Why offer you a glossary?
When purchasing a property, it’s essential to understand specific real estate terms. What are the benefits of a glossary?
- Improve understanding: It provides you with clear and precise definitions of the specific terms you encounter.
- Promote communication: Effective communication is the key to a successful project. A basic vocabulary allows you to communicate more effectively with your various stakeholders (notaries, architects, contractors), starting with Real Estate Caretaking.
- Help with decision-making: Being well-informed allows you to make informed decisions.
- Save time: Consulting a glossary allows you to quickly obtain the necessary information.
- Enrich the customer experience: This glossary is one of the many resources we provide to support you throughout your project.
GENERAL TERMS
It is a document drawn up by a public official (most often a notary) and signed by them, bearing the seal entrusted to them by the State. In France, the authentic document provides the highest level of proof. The real estate sales deed is an authentic document.
It is a written agreement signed directly between the parties, or an agent designated by them.
This is a written agreement signed directly between the parties or a representative designated by them.
A real estate professional whose primary role is to connect sellers and buyers, or owners and tenants, for the sale or rental of real estate (houses, apartments, commercial premises, land, etc.). They act as an intermediary for a commission. They can only act with a written and signed mandate. They evaluate properties, advise clients, organize viewings, and negotiate prices. They can also handle administrative procedures related to transactions.
An apartment is a dwelling located in a multi-family building. It comprises living spaces (or rooms), on a single level, which constitutes a private area.
Apartments can vary in size, comfort, and layout.
In general, the occupants of an apartment share spaces and facilities called “common or shared areas” located within the building: stairs, elevators, hallways, parking lots, courtyard, garden, etc.
Calls for funds are made by the trustee to the co-owners. There are two types of calls: those to settle general expenses, paid at the beginning of each quarter, and those to settle exceptional work and expenses decided upon at the general meeting.
This insurance policy protects real and movable property when the insured is responsible for or suffers a loss in the dwelling they occupy, whether they are a tenant or owner. A civil liability insurance policy can also be taken out.
Liability insurance allows a person to insure themselves against the risks of bodily injury, property damage, or immaterial damage caused to others.
A public register listage information on the surface area and value of land and real estate. It serves as a basis for calculating property tax.
Real estate transactions, property management, and/or condominium management activities are regulated. Individuals practicing these professions are required to hold a professional license. It is issued by the Chambers of Commerce and is renewed every three years under certain conditions.
Co-ownership fees are the expenses incumbent on the co-owners, up to the limit of their share. All co-owners pay them to ensure the proper functioning of the building.
They are of two types:
Expenses related to the administration, maintenance, and upkeep of the shared areas.
Expenses incurred by collective services and common equipment (elevator, central heating, etc.).
This is the fee owed to the real estate agent, who acts as an intermediary in the sale. The commission is due immediately upon final signing of the deed of sale.
It is a condition that leads to the cancellation of the obligation if it is fulfilled.
A suspensive condition is a clause inserted into the preliminary contract. Failure to fulfill the condition allows the buyer to withdraw from the transaction without paying any financial compensation. It protects the buyer and the seller, in good faith, by legally releasing them from their obligation to complete the transaction in the event of an unforeseen event (for example, in the event of a refused mortgage).
The legal status of a building that belongs to several people at the same time, and to each of them separately. This legal regime is regulated by the law of July 10, 1965. The building is divided into shared areas and private areas. Each co-owner owns one or more lots comprising a private area and a share of the building’s shared areas.
The co-ownership regulations set the rules for communal living.
The condominium association is composed of all the co-owners; it manages the building and can delegate this function to a property manager.
Decisions are made by the general meeting.
These are the total costs incurred by the notary (or public officer) to prepare the sales file (land registry, mortgage conservation, etc.).
This is a declaration to be made, during a sale, to the town hall or another organization in municipalities that can exercise the right of pre-emption on the property in question.
The right of withdrawal gives the purchaser of a property the option to cancel the purchase within 10 days. This right begins the day after the first presentation notifying the deed. This notification can be made by hand delivery, registered mail, or electronically.
Transfer taxes are all taxes and duties collected by the notary during a real estate sale. They are collected on behalf of the State and local authorities. They are paid by the purchaser of the property upon signing the authentic deed and full payment of the sale price. They constitute a major portion of the notary fees.
A real estate sales contract must be the subject of an authentic deed drawn up by a notary.
The notary will charge fees, called “notary fees.” Notary fees consist of:
Transfer taxes: These are taxes and duties paid to the State.
Disbursements: These are expenses incurred by the notary on your behalf to request documents from various authorities, including the mortgage registrar’s salary, for which the notary is reimbursed.
Miscellaneous expenses: for example, those charged by the bank when taking out a mortgage.
Notary fees or remuneration. Some deeds have a fixed fee schedule.
The Real Estate Wealth Tax is a tax to which you are subject if your taxable assets have a net value exceeding €1,300,000 as of January 1, 2025. The Finance Act updates this minimum amount annually.
The immobilization indemnity, within the framework of a promise of sale, is paid in return for the seller’s commitment to sell their property exclusively to the buyer, under the conditions stipulated in the promise. It is an amount owed by the beneficiary of a promise of sale (the buyer) to the seller if they do not purchase the property even though all the conditions precedent have been met (obtaining a loan, failure to exercise the municipality’s right of first refusal, etc.).
This amount is freely set by the parties and, in practice, does not exceed 10% of the sale price. It is paid in whole or in part at the time the promise is signed. It is deposited by the notary and constitutes a deposit on the sale price. It is returned to the buyer in the event of non-fulfillment of a condition precedent.
When selling a condominium lot with a surface area greater than 8 m², the so-called Carrez surface area must be mentioned in the deeds at the risk of the sale being void within one month of signing the final deed. If the surface area mentioned in the deed is more than 5% less than the actual surface area, the purchaser has one year from signing the final deed to request a price reduction. The calculation is made pro rata to the price per m².
This is the person on whose behalf the construction of a building is conducted. This is a developer or an individual building on their own behalf.
This is the person or company designated by the project owner for the construction of the building. This is generally an architect or builder.
This is the person who gives a mandate (power of attorney) to another person (the agent) to do something on their behalf.
A mandate or power of attorney is an act by which one person (the principal) gives another person (the agent) the power to do something on their behalf. In the case of a sale, the law requires real estate agents to hold a mandate from the owner.
This mandate empowers a single agent to conduct the task of selling a property. Its duration is 3 months, with automatic renewal. Its validity cannot exceed 24 months.
This is the person who receives a mandate (or power of attorney) from another person (the principal) to do something on their behalf.
A historic monument is a building (built or unbuilt: park, garden, etc.) or a movable object receiving a specific legal status intended to protect it for its historical, artistic, architectural, but also technical or scientific interest so that it can be preserved, restored, and enhanced.
The graphic documents of the Paris urban plan and the preservation and enhancement plans of the Marais and the 7th arrondissement indicate historic monuments using various symbols. The urban planning information notices issued by the City of Paris indicate whether a plot contains a historic monument or is located near historic monuments.
In France, a notary is a public official whose mission is to advise the parties and draw up authentic deeds. Their involvement is mandatory in all real estate transfers. The manager is responsible for gathering all the necessary administrative documents for the file, verifying various legal information, and drafting the deeds of sale.
Shared areas are those parts of a building not reserved for the exclusive use of the co-owners. They belong to all the co-owners. They include: the entrance hall, hallways, stairs, elevators, structural work (floors, roof, structure, foundations, load-bearing walls, etc.), all floors, access points, various utilities (electrical, water, heating, pipes), lighting, etc.
Private areas are reserved for the exclusive use of a co-owner.
The preservation and development plan (PSMV) is an urban planning document that serves as a local urban plan (PLU) within the perimeter of the remarkable heritage area, with the aim of protecting its historical and aesthetic heritage. In Paris, the two notable heritage sectors of the Marais and the 7th arrondissement are governed by PSMVs.
In a unilateral promise of sale, the owner (the promisor) commits to the buyer (the beneficiary) selling their property at a specified price. This gives them an exclusive “option” for a limited period (usually three months). The buyer pays the seller a holding fee, in practice 5 to 10%. If the buyer decides to purchase, this fee will be deducted from the amount due. This formula is less restrictive for the buyer than that of the sales agreement or (synallagmatic promise of sale).
Indeed, in a sales agreement (or “synallagmatic promise of sale”), both the seller and the buyer commit to concluding the sale at a jointly determined price. Once signed, the agreement is considered a firm and final sale. Both parties are bound. The signing of the agreement is accompanied by the payment by the buyer of a security deposit of approximately between 5% and 10% of the sale price. This amount is deducted from the price when the notarial deed is signed.
The Land Registry Service is a real estate information service. This tax service records notarial deeds, making them binding on third parties. It also collects taxes related to these formalities and records real estate information.
Land registry is mandatory for real estate sales.
In tax law, it represents the dwelling occupied permanently (i.e., at least 8 months per year). It is the dwelling where one is domiciled for tax purposes.
In tax law, it is the dwelling where one lives only temporarily.
In France, the policy for listed and registered sites aims to preserve areas whose exceptional character justifies national protection. It concerns places of general scenic, artistic, historical, scientific, or legendary interest.
In Paris, listed and classified sites are listed in the appendix to the Paris urban planning regulations. The affiliation of a plot to a site is indicated on the urban planning information notice issued by the City of Paris.
Each co-ownership must have a property manager (manager) who administers and manages the building. The manager is responsible for enforcing the co-ownership regulations and conducting the decisions of the general meeting. The property manager may be a professional or a non-professional volunteer appointed from among the co-owners.
Share of the shared areas attached to each lot. It is set by the co-ownership regulations based on criteria of surface area, location, and consistency. The share is expressed in tenths (thousandths, ten thousandths, etc.). The number of shares each co-owner shares in the property is considered for the allocation of expenses and for voting on resolutions at the general meeting of co-owners.
The housing tax applies to the owner or tenant of a property. It was paid by the owner or tenant on January 1st of the tax year. In 2023, the housing tax on primary residences was abolished; it remains due for vacant premises or second homes.
The property tax is due annually by the owner of a property. This tax contributes to the fiscal resources of the regions, departments, and municipalities. When property is sold, the property tax is shared pro rata for the calendar year between the seller and the buyer.
Dans le cas d’un achat immobilier, le titre de propriété est la copie de l’acte de vente signé par chaque partie (vendeur, acheteur et notaire) et enregistré au service de la publicité foncière.
The title deed identifies a property and its owner. It provides proof that a person is the legal owner.
In the case of a real estate purchase, the title deed is a copy of the deed of sale signed by each party (seller, buyer, and notary) and registered with the land registry office.
Renovation involves restoring an existing building, modernizing it, or improving its comfort and aesthetics without altering its fundamental structure.
This fiscal and cadastral reference is used to calculate housing and property taxes. This term can also refer to the value of a property based on its rental yield.
HOUSE ROOMS
A room in a home converted into an office, generally equipped with office equipment such as a computer, telephone and photocopier.
A space located below ground level usually used for storage. Although this term is sometimes used to mean a basement, a cellar is generally not a fully conditioned living area.
A room where one sleeps.
A room in the house where meals are prepared.
A functional room where heating, ventilation, and air conditioning units are located, where the washer, dryer, and laundry tub are sometimes located, where household cleaning equipment is stored, etc.
A small, usually enclosed space used for storage.
A room furnished with a table and chairs where meals are taken.
A room used for personal care, equipped with a sink, toilet, and bathtub or shower.
Room where the family gathers for social activities.
Large closet designed for hanging clothes and within which it is easy to move around.
Part of a building located wholly or partly below ground level.
TECHNICAL DIAGNOSTICS FILE
The purpose of the technical diagnostic file (DDT) is to protect and better inform a future owner about the building’s elements that may pose risks to the health or safety of individuals.
The condition of the interior electrical installation covers the suitability of fixed equipment for the network’s characteristics and the conditions of its installation with regard to safety requirements.
It describes the condition of fixed heating and domestic hot water production appliances, fixed gas supply pipes, their accessories, and the layout of the premises where the gas appliances operate.
The lead exposure risk report (CREP) identifies lead-containing coatings and, where applicable, lists the factors contributing to the building’s deterioration.
The report must mention the presence or, where applicable, absence of construction materials or products containing asbestos.
This report aims to inform the buyer of the building’s situation regarding the presence or absence of termites.
Buyers of real estate located in areas covered by a technological risk prevention plan or a foreseeable natural risk prevention plan, or in seismic zones, are informed by the seller of the risks covered by this plan or decree.
When selling all or part of a residential building not connected to the public wastewater collection network, the document drawn up following the inspection of the non-collective sanitation facilities must be attached to the technical diagnostic file
The energy performance diagnostic provides information on the energy performance of a home or building by assessing its energy consumption and its impact in terms of greenhouse gas emissions, which can be viewed on the energy label and the climate label.
A safety device that detects smoke in the ambient air and triggers an alarm to alert occupants of the fire hazard.
CONSTRUCTION RESPONSABILITY
Ten-year civil liability insurance: Any builder who carries out or participates in the construction of a building or carries out work on an existing building is required to take out ten-year insurance. This covers damage that compromises the structure’s solidity or renders it unfit for its intended purpose.
Insurance covering the proper functioning guarantee: This covers the two-year warranty after acceptance of the work, which concerns equipment elements that can be separated from the structure.
Perfect completion guarantee: During the year following acceptance of the work, the perfect completion guarantee requires the contractor to repair all defects reported during this period, either in the work acceptance report or in a subsequent notification.
Mandatory insurance taken out by the project owner, which guarantees the reimbursement or repair of damage affecting the solidity or intended purpose of a structure, for a period of ten years from acceptance of the work.
All construction work that ensures the stability and solidity of a building, such as foundations, load-bearing walls, framework, roofing, etc.
A natural or legal person who commissions a renovation or construction project. They are the owner of the project and define the objectives, budget, and deadlines.
A natural or legal person responsible for the completion of a construction project from its inception. They coordinate the various stakeholders on the construction site and ensure that deadlines, quality, and cost are met.
A document by which the project owner declares acceptance of the work carried out by the construction company, subject to any reservations, and which marks the starting point for legal guarantees.
All construction work that ensures the finishing, comfort, and aesthetics of a building, such as partitions, cladding, joinery, sanitary, electrical, and heating equipment, etc.
PLUMBING
A vertical pipe: shower column, gas column, electricity column, dry riser, wet riser, etc.
Clearing out anything that clogs or obstructs a pipe or piece of equipment.
A mobile plumbing device, usable, for example, in a bathroom (for taking a shower), in a hair salon, or in kitchen sink equipment.
Flexible hose is part of water supply systems but also for wastewater drainage. It is a versatile tube that allows for seamless plumbing, like all synthetic tubes.
A part connecting two pipes or conduits. By extension, the name of the part that ensures a seal between two pipes or conduits.
A component that ensures water diffusion in the shower.
A translucent panel, used to prevent water from splashing from a shower or bathtub.
A maintenance item designed to evacuate air from the heating system.
A metal device used to control and/or shut off water.
Toilet
A discreet opening, often equipped with a removable panel or door, which provides access to hidden technical installations (plumbing, electrical, ventilation, heating, etc.).
ELECTRICITY
A set of insulated wires carrying electric current.
A network of electrically conductive cables.
A device that measures the amount of electrical energy used.
Flow of electricity.
Accidental contact between two points in a circuit between which there is a potential difference, via a low-resistance conductor.
An electromechanical device that instantly interrupts the electrical supply following an overload or short circuit, without damaging the device; serves the same purpose as a fuse, namely to prevent overheating of an overloaded circuit, but can be reset and does not need to be replaced.
A device that automatically interrupts the current in overload or short-circuit conditions by melting a component that opens the circuit when predetermined excessive loads are reached.
A device for opening and closing an electrical circuit or changing connections.
An electrically non-conductive sheath surrounding a wire or equipment that prevents short-circuiting.
Control center for various circuits containing fuses or circuit breakers, usually contained in a metal box. Sometimes it includes switches for each circuit.
Fixed power supply device for connecting electrical devices and accessories.
Élément central d’une installation électrique qui regroupe et distribue l’ensemble des circuits électriques d’un bâtiment. Il assure la protection, la gestion et la répartition de l’électricité vers les différents équipements (prises, éclairages, électroménagers, etc.).
HEATING
A water heater is a domestic or industrial appliance used to heat water using an energy source, which can be electricity, gas, oil, or solar energy. Electric water heaters operate either with a heating element or, for the more recent thermodynamic water heaters, with a heat pump.
A pressurized vessel that uses fuel or electricity to heat water to provide steam or hot water for space heating, domestic hot water production, humidification, or any other application, such as electricity generation.
A heating system that distributes heat to multiple rooms from a central unit not located in the heated premises.
Control of air temperature (using a heater or air conditioner), its moisture content (using a humidifier or dehumidifier), and its purity (using filtration).
A thermodynamic heating/air conditioning unit used to transfer heat within a space conditioning and water heating system.
A part of a heating system that transfers heat to a room. Most often used to refer to a heating element through which hot water circulates as the primary heat source. Can also refer to an electric heater.
PARTS OF A BUILDING
A vertical, fully visible face of a building. It is usually its main face, facing the street or having architectural value.
Entrance room providing communication between the exterior and other rooms.
The thin wall forming a division within a building.
Structure constituting the visible upper horizontal surface of a room.
Platform at floor height.
Horizontal elements dividing the floors of a building.
Projecting platform on the exterior of a building, surrounded by a balustrade.
Intermediate floor between the ground floor and the first floor.
Large entrance or reception room within a building.
Linear ornamentation in relief or intaglio on a surface.
Horizontal support element made of wood or metal.
Covering attached to the wall between the countertop and the wall units, the splashback protects against water, grease, and food splashes.
Parquet is a type of wood flooring, composed of strips or panels assembled to form a solid and aesthetically pleasing surface. Used for centuries, parquets bring warmth, elegance, and durability to residential interiors.
An opening made in a wall or partition to allow air and light into a space, normally equipped with closure.
A window whose glazing consists of two panes of glass separated by an air gap to increase thermal resistance.
The glazed surface of a window. A window can be single-glazed, double-glazed, or triple-glazed.