[vc_row][vc_column][us_separator size=”small”][vc_column_text]SALES TERMS / PURCHASE TERMS
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SALES FRENCH TERMS
Compromis de vente – Preliminary sales agreement : an initial contract whereby the owner undertakes to sell their property to the buyer at a given price.
Délai de rétractation – Cooling-off period : the period of time during which the purchaser, after having signed the preliminary sales agreement, can withdraw from the purchase without having to justify their decision or pay any compensation to the seller. In France this period is 10 days.
Acte de vente – Deed of sale : this is the final contract, registered with the notary who attests to the fact that the buyer has become the owner. This document will be given to you once the sale has been signed. Signing the deed of sale triggers payment of the duties payable on the sale and the notary’s fees, generally referred to as the notarial costs (frais de notaire).
Frais de notaire – Notarial costs : these are made up of the fees due to the notary him or herself, and the other costs involved other than the purchase price itself (taxes and duties). These are mainly composed of the transfer duties collected by the notary on behalf of central and local government. The amount concerned is identical, whichever notary carries out the conveyancing.
Dépôt de garantie – Deposit : this is paid by the purchaser to a blocked account held by the notary (5 or 10% of the purchase price) within a period of seven days following the signature of the preliminary sales agreement.
Taxe foncière – Property tax : a local government tax payable every year by the owner of a property in France whether or not they are themselves resident in France. For example, property that is used as a primary residence or as a second home is subject to this tax, together with property that is let to tenants.
VEFA (Vente en l’Etat Futur d’Achèvement) – Sale of property for future completion : a purchase contract used for property under construction or being bought off plan. For this type of sale, the buyer benefits from lower transfer duties as compared to a classic property purchase.
SCI (Société Civile Immobilière) – Non-trading property investment company : this is a company contract that enables a minimum of two people to jointly purchase one or several properties with the aim of sharing the profits generated. An SCI presents advantages in terms of estate and inheritance tax planning.
Résidence principale – Primary residence : the property that is your home for most of the year.
Résidence secondaire – Secondary residence : any home that is not your primary residence and which you use as a second home on an occasional basis.
Investissement locatif – Buy-to-let : a property that is purchased for the purpose of being rented out.
Viager immobilier – Lifetime annuity property purchase : this term designates a sale by which the purchaser undertakes to buy a property from an elderly person (often at a discounted price) by paying them a regular amount in the form of a rent (monthly/quarterly/annually) until their death.
RENTAL FRENCH TERMS
Bail – Lease : a rental contract under which the landlord undertakes to allow a tenant to enjoy the use of a property in exchange for a previously agreed amount and for a set period of time.
Charges de copropriété – Co-ownership fees : This term covers all the charges and expenses that enable the commonhold to be correctly maintained (maintenance of the common areas, collective services, etc). The joint owners of the commonhold, the co-owners, must pay these fees.
Surface habitable – Habitable surface area : this is the total floor area of the property; it includes all the rooms but excludes the areas occupied by walls and any steps, stairwell or balcony, and any area where the ceiling height is less than 1.8 metres.
T1/T2/T3/F1/F2/F3 : these terms designate furnished or non-furnished accommodation and refer to the number of bedrooms :
- T1 / F1 : 1 main room (living room/bedroom) + 1 kitchen + WC, shower or bathroom
- T2 / F2 : 1 bedroom + 1 main room + 1 kitchen + WC, shower or bathroom
- T3 / F3 : 2 bedrooms + 1 main room + 1 kitchen + WC, shower or bathroom
Assurance habitation – Household insurance : this insurance is mandatory for any property rented in France, not only for the tenants and also for the owners in the event of a commonhold (it is therefore generally the case for residential property in Paris). It protects the tenant in the event of damage (burglary, water damage, etc).
Frais d’agence – Agency fees : fees to be paid to the estate agency when they find a property for you to rent. Since the Alur law came into force, the amount paid by the tenant is capped and depends on the geographical area in which the property is located (whether demand is much higher than supply, or not). Since April 2017, the agency has an obligation to mention these fees in their adverts.
Taxe d’habitation – Residence tax : a local government tax paid by the person occupying the property (whether this is the owner or a tenant) if they were living in the property on 1 January. This tax is due to be abolished by 2019 for 80% of those living in France.
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