• Using a Civil Code lease for a primary residence

• Omitting essential clauses

• Failing to specify the use of the property

• Neglecting mandatory diagnostics

A poorly drafted Civil Code lease contract can quickly turn against the owner.

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