The New Challenges of the Anti-Squatting Law

After lengthy debates and controversies, the so-called "anti-squatting" law is now in effect to protect housing from illegal occupations.

On July 26, the Constitutional Council approved this bill, with the exception of one article. Its provisions took effect on July 29, 2023. They aim to impose harsher penalties on squatters and tenants who fail to pay rent.  According to its sponsor, Representative Guillaume Kasbarian, this law addresses the distress faced by many small property owners who are victims of squatters or tenants who have not paid rent for years. The Minister of Justice, Eric Dupond-Moretti, supported a “balanced” draft that strengthens landlords’ rights while preserving protections for occupants in good faith.
 

However, the Constitutional Council struck down Article 7 of the law, which exempted property owners from their maintenance obligations in cases of damage resulting from a failure to maintain a property occupied illegally. Opposing lawmakers emphasized that this would place the burden on the illegal occupants, who are often in precarious situations. The Council of Elders confirmed that these provisions disproportionately infringed upon the right of victims to obtain compensation for damages caused by the lack of maintenance of a dilapidated building. They clarified that this ruling does not mean that any unlawful occupant could now obtain compensation from the owner for a poorly maintained property.
 

The law toughens penalties for unlawful occupation by tripling the penalties for squatting in a residence, increasing them to three years in prison and a 45,000-euro fine, compared to one year in prison and a 15,000-euro fine previously. A new penalty of two years in prison and a 30,000-euro fine is also established for the fraudulent occupation of any residential or commercial premises, even if it is not the owner’s residence.
The law also applies to tenants who refuse to vacate the premises despite a final eviction order and the expiration of the deadlines granted by the civil court. The penalty for this offense is a fine of 7,500 euros. 

However, certain exceptions apply, such as during the winter moratorium, when a judge grants an extension, or when the housing is owned by a social housing provider or a public-law entity.
In addition, the law aims to combat individuals who falsely pose as landlords in order to rent properties to tenants seeking housing. Those who engage in squatting—who are often slumlords—now face up to three years in prison and a fine of 45,000 euros. Inciting squatting through propaganda or advertising is also punishable by a fine of 3,750 euros.
 

To increase tenant accountability, the law now requires the systematic inclusion of an “automatic termination clause” in lease agreements in the event of nonpayment of the security deposit, rent, or agreed-upon service charges. Previously, this termination clause was optional and required the landlord to file a lawsuit to enforce it.
Finally, the law expedites rental dispute proceedings to reduce the time between the first missed payment and eviction in cases where the tenant acts in bad faith. The measures in the new law also aim to strengthen support for tenants in financial difficulty.