Real joint lease (BRS): definition, condition and advantage

What is BRS (Real Solidarity Lease)?

BRS: a home ownership scheme in France

According to article L. 255-1 of the Construction and Housing Code, the real joint lease is one by which a joint land organization (OFS) grants a lessee real rights with a view to renting or access to home ownership. With, if necessary, an obligation for the latter to build or rehabilitate existing buildings.

The duration of this lease is regulated, being granted for a minimum period of 18 years and not beyond 99 years.

Legal framework

The real joint lease is a system created by a law of August 6, 2015 called for growth, activity and equal economic opportunities. Ordinance No. 2016-985 of July 20, 2016 clarified the regime: it was transposed into the Construction and Housing Code in articles L.255-1 et seq.

Who is entitled to a joint real lease?

Conditions to benefit from the BSR

The real joint lease is not accessible to everyone. Several conditions must be met. Apart from the question of resources, they depend on the agreements defined between the land organizations in solidarity with the communities. Typologies are thus established concerning housing with the composition of the households that can occupy them.

Other criteria may also come into play, such as proximity to the workplace and eligibility for social rental housing. Finally, the accommodation must be occupied as a primary residence.

New conditions linked to heritage in 2025

From January 1, 2025, the real joint lease (BRS) will be subject to new conditions. Future occupants will therefore have to sign a sworn declaration specifying that they do not own real estate “adapted to their needs and financial capacities” which could serve as their main residence.

Likewise, it will be necessary to certify that you do not own a rental property, the rents from which would allow you to buy in a private park.

BRS: 2024 resource ceilings

Here are the resource ceilings allowing access to the system for the year 2024. Set by decree, they depend both on the composition of the household and the living area. The income taken into account is the reference tax income for year N-2.

How does the real joint lease work?

A legal contract between an OFS and a local authority

Solidarity land organizations are non-profit organizations created by EPCI (public intercommunal cooperation establishments), EPF (public land establishments) and HLM lessors. Their aim is to acquire built or built land and to remain owners of it.

The beneficiaries purchase real rights to the building

In other words, with the real joint lease, there is a dissociation of land and buildings. The beneficiary of the system only buys the accommodation and rents the land on which it is built to a solidarity land organization. The rent granted as part of the operation by the OFS is generally low: it is therefore this mechanism which makes it possible to reduce the price of housing.

Why buy a home in BRS?

A significant saving for the household

This is the number one advantage. By purchasing only the built part of the accommodation, the savings made are significant. It is estimated at 20 to 40% depending on the geographic area, in comparison with a classic acquisition comprising housing + land. Thus, the BRS allows low-income households to access housing below market prices.

Reduced VAT and a reduction in property tax

There are other advantages like:

• VAT reduced to 5.5% in the case of new housing.
• Condominium maintenance charges and property tax are payable, but a reduction is applied to property tax (limited, depending on the municipality).
• A guarantee of repurchase of the accommodation by the OFS.
• The possibility of financing the acquisition with a PTZ (zero interest loan) for first-time buyers.

What are the disadvantages of BRS?

Limitation of asset value

The BRS implies that the real estate remains under the ownership of a joint land organization. Occupants cannot therefore benefit from a complete valorization of their property, which limits the accumulated assets.

Limited time

The lease is generally concluded for a period of 18 to 99 years, which can be perceived as long-term insecurity for the occupants. At the end of this period, the property must return to the owning organization, and the conditions for renewal are not always clear.

Resale conditions

In the event of resale, the occupants cannot sell the property at a free price. The resale price is governed by criteria set in advance, which can reduce financial gains for the owner.

Restricted access

The BRS is aimed at low-income households, meaning many potential buyers may be excluded. The eligibility criteria may also vary from one region to another, making the system less accessible depending on the geographical area.

How to buy real estate under a real joint lease?

With a social landlord or promoter

You should know that solidarity land organizations (OFS) enter into partnerships with social landlords who market this real lease. It is rather rare to meet the OFS on the ground. The acquisition procedure therefore most often takes place with a social landlord or real estate developer. When the land is to be built on, it resembles what happens within the framework of a VEFA.

Search for real estate

To identify a potential BRS purchase, candidates can consult specialized sites or contact real estate agencies, but it is better to consult directly the offers published on dedicated online platforms, real estate announcement sites or directly on the website of the OFS.

Prepare your application file

Once the property has been found, the candidate must submit an application file, including personal information: income and proof of financial situation. This file must be sent to the solidarity land organization, which will study the BSR purchase request.

Wait for the file to be evaluated

Before marketing the property, the files are then made anonymous and evaluated according to a points grid. The best applications are then examined by a selection committee, which selects future buyers.

Signature of the reservation contract and the authentic deed

Once your request is accepted, a so-called reservation contract is signed between the two parties. It is confirmed by an authentic deed before a notary. When the building is already built, the parties sign a preliminary contract, then the deed of sale is formalized before a notary.

How much is the rent for the land?

The amount of the rent is provided for by decree as specified in article L. 255-2 of the Construction and Housing Code. This also specifies that the solidarity land organization can — depending on its objectives and the characteristics of each operation — apply lower thresholds.

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What obligations after a purchase in BRS?

After signing the BRS, the tenant must maintain the premises in good condition of maintenance and repair. In addition, the property can be transferred during the lease at a controlled price lower than the market price and only to a household meeting the same resource criteria.

What to choose: a purchase in BRS or PSLA?

How the Social Rental-Accession Loan (PSLA) works

The Social Rental-Accession Loan (PSLA) is a system which allows you to rent accommodation with a term purchase option (generally between five and 15 years). The accommodation is financed by a social loan, and you pay part of the rent which is integrated into the future purchase price. The PSLA mainly targets first-time buyers and young households with modest incomes.

Different duration and rents

Purchasing in BSR allows access to property at an affordable price, within the framework of long-term leases, particularly in tense areas. The PSLA allows you to access property with a long-term commitment, while testing the accommodation before purchasing. The rents paid by the future buyer during the rental period are often lower, and a part is deducted from the purchase price.

Different access to property

Purchasing in BSR imposes limitations on the valuation of the property and the resale price. Candidates do not benefit from full ownership, which may limit access to accumulated assets. With the PSLA, complete ownership is acquired at the end of the rental period.

How to resell a property purchased in BRS?

Reselling a property purchased under a Real Solidarity Lease (BRS) involves following a specific process, because the BRS framework imposes certain restrictions on resale.

Understand the resale conditions

The sale price of a property in BRS is regulated by the solidarity land organization (OFS). This means that you must respect a maximum sale price determined by criteria such as surface area, location and the evolution of real estate prices in the region.

The OFS may also have a right of pre-emption, which means it can have priority to buy the property before you offer it to other buyers.

Prepare for the sale

Before the sale, you must inform the OFS of your intention to resell. This is often required by the lease agreement. The OFS can carry out an evaluation of the property to determine the resale price in accordance with the conditions of the BRS. You must then gather the necessary documents for the sale (real joint lease contract, deed of ownership, real estate diagnostics).

Set the price

Then, based on the evaluation made by the OFS and the resale criteria, set the sale price of the property. Owners in BRS have the possibility of reselling their property with a regulated capital gain (price indexed to the Construction Cost Index). This allows owners to benefit from an increase in the value of their property while respecting the established conditions.

Finalize the sale

Once a buyer is found, as when purchasing, all you need to do is sign a deed of sale. The act must comply with the conditions of the BRS and be validated by the OFS. After signing, all that remains is to hand over the keys and all documents relating to the property to the buyer.

Please note, depending on the terms of the BRS contract, you may have reporting obligations after the sale, particularly in terms of monitoring the resale.

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