Glossary of
real estate

Find the essential definitions you need to understand real estate terminology and successfully carry out your projects.

Real estate library

  • The’down payment is a sum of money that represents a percentage of a property’s sale price. This amount is generally requested by the seller upon signing a preliminary sales agreement, a promise to sell, or a reservation agreement (prior to the final deed of sale). In most cases, the down payment is 10% of the total sale price, an amount that will then be deducted from the price upon signing the final deed of sale.

    Please note that paying a deposit is not legally required; this practice has simply become customary and is a way for the buyer to demonstrate good faith.

  • This deed is drafted by the notary. It is required for real estate sales because it provides strong protection for both parties. Since the notary is a public official, this deed is deemed authentic (date, amount, obligations of the parties, etc.) and can only be challenged through legal proceedings.

    In this respect, a notarized deed differs from a private document. The latter does not require the presence of a drafter (such as a notary) and is signed only by the parties (e.g., lease agreement, inventory of fixtures, etc.).

  • As a true intermediary, a real estate agent is involved in transactions involving the purchase, sale, or rental of property. The practice of real estate brokerage is regulated by law; as such, agents are subject to several requirements: hold a professional license issued by the prefecture; have financial coverage from an insurance company or a credit institution; carry professional liability insurance; and have a written authorization from the client authorizing the agent to negotiate and/or enter into agreements on the client’s behalf.

  • In a condominium, “fund calls” refer to the amounts requested from the co-owners to pay for operating expenses or construction projects. Please note: In order for the property manager to issue a call for funds to the co-owners, the proposed budget must have been approved at a general meeting (see the definition below!).

  • The’personal contribution refers to the amount of money a prospective buyer can contribute toward a real estate purchase to supplement a loan from a financial institution. These savings must be readily available.

  • Also known as the “Co-owners’ Meeting,” this meeting brings together the co-owners of a building (the co-owners’ association) at least once a year. Together, they vote on the budget and any proposed improvements and approve the co-ownership’s financial statements. Note that each co-owner’s number of votes is proportional to their share of ownership (thousandths or fractions of a share).

  • Lease contract by which the lessor undertakes to provide the tenant with the enjoyment of their real estate in exchange for the payment of rent.

  • Owner of the real estate made available to the tenant in exchange for rent. The lessor can be a natural or legal person.

  • Document provided by the real estate agent attesting to the effectiveness of a visit, in order to guarantee him/her the proper payment of his/her commission.

  • Speculative bubble characterized by a very rapid increase in the value of real estate on the market.

  • Public register that lists and demarcates the plots of land and their owners for each commune, available at the town hall or online.

  • This commitment is often required as part of a lease, whereby a person agrees in writing to pay the rent in the event of the tenant's failure to pay.

  • Document that informs about the urban planning provisions applicable to a land unit, the preemptive rights and the urban planning taxes.

  • Expenses incurred by the co-owners, due to the existence of common parts, equipment and collective services.

  • Charges incurred by the tenant as part of a rental agreement, recoverable because they were first paid by the landlord, who then requests reimbursement.

  • Remuneration of the real estate agent as an intermediary in a sale or rental, due upon the signing of the deed or the lease.

  • As a prerequisite to the signing of the authentic act, it establishes the conditions of the sale: the seller and the buyer agree to them under specific conditions.

  • Clauses in a sales agreement that suspend the effect of the contract until one or more events occur (e.g., obtaining a loan).

  • The distribution of the ownership of a built property between several people, each of whom owns a «lot» composed of a private part and a share of common parts.

  • An intermediary between a financial institution and a prospective buyer seeking a mortgage loan, responsible for negotiating the best rates.

  • Participatory financing applied to real estate, where investors participate online in the financing of real estate projects.

  • Separation of the three elements of property rights attributed to different persons: the right to use, the right to the fruits, and the right to sell or give away.

  • Amount of money paid by the tenant to the landlord upon the conclusion of a lease, returned at the end of the lease after any deductions have been made.

  • Set of documents that the seller or lessor must provide to the buyer or tenant, providing information about the characteristics of the real estate.

  • A law allowing territorial authorities or the State to acquire real estate at a preferential price over the buyer, within defined geographical areas.

  • Taxes imposed by the state when transferring the ownership of real estate, commonly known as «notary fees».

  • Required document for rental purposes describing the condition of the rented property, drawn up upon entry and exit from the premises.

  • Procedure aimed at forcing a person to leave an accommodation they were not entitled to occupy, implemented by a justice commissioner.

  • Fees paid by the buyer upon signing the authentic deed, consisting of taxes, the notary's expenses and the notary's remuneration.

  • Fees charged by a real estate agency in exchange for its services in the sale, purchase, rental or management of a real estate property.

  • Taxes collected by the territorial authorities, including the property tax, the land tax and the Territorial Economic Contribution.

  • Taxes on the income generated by the rental of real estate, calculated after deducting various real estate charges.

  • Legal formula allowing multiple people to purchase real estate, with each individual owning a share of the property based on their financial contribution.

  • Rental of accommodation that includes at least bedding, window coverings, kitchen equipment, a refrigerator, dishes and utensils.

  • Law requiring the exact floor area of a property to be mentioned when selling it, excluding cellars, garages and parking spaces.

  • The agent is a person who has received the power to act on behalf of another (the principal), a power limited in a contract (the mandate).

  • Ministerial official of public authority appointed by the State, empowered to draft and authenticate legal acts conferring on them a particular legal value.

  • In a property division, the non-owner has the right to sell or give away the property, in accordance with the rights of the usufructuary.

  • Mandatory document attesting that the construction project complies with the current urban planning regulations.

  • Positive difference between the purchase price and the resale value of a real estate property, subject to taxation under certain conditions.

  • Pre-contract can be unilateral (binding only the seller or the buyer) or synallagmatic (binding both parties).

  • Real estate construction professional whose mission is to search for land, build buildings and ensure their occupation.

  • Set of administrative formalities informing about real estate transactions carried out, managed by the Land Registry Service.

  • Document sent to the tenant attesting that the landlord has indeed received the payment of the rent and the due charges.

  • Document specifying the rights and obligations of the co-owners, mandatory and defining the organization and functioning of the condominium.

  • A measure of the performance of a rental investment that compares the annual rent to the purchase price of the housing, also known as the «rental yield».

  • Income generated by the rental of a dwelling, subject to the land income tax.

  • A constraint imposed on a property, limiting or prohibiting certain rights of the owner or imposing work on them.

  • A company whose purpose is to acquire and manage a portfolio of rental real estate with the aim of generating a return on investment.

  • A company in which several partners share one or more real estate properties to share the profits or the enjoyment thereof.

  • Sum of the floor areas of each room in a dwelling, after the areas occupied by walls, partitions and staircases have been subtracted.

  • Any natural or legal person mandated to execute the decisions of the condominium association.

  • Interest rate set by the banking institution taking into account all the costs of a loan.

  • An essential legal document drawn up by a notary proving the ownership of a real estate property, which must be published with the land registry service.

  • Pact whereby several people buy a property together, with full ownership reverting to the last survivor.

  • In a property division, the usufructuary has the right to use the property and to derive its benefits, without being able to sell it.

  • The estimated price at which a property could be sold on the market under normal conditions of free competition.

  • Sale of a building under construction where the buyer gradually becomes the owner as the work progresses.

  • Sale of a property where the seller can continue to occupy it, the buyer paying in the form of a lump sum and a periodic annuity.