Subject,
Classification of Leaseback property

This is a copy of the text from an email I received yesterday from the managemnt company GROUP MONNIER and is probably relevant to people making a purchase of a leaseback.

It appears the problems date back to September 07 and the management company havnt bothered to inform owners of why rent hasnt been paid or of the problem that exists

Question,
Has anybody any experience of dealing with this sort of problem


Text from letter,

Objet : Résidence les Jardins d’Elisa



Juan les Pins, le 17 décembre 2007


Dear Madam, Sir,

Following an unjustified denunciation made to the prefecture of the Alpes Maritimes around the month of May 2007, claiming that the residence “les Jardins d’Elisa” would not fulfil the required conditions for the exploitation of a residence with furniture and services, the prefecture has entrusted the fraud squad in order to check if the residence “les Jardins d’Elisa” comply with the norms or not. This organism does not exclude the possibility of closure of the residence.

The inspector of the fraud squad came to visit the residence. We had a meeting all together. He explained that they have opened an inquiry and he asked us to provide an important list of documents, i.e, rules of condominium, bills of sale, commercial lease, etc……

In this context, you can imagine what a disaster it is on our work conditions, cancellation of the bookings with our different partners who fear the closure at the crucial moment of a congress or a local or an international event.
As indication, since the beginning of October, our turnover is about 10 % of the forecasted turnover.
Today, we are not able to practise our activity due to the obstacle of the free traffic of the persons and the possessions. Consequently, we are sorry to inform you that we have decided to suspend the payment of your rental until an administrative decision has been taken and that there is no more uncertainty on the validity of the lease that you have granted to our company.

Naturally, we will keep you informed about the evolution of the situation.


Christian MONNIER

Le Gérant,