Lending a home to one of his children seems natural for many parents who have a property intended for rental. An economical solution if, for example, your child is studying or if your property is empty. Lending accommodation under these conditions is quite possible and is authorized by law, but it is still recommended to take a few precautions. In order to formalize this kind of loan, the law provides for a type of written contract, less restrictive than the signing of a lease:the loan of use, also called commodat.
Nothing is more normal for parents than to want to lend a home that they intend to rent (or not) to one of their children, especially if the latter does not have a large income, if at all. This situation is fully permitted by law based on your right of ownership.
Lending your home under these conditions does not require writing a lease like any rental. However, to avoid problems that may arise, such as deterioration of your accommodation during its occupation, its destruction by fire, or if your child no longer wants to leave it, etc., it is still recommended to clarify this provision and to formalize in some way this free loan.
To do this, the law has defined a form of specific contract that is less restrictive than the signing of a lease in good and due form, and simple to set up. This is what is called the "loan for use", also called "commodat", the principles of which are set out in articles 1875 to 1891 of the Civil Code. Thus, as the law says, the loan of use, or commodat, designates "a contract by which one of the parties delivers a thing to the other to use it, at the expense of the lessee to return it after using it".
The loan of use is the only document recognized by the courts if you must, in the event of a problem with your child, assert your rights. This contract can also be used to prove to the administration that you do not receive rent for the provision of your accommodation.
The customary loan contract stipulates that as a lender you remain the sole owner of your property, and that it cannot be a donation for example. Above all, it indicates in black and white that your child must return your accommodation to you in good condition when he leaves it. An obligation that may seem trivial when it comes to the occupation of one of your homes by your child, but which can be very useful in the event of deterioration of your ties with him during this loan.
It is not necessary to go before a notary to formalize a loan of use. But, if you have any doubts about the terms and conditions it should contain, these professionals can provide you with valuable advice.
One of the characteristics of this loan of use, or commodat, the type of contract that it is advisable to use if you lend housing to one of your children, is that it essentially concerns the provision free accommodation. Under these conditions, the loan of your property must not be the subject of compensation from your child, either in cash or in kind. Otherwise, the contract that binds you must be requalified into another type of contract (a rental contract) which can be much more restrictive for you, and for your child.
The loan of use can therefore under no circumstances be the subject of a payment between your child and you. Nevertheless, this type of contract may include a clause that authorizes you to ask your child to contribute to cover the costs related to the maintenance of your accommodation that he occupies such as the costs related to his consumption of water, electricity , or the Internet for example.
With this type of contract, your child is required to maintain the accommodation you lend him and keep it in good condition. On the other hand, even if it is a loan, like any occupant of a dwelling, your child must take out home insurance to be covered in the event of a claim because he is responsible for the damage he may cause. .
The loan of use does not necessarily provide for an end date or a maximum period for the loan of your home to one of your children. You can completely provide these indications in the contract, otherwise this contract automatically ends when your child leaves your accommodation. Be aware, however, that if you draw up a customary loan when your home is loaned to one of your children, and you do not plan an end date of occupation, the law presupposes that this contract is at indefinite period. However, as the owner of the accommodation, you have the possibility of ending it at any time by respecting a period of notice which the law considers "reasonable", a situation which can prove to be complicated if you do not have drafted of loan of use, or not envisaged a date of end of the occupation of your housing by your child in this contract.
Note:if your child occupies one of your accommodations free of charge, he cannot claim aid from the Family Allowance Fund (CAF) such as Personalized Housing Assistance (APL), for example. In addition, if you yourself are a beneficiary of family allowances and you are hosting one of your children who has income for more than 6 months, you must declare this situation to the Caf, which then takes into account the income of your child to calculate your rights, with the possible consequence that your allowances are revised downwards.
On the other hand, lending accommodation to one of his children assumes that you do not receive rent. You cannot therefore benefit from tax deductions, which are possible in certain cases of rental accommodation. Still from a tax point of view, your child is liable, depending on his income, for the housing tax for the accommodation you lend him.
Finally, in matters of succession, the law indicates that "the commitments which are formed by the loan for use pass to the heirs of the person who lends", in other words the loan for use is added to the inheritance share. In this regard, it is advisable to clearly specify the name of your child to whom you are making your accommodation available free of charge in the loan agreement so that this "agreement" does not continue to benefit his heirs if he dies. . This type of contract does not in fact count as a donation.
