Agent immobilier (estate agent)

A professional who represents the owner, the buyer or the tenant, during the sale or the rental of apartments, buildings, private houses, business premises, plots of land… Please note that the ‘agent immobilier' is not to be the owner of the property that they offer for sale or rent. They act as an intermediary and offer a service that consists of looking for a tenant or buyer with appropriate 'garanties financières et juridiques' (legal and financial guarantees) that correspond to the law of January 2 1970. By comparison the transaction between 'particuliers' (private owners) does not carry a guarantee of any kind.

Assemblée générale de copropriété (general assembly of the co-owners association)

Meeting which must be attended by all the members of a 'copropriété' (joint ownership association). Members vote on the questions on the agenda, and the decisions arrived at become part of the minutes. The 'copropriétaires' (joint owners) must meet at least once a year in a general meeting.

Assurance RCP (Responsabilité Civile Professionnelle) / (Civil and professional liability insurance)

In the context of their professional activity estate agents, property managers, property merchants... must be insured against the consequences of their mistakes.

Bail (lease / rental contract)

A document that sets out the contractual relationship between the owner and the tenant. Some of these are subject to special regulations depending on the wishes of the parties concerned as set out by the Civil Code. These are also called 'contrats de location' (rental contracts).

Bailleur (Landlord / the person who rents)

The owner who rents the bien immobilier (property).

Bail commercial (business lease)

Rental contract for premises in which a commercial, industrial or crafts activity is carried out. Most of these leases are subject to the decree of 30 September 1953, and they commit the landlord to a minimum term of 9 years. The tenant can terminate the contract every 3 years.

Bail d'habitation (residential lease)

Rental contract for premises used for residential or mixed usage (professional and residential). Most of these leases are for a main residence complying with the present standards for comfort and safety, and are covered by the laws of 23 December 1986 et 6 July 1989. They commit the landlord to a three year minimum term. The tenant can terminate the contract at any time, with a 3 month notice period.

Bail professionnel (professional lease)

Rental contract for premises used exclusively for professional activiites, that is to say in which the tenant carries out a 'non commercial' professional activity, notably free lance businesses (doctors, dentists, associations, unions...). Professional leases are covered by the Civil Code (code civil) relative to the contract for rentals and article 57 A of the law of 23 December 1986. This commits the landlord to a term of three or six years. The tenant can terminate the contract at any time, with a notice period of 3 months.

Bien immobilier (property)

Property, that is to say building, land, business, share in a property company, etc... In fact, the original notion covered all objects attached to the Earth itself, so immobile (including trees and harvests) and the land itself, and by extension, the moveable property, when attached to the building (sink, fireplace, shutters...). In principle built property must have been subject to planning permission.

Bon de visite (proof of visit)

Document in which an estate agency's client recognizes having visited a property through the intermediary of the agency.

Carte professionnelle (professional card)

Those persons carrying out property management or transactions (estate agents, property managers) must have a professional card. It is issued by the 'préfet' and renewed each year. It specifies the type of activity: "Property or business transactions" or "Property management". An estate agent who does not have this card cannot carry out his professional activity.

Charges récupérables (reimbursable charges)

This concerns all the expenses of the bailleur (landlord) that can be reimbursed by the tenant. The reimbursable charges are distinct from the main rent. As far as residential leases are concerned, the deductible charges are limitatively listed by the Decree of 26 August 1987. They concern expenses relating to the routine maintenance of the property, the equipment mentioned in the contract, as well as minor repairs and certain taxes

Commission

Term used to designate remuneration paid to an agent immobilier (estate agent) in the context of their professional activity (sale, rental, management...). The estate agent must obligatorily have a mandat (mandate) to sell, rent or manage in order to be eligible for a commission. The remuneration of agents immobiliers (estate agents) (commission and fees) is not fixed and must imperatively be written into all the working documents.

Compromis de vente (pre-contract)

This is a sort of pre-contract signed by the seller and the buyer of a property either under 'seing privé' or drawn up by a professional. The 'compromis de vente' commits the two parties and it is usual for the buyer to pay a deposit (in general 10% of the sale price) when the document is signed.

Conditions suspensives (Suspensive conditions)

Are contained in a pre-contract (promesse de vente (promise to sell) on a unilateral basis or 'compromis'), they suspend the execution of the contract in special circumstances. The contract will not be effective should these circumstances arise. For example, a 'suspensive condition' may concern obtaining a loan, planning permission... To be valid the 'suspensive condition' must not depend on pure chance or on the will of one party.

Conseil syndical (co-ownership association advisory body)

Made up of copropriétaires (co-owners) designated by the l'assemblée générale (general assembly), it helps the syndic (co-ownership association representative) and supervises their management. It is obligatory except if the majority of copropriétaires (co-owners) refuse it. It often manages the small details and litigation in the day to day running of the co-ownership property.

Contrat de location (rental contract)

See bail (lease).

Copropriétaire (co-owner)

Owner of a bien immobilier (property) in a building where the status complies with copropriété (co-ownership).

Copropriété (co-ownership)

A situation in a building that belongs to several persons at any one time and to each of them separately. The building is thus divided into common and private areas. The co-ownership regulations fix the rules for 'communal life'. A legal situation covered by the law of July 10 1965.

Dépôt de garantie (Deposit)

Sum of money given over to guarantee that the contract be respected. In the case of rentals it is given to the landlord by the tenant, when he enters the premises, and is returned at the end of the rental period on condition that rent and charges have been correctly kept up with. In the case of a pre contract for a sale ('promesse' or 'compromis'), the deposit ensures that the final contract be signed, see also 'indemnité d'immobilisation').

Expert immobilier (property surveyor)

A professional whose role is to estimate, that is to say evaluate, the 'valeur vénale' (market value) or rental value of property: residential or industrial buildings, businesses, premises, etc ... In reality, the 'expertise immobilière' (survey) covers two sorts of activity:

• one is regulated, in a legal context where the surveyor is designated by a court to carry out a valuation,
• the other is open and concerns conventional surveys.

Fisc (related to fiscality)

All the various government departments involved in the taxation procedure.

Fiscal

Adjective relating to taxation and to the fisc.

Fiscalité (fiscality)

Relates to the tax laws.

Frais d'acquisition (purchase charges)

Total of expenses and entitlements following a vente immobilier (real estate sale). The buyer is generally responsible for these charges. Purchase charges are essentially made up of different entitlements, taxes and fees for getting various administrative documents and, to a lesser extent, the fees of the notaire (solicitor). In France, the purchase charges are reduced in the case of a residential property, and full in the case of a property to be used for a professional activity. (about 20% or VAT). In the case of new property (a building less than 5 years old), the sale is termed "without solicitor's fees", that is to say that the charges are around 3 %. A special situation exists in Alsace Lorraine and in some of the French overseas territories (DOM-TOM). To know the purchase charges on a real estate property, it is advisable to consult a professional.

Garantie financière (financial guarantee)

Guarantees the commitment of the sums at stake in real estate transactions or in the activities involved in property management, when these activities or transactions are carried out by a real estate professional. The financial guarantee is obligatory for all real estate agents or property managers. It is also different according to whether the professional is involved in transactions or management.

Hypothèque (mortgage)

The mortgage is used to guarantee the payment of the debt contracted on a real estate property. It allows the lender to have the debtor's property sold by legal means should they be unable to pay back due sums.

Immeuble (building)

See real estate property.

Indemnité d'immobilisation

Sum paid by the purchaser when the 'avant-contrat de vente' / pre-contract is signed of the type ('compromis' or 'promesse') as a deposit based on the sale price. The amount varies, but normally it is around 10 % of the sale price of the property.

Indivision (part share)

A situation where a property is owned by several persons without there being any kind of physical separation or division. It is the case where there is joint purchase of a dwelling, in an inheritance where the property has not yet been shared out between the heirs, or in the case of a company that is being wound up.

Location (rental)

Premises, land, dwelling... made available to an occupant against the payment of rent. The owner or bailleur (landlord), and the tenant of the property are bound by a bail (lease) or rental contract, the latter not necessarily set out in writing. However, the drawing up of a written contract between owner and tenant is strongly recommended. In France, the regime most often used for residential rentals is 'location nue', that is to say unfurnished rental.

Location meublée (furnished rental)

A term that applies to all residences rented with supply of sufficient furniture for everyday life. In this situation the landlord is committed to a term of one year minimum. The tenant has the right to terminate their contract at any time, depending on the wording of the contract.

Locations saisonnières (seasonal rentals)

These are short term rentals, by the week, the month, or maybe the season. They are to be found in areas which have a high through put of residents for a limited period. Most of these rentals are furnished.

Loyer (rent)

Sum paid by the tenant to the owner against the use of bien immobilier (property) used for rental.

Mandat (mandate)

Document in which a person ('mandant' (principal)), gives the ( 'mandataire' (representative)), the power to carry out, on their behalf, one or more acts of a legal nature, such as a sale, a purchase, rental... It is obligatory for estate agents and property administrators to hold a mandate in order to sell, rent or manage a property.

Mandataire (representative)

The person or persons selected by the principal to receive the mandat.

Mandant (principal)

The person who gives the mandat (mandate).

Marchand de biens (property dealer or trader)

Business person whose business is to buy buildings in their own right and then to sell them on for a profit. This business is not regulated, so is not covered by the same guarantees as those of an estate agent but is covered by special laws. However many dealers with a good reputation carry out their businesses by renovating the buildings that they buy, so as to sell them in a renovated condition.

Notaire (the equivalent of a solicitor or a notary)

A ministerially appointed officer with the role of being solely responsible for drawing up certain civil documents as well as their authentification (sale of a building, marriage contract, wills...). The 'notaire' also has the role of advisor.

Nue-propriété (bare property)

A legal term covering part of property law. It gives its holder the right to dispose of the property, but does not allow the use, or benefit thereof. The 'nu-propriétaire' (bare owner) pays the taxes and charges on the property. For example the bare owner of a building can rebuild it in the context of conservation. They can sell or sign over their rights. They cannot live in or rent the property. Additional rights of the bare owner are the rights of 'l'usufruitier' (beneficial owner or life tenant).

Particulier (private owner)

In contrast to the agent immobilier (estate agent) an owner can procede with the sale or rent of a property that they possess. In the same way a private individual can be elected syndic (representative of the co-ownership association) on a voluntary basis in a co-ownership property, but cannot be paid as a professional when carrying out this activity. In this case the buyer, the tenant, or the copropriétaires (co-owners) do not benefit from any kind of financial or legal guarantee as to the management, the funds committed, the drawing up of legal contracts, or of the correct application of these contracts.

Promesse de vente (promise to sell)

A sort of pre-contract signed by the seller and the buyer of a bien immobilier (property). It is advisable to have this drawn up by a professional. There are two types of 'promise to sell' contracts:

• 'La promesse unilatérale de vente' (unilateral promise to sell contract) that commits the seller, and not the buyer, during the time period that must be clearly specified in the contract,
• 'La promesse bilatérale de vente' (bilateral promise to sell), also called "synallagmatique", or 'compromis de vente', that commits the buyer in the same way as the seller. It is usual for the buyer to pay a deposit (in general 10% of the sale price) to guarantee that the contract be fulfilled.

Propriété immobilière (real estate property)

The possession of an 'immeuble', that is to say: land, building, premises, share in a co-ownership property, share in a property company. In France the owner benefits from the full ownership of assets, including the land, the earth, the basement and the airspace needed to build the building according to the laws that cover each building area. Water courses and the sea cannot be private property. River banks and beaches are the property of the local councils.

Règlement de copropriété (co-ownership property regulations)

This is a written document that stipulates the rights and obligations of copropriétaires (co-owners). It is drawn up by a professional according to information from a surveyor and, if possible, from the builder of the building. It defines the different units (apartments,cellars, parking spaces...) giving the geographic location, floor, surface area and the coefficients used to calculate the charges. It lays down the communal areas of the building as well as the private areas, along with the uses that they can be put to. For example, whether it is possible to carry out a business in the building. Furthermore it gives a summary of everything one must know about the rights and obligations of the copropriétaires (co-owners) of any given building.

Société civile immobilière (SCI) (real estate trust)

This is a category of company whose focus is real estate. An example would be the 'société civile familiale de placements immobiliers' which is the family based version of this regime (to group together real estate property within a family group), 'société civile de construction vente', a trust established for the building and sale of a property and set up during the construction of a building. The sale of such a company or its shares is covered by different tax laws to the sale of ordinary real estate.

Syndic de copropriété (co-ownership property representative)

This is someone who represents the group of copropriétaires (co-owners). It is often difficult for all the copropriétaires (co-owners) to act at the same time. To represent them, the 'syndicat' (that is to say the co-owners association) elects a 'syndic' (representative) during an assemblée générale (general assembly). This is generally a professional who takes out insurance policies, employs any personnel for the building, acts on decisions made in the meetings, supervises the application of the règlement de copropriété (co-ownership property regulations), initiates legal proceedings, and generally ensures that the building is managed correctly. It is the representative who controls the funds of the copropriété (co-ownership property) and looks after the accounting. They are thus responsible for payment of charges and also look after the payment of suppliers. Every year, during the general meeting, they justify and explain the accounts. They can be elected for a period of one or several years.

Syndicat des copropriétaires (co-owners association)

This is a group that represents all the co-owners in a building with the status of copropriété (co-ownership property). Its objective is the conservation of the building and the administration of the common areas. The decisions are made by the assemblée générale (general assembly). When an apartment changes hands in the building, the new buyer automatically becomes a member of the association.

Usufruit

A legal term covering part of the right of ownership (literally it refers to receiving the fruit resulting from the use of the property, fruit here meaning revenue, profit...). This concerns the right of use and benefit associated with a property where the bare ownership belongs to someone else. This is a temporary right and ends notably when the 'usufruitier' dies. Additional usufruitier rights are the rights of nu-propriétaire (bare property owner). The split of full ownership between nu-propriétaire (bare ownership) and 'usufruitier' often arises because one of the parties in an inheritance (in general the spouse of the deceased) keeps the 'usufruit', and the direct heirs (in general the children) the nue propriété (bare ownership).

Valeur vénale (market value)

The sale value of a bien immobilier (real estate property). The price that the bien immobilier (property) would have fetched if it had been put on sale.

Vente immobilière (real estate sale)

Transfer of the ownership of a bien immobilier (real estate property). The sale must always be dealt with by a 'notaire' for it to be authentified from a legal point of view. In practice the sale is preceded by an 'avant contrat' (pre-contract) ( 'promesse de vente' unilateral or 'compromis') generally drawn up by a professional.

Viager

A sales contract for a bien immobilier (real estate property) where the buyer (called the 'débirentier') pays the owner (the 'crédirentier'), for the duration of the latter's life, an income also known as 'arrérage' (or 'rente viagère'). In addition to this 'rente viagère', the 'débirentier' may be expected to make an initial payment, called the 'bouquet', largely inferior to the real price of the property and arrived at by deducting the payments of the 'rente viagère'. The amount of the 'bouquet' and the 'rente' are calculated in accordance with three parameters: the valeur vénale (market value) of the property, the life expectancy of the 'crédit rentier' and the yield of the capital invested. It is preferable to use the services of a professional for this type of sale.