- What is “Paris Pied-à-Terre” and what does it mean?
- What does a fraction at Paris Pied-à-Terre cost?
- How can a fraction at Paris Pied-à-Terre be re-sold?
- How is ownership of a residence conveyed?
- What is the difference between fractional ownership and timeshares?
- How do Paris Pied-à-Terre owners select their weeks of residence?
- Do Paris Pied-à-Terre owners pay dues?
- Can Paris Pied-à-Terre owners exchange their weeks of residence for weeks at other properties?
- How are the residences at Paris Pied-à-Terre managed?
- What services are provided to Paris Pied-à-Terre owners in residence?
- Does Paris Pied-à-Terre allow pets or smoking?
- Can I rent out my residence weeks to other parties?
- Who are your legal and fiscal consultants on this program?
- More questions answered by Dr. Andrew Sirkin, Attorney at Law and co-ownership expert
1. What is “Paris Pied-à-Terre” and what does it mean?
py-dä-târ - [French : pied, foot + à, to, on + terre, ground.] - lodging for occasional or secondary use; "they bought a pied-a-terre in Paris ".
Paris Pied-à-Terre started out as a vacation rental activity a few years ago and has now developed into fractional ownership. Paris Pied-à-Terre is also a management company dedicated to the comfort of its guests and maintaing value to properties that it manages.
2. What does a fraction at Paris Pied-à-Terre cost?
The price differs for each property.
For our Eiffel Tower - Rue du Colonel Combes property the shares start at €82,000 Euros for 1/12th share
($113,295 US Aug 8, 2007).
For our St-Germain - Rue de Nesle property the shares start at €137,000 Euros for 1/12th share
($189,279 U.S. Aug 8, 2007).
3. How can a fraction at Paris Pied-à-Terre be re-sold?
A fraction can be sold on the open market, or with the help of Paris Pied-à-Terre. Existing owners have priority over new owners, though.
4. How is ownership of a residence conveyed?
Each fractional ownership apartment will be acquired via a “US home owners association”. Each share owner will be a member of this association with all rights and duties described in the association by-laws. Owners can sell, will or gift individual ownership interest at any time. Any sale, gift or passing following death will occur in the USA under USA law and will not require any legal proceedings or recordings in France. We have worked with U.S. attorney Andy Sirkin, who specializes in fractional ownership, to develop the legal framework. His website has extensive information on fractional ownership which you may want to read.
5. What is the difference between fractional ownership and timeshares?
Fractionals tend to be more exclusive and built to a higher amenity level than traditional timeshares. Timeshares usually allow just one to two weeks use per year while fractionals may offer up to twelve weeks. Fractionals tend to appreciate over time while timeshares have historically done poorly. There are a couple of reasons for this. More of the buyers' dollars go to high quality finishes and "bricks and mortar" with fractionals. There are a limited number of fractionals on the market. Most likely, that number will stay small because fractionals are built in only the most highly desirable world-class resort destinations such as Paris and Aspen. Therefore, demand outpaces supply.
6. How do Paris Pied-à-Terre owners select their weeks of residence?
Ownership and control of the association is divided into twelve shares. Each share holder is entitled to four weeks each year. Two particular, consecutive weeks (The Primary Weeks) and two additional weeks chosen by each share holder annually, based upon a rotating priority system (The Flexible Weeks). Weeks can be lent or rented out. A particular owner may own more then one share.
7. Do Paris Pied-à-Terre owners pay dues?
Each year, the management company will prepare an operating budget and present it to the owners for their review. This budget will include all expenses such as property taxes, utilities, insurance, and assessments by the apartment building association, cable TV, telephone and internet. There are also repair and replacement reserves for items within the apartment. Management fees, including administration, troubleshooting, accounting, maintenance, usage allocation as well as performing all club services.
8. Can Paris Pied-à-Terre owners exchange their weeks of residence for weeks at other properties?
Yes. An exchange program is available at a limited number of other Paris and Provence properties controlled by the developer at an additional charge.
9. How are the residences at Paris Pied-à-Terre managed?
Each association will be managed by Paris Pied-à-Terre Residence Club (The Club) The club will offer general property management and repair services. Owners will be able to discontinue their agreement with Pied-a-Terre (The Club) if they so wish at the end of the first year. The club will charge the association an annual fee for membership and participation and may also charge individual owners an additional fee for some of it’s services.
10. What services are provided to Paris Pied-à-Terre owners in residence?
English-speaking concierge service, housekeeping weekly (or daily for additional fee). Airport transport (additional fee), pre-arrival grocery shopping, luggage handling, breakfast upon arrival. Complementary flowers, wine and espresso coffee. Also, cellular phone use during your stay, personal items and wine storage, English newspapers, magazine delivery, computer and wireless internet with entertainment, priority Taxi reservations, house exchange with other Paris and Provence properties (at extra charge).
11. Does Paris Pied-à-Terre allow pets or smoking?
No, Paris Pied-à-Terre is a pet and smoking free environment.
12. Can I rent out my residence weeks to other parties?
Should you be unable to use any or all of your reserved residence weeks, you can rent the unused time. Paris Pied-à-Terre Residence Club can also help you find rentors for a small fee. All rental income goes directly to the owner.
13. Who are your legal/fiscal counsutants on this program?
Our legal and fiscal expert on French and US matters is Sam Okoshken, from The Samuel Okoshken Law Firm, based in Paris since 1974. Needless to say, Sam's 28 years of experience is a major contribution to the establishment and legal foundation of our program.
Our fractional ownership expert is Andrew Sirkin, with over 20 years of experience putting together a myriad of fractional ownership and co-ownership deals in the US and the rest of the world. Without him, this program would not have existed.
More questions Answered by D. Andrew Sirkin, Attorney at Law and co-ownership expert
(clicking on any of these questions will open a new window to Mr. Sirkin's FAQ web page)
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