French Consumer Code
In forceThe provisions of this chapter apply to:
1° Credit agreements, as defined in 6° of Article L. 311-1, intended to finance the following transactions:
a) For buildings for residential use or for professional and residential use:
-their acquisition as owner-occupied property or the subscription or purchase of units or shares in companies giving entitlement to their allocation as owner-occupied property, including where these transactions are also intended to enable repair, improvement or maintenance work to be carried out on the property thus acquired ;
-their acquisition in jouissance or the subscription or purchase of units or shares in companies giving entitlement to their allocation in jouissance, including where these transactions are also intended to enable the carrying out of repair, improvement or maintenance work on the property thus acquired;
expenditure relating to their construction;
b) The purchase of land intended for the construction of the buildings mentioned in a above;
2° Credit agreements granted to a borrower defined in 2° of article L. 311-1, which are secured by a mortgage or other comparable security interest over residential property, or by a right attached to residential property. Contracts guaranteed in this way include those intended to finance the repair, improvement or maintenance of residential property or property used for both business and residential purposes;
3° To the credit agreements mentioned in 1°, which are taken out by legal entities under private law, where the credit granted is not intended to finance a professional activity, in particular that of legal entities which, on a regular basis, even incidental to another activity, or by virtue of their corporate purpose, provide, in any form whatsoever, buildings or parts of buildings, built or unbuilt, completed or unfinished, collective or individual, owned or enjoyed.
