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Real Estate Lexicon
Terms and words used in real estate jargon
Real estate is a complex field and full of terms and acronyms to know. In order to help you, we have gathered on this page the most commonly used terms in the real estate sector as well as their definition. Do not hesitate to come back to consult these pages regularly to no longer find yourself without an answer to a future buyer!
Select a LETTER to find a definition, or see the list below:
A like...
Down payment
The deposit is a part of the sale price, which is paid by the buyer when signing a preliminary contract (promise of sale or compromise).
Traditionally, the deposit is set at 10% of the sale price. When signing the authentic deed of sale, the buyer will pay the full price, minus the amount of the deposit.
The deposit is returned to the non-professional buyer if he exercises the right of withdrawal offered to him when buying a property for residential use.
The deposit is also refunded to the purchaser if the conditions precedent provided, such as obtaining a loan, do not come true, provided however that the buyer has not committed a fault.
Authentic act
The authentic deed of sale is drawn up by a notary to record the sale. The sale of a property must be published in the real estate file, which is kept by the land registration service. This essential formality can only be carried out on the basis of an authentic instrument.
The authentic deed of sale is established when all the conditions are met: termination of the suspensive conditions and obtaining the necessary documents (urban planning, civil status certificates, mortgage information, etc.).
Act of notoriety
The deed of notoriety is drawn up by the notary, at the request of the heirs of a deceased person. It specifies the list of heirs and the share of the estate that must go to them. The notary draws up the act of notoriety in the light of the death certificate and the supporting documents provided to him or that he requests himself: family record book, civil status records... He then asks the heirs to affirm the sincerity of the declarations contained in the deed.
The cost of an act of notoriety is set by the public authority at € 57.69 (€ 69.23 including VAT) (from May 1, 2016).
Banks, insurance companies, the employer of the deceased, and more generally any public or private institution will request communication of the act of notoriety in support of the claims of the heirs.
Property Administrator
The property administrator is a professional agent, who holds the real estate agent card, with the mention "property management". He manages real estate, on behalf of the owners, and administers in their place the relationship with the tenants of the property, from the entry of the tenants into the premises, until the end of the lease.
Being subject to the status of real estate agent, the property administrator has necessarily taken out professional liability insurance, as well as a guarantee covering the funds he receives on behalf of his clients.
Commercial Agent
The commercial agent is a non-commercial professional, who works in the name and on behalf of a real estate agent.
Real estate negotiator, he holds the certificate of employment issued by the CCI. The real estate agent usually gives him the power to have mandates signed, on his behalf. However, he does not have the right to draft compromises, or to give legal advice.
Realtor
The real estate agent is a professional intermediary, holder of a card issued by the CCI after having been verified:
- His good repute,
- His professional aptitude,
- His professional liability insurance,
- His financial guarantee, unless he has made a commitment not to receive funds.
- Its obligation of continuous training, from 1 January 2017.
The real estate agent carries out three main types of activities: the real estate transaction, the property management and the activity of trustee.
It carries out its mission after receiving a mandate.
Asbestos
Asbestos is a fibrous substance used in industry, and whose properties have been exploited in building materials. However, it is carcinogenic. In order to prevent and limit people's exposure to asbestos, it has been banned in real estate construction. For immovable property for which the building permit was issued before 1 July 1997, it could be used.
The law has required a systematic search for asbestos in all buildings other than individual houses. It also organizes the information of buyers and tenants.
In this context, the owner has the obligation to provide a statement mentioning the presence or absence of materials or products containing asbestos.
Personal contribution
The "personal contribution" is the amount of money that a buyer has, and that he can actually bring when buying a property. This sum must be available, and be deposited in the hands of the notary before the signing of the authentic deed of sale.
Collective sanitation
Sanitation is the sewage and stormwater drainage system. It must comply with public health and environmental needs.
We speak of collective sanitation when the municipality has created a network for the collection of wastewater and, possibly, rainwater. Municipalities or parts of municipalities that are part of areas with at least 2,000 inhabitants and that contain a sufficient density of economic activities and population are required to set up a collective sanitation system.
Individual sanitation
The individual sanitation facility must be present for any building that is not connected to the collective sanitation. This installation must comply with the standards in force.
The non-collective sanitation system must be checked periodically. And, during the sale of the property, the report of visit of the non-collective sanitation is part of the mandatory technical diagnostics.
Meeting of co-owners
When an immovable or a real estate complex is subject to the co-ownership regime, decisions are taken collectively, by the meeting of co-owners, which brings together all the owners of the immovable. The law requires that a meeting be held, at least once a year, to decide on the budget, validate the accounts of the past year, and, if necessary, appoint the trustee, vote on the carrying out of work...
Depending on the decision to be taken, the 1965 law enacts different majorities, ranging from the simple majority of the co-owners present at the meeting, to unanimity. Each lot owner benefits from a number of votes proportional to the number of tantièmes (thousandths) defined by the co-ownership regulations, and depending on the size of his lot.
The deposit is a part of the sale price, which is paid by the buyer when signing a preliminary contract (promise of sale or compromise).
Traditionally, the deposit is set at 10% of the sale price. When signing the authentic deed of sale, the buyer will pay the full price, minus the amount of the deposit.
The deposit is returned to the non-professional buyer if he exercises the right of withdrawal offered to him when buying a property for residential use.
The deposit is also refunded to the purchaser if the conditions precedent provided, such as obtaining a loan, do not come true, provided however that the buyer has not committed a fault.
Authentic act
The authentic deed of sale is drawn up by a notary to record the sale. The sale of a property must be published in the real estate file, which is kept by the land registration service. This essential formality can only be carried out on the basis of an authentic instrument.
The authentic deed of sale is established when all the conditions are met: termination of the suspensive conditions and obtaining the necessary documents (urban planning, civil status certificates, mortgage information, etc.).
Act of notoriety
The deed of notoriety is drawn up by the notary, at the request of the heirs of a deceased person. It specifies the list of heirs and the share of the estate that must go to them. The notary draws up the act of notoriety in the light of the death certificate and the supporting documents provided to him or that he requests himself: family record book, civil status records... He then asks the heirs to affirm the sincerity of the declarations contained in the deed.
The cost of an act of notoriety is set by the public authority at € 57.69 (€ 69.23 including VAT) (from May 1, 2016).
Banks, insurance companies, the employer of the deceased, and more generally any public or private institution will request communication of the act of notoriety in support of the claims of the heirs.
Property Administrator
The property administrator is a professional agent, who holds the real estate agent card, with the mention "property management". He manages real estate, on behalf of the owners, and administers in their place the relationship with the tenants of the property, from the entry of the tenants into the premises, until the end of the lease.
Being subject to the status of real estate agent, the property administrator has necessarily taken out professional liability insurance, as well as a guarantee covering the funds he receives on behalf of his clients.
Commercial Agent
The commercial agent is a non-commercial professional, who works in the name and on behalf of a real estate agent.
Real estate negotiator, he holds the certificate of employment issued by the CCI. The real estate agent usually gives him the power to have mandates signed, on his behalf. However, he does not have the right to draft compromises, or to give legal advice.
Realtor
The real estate agent is a professional intermediary, holder of a card issued by the CCI after having been verified:
- His good repute,
- His professional aptitude,
- His professional liability insurance,
- His financial guarantee, unless he has made a commitment not to receive funds.
- Its obligation of continuous training, from 1 January 2017.
The real estate agent carries out three main types of activities: the real estate transaction, the property management and the activity of trustee.
It carries out its mission after receiving a mandate.
Asbestos
Asbestos is a fibrous substance used in industry, and whose properties have been exploited in building materials. However, it is carcinogenic. In order to prevent and limit people's exposure to asbestos, it has been banned in real estate construction. For immovable property for which the building permit was issued before 1 July 1997, it could be used.
The law has required a systematic search for asbestos in all buildings other than individual houses. It also organizes the information of buyers and tenants.
In this context, the owner has the obligation to provide a statement mentioning the presence or absence of materials or products containing asbestos.
Personal contribution
The "personal contribution" is the amount of money that a buyer has, and that he can actually bring when buying a property. This sum must be available, and be deposited in the hands of the notary before the signing of the authentic deed of sale.
Collective sanitation
Sanitation is the sewage and stormwater drainage system. It must comply with public health and environmental needs.
We speak of collective sanitation when the municipality has created a network for the collection of wastewater and, possibly, rainwater. Municipalities or parts of municipalities that are part of areas with at least 2,000 inhabitants and that contain a sufficient density of economic activities and population are required to set up a collective sanitation system.
Individual sanitation
The individual sanitation facility must be present for any building that is not connected to the collective sanitation. This installation must comply with the standards in force.
The non-collective sanitation system must be checked periodically. And, during the sale of the property, the report of visit of the non-collective sanitation is part of the mandatory technical diagnostics.
Meeting of co-owners
When an immovable or a real estate complex is subject to the co-ownership regime, decisions are taken collectively, by the meeting of co-owners, which brings together all the owners of the immovable. The law requires that a meeting be held, at least once a year, to decide on the budget, validate the accounts of the past year, and, if necessary, appoint the trustee, vote on the carrying out of work...
Depending on the decision to be taken, the 1965 law enacts different majorities, ranging from the simple majority of the co-owners present at the meeting, to unanimity. Each lot owner benefits from a number of votes proportional to the number of tantièmes (thousandths) defined by the co-ownership regulations, and depending on the size of his lot.
B as...
Industrial and Commercial Profits (BIC)
For tax purposes, industrial and commercial profits (BIC) are made by a natural person who exercises a commercial, industrial or craft profession. An activity is considered commercial when the person performs acts of commerce, for example: the purchase of goods, or the rental of furnished property. For an activity to be considered a profession, it is necessary that the person acts for the purpose of earning income from it, and on his own behalf.
Civil lease
Rental contract of a property. When no mandatory law governs the lease, it is subject to the rules of the Civil Code. This is the case, for example, with the rental contract for a garage or car park, if it is rented independently of a dwelling.
Commercial lease
Contract for the rental of real estate granted to a trader, craftsman or industrialist, who carries out his activity on the premises. The commercial lease is mandatory by articles L 145-1 and following of the Commercial Code. This very specific regime is complex. It allows the tenant to benefit from a right to the renewal of his lease.
Residential lease
Rental contract for a dwelling or a house. When the property is the tenant's main residence, the lease is obligatorily subject to the law of 6 July 1989, whether the property is rented unfurnished or furnished.
In other cases, the lease is a civil lease, subject to the Civil Code alone, for example for a second home.
Professional lease
Rental contract granted to a tenant who exercises a liberal profession in the premises, without living there. Doctors, lawyers... benefit from this status, governed by Articles 57 A and 57 B of the Law of 23 December 1986.
It is possible to place oneself, voluntarily, under the regime of the commercial lease.
Lessor
In a rental agreement, the lessor is the one who makes the property available to the tenant. This is usually the owner of the property. The tenant must pay him the rent. The lessor undertakes that the tenant can benefit from the property. He must carry out repairs that are not the responsibility of the tenant.
Visit voucher
The Visitor Voucher was created by real estate professionals. It is a writing that the real estate agent makes the client sign interested in the purchase of a property. It allows the professional to establish that a client has visited the property with him, in order to protect his right to remuneration. The real estate agent may ask the client who wishes to visit a property to prove his identity, in particular when signing the visit voucher.
Demarcation
Demarcation consists in determining the separative boundary of two contiguous properties. It is carried out by a surveyor. The demarcation can be carried out amicably, by the owners of the property concerned. The expert surveyor they have chosen will draw up a demarcation report and set the boundaries on the ground. The demarcation can also be judicial, when the neighbors do not agree: it will be ordered by the district court at the request of one of them.
Bouquet
The bouquet designates, in a life sale, the part of the price that is paid by the buyer when signing the deed of sale at the notary. Indeed, the price of a life annuity is generally divided between the annuity, paid periodically to the seller (credirentier), and the bouquet, paid from the authentic deed. The breakdown of the price between the bouquet and the annuity is freely defined by the parties to the act. However, a certain balance must be respected in order not to run the risk of a cancellation of the sale.
For tax purposes, industrial and commercial profits (BIC) are made by a natural person who exercises a commercial, industrial or craft profession. An activity is considered commercial when the person performs acts of commerce, for example: the purchase of goods, or the rental of furnished property. For an activity to be considered a profession, it is necessary that the person acts for the purpose of earning income from it, and on his own behalf.
Civil lease
Rental contract of a property. When no mandatory law governs the lease, it is subject to the rules of the Civil Code. This is the case, for example, with the rental contract for a garage or car park, if it is rented independently of a dwelling.
Commercial lease
Contract for the rental of real estate granted to a trader, craftsman or industrialist, who carries out his activity on the premises. The commercial lease is mandatory by articles L 145-1 and following of the Commercial Code. This very specific regime is complex. It allows the tenant to benefit from a right to the renewal of his lease.
Residential lease
Rental contract for a dwelling or a house. When the property is the tenant's main residence, the lease is obligatorily subject to the law of 6 July 1989, whether the property is rented unfurnished or furnished.
In other cases, the lease is a civil lease, subject to the Civil Code alone, for example for a second home.
Professional lease
Rental contract granted to a tenant who exercises a liberal profession in the premises, without living there. Doctors, lawyers... benefit from this status, governed by Articles 57 A and 57 B of the Law of 23 December 1986.
It is possible to place oneself, voluntarily, under the regime of the commercial lease.
Lessor
In a rental agreement, the lessor is the one who makes the property available to the tenant. This is usually the owner of the property. The tenant must pay him the rent. The lessor undertakes that the tenant can benefit from the property. He must carry out repairs that are not the responsibility of the tenant.
Visit voucher
The Visitor Voucher was created by real estate professionals. It is a writing that the real estate agent makes the client sign interested in the purchase of a property. It allows the professional to establish that a client has visited the property with him, in order to protect his right to remuneration. The real estate agent may ask the client who wishes to visit a property to prove his identity, in particular when signing the visit voucher.
Demarcation
Demarcation consists in determining the separative boundary of two contiguous properties. It is carried out by a surveyor. The demarcation can be carried out amicably, by the owners of the property concerned. The expert surveyor they have chosen will draw up a demarcation report and set the boundaries on the ground. The demarcation can also be judicial, when the neighbors do not agree: it will be ordered by the district court at the request of one of them.
Bouquet
The bouquet designates, in a life sale, the part of the price that is paid by the buyer when signing the deed of sale at the notary. Indeed, the price of a life annuity is generally divided between the annuity, paid periodically to the seller (credirentier), and the bouquet, paid from the authentic deed. The breakdown of the price between the bouquet and the annuity is freely defined by the parties to the act. However, a certain balance must be respected in order not to run the risk of a cancellation of the sale.
C as...
Crep
The acronym "CREP" refers to the finding of risk of exposure to lead, which is one of the mandatory real estate diagnoses when selling or renting a property for residential use, when the construction of the property is prior to January 1, 1949.
The CREP must be established by a professional diagnostician.
Maintenance logbook
The maintenance book is compiled and kept up to date by the syndic.
It gathers information relating to the maintenance of a condominium. In particular, it lists the information concerning the work carried out, the reference to the insurance contracts of the professional who carried them out, the contracts for the upkeep and maintenance of common elements, such as the lift. Any co-owner may request a copy from the syndic.
Condominium charge
The co-ownership charges are paid by the co-owners of the building, to the syndicate. They make it possible to finance the expenses of maintenance, conservation, administration of the building, collective services such as elevators, works. Each co-owner pays them at the request of the syndic and according to the tantièmes (or thousandths) he holds. There are two main types of loads:
- general expenses, which cover the expenses of maintenance, conservation and administration of the common areas.
- special charges, which finance common equipment and public services. The co-owners participate in these charges according to the utility that these equipment and services represent for their lot.
Commission
The real estate agent, intermediary when selling or renting a property, is entitled to the remuneration provided for, when signing the lease or the authentic deed of sale. The amount of the commission, as well as the party or parties in charge of it, is mentioned in the mandate (sale, rental ...) and in the deed containing the commitment of the parties (lease, deed of sale ...).
Sales agreement
The sales agreement is a preparatory contract that defines the conditions of the sale. It precedes the establishment of the authentic deed of sale, which will be signed at the notary's office. The compromise can be drafted by a real estate agent or by a notary.
In the compromise, the seller and the buyer reciprocally undertake the first, to sell the property, and the second, to buy it, on the conditions defined therein. The conditions of the sale are set out in the notarial deed drawn up and signed at the notary's office.
Joint ownership
Co-ownership is a way of organizing a property. It can concern a building, we then speak of vertical co-ownership, or a set of houses, we then speak of horizontal co-ownership.
In a condominium, we distinguish:
- the common parts that belong to the syndicate of co-owners (which brings together all the co-owners),
- the private portions, which belong to each co-owner.
Each co-owner is thus the owner of a condominium lot, consisting of a private portion, and a share of the common portions.
The co-ownership is represented by a trustee, and decisions are taken by the co-owners meeting in a meeting.
Co-owner
Within the co-ownership, the owner of a lot is called a co-owner. He is a member of the syndicate of co-owners and participates in meetings, in which decisions relating to co-ownership are voted.
The syndicate of co-ownership is represented by a trustee, non-professional or professional.
The co-owner is the owner of a condominium lot, consisting of a private portion and a share of the common portions.
Real estate credit
A mortgage makes it possible to finance the purchase:
- a building for residential use (or for professional and residential use),
- a building plot (and the construction of a building on the land),
- shares in a real estate company (SCI).
A mortgage can also be used to finance expenses for the maintenance and repair of buildings, if their amount is more than € 75,000.
The mortgage is subject to binding regulations, intended to protect the borrower. Thus, the borrower has the obligation to respect a reflection period of 10 days, from the day after the day of receipt of the loan offer issued by the bank, before being able to accept the credit offered to him.
Bridge credit
A bridge loan is a particular type of mortgage. It is used to finance the purchase of a property before having sold the property of which one is the owner.
The lending institution makes a cash advance for the benefit of the borrower, who thus finances his new acquisition, while waiting to sell the property he already owns.
The bridge loan has a duration of one to two years. It is used to finance up to 80% of the new acquisition. It is reimbursed when the first property is sold.
Credirentier
During a life annuity sale, the person to whom the annuity is paid by the buyer (called "débirentier") is called a "credirentier"). The creditor is usually the seller of the property.
The acronym "CREP" refers to the finding of risk of exposure to lead, which is one of the mandatory real estate diagnoses when selling or renting a property for residential use, when the construction of the property is prior to January 1, 1949.
The CREP must be established by a professional diagnostician.
Maintenance logbook
The maintenance book is compiled and kept up to date by the syndic.
It gathers information relating to the maintenance of a condominium. In particular, it lists the information concerning the work carried out, the reference to the insurance contracts of the professional who carried them out, the contracts for the upkeep and maintenance of common elements, such as the lift. Any co-owner may request a copy from the syndic.
Condominium charge
The co-ownership charges are paid by the co-owners of the building, to the syndicate. They make it possible to finance the expenses of maintenance, conservation, administration of the building, collective services such as elevators, works. Each co-owner pays them at the request of the syndic and according to the tantièmes (or thousandths) he holds. There are two main types of loads:
- general expenses, which cover the expenses of maintenance, conservation and administration of the common areas.
- special charges, which finance common equipment and public services. The co-owners participate in these charges according to the utility that these equipment and services represent for their lot.
Commission
The real estate agent, intermediary when selling or renting a property, is entitled to the remuneration provided for, when signing the lease or the authentic deed of sale. The amount of the commission, as well as the party or parties in charge of it, is mentioned in the mandate (sale, rental ...) and in the deed containing the commitment of the parties (lease, deed of sale ...).
Sales agreement
The sales agreement is a preparatory contract that defines the conditions of the sale. It precedes the establishment of the authentic deed of sale, which will be signed at the notary's office. The compromise can be drafted by a real estate agent or by a notary.
In the compromise, the seller and the buyer reciprocally undertake the first, to sell the property, and the second, to buy it, on the conditions defined therein. The conditions of the sale are set out in the notarial deed drawn up and signed at the notary's office.
Joint ownership
Co-ownership is a way of organizing a property. It can concern a building, we then speak of vertical co-ownership, or a set of houses, we then speak of horizontal co-ownership.
In a condominium, we distinguish:
- the common parts that belong to the syndicate of co-owners (which brings together all the co-owners),
- the private portions, which belong to each co-owner.
Each co-owner is thus the owner of a condominium lot, consisting of a private portion, and a share of the common portions.
The co-ownership is represented by a trustee, and decisions are taken by the co-owners meeting in a meeting.
Co-owner
Within the co-ownership, the owner of a lot is called a co-owner. He is a member of the syndicate of co-owners and participates in meetings, in which decisions relating to co-ownership are voted.
The syndicate of co-ownership is represented by a trustee, non-professional or professional.
The co-owner is the owner of a condominium lot, consisting of a private portion and a share of the common portions.
Real estate credit
A mortgage makes it possible to finance the purchase:
- a building for residential use (or for professional and residential use),
- a building plot (and the construction of a building on the land),
- shares in a real estate company (SCI).
A mortgage can also be used to finance expenses for the maintenance and repair of buildings, if their amount is more than € 75,000.
The mortgage is subject to binding regulations, intended to protect the borrower. Thus, the borrower has the obligation to respect a reflection period of 10 days, from the day after the day of receipt of the loan offer issued by the bank, before being able to accept the credit offered to him.
Bridge credit
A bridge loan is a particular type of mortgage. It is used to finance the purchase of a property before having sold the property of which one is the owner.
The lending institution makes a cash advance for the benefit of the borrower, who thus finances his new acquisition, while waiting to sell the property he already owns.
The bridge loan has a duration of one to two years. It is used to finance up to 80% of the new acquisition. It is reimbursed when the first property is sold.
Credirentier
During a life annuity sale, the person to whom the annuity is paid by the buyer (called "débirentier") is called a "credirentier"). The creditor is usually the seller of the property.
D as...
Débirentier
During a life annuity sale, the person who has the obligation to pay the creditor the annuity fixed at the time of the sale is called a "débirentier". This is usually the buyer of the property.
Declaration of succession
The declaration of succession must be made, by the heirs, within 6 months of death, to the tax office of the domicile of the deceased person. This is a tax return. It consists of several printouts that contain information related to the identity of the deceased and his heirs, and detail the estate of the deceased. Inheritance tax is, in principle, paid when the declaration of succession is filed.
Cooling-off period
During a real estate purchase, the buyer benefits from a reflection period of 10 days, which allows him to renounce the sale. This period runs before the conclusion of the authentic deed, if and only if the buyer has not benefited from a withdrawal period when signing the compromise or the promise to sell.
This period benefits any non-professional buyer, for the acquisition of a property for residential use only.
Withdrawal period
During a real estate purchase, the buyer benefits from a withdrawal period, which allows him to renounce his acquisition, within a period of 10 days.
This period is offered to any non-professional buyer, for the acquisition of a property for residential use only. He runs from the day after the first presentation of the registered letter notifying him of the promise or the sales agreement, when the notification is made by registered letter with acknowledgment of receipt.
If the promise or compromise is delivered to the buyer by hand by a real estate agent or notary, the period runs from the day after the date of hand delivery.
Real estate diagnostics
To allow the information of a buyer or tenant, the law obliges the seller or lessor to provide different real estate diagnostics. The diagnoses are gathered in a technical diagnostic file and annexed to the preliminary contract and then to the authentic deed of sale, or to the lease.
The content of the technical diagnostic file depends on the contract concluded (sale or lease), the date of construction of the building, its equipment, and the place where it is located.
Divorce
Divorce is the breaking of the bond created by marriage. It necessarily results from a court decision.
There are 3 types of divorce:
- Divorce by mutual consent: the spouses, if they agree on all aspects of divorce, prepare, with the help of a lawyer, an agreement that regulates all the effects of divorce. The agreement is signed after a period of reflection, and deposited in the rank of minutes of a notary.
- Divorce by mutual judicial consent, when a child of the couple asks to be heard by the judge: the spouses, if they agree on all aspects of the divorce, prepare, with the help of their lawyer(s), an agreement that they present to the judge. The judge will give it binding force and pronounce the divorce after verifying that both spouses agree to divorce and that their agreements are in the interest of the family.
- Other forms of divorce, in which the spouses do not agree on the divorce itself and its effects. Points of disagreement are decided by the judge. Divorce can be requested for 3 reasons: acceptance of the principle of the breakdown of the marriage, fault, or definitive alteration of the marital bond. Divorce proceedings are brought before the Family Judge, who is a judge of the High Court. The lawyer is mandatory.
Donation to the last living
The donation to the last living is a deed drawn up before a notary. It allows you to leave, at death, a greater part of your property to the person with whom you are married.
If you have children or descendants, you can leave your spouse:
- the available quota, i.e. the share of your property that you could leave to a third party, and which depends on the number of children you have,
- or usufruct on all of your property,
- or the ownership of a quarter of your property and the usufruct on the rest of your property.
If you do not have children or descendants, you can leave all of your property to your spouse.
Technical diagnostic file
When selling or renting a property, the seller or lessor provides a technical diagnostic file that gathers the mandatory diagnoses relating to the property sold or rented.
The technical diagnostic file is annexed:
- the lease, in the case of rental,
- the promise of sale and the notarial deed, in case of sale.
The diagnoses to be provided depend on the type of property sold, its date of construction, the place where it is located...
Right of withdrawal
The law allows the non-professional buyer of a property, for residential use, to renounce its purchase, for a period of 10 days.
The non-professional buyer benefits from this right if he concludes a contract:
- For the purchase of a property for residential use (house, apartment),
- For the construction of a property for residential use (detached house, purchase "off plan"),
- Rental-accession on a dwelling,
- Subscription of shares giving the right to the allocation of a property for residential use.
Transfer duty
Transfer tax corresponds to the taxes to be paid when transferring ownership of a property. We speak of transfer taxes "free of charge" when there is a transfer of ownership without any consideration. This is the case for donations where a donor gives a sum of money to a donee without consideration for the latter. Transfer taxes are said to be "for consideration" when on the occasion of a sale the purchaser pays an agreed sum of money in return for the property. These taxes are paid when depressing Cerfa prints (print no. 2048 – IMM for real estate sales, and print no. 2735 for manual donations).
Registration fee
These fixed, proportional or progressive fees are paid on the occasion of the registration of a document recording a transaction. The formality of the registration can be mandatory or voluntary but allows in all cases to give a certain date to the acts under private signature. They are paid to the tax office.
DPE
The Energy Performance Diagnosis (EPD) is established by a professional diagnostician. It states:
- the amount of energy actually consumed or estimated for a standardised use of the building or part of the building,
- classification according to reference values,
- recommendations to improve energy performance.
It allows the consumer to compare and evaluate his energy performance.
The DPE is provided by the seller or by the lessor. It must be less than 10 years old.
Advertisements relating to the sale of a property reproduce:
- the energy label of the DPE, on advertisements in the window of a real estate agency or on the Internet,
- the energy class of the property, in the advertisements of the written press.
During a life annuity sale, the person who has the obligation to pay the creditor the annuity fixed at the time of the sale is called a "débirentier". This is usually the buyer of the property.
Declaration of succession
The declaration of succession must be made, by the heirs, within 6 months of death, to the tax office of the domicile of the deceased person. This is a tax return. It consists of several printouts that contain information related to the identity of the deceased and his heirs, and detail the estate of the deceased. Inheritance tax is, in principle, paid when the declaration of succession is filed.
Cooling-off period
During a real estate purchase, the buyer benefits from a reflection period of 10 days, which allows him to renounce the sale. This period runs before the conclusion of the authentic deed, if and only if the buyer has not benefited from a withdrawal period when signing the compromise or the promise to sell.
This period benefits any non-professional buyer, for the acquisition of a property for residential use only.
Withdrawal period
During a real estate purchase, the buyer benefits from a withdrawal period, which allows him to renounce his acquisition, within a period of 10 days.
This period is offered to any non-professional buyer, for the acquisition of a property for residential use only. He runs from the day after the first presentation of the registered letter notifying him of the promise or the sales agreement, when the notification is made by registered letter with acknowledgment of receipt.
If the promise or compromise is delivered to the buyer by hand by a real estate agent or notary, the period runs from the day after the date of hand delivery.
Real estate diagnostics
To allow the information of a buyer or tenant, the law obliges the seller or lessor to provide different real estate diagnostics. The diagnoses are gathered in a technical diagnostic file and annexed to the preliminary contract and then to the authentic deed of sale, or to the lease.
The content of the technical diagnostic file depends on the contract concluded (sale or lease), the date of construction of the building, its equipment, and the place where it is located.
Divorce
Divorce is the breaking of the bond created by marriage. It necessarily results from a court decision.
There are 3 types of divorce:
- Divorce by mutual consent: the spouses, if they agree on all aspects of divorce, prepare, with the help of a lawyer, an agreement that regulates all the effects of divorce. The agreement is signed after a period of reflection, and deposited in the rank of minutes of a notary.
- Divorce by mutual judicial consent, when a child of the couple asks to be heard by the judge: the spouses, if they agree on all aspects of the divorce, prepare, with the help of their lawyer(s), an agreement that they present to the judge. The judge will give it binding force and pronounce the divorce after verifying that both spouses agree to divorce and that their agreements are in the interest of the family.
- Other forms of divorce, in which the spouses do not agree on the divorce itself and its effects. Points of disagreement are decided by the judge. Divorce can be requested for 3 reasons: acceptance of the principle of the breakdown of the marriage, fault, or definitive alteration of the marital bond. Divorce proceedings are brought before the Family Judge, who is a judge of the High Court. The lawyer is mandatory.
Donation to the last living
The donation to the last living is a deed drawn up before a notary. It allows you to leave, at death, a greater part of your property to the person with whom you are married.
If you have children or descendants, you can leave your spouse:
- the available quota, i.e. the share of your property that you could leave to a third party, and which depends on the number of children you have,
- or usufruct on all of your property,
- or the ownership of a quarter of your property and the usufruct on the rest of your property.
If you do not have children or descendants, you can leave all of your property to your spouse.
Technical diagnostic file
When selling or renting a property, the seller or lessor provides a technical diagnostic file that gathers the mandatory diagnoses relating to the property sold or rented.
The technical diagnostic file is annexed:
- the lease, in the case of rental,
- the promise of sale and the notarial deed, in case of sale.
The diagnoses to be provided depend on the type of property sold, its date of construction, the place where it is located...
Right of withdrawal
The law allows the non-professional buyer of a property, for residential use, to renounce its purchase, for a period of 10 days.
The non-professional buyer benefits from this right if he concludes a contract:
- For the purchase of a property for residential use (house, apartment),
- For the construction of a property for residential use (detached house, purchase "off plan"),
- Rental-accession on a dwelling,
- Subscription of shares giving the right to the allocation of a property for residential use.
Transfer duty
Transfer tax corresponds to the taxes to be paid when transferring ownership of a property. We speak of transfer taxes "free of charge" when there is a transfer of ownership without any consideration. This is the case for donations where a donor gives a sum of money to a donee without consideration for the latter. Transfer taxes are said to be "for consideration" when on the occasion of a sale the purchaser pays an agreed sum of money in return for the property. These taxes are paid when depressing Cerfa prints (print no. 2048 – IMM for real estate sales, and print no. 2735 for manual donations).
Registration fee
These fixed, proportional or progressive fees are paid on the occasion of the registration of a document recording a transaction. The formality of the registration can be mandatory or voluntary but allows in all cases to give a certain date to the acts under private signature. They are paid to the tax office.
DPE
The Energy Performance Diagnosis (EPD) is established by a professional diagnostician. It states:
- the amount of energy actually consumed or estimated for a standardised use of the building or part of the building,
- classification according to reference values,
- recommendations to improve energy performance.
It allows the consumer to compare and evaluate his energy performance.
The DPE is provided by the seller or by the lessor. It must be less than 10 years old.
Advertisements relating to the sale of a property reproduce:
- the energy label of the DPE, on advertisements in the window of a real estate agency or on the Internet,
- the energy class of the property, in the advertisements of the written press.
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State of risks and pollution
The state of risks and pollution is a document that lists the natural, technological, mining, seismic risks to which a property (land, building, house ...) is exposed, as well as the radon risk and pollution of a land.
The state of risks and pollution is provided by the seller or lessor of a property. It is inserted in the technical diagnostic file, which is annexed to the lease, or to the promise and the authentic deed of sale. It must be less than 6 months old.
Status of the electrical installation
The condition of the electrical interior installation is a document, established by a professional diagnostician.
It is provided by the seller, when the property is for residential use and it has an electrical installation of more than 15 years.
The diagnostician controls the electrical installation downstream of the general control device and the housing, up to the supply terminals or to the bases of the sockets. It indicates the anomalies of the electrical installation.
The condition of the indoor electricity installation also covers:
- the adequacy of the fixed equipment to the characteristics of the network,
- the conditions of their installation with regard to safety requirements.
The condition of the electrical installation is attached to the technical diagnostic file. It is valid for 3 years for sale, 6 years for rental.
Status of the gas installation
The condition of the indoor gas installation is a document, drawn up by a professional diagnostician.
It is provided by the seller, when the property is for residential use and it has a gas installation of more than 15 years.
The diagnostician verifies, without dismantling elements of the installations:
- gas-fired domestic heating and hot water appliances,
- fixed gas conveying piping and their accessories,
- the ventilation of the premises and the evacuation of combustion products.
The condition of the gas installation shall be attached to the technical diagnostic file. It is valid for 3 years for sale, 6 years for rental.
State of play
The inventory of fixtures is a document, drawn up in the presence of the lessor and the tenant, or their representatives, at the time when the tenant takes possession of the property and at the time he returns it. It describes the condition of the property. The comparison of the inventory of fixtures of entry and exit makes it possible to demonstrate compliance or non-compliance with its obligations by the tenant, or by the lessor.
If the tenant has caused damage or has not properly maintained the property, it will serve as a basis for the deductions made from the security deposit.
The inventory of fixtures may be established by bailiff at the request of a party, or if one refuses to carry out an amicable inventory.
It can be carried out by a judicial officer if one of the parties opposes its establishment. Its cost will in this case be shared by half between the lessor and the tenant, when the property is a dwelling constituting the main residence of the tenant.
Mortgage status
The mortgage statement is a document indicating the mortgages registered on a property. It is issued by the land registration service to the person who requests it by means of a Cerfa form.
The notary makes a request for information relating to the property for which the authentic deed will be drawn up. If the property is encumbered by a mortgage, it will be necessary to obtain its release before signing the authentic deed.
Parasitic state
The parasitic state is a real estate diagnosis inserted in the technical diagnostic file.
It must be provided by the seller when the property is located in an area delimited by the Prefect as contaminated or likely to be contaminated in the short term.
The parasitic state is carried out by a professional diagnostician, who looks for the possible presence of termites in the property sold.
The parasitic state must be less than 6 months old on the date of signature of the compromise and the authentic deed.
Real estate expertise
A real estate appraisal consists in assessing the market or rental value of a property. It is a study taking into account financial, technical, and legal parameters. The value of the property valued is objective and reflects the real estate market at a specific place and time under normal conditions of sale.
The state of risks and pollution is a document that lists the natural, technological, mining, seismic risks to which a property (land, building, house ...) is exposed, as well as the radon risk and pollution of a land.
The state of risks and pollution is provided by the seller or lessor of a property. It is inserted in the technical diagnostic file, which is annexed to the lease, or to the promise and the authentic deed of sale. It must be less than 6 months old.
Status of the electrical installation
The condition of the electrical interior installation is a document, established by a professional diagnostician.
It is provided by the seller, when the property is for residential use and it has an electrical installation of more than 15 years.
The diagnostician controls the electrical installation downstream of the general control device and the housing, up to the supply terminals or to the bases of the sockets. It indicates the anomalies of the electrical installation.
The condition of the indoor electricity installation also covers:
- the adequacy of the fixed equipment to the characteristics of the network,
- the conditions of their installation with regard to safety requirements.
The condition of the electrical installation is attached to the technical diagnostic file. It is valid for 3 years for sale, 6 years for rental.
Status of the gas installation
The condition of the indoor gas installation is a document, drawn up by a professional diagnostician.
It is provided by the seller, when the property is for residential use and it has a gas installation of more than 15 years.
The diagnostician verifies, without dismantling elements of the installations:
- gas-fired domestic heating and hot water appliances,
- fixed gas conveying piping and their accessories,
- the ventilation of the premises and the evacuation of combustion products.
The condition of the gas installation shall be attached to the technical diagnostic file. It is valid for 3 years for sale, 6 years for rental.
State of play
The inventory of fixtures is a document, drawn up in the presence of the lessor and the tenant, or their representatives, at the time when the tenant takes possession of the property and at the time he returns it. It describes the condition of the property. The comparison of the inventory of fixtures of entry and exit makes it possible to demonstrate compliance or non-compliance with its obligations by the tenant, or by the lessor.
If the tenant has caused damage or has not properly maintained the property, it will serve as a basis for the deductions made from the security deposit.
The inventory of fixtures may be established by bailiff at the request of a party, or if one refuses to carry out an amicable inventory.
It can be carried out by a judicial officer if one of the parties opposes its establishment. Its cost will in this case be shared by half between the lessor and the tenant, when the property is a dwelling constituting the main residence of the tenant.
Mortgage status
The mortgage statement is a document indicating the mortgages registered on a property. It is issued by the land registration service to the person who requests it by means of a Cerfa form.
The notary makes a request for information relating to the property for which the authentic deed will be drawn up. If the property is encumbered by a mortgage, it will be necessary to obtain its release before signing the authentic deed.
Parasitic state
The parasitic state is a real estate diagnosis inserted in the technical diagnostic file.
It must be provided by the seller when the property is located in an area delimited by the Prefect as contaminated or likely to be contaminated in the short term.
The parasitic state is carried out by a professional diagnostician, who looks for the possible presence of termites in the property sold.
The parasitic state must be less than 6 months old on the date of signature of the compromise and the authentic deed.
Real estate expertise
A real estate appraisal consists in assessing the market or rental value of a property. It is a study taking into account financial, technical, and legal parameters. The value of the property valued is objective and reflects the real estate market at a specific place and time under normal conditions of sale.
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Notary fees
It is a generic term that designates the various costs to be paid by the purchaser on the occasion of a sale: on the one hand, the fees or fees of the notary, on the other hand, the disbursements (that is to say the expenses paid to third parties such as the cadastre, the Property Tax Service ...), and finally the taxes collected for the benefit of the State and local authorities.
It is a generic term that designates the various costs to be paid by the purchaser on the occasion of a sale: on the one hand, the fees or fees of the notary, on the other hand, the disbursements (that is to say the expenses paid to third parties such as the cadastre, the Property Tax Service ...), and finally the taxes collected for the benefit of the State and local authorities.
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Ten-year guarantee
This mandatory warranty covers all construction defects that compromise the solidity of the work or make it unfit for its purpose for 10 years. This warranty also covers all damages that affect the strength of the inseparable equipment elements of the building. The starting point of the ten-year guarantee is the reception of the house by the client.
Guarantee of hidden defects
The seller of a good owes his buyer the guarantee of hidden defects. A hidden defect is a defect that is not detectable at the time of sale, and that makes the good unfit for the use for which the buyer intends it.
If he discovers a hidden defect, the buyer can request the return of the sale price, by returning the property, or a reduction in the price, if he wishes to keep the property. He must act within 2 years from the discovery of the defect.
The buyer can get additional compensation if the seller knew about the defect and hid it from the buyer.
Attention: it is usual to mention a clause of non-guarantee of hidden defects, in the deed of sale of a property between individuals. This clause exempts the seller from his liability, unless he was aware of the defect before the sale.
This mandatory warranty covers all construction defects that compromise the solidity of the work or make it unfit for its purpose for 10 years. This warranty also covers all damages that affect the strength of the inseparable equipment elements of the building. The starting point of the ten-year guarantee is the reception of the house by the client.
Guarantee of hidden defects
The seller of a good owes his buyer the guarantee of hidden defects. A hidden defect is a defect that is not detectable at the time of sale, and that makes the good unfit for the use for which the buyer intends it.
If he discovers a hidden defect, the buyer can request the return of the sale price, by returning the property, or a reduction in the price, if he wishes to keep the property. He must act within 2 years from the discovery of the defect.
The buyer can get additional compensation if the seller knew about the defect and hid it from the buyer.
Attention: it is usual to mention a clause of non-guarantee of hidden defects, in the deed of sale of a property between individuals. This clause exempts the seller from his liability, unless he was aware of the defect before the sale.
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Mortgage
The mortgage is used to guarantee the payment of a debt contracted on real estate. This is the guarantee that is most frequently requested. It can be taken regardless of the good. If the property on which the guarantee is taken exists (old or new completed), it is preferable, for reasons of cost, to register a privilege of lenders of money.
Reserved heir
The law provides that the children (if they have died, their children and grandchildren) and the spouse (when a person has no descendants) necessarily receive part of the estate: they are reserved heirs. The part of the estate allocated to them is called the reserve. The other part of the patrimony that can be freely disposed of is called the available quota.
The reserve depends on the number of children of the person:
- In the presence of a child, the reserve is half of the deceased's property,
- In the presence of two children, it is 2/3 of the property of the deceased,
- In the presence of 3 children and more, it is 3/4 of the property.
The mortgage is used to guarantee the payment of a debt contracted on real estate. This is the guarantee that is most frequently requested. It can be taken regardless of the good. If the property on which the guarantee is taken exists (old or new completed), it is preferable, for reasons of cost, to register a privilege of lenders of money.
Reserved heir
The law provides that the children (if they have died, their children and grandchildren) and the spouse (when a person has no descendants) necessarily receive part of the estate: they are reserved heirs. The part of the estate allocated to them is called the reserve. The other part of the patrimony that can be freely disposed of is called the available quota.
The reserve depends on the number of children of the person:
- In the presence of a child, the reserve is half of the deceased's property,
- In the presence of two children, it is 2/3 of the property of the deceased,
- In the presence of 3 children and more, it is 3/4 of the property.
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Property income tax
People who receive rents for bare rented real estate are required to declare them every year in May. Landlords file a specific declaration n° 2044 if they fall under a so-called real regime. If they fall under a so-called micro-land regime, landlords mention the rents on their tax return No. 2042. This income, once the property charges have been deducted (either for their actual amount or for a lump sum of 30%), is added to the other income of the tax household to be subject to the progressive scale of income tax, and social security contributions.
Rates
Any owner of a built or unbuilt property (land for example) is liable, with regard to the tax authorities, for the property tax on built properties and / or on unbuilt properties. To this property tax, is added the housing tax due by the occupant of the property, that is to say the owner of the property himself or the tenant if the property is rented for a fee (that is to say against payment of rent) or free of charge (free occupation). For these two taxes, it is necessary to assess the situation on 1 January of the year. Thus for a tax due for the year 2019 (the roll being received generally around October 2019), the property tax is due by the owner of the property on January 1, 2019. The housing tax is due by the occupant of the property on 1 January 2019 provided however that the property is furnished and assigned to housing. It should be noted that in the event of transfer of the property after January 1st, it is possible to agree between the seller and the buyer that the latter will bear part of the property tax in proportion to the time elapsed from the date of the sale until December 31 of the year of transfer.
Indivision
When several people own a property together, each with a share, the property is subject to the regime of indivision.
Indivision is common after a death: the property of the deceased is in joint ownership between his heirs. It is also encountered when cohabiting partners, or PACS partners, buy a property together.
The sale of a property in joint ownership requires the agreement of all the co-owners (or a decision of the judge). But the current acts, which are called acts of administration, can be performed by one or more co-owners holding 2/3 of the shares of the indivision.
People who receive rents for bare rented real estate are required to declare them every year in May. Landlords file a specific declaration n° 2044 if they fall under a so-called real regime. If they fall under a so-called micro-land regime, landlords mention the rents on their tax return No. 2042. This income, once the property charges have been deducted (either for their actual amount or for a lump sum of 30%), is added to the other income of the tax household to be subject to the progressive scale of income tax, and social security contributions.
Rates
Any owner of a built or unbuilt property (land for example) is liable, with regard to the tax authorities, for the property tax on built properties and / or on unbuilt properties. To this property tax, is added the housing tax due by the occupant of the property, that is to say the owner of the property himself or the tenant if the property is rented for a fee (that is to say against payment of rent) or free of charge (free occupation). For these two taxes, it is necessary to assess the situation on 1 January of the year. Thus for a tax due for the year 2019 (the roll being received generally around October 2019), the property tax is due by the owner of the property on January 1, 2019. The housing tax is due by the occupant of the property on 1 January 2019 provided however that the property is furnished and assigned to housing. It should be noted that in the event of transfer of the property after January 1st, it is possible to agree between the seller and the buyer that the latter will bear part of the property tax in proportion to the time elapsed from the date of the sale until December 31 of the year of transfer.
Indivision
When several people own a property together, each with a share, the property is subject to the regime of indivision.
Indivision is common after a death: the property of the deceased is in joint ownership between his heirs. It is also encountered when cohabiting partners, or PACS partners, buy a property together.
The sale of a property in joint ownership requires the agreement of all the co-owners (or a decision of the judge). But the current acts, which are called acts of administration, can be performed by one or more co-owners holding 2/3 of the shares of the indivision.
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Enjoyment
Legal term. The action of disposing of a property or collecting rents from it.
Legal term. The action of disposing of a property or collecting rents from it.
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Tenant
The tenant is the person who in a rental contract, rents a property to the landlord, against payment of rent.
The rights and obligations of the tenant derive from the contract and the legal provisions in force, depending on the type of lease (residential, commercial, or professional).
The term "lessee" also refers to the tenant.
Decent housing
The lessor must provide the tenant with decent housing, when it is the tenant's main residence.
Decent housing must not pose a risk to the health and physical safety of the occupants.
Decent housing is defined by a decree of 30 January 2002, which requires, inter alia, that housing be provided with:
- a main room having either a living area at least equal to 9 m2 with a ceiling height of at least 2.20 m, or a habitable volume equal to at least 20 cubic meters.
- an installation allowing normal heating,
- an indoor drinking water supply plant,
- sufficient natural illumination for the main rooms.
The tenant can obtain from the lessor the compliance of the dwelling, and damages, as well as a suspension or reduction of the amount of rents until the execution of the necessary work, if the dwelling does not meet the criteria of decency.
Carrez Law
The "Carrez law" is a 1996 law that requires the seller of a condominium lot to inform the buyer of the area of the private portions of the lot sold.
This area must be mentioned in the promise (or compromise) of sale, and in the authentic deed.
If the surface is not mentioned, the buyer can obtain the nullity of the sale, if he acts within one month of the signature of the authentic deed.
If there is an error of more than 5% between the actual surface of the lot and the area mentioned in the deed of sale, the buyer has the possibility to request a reduction in the price, in proportion to the actual surface of the lot. He has a period of one year to take legal action, after the signing of the deed of sale at the notary.
Condominium lot
When an immovable is subject to the status of co-ownership, the co-ownership lot consists of a private portion, and a share of the common portions of an immovable.
The property consists of the sum of all the condominium lots.
The tenant is the person who in a rental contract, rents a property to the landlord, against payment of rent.
The rights and obligations of the tenant derive from the contract and the legal provisions in force, depending on the type of lease (residential, commercial, or professional).
The term "lessee" also refers to the tenant.
Decent housing
The lessor must provide the tenant with decent housing, when it is the tenant's main residence.
Decent housing must not pose a risk to the health and physical safety of the occupants.
Decent housing is defined by a decree of 30 January 2002, which requires, inter alia, that housing be provided with:
- a main room having either a living area at least equal to 9 m2 with a ceiling height of at least 2.20 m, or a habitable volume equal to at least 20 cubic meters.
- an installation allowing normal heating,
- an indoor drinking water supply plant,
- sufficient natural illumination for the main rooms.
The tenant can obtain from the lessor the compliance of the dwelling, and damages, as well as a suspension or reduction of the amount of rents until the execution of the necessary work, if the dwelling does not meet the criteria of decency.
Carrez Law
The "Carrez law" is a 1996 law that requires the seller of a condominium lot to inform the buyer of the area of the private portions of the lot sold.
This area must be mentioned in the promise (or compromise) of sale, and in the authentic deed.
If the surface is not mentioned, the buyer can obtain the nullity of the sale, if he acts within one month of the signature of the authentic deed.
If there is an error of more than 5% between the actual surface of the lot and the area mentioned in the deed of sale, the buyer has the possibility to request a reduction in the price, in proportion to the actual surface of the lot. He has a period of one year to take legal action, after the signing of the deed of sale at the notary.
Condominium lot
When an immovable is subject to the status of co-ownership, the co-ownership lot consists of a private portion, and a share of the common portions of an immovable.
The property consists of the sum of all the condominium lots.
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Principal
A mandate, or power of attorney, is a contract by which one person (the principal) empowers another person (the agent) to do something for them and on their behalf.
When a client entrusts the real estate agency with the task of looking for a buyer or tenant, it entrusts him with a sales or rental mandate. The client is therefore the principal, and the real estate agent the agent.
Proxy
A mandate, or power of attorney, is a contract by which one person (the principal) empowers another person (the agent) to do something for them and on their behalf.
The mandatary accepts the mission to act in the name and on behalf of his principal.
The real estate agent is the agent of the client who entrusts him with the sale, rental or management of his property.
A mandate, or power of attorney, is a contract by which one person (the principal) empowers another person (the agent) to do something for them and on their behalf.
When a client entrusts the real estate agency with the task of looking for a buyer or tenant, it entrusts him with a sales or rental mandate. The client is therefore the principal, and the real estate agent the agent.
Proxy
A mandate, or power of attorney, is a contract by which one person (the principal) empowers another person (the agent) to do something for them and on their behalf.
The mandatary accepts the mission to act in the name and on behalf of his principal.
The real estate agent is the agent of the client who entrusts him with the sale, rental or management of his property.
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Bare ownership, bare owner
Bare ownership arises from the distribution of the right of ownership between two persons:
The usufructuary, who can use the property and reap the fruits, in compliance with the rights of the bare owner,
The bare owner, who retains the right to give or sell the property, in compliance with the rights of the usufructuary.
Bare ownership constitutes, technically, a dismemberment of property. It is frequently born during a donation or an inheritance. The law divides the reparations and the payment of taxes between the bare owner and the usufructuary.
Bare ownership arises from the distribution of the right of ownership between two persons:
The usufructuary, who can use the property and reap the fruits, in compliance with the rights of the bare owner,
The bare owner, who retains the right to give or sell the property, in compliance with the rights of the usufructuary.
Bare ownership constitutes, technically, a dismemberment of property. It is frequently born during a donation or an inheritance. The law divides the reparations and the payment of taxes between the bare owner and the usufructuary.
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Common areas
When an immovable is subject to the co-ownership regime, it is divided into common and private portions.
The common areas are the parts of the buildings and land assigned to the use or utility of all the co-owners or several of them: the structural work, the elevator, the access roads...
The co-ownership by-law may contain a different distribution. For example, an elevator can be a private portion. Or, a common part can constitute a part for the exclusive enjoyment of a co-owner, such as a terrace, a balcony.
Units
When an immovable is subject to the co-ownership regime, it is divided into common and private portions.
The private portions are the portions of the buildings and land reserved for the exclusive use of a specific co-owner. They are listed in the co-ownership regulations.
Real estate capital gain
The capital gain corresponds to the positive difference between the sale price and the purchase price of a property (house, apartment, garage, land). The seller's notary must, using form 2048-IMM, calculate the capital gain and pay the corresponding tax within one month of the sale to the Land Registration Service of the location of the building. Owners who sell their principal residence are not taxed on any capital gain generated by the sale. Indeed, the capital gain is automatically exempt in so far as the immovable property constitutes the habitual and effective residence of the seller on the day of the transfer. The capital gain is taxed at a flat rate of 19% on income tax plus social security contributions of 17.2%.
Unilateral promise to sell
A unilateral promise of sale is a preliminary contract: it precedes the signing of an authentic deed of sale.
In the unilateral promise of sale, the owner (the promisor) undertakes to sell a property to a person (the beneficiary). It specifies the essential conditions of the sale.
The beneficiary of the promise has a call option: for a certain period of time, he can think and decide whether or not to buy the property.
Land registration
Land registration is a technique that makes it possible to bring to the attention of all transfers of real estate, the change of ownership of the property, long-term leases, or the existence of a usufruct on the property.
The land registry office keeps the real estate register, which lists these acts. When registering a deed in the file, a land registration tax must be paid.
When an immovable is subject to the co-ownership regime, it is divided into common and private portions.
The common areas are the parts of the buildings and land assigned to the use or utility of all the co-owners or several of them: the structural work, the elevator, the access roads...
The co-ownership by-law may contain a different distribution. For example, an elevator can be a private portion. Or, a common part can constitute a part for the exclusive enjoyment of a co-owner, such as a terrace, a balcony.
Units
When an immovable is subject to the co-ownership regime, it is divided into common and private portions.
The private portions are the portions of the buildings and land reserved for the exclusive use of a specific co-owner. They are listed in the co-ownership regulations.
Real estate capital gain
The capital gain corresponds to the positive difference between the sale price and the purchase price of a property (house, apartment, garage, land). The seller's notary must, using form 2048-IMM, calculate the capital gain and pay the corresponding tax within one month of the sale to the Land Registration Service of the location of the building. Owners who sell their principal residence are not taxed on any capital gain generated by the sale. Indeed, the capital gain is automatically exempt in so far as the immovable property constitutes the habitual and effective residence of the seller on the day of the transfer. The capital gain is taxed at a flat rate of 19% on income tax plus social security contributions of 17.2%.
Unilateral promise to sell
A unilateral promise of sale is a preliminary contract: it precedes the signing of an authentic deed of sale.
In the unilateral promise of sale, the owner (the promisor) undertakes to sell a property to a person (the beneficiary). It specifies the essential conditions of the sale.
The beneficiary of the promise has a call option: for a certain period of time, he can think and decide whether or not to buy the property.
Land registration
Land registration is a technique that makes it possible to bring to the attention of all transfers of real estate, the change of ownership of the property, long-term leases, or the existence of a usufruct on the property.
The land registry office keeps the real estate register, which lists these acts. When registering a deed in the file, a land registration tax must be paid.
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Receipt
Proof sent by the owner at the request of his tenant, for the payment of rent and charges. The delivery of the receipt is at no cost to the tenant.
Discharge
Approval of the trustee's management within a co-ownership. By giving discharge to the syndic, all the co-owners approve the mission accomplished by the latter.
Co-ownership share
Share allocated to each co-owner for the distribution of condominium fees.
Proof sent by the owner at the request of his tenant, for the payment of rent and charges. The delivery of the receipt is at no cost to the tenant.
Discharge
Approval of the trustee's management within a co-ownership. By giving discharge to the syndic, all the co-owners approve the mission accomplished by the latter.
Co-ownership share
Share allocated to each co-owner for the distribution of condominium fees.
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Matrimonial property regime
The matrimonial property regime is the status that applies to the property of married persons, and which defines the powers of each spouse over the couple's property.
The law applies, by default, to all couples who marry, the legal regime of the community reduced to acquests, since 1965.
Spouses who so wish can choose their matrimonial regime by drawing up, before a notary, a marriage contract before the marriage.
The two main types of matrimonial regimes are the community of property (reduced to acquests or universal) and the separation of property.
It is possible to change your matrimonial regime after 2 years of marriage, or 2 years after changing your matrimonial regime. This is a relatively cumbersome procedure, which requires recourse to the notary and, in some cases, to the judge.
Co-ownership regulations
The co-ownership by-law is a written document, which establishes rules that must be respected by all co-owners. It determines:
- the private and common parts and their destination,
- the share of charges for each lot of co-ownership,
- the rules for the administration of the common areas,
- the conditions of use of the private and common portions.
- the rules of organization of the co-ownership. It can be compared to the articles of association of a company.
It is published in the real estate file, as well as its possible modifications.
The co-ownership by-law may not impose restrictions on the rights of the co-owners, unless they are justified by the purpose of the immovable, by its characteristics or its situation.
Life annuity
In the case of a life annuity sale, the contract of sale provides for the payment of an annuity for the entire life of the creditor. This annuity is therefore life-old: it depends on the life of the creditor.
The price of a life annuity is thus paid:
- on the one hand, in the form of a bouquet, which is a fraction of the sale price paid when signing the authentic deed of sale,
- on the other hand in the form of a life annuity.
Main residence
The sale of a principal residence is exempt from all taxation. For the tax authorities, the principal residence is the habitual and effective residence of a person and his family. So this is where they usually live for most of the year. If the occupation is only temporary, the property cannot be considered a principal residence.
The matrimonial property regime is the status that applies to the property of married persons, and which defines the powers of each spouse over the couple's property.
The law applies, by default, to all couples who marry, the legal regime of the community reduced to acquests, since 1965.
Spouses who so wish can choose their matrimonial regime by drawing up, before a notary, a marriage contract before the marriage.
The two main types of matrimonial regimes are the community of property (reduced to acquests or universal) and the separation of property.
It is possible to change your matrimonial regime after 2 years of marriage, or 2 years after changing your matrimonial regime. This is a relatively cumbersome procedure, which requires recourse to the notary and, in some cases, to the judge.
Co-ownership regulations
The co-ownership by-law is a written document, which establishes rules that must be respected by all co-owners. It determines:
- the private and common parts and their destination,
- the share of charges for each lot of co-ownership,
- the rules for the administration of the common areas,
- the conditions of use of the private and common portions.
- the rules of organization of the co-ownership. It can be compared to the articles of association of a company.
It is published in the real estate file, as well as its possible modifications.
The co-ownership by-law may not impose restrictions on the rights of the co-owners, unless they are justified by the purpose of the immovable, by its characteristics or its situation.
Life annuity
In the case of a life annuity sale, the contract of sale provides for the payment of an annuity for the entire life of the creditor. This annuity is therefore life-old: it depends on the life of the creditor.
The price of a life annuity is thus paid:
- on the one hand, in the form of a bouquet, which is a fraction of the sale price paid when signing the authentic deed of sale,
- on the other hand in the form of a life annuity.
Main residence
The sale of a principal residence is exempt from all taxation. For the tax authorities, the principal residence is the habitual and effective residence of a person and his family. So this is where they usually live for most of the year. If the occupation is only temporary, the property cannot be considered a principal residence.
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Receiver
The term "receiver" is used to refer to the amount of money that the buyer pays when he signs a compromise or a promise to sell. This sum is kept by the real estate agent, who takes out a financial guarantee (or by the notary, when the preliminary contract is signed at the notary)." It will be deducted from the sale price at the time of signing the authentic deed of sale.
The receiver constitutes a guarantee for the seller: if the buyer does not fulfill his obligations and refuses to sign the authentic deed of sale, the seller may claim compensation. He may refuse the return of the equestrian to the buyer. Indeed, the real estate agent can only return the receivership to the buyer with the agreement of the seller or a decision of the judge.
Servitude
An easement is a charge imposed on one immovable property for the benefit of another immovable property. An easement can exist on land, or on built property.
It is attached to the good and is transmitted at the same time as it. There are different servitudes: of passage, of view, of drawdown, not to build ...
Thus, the easement of passage allows the owner of the land who benefits from it to pass on the property of his neighbor, who supports the easement of passage.
Easements may be recorded in the title deed, but they are not always listed.
Real estate company
The real estate company is constituted by two or more people, in order to manage, sell, or build one or more buildings. It is frequently a wealth management tool.
It is subject to articles 1845 et seq. of the Civil Code. To exist, it must be registered in the Trade and Companies Register.
It then obtains legal personality.
Before registering the SCI, the partners must draw up articles of association in writing. The articles of association define the rules of operation of the company. The SCI is represented by one or more managers, appointed by the articles of association or by the partners.
Syndic of co-ownership
When a property is subject to the rules of co-ownership, all the co-owners are gathered within the syndicate of co-owners. This union is a legal person, which must appoint its legal representative: the syndic.
The trustee can be a professional, holder of the real estate agent card, or a non-professional. He is appointed by the meeting of co-owners.
The syndic administers the immovable, executes the decisions of the co-owners, taken at the general meeting, and represents the syndicate of co-owners.
The law requires co-owners to appoint a trustee. If this were not the case, any interested person could apply to the judge for the appointment of a provisional administrator.
Syndicate of co-owners
When a property is subject to the rules of co-ownership, all the owners are automatically reunited within the syndicate of co-owners. The syndicate of co-owners is responsible for conserving the building and making decisions relating to the administration of the common elements.
The syndicate of co-owners has legal personality: it is a person within the meaning of the law. He is represented by the syndic.
The syndicate of co-owners makes its decisions at the meeting of co-owners.
The term "receiver" is used to refer to the amount of money that the buyer pays when he signs a compromise or a promise to sell. This sum is kept by the real estate agent, who takes out a financial guarantee (or by the notary, when the preliminary contract is signed at the notary)." It will be deducted from the sale price at the time of signing the authentic deed of sale.
The receiver constitutes a guarantee for the seller: if the buyer does not fulfill his obligations and refuses to sign the authentic deed of sale, the seller may claim compensation. He may refuse the return of the equestrian to the buyer. Indeed, the real estate agent can only return the receivership to the buyer with the agreement of the seller or a decision of the judge.
Servitude
An easement is a charge imposed on one immovable property for the benefit of another immovable property. An easement can exist on land, or on built property.
It is attached to the good and is transmitted at the same time as it. There are different servitudes: of passage, of view, of drawdown, not to build ...
Thus, the easement of passage allows the owner of the land who benefits from it to pass on the property of his neighbor, who supports the easement of passage.
Easements may be recorded in the title deed, but they are not always listed.
Real estate company
The real estate company is constituted by two or more people, in order to manage, sell, or build one or more buildings. It is frequently a wealth management tool.
It is subject to articles 1845 et seq. of the Civil Code. To exist, it must be registered in the Trade and Companies Register.
It then obtains legal personality.
Before registering the SCI, the partners must draw up articles of association in writing. The articles of association define the rules of operation of the company. The SCI is represented by one or more managers, appointed by the articles of association or by the partners.
Syndic of co-ownership
When a property is subject to the rules of co-ownership, all the co-owners are gathered within the syndicate of co-owners. This union is a legal person, which must appoint its legal representative: the syndic.
The trustee can be a professional, holder of the real estate agent card, or a non-professional. He is appointed by the meeting of co-owners.
The syndic administers the immovable, executes the decisions of the co-owners, taken at the general meeting, and represents the syndicate of co-owners.
The law requires co-owners to appoint a trustee. If this were not the case, any interested person could apply to the judge for the appointment of a provisional administrator.
Syndicate of co-owners
When a property is subject to the rules of co-ownership, all the owners are automatically reunited within the syndicate of co-owners. The syndicate of co-owners is responsible for conserving the building and making decisions relating to the administration of the common elements.
The syndicate of co-owners has legal personality: it is a person within the meaning of the law. He is represented by the syndic.
The syndicate of co-owners makes its decisions at the meeting of co-owners.
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Property tax
The property tax must be paid by the owners of real estate, whether it is land (property tax on unbuilt properties) or constructions of any kind (houses, buildings ...) (property tax on built properties).
This tax is paid once a year, depending on the situation on 1 January of the year.
When the property is sold, it is therefore the owner on January 1st who is liable for the property tax to the tax administration. However, it is customary in the authentic deed to provide that the buyer will reimburse the seller the property tax in proportion to the number of months elapsed from the signing of the authentic deed.
Overall Effective Rate (TEG)
The TEG (global effective rate) or annual percentage rate of charge (APR), is intended to inform the borrower about the overall cost of the loan offered to him, all costs included.
The law specifies the elements that make it possible to determine the TEG:
Advertisements and loan offers must mention the TEG.
Real estate VAT
Transfers of immovable property are subject either to transfer tax for consideration or to real estate VAT (as opposed to ordinary VAT) and reduced notary fees. What makes it possible to determine what duties are to be paid is whether the seller is a taxable or non-taxable person. It should be noted that since 1 January 2013, the scope of real estate VAT and the related reduced notary fees no longer applies for a sale of a new property (i.e. less than 5 years old) between two individuals. The transfer tax payable is the duty of 5.09% or even 5.80% in most departments.
The property tax must be paid by the owners of real estate, whether it is land (property tax on unbuilt properties) or constructions of any kind (houses, buildings ...) (property tax on built properties).
This tax is paid once a year, depending on the situation on 1 January of the year.
When the property is sold, it is therefore the owner on January 1st who is liable for the property tax to the tax administration. However, it is customary in the authentic deed to provide that the buyer will reimburse the seller the property tax in proportion to the number of months elapsed from the signing of the authentic deed.
Overall Effective Rate (TEG)
The TEG (global effective rate) or annual percentage rate of charge (APR), is intended to inform the borrower about the overall cost of the loan offered to him, all costs included.
The law specifies the elements that make it possible to determine the TEG:
- - The interest rate, itself,
- - Application fees, commissions, tax fees, etc., which are carried over to the borrower,
- - The cost of insurance.
Advertisements and loan offers must mention the TEG.
Real estate VAT
Transfers of immovable property are subject either to transfer tax for consideration or to real estate VAT (as opposed to ordinary VAT) and reduced notary fees. What makes it possible to determine what duties are to be paid is whether the seller is a taxable or non-taxable person. It should be noted that since 1 January 2013, the scope of real estate VAT and the related reduced notary fees no longer applies for a sale of a new property (i.e. less than 5 years old) between two individuals. The transfer tax payable is the duty of 5.09% or even 5.80% in most departments.
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Usufruct
The usufruct is the right to use a property and collect the fruits (rents for example). It arises from the distribution of the right of property between two persons:
The usufructuary, who can use the property and reap the fruits, in compliance with the rights of the bare owner,
The bare owner, who retains the right to give or sell the property, in compliance with the rights of the usufructuary.
The usufruct constitutes, technically, a dismemberment of property. The law divides the reparations and the payment of taxes between the bare owner and the usufructuary.
The usufruct is the right to use a property and collect the fruits (rents for example). It arises from the distribution of the right of property between two persons:
The usufructuary, who can use the property and reap the fruits, in compliance with the rights of the bare owner,
The bare owner, who retains the right to give or sell the property, in compliance with the rights of the usufructuary.
The usufruct constitutes, technically, a dismemberment of property. The law divides the reparations and the payment of taxes between the bare owner and the usufructuary.
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VEFA - sale in the future state of completion
The sale in the future state of completion is also called "off-plan sale". The seller, who is often a developer, sells a property that is not yet built.
The sale is specially regulated when it relates to a residential or mixed residential and professional building, and the buyer is an individual.
The sale is usually preceded by a preliminary contract, which is a special form of pre-contract. An authentic deed is then passed before a notary. The content of these contracts is regulated.
In VEFA, the buyer pays the price in instalments depending on the progress of the work.
Life
The life annuity is a particular form of sale, in which the price is paid in the form of a bouquet, which is a sum of money paid when signing the deed, and an annuity paid to the seller and, possibly, to other people, for the rest of their lives.
The life annuity can be free: the buyer can occupy the property immediately. The life annuity can also be occupied: the seller continues to occupy the property.
The buyer is called "débirentier", the seller is called "crédirentier".
Hidden defects
The hidden defect is a defect of the property sold, which it was not possible to discover at the time of sale, and which makes the good unfit for the use for which the buyer intends it.
For example: a building plot is unsuitable to support a construction.
In principle, the seller is liable for hidden defects towards the buyer. The buyer can request, at his choice: either the return of the sale price, in return for the restitution of the property, or a reduction in the price, and he keeps the property. In addition, the seller who was aware of the defect and did not tell the buyer, can be ordered to compensate him. The action for guarantee of hidden defects must be brought, before the court, within 2 years from the discovery of the defect.
Attention: the deed of sale of a property concluded between individuals generally contains a non-guarantee clause against hidden defects. The seller will only be liable to the buyer if it is shown that he was aware of the defect before the sale.
The sale in the future state of completion is also called "off-plan sale". The seller, who is often a developer, sells a property that is not yet built.
The sale is specially regulated when it relates to a residential or mixed residential and professional building, and the buyer is an individual.
The sale is usually preceded by a preliminary contract, which is a special form of pre-contract. An authentic deed is then passed before a notary. The content of these contracts is regulated.
In VEFA, the buyer pays the price in instalments depending on the progress of the work.
Life
The life annuity is a particular form of sale, in which the price is paid in the form of a bouquet, which is a sum of money paid when signing the deed, and an annuity paid to the seller and, possibly, to other people, for the rest of their lives.
The life annuity can be free: the buyer can occupy the property immediately. The life annuity can also be occupied: the seller continues to occupy the property.
The buyer is called "débirentier", the seller is called "crédirentier".
Hidden defects
The hidden defect is a defect of the property sold, which it was not possible to discover at the time of sale, and which makes the good unfit for the use for which the buyer intends it.
For example: a building plot is unsuitable to support a construction.
In principle, the seller is liable for hidden defects towards the buyer. The buyer can request, at his choice: either the return of the sale price, in return for the restitution of the property, or a reduction in the price, and he keeps the property. In addition, the seller who was aware of the defect and did not tell the buyer, can be ordered to compensate him. The action for guarantee of hidden defects must be brought, before the court, within 2 years from the discovery of the defect.
Attention: the deed of sale of a property concluded between individuals generally contains a non-guarantee clause against hidden defects. The seller will only be liable to the buyer if it is shown that he was aware of the defect before the sale.
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Xylophagous
Wood-boring insects, and termites in particular, can cause significant damage to buildings by degrading wood and its derivatives used in construction.
Their activity can affect the quality of use of buildings but also cause significant disorders in their very structure. In the most extreme cases, it can lead to their collapse.
The legislative and regulatory framework (Articles L.112-17, L.133-1 to L.133-6, L.271-4, R.112-2 to R.112-4, R.133-1 to R.133-8 and R.271-1 to R.271-5 of the Construction and Housing Code) put in place aims to protect buildings. It defines the conditions under which the prevention and control of termites and other wood-boring insects are organized by the public authorities with a view to protecting buildings.
This system, which mainly concerns termites, sets the responsibilities of each of the actors vis-à-vis the fight against termites: owners and occupants of buildings, State (by the prefect), people who carry out demolition, professionals who establish diagnoses or carry out treatment operations and municipalities.
In particular, it prescribes on the one hand an obligation to declare infested outbreaks and eradication measures in infested areas and on the other hand obligations in the event of sale, demolition or construction.
Wood-boring insects, and termites in particular, can cause significant damage to buildings by degrading wood and its derivatives used in construction.
Their activity can affect the quality of use of buildings but also cause significant disorders in their very structure. In the most extreme cases, it can lead to their collapse.
The legislative and regulatory framework (Articles L.112-17, L.133-1 to L.133-6, L.271-4, R.112-2 to R.112-4, R.133-1 to R.133-8 and R.271-1 to R.271-5 of the Construction and Housing Code) put in place aims to protect buildings. It defines the conditions under which the prevention and control of termites and other wood-boring insects are organized by the public authorities with a view to protecting buildings.
This system, which mainly concerns termites, sets the responsibilities of each of the actors vis-à-vis the fight against termites: owners and occupants of buildings, State (by the prefect), people who carry out demolition, professionals who establish diagnoses or carry out treatment operations and municipalities.
In particular, it prescribes on the one hand an obligation to declare infested outbreaks and eradication measures in infested areas and on the other hand obligations in the event of sale, demolition or construction.