Residhotel fail to pay rent due 8/1/09

The main purpose of having a 'commandement' served is to force Residhotel to pay you whatever is outstanding, plus the bailiff's fee.

The fact
that leaseback owners could cancel the lease if Residhotel do not pay within one
month from being served a 'commandement' can be dissuasive. Cancelling
the lease remains simply an option though. It does not automatically apply and require owners to make a separate application/request in that regard.

If Resid'Hotel really are insolvent,
there may be a point where the company will give up on paying rent even
to those property owners that have had a 'commandement' served. The
company could also potentially be placed in receivership.

Whether one should get a 'commandement' served or not is an individual decision. There are service costs. Whilst these must, at French law, be met by Residhotel, there is no absolute guarantee that this will be the case. On the other hand, a 'wait and see approach' is not what I recommend here: I would not allow Residhotel to
buy some time.
http://www.solicitor.fr

cordiez39856.7243981482

Can we get these two lawyers together? It sounds like legal action is already underway from both lawyers. Combining forces seems like a good idea to me.

Our lawyer speaks english and documents are ready in english.

This lawyer is all ready on several residences with Residhotel : Foux d'Allos, Valmeinier, Notre Dame de Bellecombe, Divonne, Puy St Vincent, ...

He knows very well the "Residhotel case". There is a "conciliation" procedure posted by Residhotel on 10 residences, and our lawyer is the lawyer who are in relation with the conciliator. Our lawyer was yesterday at the Cannes's tribunal for Residhotel.

Cost is max 300€ / Owner.

You are free to choose your lawyer... but very important to join french's owners. I'll be put in relation with the good person on each residence. We want to have a full list with each owner on each residence. Very important to be big face to Residhotel.

Very sorry for my bad english. I find a person to translate my blog, so soon english's article will be availiable on the blog http://residhotel.over-blog.com

Hi,

Thanks for the info.

I am grateful for your suggestions and agree that all owners concerned
should keep in touch to consider joining forces at some point.

I don't feel too confident about the arrangements which you suggest though. Does the French owners' lawyer speak English? If not, how will we understand what exactly your lawyer is doing, all legal implications etc.?

I wonder why you keep insisting on the 'English' owners embarking on a legal action when several payment requests are currently being served on Resid'hotel by another (bilingual) solicitor who is used to acting for non-resident owners? Let's see what this produces on the leaseback company first! If legal action needs to be brought in France, I will consider whether to instruct the lawyer that your suggest, or one that I can properly communicate with.

Hello,

we are still looking for english owners in France on many residences : Carro, Isola, Notre Dame de Bellecombe, La pinede, Les 2 Alpes, Megeve,...

Join us on http://residhotel.over-blog.com

Please send me an email proprietairerh@gmail.com and tell me the name of your residence. Join french owners. We take all the same lawer. In this mag, they talk about Residhotel and about our lawer : http://www.relay.com/Publications/FicheProduit.aspx?publicat ion_id=46&Origin=A7D794E71ABAD0AE

We are up to 40 or 50 french owners on several residences on relationship

From the information that I've been given for any specific residence to be classified as residence de tourisme there must 70% of the apartments of that residence managed by the same management company.

Hi Miz

thank you for that Im assuming it can be 70% of all apts on the management companys list or do you mean 70% of one residence

Ann

From what I have heard from the lawyer that our residence has consulted there must be 70% of the apartments managed by the same management company in order to maintain the classification of "residence de tourisme" and its' specific fiscal status. Also, many of you need to differentiate the residences into the categories ZRR (loi Demessine) or LMP (louer en meuble).

Hi everyone

I am in the same position with RESIDHOTEL. I own an apt in RESIDENCE EDELWEISS IN LES DEUX ALPES

I am keen to contact other owners in this block.

Im considering proceeding with commandment de payer!!

I would welcome other viwes comments etc Im not very optimistic about their future

Have anyone of you opted out of lease and are having property managed privately

Ann

a

Your lease may refer to a 'Sommtion d'exécuter', instead of using the word 'commandement'.

'Sommation d'executer' is a generic word for Summons. A 'sommation' is
an 'acte d'huissier', i.e. can only be issued by a bailiff. Unlike a
'commandement', a 'sommation' is not directly enforceable. Its only
advantage, as with a 'mise en demeure', is that interest start to
accrude from the date it is issued.

Where a leaseback owner wants to have the possibility to cancel the
lease, or at least threaten to do so, then a 'commandement' should be
issued. This applies irrespective of what the lease may state, because
the rule derives from statutes: Art. 25. of the Decree of 30 September 1953 -
Toute clause insérée dans le bail prévoyant la résiliation de plein ne produit
effet qu'un mois après un commandement demeuré infructueux. Article 25 is very specific. It does not say 'sommation' or 'mise en demeure', but uses the word 'commandement' instead.

cordiez39859.4889236111

I understand that some French leaseback owners disagree on what procedure should be used...They insist that a mise en demeure letter should first be sent to the leaseback company, before a commandement is served.

Sending a 'mise en demeure' is the correct procedure where a leaseback
company (tenant) is in breach of contract on issues such as lack of
maintenance of the property, carrying out a business which the lease
does not allow (e.g. restaurant) etc.

However, where the breach of contract consists in default on payment of
the rent, a simple mise en demeure often is ineffective. Most leases
include a special clause called 'clause resolutoire' which sets the
correct procedure. In almost every lease, the clause will state: 'Le baileur à l'obligation de délivrer un commandement de payer. Le commandement doit, à peine de nullité,
mentionner le délai d'un mois octroyé pour le locataire pour s'éxécuter'.

If a leaseback company does not pay the outstanding rent following a
mise en demeure, the landlord is, in effect, back to square one and
must then have a commandement served, through a bailiff.

There is of course no harm in sending a mise en demeure first, but the
proper, appropriate, legally effective, course of action consists in
having a commandement served.

Having said that, sending a simple mise en demeure can sometimes be
justified, where the leaseback company is defaulting on one single
particular property for example. This is a course of action I suggested
some time ago to leaseback owners, on a couple occasions. I even drew
up a draft letter or template, for use by some of my customers. It
seems that my draft letter is widely circulating on the internet now,
which is good news! The global context, with Residhotel and the French
leaseback industry generally, is different now however and justifies a
tougher approach.
http://www.solicitor.fr

I disagree on the "mise en demeure" point.

As a licensed French Lawyer, I confirm that the appropriate procedure involves having a 'commandement de payer' served, pursuant to Article 25 of the Decree of 30 March 1953 'Art. 25. -
Toute clause insérée dans le bail prévoyant la résiliation de plein ne produit
effet qu'un mois après un commandement demeuré infructueux. Le commandement
doit, à peine de nullité, mentionner ce délai'.

The need to serve a proper 'commandement', as opposed to a 'mise en demeure' letter, is also confirmed in each lease agreement.

If Resid'Hotel fail to pay the outstanding
rent and the bailiff's service costs within one month, leaseback owners can, in
principle, cancel their lease. This is optional however: The main effect
of a 'commandement' is to force the leaseback company to settle the
outstanding rent.

cordiez39856.9539699074

No first you have to send the "mise en demeure" and after a lawer do a "commandement de payer" or "injonction de payer". But Residhotel answer to us that they can't pay now. See letter on ou blog http://residhotel.over-blog.com/

But be carreful with the "clause résolutoire". Very specific law in France.

!! Very important, please contact us to join french's owners.

Hi Steve

We are in the same position. We own an apartment in Chateau de Maniquerville which is managed by Residhotel.

We also bought our property through Imoinvest.

Our rent was due on Jan 1 2009 and after speaking to Marie Malveau at Residhotel was told that they did not know when the rent would be paid but we should get a letter about it sometime in the future.

I asked to speak to her manager about this but was refused. The receptionist just repeated the story that they did not know when the rent would be paid.

I have e-mailed Imoinvest but as yet have had no reply.

Reading about Residhotel on this site makes us relise that we probably need to be very concerned about this.

If you find out any further info please let us know.

Michele

We have found a bilingual French lawyer that is currently issuing some
'commandment' requests on Rhode Tourisme. His name is Fabian Cordiez.
This is the first step in recovering unpaid rents. Setting up owners
comitees is a good idea, but the process will take time. As for serving
a mere 'mise en demeure', this is a waste of time since this hardly has
any legal value. Remember, your lease states that you should serve a
'commandement' first.

Hi, VERY IMPORTANT RESIDHOTEL

WE ARE LOOKING FOR OWNERS OF RESIDHOTEL'LEASEBACK.

PLEASE CONTACT US

http://residhotel.over-blog.com/

Sorry my blog is in French but we are searching for owners of Cap Bleu (Carro), Splendid (Allevard), Notre Dame de Bellecombe, Edelweiss (2 Alpes), Divonne, Isola 2000, ....

Please send me your email and your residence.

We are making owners associations. There are links to help you find the others owners.

Please talk in others forums of this blog.

Hi,

I have been given this forum address to all our clients using Residhotel as a method of meeting up and finding a solution. Ideally you should form an owners association with some legal representation. Unfortunately, to those of you that asked me to send you a list of owners that boght through French Property Ireland, this is impossible due to our privacy policy but I have sent on this forum address to clients so that you can make contact with each other this way.

Deirdre
www.frenchpropertyaftersales.com

odond39856.5057060185

Hi Ians,

Pierre et Vacances is no. 1 and Odalys is no. 2.

Regards

Sheridan

I own a property in Megeve managed by ResidHotel. Same problem, no payment for the last quarter 08.

We received a letter today from ResidHotel stating that they were having difficulties that should be resolved by March 31st. They put the problems down to some of their properties not performing. From what I've found online, our property is not one of the 'problems', and we haven't received any new contracts attempting to lower what they pay us. But they have still not paid. It seems they've put a blanket hold on payments to all property owners.

Assuming I don't just follow legal action and demand my rent, that raises the question of whether or not they are going to pay for the missed quarter? Probably not. They are now in breach of contract but does that really do me any good? What can I demand from a struggling company! I'd be happy with just getting my rent.

Maybe if they had a better web site they'd get more bookings. You won't be able to find our property even if you search by name. Their excuse, they are now grouping properties together so you can book in Megeve, but you don't know which of the developments you'll end up in.

For the #3 management company in France, I'm not impressed. Anyone know who's #1 and 2? I wonder if I can change company?

Hi,

I sincerely empathise with other members regarding non- payment of rent.

I have just joined the forum and have posted a new thread ref my property at Residence des Arts (now called Pavillon Carmin) in Vitry sur Seine, Paris on the "Specific leaseback" section. Rent was due to start last October and I have only a verbal comment from the management company that it will now start in April 2009.

I sympathise particularly with Rome99 as I am exactly the same siutation regarding struggling to pay the mortgage. My bank are aware of the problems, via my Solcitor, but they have refused several requests to make a payment arrangement to help me during this time and if I do not cover all the mortage,taxes etc, I face repossession. I can see the bank can say it's not their problem, but it is still hard, especially as this is becoming e legal battle.

The management company, Elite Premier, have refused to provide a list of other clients and to confirm the April 2009 payment date in writing.

Has anyone any advice ref persuading my bank Credit Agricole to make a payment arrangement with me, as this would help immensely while I try find other clients and keep on at Elite.

It is so true that these leaseback were supposed to be a guaranteed rental scheme and they are just a mess. I hope all members can find some way of sorting out their situations. It is very frightening and upsetting and I am so angry too.

Many thanks for any advice, in anticipation.

Susie

No titleI act for a number of apartment owners who have not received
their quarterly rent from Residhotel.

I would advise all owners that are in the same situation to
serve a formal payment request or 'commandement de payer' upon the leaseback
company, as required under their lease agreement.

Please note that I am currently co-ordinating service of such
requests through a local bailiff. Other property owners that are facing the same
problem with Residhotel are welcome to join forces.

Hi, I own a leaseback apartment at Isola2000 which is leased to Residhotel of which I also haven't been paid for the last quarter. I also own another leaseback apartment at Chamrousse which was previously leased to Transmontagne - I am hoping that I do not experience the same problems twice.

Nick

Also Carro owner, and like others no rent received for Q4 08 from Residhotel. It was due 1st week of January. have telephoned on numerous occasions but either left to hold until you give up or cant get through. The really annoying thing is lack of information , and not getting any response , which in my view is disrespectful, and leaves a very bad taste, which unfortuantley cannot easily be forgotten and which crucially will lead to a big lack of trust going forward. In the absence of information it would make you want to get on a plane and visit their office and insist on a response at least. and I would be inclined to do it - if only I could speak French!!

i own an appartment in carro(cap bleu) .The management company is resid hotel.Ialso have not recieved q4 rent due jan1.Has resid hotel made any payments in january and if not why not since it appears they are in profit

We too have a leaseback in Valmeinier managed by Residhotel and yet again we have been let down by them. This is the 4th quaterly payment from 5 which is late. We have also been told to wait for a letter which will give the companies reason for non payment.