Selling at auction harvesting or felling of wood involves a specific procedure. The repeal of the law of 5 June 1851 changed this legal framework. What rules apply today?
Introduction: the legal status of wood harvests and felling
Public sales of harvests concern the products of the land and cut wood. The Civil Code considers that crops hanging by their roots and the fruit of uncollected trees are immovable (article 520 of the Civil Code). This classification changes when the grain is cut or the fruit detached - it then becomes movable.
There are significant legal differences between coppiced, mature and mature woods:
- Coppice woods are cut down to the stump at regular intervals.
- The fir trees have outlived three ordinary coppice cuttings
- High forest trees are generally at least 120 years old.
This distinction determines the procedure applicable to their sale by auction, in the same way as for other complex movable assets such as boats, ships and aircraft.
Public sales of fruit, harvests and coppice cuts
Current legal framework following repeal of the law of 5 June 1851
The law of 5 June 1851, which gave movable property status to sales of fruit and harvests hanging by the roots and of coppiced wood, was repealed by article 27-II (3°) of law no. 2007-1787 of 20 December 2007. This repeal created a gap that was filled by common law on voluntary sales.
Voluntary public sales of fruit, harvests and coppiced wood are now subject to the following conditions the general regime for voluntary sales of furniture. Article 871 of the General Tax Code specifies that fruit and crops may only be sold publicly by public officials, sworn merchandise brokers or registered voluntary sales operators.
Procedure and formalities
Voluntary public sales of fruit and crops:
- Auctioneers no longer have a territorial monopoly
- The parties are free to choose their voluntary sales operator
- A report is drawn up detailing how the work is to be carried out (time, means of removal).
- Ownership is transferred at the time of sale
- The buyer must remove the crops within the agreed period, failing which the sale will be cancelled (article 1657 of the French Civil Code).
Auctions are conducted according to the traditional rules for voluntary sales: advertising, auctioning and sale to the highest bidder. In the event of a subsequent seizure of the property, a previous crop sale can still be used against mortgage creditors.
Public sales of cuttings of mature and mature trees
Public sales of private woodcuts
Foliage and high forest trees are considered to be immovable property until they are felled (Civ. 16 déc. 1912, DP 1914.1.115). Their sale by auction is therefore not subject to the rules governing public sales of movable property, but falls within the exclusive jurisdiction of notaries.
The classic voluntary auction procedure includes:
- Fixing a reserve price (generally with a discount of 30%)
- Drawing up detailed specifications
- Appropriate advertising
- The obligation for bidders to deposit approximately 20% of the hammer price
- The candle auction technique
- Signing of the adjudication minutes
Please note: the successful bidder may not invoke the benefit of any suspensive condition relating to obtaining a loan.
Public sales of cut wood subject to the forestry regime
The woods and forests of the State, local authorities and public establishments are subject to the forestry regime (articles L.211-1 and L.214-3 of the Forestry Code). The Office National des Forêts (ONF) has a choice of three procedures for carrying out these sales:
- The auction
- The call for tenders
- Private sale
The ONF's Board of Directors adopts the general clauses of the sales, while its departments determine the clauses specific to each lot. Sales by auction must be publicly announced at least fifteen days in advance (article R.213-27 of the Forestry Code).
The financial capacity of bidders is verified by the auction committee, made up of the prefect of the department, a representative of the ONF and the accountant responsible for collection. Certain civil servants may not take part in the auction, on pain of nullity of the sale and criminal sanctions (articles L.213-7 and L.214-9 of the Forestry Code).
The auction becomes final as soon as it is pronounced and the official report constitutes a legally enforceable deed (articles R.213-33 and R.213-34 of the French Forestry Code).
Public wine sales
Jurisdiction and procedure
Wine auctions are conducted by voluntary sales operators in accordance with the rules of ordinary law. For wholesale sales, sworn merchandise brokers specialising in wines and spirits may intervene under restricted conditions (articles L.131-27 et seq. of the French Commercial Code).
Since Law 2011-850 of 20 July 2011, the brokers' monopoly has been abolished for voluntary sales, but remains in place for certain judicial sales or sales after liquidation.
The distinction between retail and wholesale sales remains relevant: according to case law, a wholesale sale concerns "lots which cannot be considered as being within the consumer's reach". (Req. 17 Jan. 1939, S. 1939.1.95). Article L.321-1 of the French Commercial Code specifies that wholesaling applies to batches that are large enough to be inaccessible to individual consumers.
Insurance and bonding obligations
Decree no. 2012-120 of 30 January 2012 imposes on sworn merchandise brokers insurance and bonding obligations similar to those of voluntary sales operators (articles R.131-7 to R.131-13 of the French Commercial Code).
The minimum amount of the guarantee granted must correspond to the highest of the following amounts:
- Average monthly sales figures
- Half the maximum amount of funds held on behalf of third parties
This cover is progressive: the broker must adapt it annually and revise it in the event of circumstances that modify the extent of the risk (article R.131-11 of the French Commercial Code).
If you are considering an auction of crops, wood or wine, the rules may seem complex. Our firm can help you choose the right procedure and secure your transaction legally. Don't hesitate to contact us for a personalised analysis of your situation.
Sources
- Civil Code, articles 520, 1657
- Commercial Code, articles L.131-27 et seq., L.321-1, R.131-7 to R.131-13
- Forestry Code, articles L.211-1, L.213-7, L.214-3, L.214-9, R.213-27, R.213-33, R.213-34
- General Tax Code, article 871
- Law no. 2007-1787 of 20 December 2007, article 27-II (3°)
- Law no. 2011-850 of 20 July 2011 on the liberalisation of voluntary sales of furniture by public auction
- Civ. 16 Dec. 1912, DP 1914.1.115
- Req. 17 Jan. 1939, S. 1939.1.95
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