Glossary of Terms

Acompte

Deposit paid by the purchaser at the time of signing the ‘promesse/compromis de vente’.

Acte authentique

Authentic, final deed. Legal paper drawn up , with all due formalities, by a public officer (a ‘notaire’), empowered by law in the place where he officiates. It’s the contrary to an ‘acte sous seing privé’, which is privately arranged by both parties (the buyer and the seller) involved.

Acte de vente

A conveyance or transfer of land or property. It is the contract of sale, which binds the buyer and seller to go ahead with the deal. It’s signature commits to the payments of the ‘frais de notaire’, which include the ‘droits de mutation’ and the notary’s fees. This is an ‘acte authentique’, as it is signed in front of the notary.

Agence immobilière

Estate Agency

Agent commercial

Real Estate broker, acting independently.

Arrhes

Deposit paid in advance by the purchaser, forfeited if purchaser withdraws or double the amount refunded if the vendor withdraws. (Rarely used in real estate business these days; preferred is the ‘acompte’ for its more definite character.)

Attestation d’acquisition

A notaries certificate that the property purchase has been completed.

Avant-contrat

Preliminary deed. Pre-sale agreement : ‘Compromis’ or ‘promesse de vente’.

Bail

Lease to tenant.

Banque de consignation

The bank where the notary places the deposits, with no interest accruing to either party or the notary.

Bornage

Boundary

Cadastre

Local town planning register ('Land Registry'), recording details of the land-holdings and their value, which is the base of calculation for the ‘impôt foncier/taxe fonciere’. These documents can be consulted in the local town hall.

Carte de séjour

Document required by French law, for any non-French citizen living or working in France for a period longer than three months. The Carte de Séjour entitles you to receive French State benefits. (To be applied for at the office of the Prefecture of your department of residence.)

Carte professionnelle

Numbered license granted by the Prefecture to estate agents to carry out business.

Certificat d’urbanisme

Zoning certificate (equivalent to a local authority search).

Charges

Maintenance charges on a property (e.g water, electricity).

Compromis de vente

‘Avant-contrat’ whereby buyer and seller have the obligation to respectively buy and sell the property (or land). Legally, the sale is concluded upon the signing of this contract. The compromis de vente is signed ‘sous seing privé’ or in front of the notary. Usually, the buyer pays the ‘acompte’ at this time.

Conditions suspensives

Let out clauses. Conditional terms stated in the pre-sale agreement (e.g. the acquiring of a loan, the gaining of a positive zoning contract,..)

Copropriété

Co-ownership.

Débours

Expenses the notary commits to, on behalf of his client, in order to accomplish his duties for the client’s file. These have to be reimbursed by the client (i.e. buyer).

Droit de préemption

Pre-emptive right to acquire the property instead of the purchaser.

Droits de succession/donation

Inheritance/gift tax.

Droits d’enregistrement

Registration taxes.

EDF/GDF

The state utilities: Electricité de France, Gaz de France.

Emoluments

As fixed by the decree of March 8th 1978, the scale of charges of the notary.

Etats des lieux

Document describing the schedule of condition or schedule of dilapidations depending on whether it applies to the beginning or end of a lease.

Expédition

The certified copy of a notaries document showing the date of its registration and the registration duty paid.

Expert comptable

Chartered accountant.

Expert immobilier

Professional to check on the state and value of the property (usually an architect).

Expertiser

To value a property.

Foncier/Foncières

The term ‘foncier/fonciere’ applies to all constructible land, as base for any real estate promotion. It points to every foundation of /attribute of the land, constructed or not: its affiliation, exploitation, revenues and imposition.

Fonds de roulement

Capital supplied by all flat-owners in an apartment block, or properties in a ‘co-propriété, on top of the service charges, to meet unexpected liabilities.

Frais de dossier

Fees charged to arrange the mortgage on a property. These are variable and remain negotiable.

Frais de notaire

Total sum of money to be paid by the notary on top of the sale price (includes, les ‘emoluments’, registration duty, land registration and other charges).

Géomètre expert

Surveyor, often appointed by the notary, to certify the dimensions of the property according to the ‘cadastre’. Profession regulated by the ‘Ordre des géomètres experts’.

HT

Hors Taxe : not including sales tax.

Huissier de justice

Ministerial officer, with many official duties, amongst others : bailiff and process server ; is used to record evidence (for example on the state of property) where legal proceedings are considered.

Hypothèque

Mortgage – where the property is used as security for the loan.

I.S.F. : Impôt de Solidarité sur la Fortune

Tax applicable to any physical persons whose patrimonial value exceeds a certain amount.

Indivision

Legal situation/position referring to a joint-ownership.

Jouissance

Right of possession which must occur simultaneously with the transfer of ownership.

Loi Carrez

Law (°1997) enforcing the future owner of a property located in ‘co-propriété’ to verify the surface of the living area.

Loi Scrivener

Law of July 13th, 1979, protecting borrowers from French lenders and sellers of French property purchases in all cases other than a purchase on plan.

Lotissement

Housing development.

Loyer

Rent.

Mairie

Town Hall.

Mandat de recherche

Private agreement giving power to a certain estate agent to look for a (specific) property.

Marchand de biens

Real estate dealer.

Nantissement

Securisation, collateral to a mortgage.

Notaire

‘Notary’; public officer, appointed by the Law, to establish and safeguard all legal documents related to the sale of a property, which have to be authenticated by both parties involved.

Nue-propriété

Reversionary interest where the purchaser has no occupational rights over the property until the death or prior surrender of the life tenant.

Offre d’achat/de vente

Offer to buy or sell property which is not itself a binding contract.

Paiement comptant

Cash payment.

Parties communes

Common parts of buildings.

Parties privatives

Parts of the building restricted to the private use of the owner.

Patrimoine immobilier

All real estate one possesses at one point in time. This includes; all construction(s), apartments in ‘co-propriété’, land, forests, and agricultural plantations.

Permis de construire

Planning permission.

Plan de financement

Financing scheme.

Plus-value

Capital gain realized on the sale of the property.

Préavis

Unilateral advance notice making an end to a contract.

Prélèvement

Direct debit.

Promesse de vente

An undertaking to sell. ‘Avant-contrat’ of sale, signed by the purchaser and the vendor. There are two types of ‘promesse de vente’: The unilateral ‘promesse de vente’ , which engages only the vendor during a predetermined period; and the bilateral ‘promesse de vente’ (synallagmatique), = ‘compromis de vente’, which engages both parties involved. In general, the purchaser pays the deposit (‘acompte’, usually 10% of the price of the property), at the time of signing the ‘promesse/compromis de vente’.

Quittance

Receipt, free of cost, sent by the owner of a property to his tenant, justifying the rent (and charges) paid.

Régime de la communauté réduite aux acquêts

Legal marriage contract, as defined by the civil code, stipulating the rules regarding common goods of the couple. This specific contract stipulates that only the goods acquired after the marriage, are common to both spouses. Each spouse keeps, in full property, his/her goods acquired before the marriage.

Régime de la communauté universelle

Legal marriage contract, as defined by the civil code, stipulating the rules regarding common goods of the couple. This specific contract stipulates that the goods of both partners, as acquired before and after the marriage, belong to both parties.

Régime de séparation de biens

Legal marriage contract, as defined by the civil code, stipulating the rules regarding common goods of the couple. This specific contract stipulates that each spouse manages his/her proper goods as he or she finds fit. Consequently, there are no common goods in this marriage.

Renonciation

Act by which one gives up something/ a right.

Résiliation

Cancellation of a contract.

Revenu foncier

Income from rental estate(s).

Revenu imposable

Net total revenue as base of taxation.

S.C.I. : Société Civile Immobilière

Legally registered company in real estate. Often established to acquire and manage a real estate patrimony.

Saisie

Seizure ; procedure that immobilizes all real estate, which becomes non-transferable and non-seizable. This seizure precedes a commandment to pay, delivered by a bailiff.

Sécurité social

French national health system.

Servitude

Constraint linked to real estate.

Société

Legally registered company.

Syndicat de copropriété/copropriétaires

Association of co-owners of an estate in ‘co-propriété’.

Tantième

Proportion of the common parts of a ‘co-propriété’ owned jointly with other apartment/ ‘co-propriété’ owners.

Taxe d’habitation

Rate levied on the occupation of a property: due on the 1rst of January, by the person who was/is the occupier at that date. [There are exemptions for over 60s and also if the property is incapable of occupation due to it needing extensive renovation.]

Taxe foncière

Local tax on the ownership of property; known as ‘impôt foncière’, a land tax which is generally payable in one lump sum on the 1rst of January in each year. Unlike the ‘taxe d’habitation’, apportionment can be made between the buyer and seller. (If there is apportionment, this should be stated in the contract for sale.) This tax is even payable on unbuilt land. There are some exemptions for some agricultural land and the owners of a new property.

Testament

A will.

Timbres fiscaux

Some official documents (e.g. application for the ‘carte de séjour’), that carry a revenue stamp.

Tontine

Joint ownership.

TTC

Toutes Taxes Comprises – Including sales tax.

TVA

Taxe sur la Valeur Ajoutée – Value added tax.

Urbanisme

Science and techniques of the organization and development of towns and suburbs.

Usufruit

The usufruct. Right to ‘use’ a property (to live in or to rent) of which the ‘nue-propriété’ belongs to another owner.

Valeur locative

Rental value

Valeur vénale

Market value of a property.

Viager

Life annuity. Selling a property ‘en viager’, is transferring the property to a third person, called the ‘débirentier’, who, in return, pays the seller, called the ‘crédirentier’, an annuity till he (vendor) dies.

Lu et approuvé, Bon pour accord

Phrases written accompanying signature of contract (read and approved, good for acquisition).