New Formality Rules for French Real Estate Company Share Transfers
In-house counsel for entities holding French real estate assets via corporate structures must act to avoid transfer invalidation and administrative penalties from new mandatory share transfer formalities.
French regulators have introduced new mandatory formal requirements for transfers of shares in companies whose asset portfolios are predominantly real estate. The rules apply to both on-market and off-market share transfers, and non-compliance may render transfers unenforceable or trigger financial penalties. In-house counsel for relevant entities must update transaction checklists, engage local French legal counsel early in deal timelines, and verify all new pre-transfer filing and documentation requirements are completed prior to closing to mitigate post-transfer dispute and invalidation risk.