SCI (civil real estate companies) are increasingly numerous in France. Main advantage: the flexibility of the structure, much more than joint ownership, to own and manage one or more real estate assets together. It is also an increasingly used solution to pass on one's assets to one's children. The family SCI offers much more flexible management than joint ownership, which can sometimes lead to blockages. It also offers tax advantages. It is therefore an effective tool. But taxation should not be the only reason to create an SCI because taking into account the family situation, the human aspect of the project, is just as important. Céline Lepape, a real estate lawyer, answers all your questions. To support us and help us create even more content, subscribe to our channel: / @ledroitpourmoi LE DROIT POUR MOI deciphers legal news and the various legislative reforms for you in video. Our team of lawyers, media experts, offer you impactful content concerning business law, labor law, compliance, digital law, real estate law and public law. Find all our content on http://bit.ly/2sh3tSR -------------------------------------------------------------- 1- What is a real estate civil company? An SCI allows several people (the partners) to own and manage one or more real estate properties together. It is not mandatory for the partners to own the same proportions. On the other hand, one formality is mandatory: drafting the statutes, a real written contract that will organize the operation of the SCI. These statutes can be drafted by the partners themselves (private deed) or by a notary. The use of a notary is mandatory when the real estate property(ies) is(are) contributed to the SCI at the time of its creation. 2- What is the main interest in creating a family SCI? The family SCI allows in particular to buy and/or keep a real estate property between members of the same family. This property can be made available to the family, rented, or even sold. Please note: each heir must understand that the property no longer belongs to them but belongs collectively to the SCI, with a well-defined percentage for each. The family SCI has several advantages. For a couple, it is an opportunity to facilitate the creation of an estate and the transfer of real estate. The donation between spouses will be less taxed within the framework of an SCI, the inheritance tax lower. For your children, the SCI allows them to build up an estate without them having to pay money into it. The inheritance costs will also be reduced. The SCI also avoids the dispersion of the estate. The SCI implies that the partners participate together in the management of the real estate. To maintain good relations between family members, the operating procedures must be very clearly defined. You must attach great importance to the drafting of the statutes, the real backbone of the company. 3- What are the rules of the art for creating an SCI? The drafting of the statutes is fundamental and essential elements must be included, such as: the contributions of the partners, the conditions of sale or transfer of the shares of each partner, the terms of modification of the statutes, the organization of the various events such as general meetings, the rules of majority of votes, which can be limited to parents only. You must also designate the manager of the SCI who will manage the company within the limits of the powers provided for in the statutes and proceed with the registration of the company in the trade and companies register with the clerk of the commercial court. 4- What are the main mistakes to avoid in order to secure the SCI? When drafting the statutes, pay attention to the definition of the corporate purpose, that is to say all the activities that the company intends to carry out. If the statutes do not provide that the property can be sold or rented and under what conditions, this risks limiting or even preventing the operation of the company and thus being a source of tension within the family. Plan for the broadest possible corporate purpose, which covers all acts concerning the acquisition, ownership, rental and sale of the real estate. Also remember that the life of the SCI does not revolve solely around buildings. You may indeed need to take out a loan, or open a bank account. All of this must be included in the statutes.