The loan agreement

A loan for use is a gratuitous contract whereby one party (the lender) delivers a movable or immovable asset to another (the borrower) for use for a specified period of time or for a specific purpose, with the obligation to return the same asset received. The distinctive elements are:

• -Free ; 
• -The borrower it then becomes holder of a personal right of enjoyment of the property but has no ownership rights.
• -The unilaterality , that is, with obligations on one party only, which finds its cause in the relationships of courtesy and trust existing between the contracting parties or in the desire to meet the temporary needs of others.
• -The reality .
•  

When the early return of the goods occurs Civil Code, the borrower is required to return the item granted to him and this service becomes due upon expiry of the agreed term or when the borrower has used it in accordance with the contract. The lender is always given the opportunity to demand immediate restitution When faced with an urgent need to regain use of the property before its expiration or before the borrower has ceased to use it. These include failure to comply with the obligation to safeguard and preserve the property, to make the use of the property provided for in the contract or arising from the nature of the property, and granting its use to third parties without the lender's consent. 

How do I register the contract? 

To register the loan agreement it is sufficient:

• -Submit the registration request form (form 69) in duplicate.
• -Receipt for payment of €200 for the registration tax paid using the F23 form.
• -Stamp duty (formerly stamp duty), with an issue date no later than the date of signing.
•  

If the contract is indefinite period: it can be renewed, paying the registration tax (200 ) at each renewal. 

If the contract is fixed-term: the registration tax must be paid only once. 

The loan agreement, once drawn up in written form, must then be registered within twenty days of its subscription. 

The prescription 

The lender's right to the return of the thing given on loan expires with the expiry of the ordinary term of ten years, which begins:

• -In a fixed-term loan, from the expiry of the term established in the contract for return. 
• -Once the loan term expires, if the borrower does not voluntarily vacate the property, the owner can take legal action against the occupant.
• In an indefinite loan, the return request remains unfulfilled. When the return term has not been agreed upon by the parties and cannot be deduced from the intended use of the asset, the borrower, regardless of the lender's justifiable reasons, is required to return the asset as soon as the lender requests it. This is called a "loan without a fixed term," thus preventing the relationship from continuing indefinitely.
•  

Obligations of the borrower

• -He is required to guard and conserve it with the diligence normally required of every debtor.
• -He must use the good according to the use determined by contract or by the nature of the thing.
• The borrower is required to notify the owner of any damage to the property, and is also responsible for informing the lender of any subsidence, leaks, electrical system deficiencies, or any other damage occurring to the property, which the owner must cover. This excludes the borrower from receiving reimbursement for the cost, including compensation or indemnity, of any improvements made to the property unless they were deemed necessary to meet urgent conservation needs, even if these improvements have resulted.
• The borrower is not liable for any deterioration of the property resulting solely from the use for which it was delivered and without the borrower's fault. The lender is responsible for any extraordinary administration costs.