Glossary

• ACHAT EN ETAT FUTUR D'ACHEVEMENT
  Also known as "achat sur plan/" or "off the plan" purchase. The purchaser signs a reservation contract on a property specification and pays an initial deposit of up to 5%. The remainder of the purchase price is paid as each stage of the build is completed.
  
• ACTE AUTHENTIQUE:
  A document signed before a notaire (the deed of sale in the case of a real estate transaction). It can now be produced in electronic form.
  
• AMIANTE: see "Etat d'amiante"
• ASSURANCE DOMMAGES-OUVRAGES
  Insurance to be taken out by the owner to guarantee repair of any defects that may come under the 10 year contractors' guarantee.
  
• BENEFICIAIRE
  Term used to designate the person to whom a unilateral sales agreement is addressed.
  
• BON DE VISITE
  When an agency takes a potential buyer to view a property, they both sign a viewing agreement under which the purchaser agrees not to deal directly with the vendor.
  
• CARTE PROFESSIONNELLE
  Administrative document required of any private individual or company who buys, sells, rents or manages other people's property.
  
• CERTIFICAT DE SURFACE
  Certification of the exact surface area of the property issued by a géomètre/ (surveyor) is compulsory for the sale of all commonhold property.
  
• CERTIFICAT D'URBANISME
  The local authority search certificate is an administrative document indicating the town planning regulations applicable to the property on the day on which the certificate was drawn up.
  
• CLAUSE PENALE
  This is a penalty clause under which a person agrees to pay lump sum compensation in the event of non-performance of the main obligation stipulated in the agreement. It can be found in the preliminary sales agreement, for example.
  
• COMPROMIS DE VENTE
  Contrat synallagmatique de vente/, bilateral sales agreement, usually by private contract. (See also "Promesse de vente")
  
• RENTAL AGREEMENT
  Agreement by which one of the parties agrees for the other party to occupy their property for a fixed or unlimited period, in return for the payment of an agreed upon price.
  
• CONDITIONS SUSPENSIVES
  This refers to an event on which a sale depends that is beyond the control of the parties, such as obtaining a mortgage.
  
• C.O.S.
  The plot ratio defines the ratio between the surface area of the plot and the net plan area (S.H.O.N.). A plot ratio of 0.4 assigned to a 500 sq.m. plot of land means that a building with a ground floor area of 500x4 = 200 sq.m. can be constructed, provided it is authorised by the land use plan (P.O.S.).
  
• C.O.S. RESIDUEL
  The residual plot ratio defines the surface area of any additional constructions on built land. If, on a 500 sq.m. plot of land, there is already a 160 sq.m. house and the plot ratio is 0.4, another 40 sq.m. can be constructed, provided it is authorised by the land use plan (P.O.S.).
  
• DROITS DE PREEMPTION
  Pre-emptive rights or the right of first refusal give purchasing priority to a private individual or local authority for the purchase of real estate at the time of the preliminary purchasing agreement, instead of the initial purchaser
  
• DROIT DE MUTATION
  These are transfer taxes paid to the notaire on behalf of the State and local authorities in the case of donations, inheritances and conveyances.
  
• ETAT D'AMIANTE
  Asbestos. Vendors of houses and flats whose planning permission was delivered before 1st July 1997 are required to append, to their preliminary sales agreement a certificate stating the presence or absence of asbestos. This obligation concerns both flats and individual homes.
  Also, the owners of blocks of flats comprising at least one flat, built before 1st July 1997, must have an asbestos survey carried out by an authorised asbestos surveyor and, where necessary, provide proof that any measures stipulated in the surveyor's report have been completed, even if the property is not sold.
  
• ETAT DES RISQUES NATURELS ET TECHNOLOGIQUES : To be drafted
• ETAT PARASITAIRE
  The French Act of 8th June 1999 requires that a termite survey be carried out less than 3 months prior to the preliminary agreement for the sale of property located in contaminated areas
  
• GARANTIE DE BON FONCTIONNEMENT
  Equipment in new buildings that are indissociable from the structural work are guaranteed for 2 years if they do not function correctly.
  
• GARANTIE DECENNALE
  All building contractors must provide the owner with a 10-year guarantee against any defects that may affect the solidity of the structure or make it unfit for proper use.
  The 10 year contractors' guarantee includes defects of the same type that affect items of equipment that are indissociable from the building structure.
  
• GARANTIE DE PARFAIT ACHEVEMENT
  This one-year completion guarantee applies to new constructions and covers all damage described in the certificate of completion issued at the time of handing over of the construction, as well as any other damage notified subsequently.
  
• HONORAIRES
  Real estate agents charge a fee for handlng property sales and rental. All rates must be clearly displayed in each agency.
  
• HYPOTHEQUE
  A mortgage is a temporary, conditional pledge of property to a creditor as security for repayment of a loan. It is drawn up legally and published in
  
• INDEMNITE D'IMMOBILISATION
  This refers to the sum of money paid by the purchaser to the real estate agent or notaire/ at the time of signature of the preliminary purchase agreement and designed to compensate the vendor if the sale is not completed.
  
• JOUISSANCE
  Usufruct is the right to use or enjoy the fruits of property belonging to another.
  
• LOI SRU
  Under this legislation, passed on 13th December 2000, and designed to reform town planning law, purchasers have a 7-day withdrawal or "cooling off" period (droit de rétraction or droit de réflexion). The payment of an earnest money deposit in the case of a unilateral purchasing agreement is prohibited under pain of the agreement being declared null and void.
  
• MANDANT
  The principal or, in real estate transactions, the vendor or property owner, who authorises the mandataire/ or agent to transact the sale or lease of property on behalf of the owner.
  
• MANDAT DE VENTE
  This is a written contract between the owner and the real estate agent to sell the owner's property.
  In practice, the powers conferred upon the agency by the owner are limited to looking for a purchaser. As a result, the preliminary sales agreement must be signed personally by the vendor.
  
• P.L.U.
  The local urban development plan is drawn up at the initiative of the local authorities for each town and concerns all land under their jurisdiction.
  
• PROMESSE DE VENTE
  This is a preliminary sales agreement signed by the vendor and purchaser of a property. It can be signed privately or before a notaire. There are two sorts of agreements:
  
  • The unilateral preliminary sales agreement (promesse unilatérale de vente/) which is only binding upon the purchaser
  • The bilateral preliminary sales agreement (contrat synallagmatique/, also called compromis de vente/) which is binding on both the purchaser and vendor.
• PROMETTANT
  Term used to indicate the person selling the property (vendor) to the bénéficiaire/ (purchaser) in a promesse de vente/
  
• RISQUE D'ACCESSIBILITE AU PLOMB
  A lead-based paint survey must be appended to all preliminary and final sales agreements concerning dwellings constructed prior to 1st January 1948.
  
• SERVITUDE
  An easement limits the use of a real estate property in some way. The most common example is right of way.
  Town planning regulations can also create requirements that are chargeable to the property.
  
• SYNDIC
  The building manager is the private individual or legal entity responsible for executing the decisions of the members of the commonhold (syndicat des copropriétaires/).
  
• TAXE D'HABITATION
  Local services taxes are paid by the person occupying a house or flat on 1st January, whether they own, rent or occupy it free of charge.
  
• TAXE FONCIERE
  Land tax is paid to the local authorities by all owners of real estate in the municipality concerned.
  
• TERMITES: woodborer. See "Etat parasitaire"
• XYLOPHAGE: see "Etat parasitaire"