The Law 1235 in Monaco
4 March 2024
Monaco, a luxury haven nestled on the French Riviera, is renowned for its prestigious lifestyle, unparalleled security, economic prosperity, and attractive tax policies. These benefits make the Principality a top choice for those looking to establish their residence or invest in real estate. In this context, Law 1235 in Monaco stands out as a crucial regulatory pillar, especially within the regulated real estate sector, deserving particular attention from buyers and investors.
The Regulated Sector
This specific sector mainly includes apartments located in pre-war buildings, completed before September 1, 1947. Subject to regulation aimed at protecting tenants’ rights, the number of apartments in this category, about 2,500 according to a 2013 IMSEE study, is constantly evolving, affected by renovations and demolitions.
Legislative Framework: Sector Protected by Law 1235 and Law 1291
The legislation governing this sector is twofold: on one hand, the sector protected by Law 1235, Monaco, amended by law n°1291, and on the other hand, the liberalized sector by law n°887. A state preemption right applies during sales, supplemented by a tenant’s preemption right if the state chooses not to exercise its own, introducing a maximum preemption delay of four weeks after signing a sales agreement.
Social Vision of Law 1235 in Monaco
Law 1235 in Monaco was developed with a strong social intention, aiming to guarantee housing access for Monégasques and children of the country. Properties in this sector are thus reserved for a specific category of tenants, with rents regulated by the state and liable to be indexed according to the consumer price index. This legislation underscores Monaco’s commitment to protecting its residents, ensuring a certain equity in housing access.
Rights of Resumption and Termination Conditions
Law 1235 in Monaco grants owners the right to terminate leases for personal reasons or renovation, subject to rehousing the tenant under similar conditions. This provides an additional layer of security for tenants, guaranteeing them a minimum lease duration of six years.
Management of Vacancies and Non-commercial Activities
The management of vacancy periods and the use of properties for non-commercial activities are also governed by this law, thus offering usage flexibility while preserving their residential vocation.
Navigating the Real Estate Landscape with Law 1235 in Monaco
At BLS Real Estate, our expertise in applying Law 1235 in Monaco ideally positions us to guide our clients through their real estate endeavors in the Principality. Whether you’re seeking a residence or an investment, our deep understanding of this legislation ensures a compliant and secure transaction. Monaco, with its legal specifics, offers unique opportunities for those eager to delve into this exceptional market.
For more information or to start your real estate project in Monaco, our team is at your disposal to provide personalized support. Contact us.
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