To buy or to rent in France

Transcription

To buy or
to rent in France
France is one of the most known and reknown countries for its quality
of life, its cultural wealth, its gastronomy, its climate and its values.
Furthermore, real estate prices remain attractive. And indeed Europeans, and particularly the British (50 %), the Benelux members,
(13 %), the Italians (10 %) and the Irish (6 %) are investing in France
(UCB source).
If you picture yourself as one of these future owners or tenants in
France, these guidelines will help you to understand the various steps
involved in the successful completion of your project.
DE PARTICULIER A PARTICULIER
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TO BUY A PROPERTY IN FRANCE
●
Nothing is simpler than buying a house in France. Indeed the buyer
does not have to complete any administrative procedure. The notary (1)
takes care of this task, as he is required for any real estate transaction.
Financing is also easy. It will be quick and you do not need to be a
math genious to understand it. Many French banks and financial institutions have designed specific offers to answer the needs of their
foreign clientele. So you will just have left to do what nobody can do
for you: choosing your dream house and imagining yourself living in
it.
■ Looking for a house and finding it
In France, the majority of sales are completed between private owners.
This allows a savings on agency fees (4 to 10% of the property price).
In order to find a house, the easiest way is to use the internet and to
browse through online websites including www.demeures-decharme.com or www.pap.fr. Our weekly magazine « De Particulier à
Particulier » and its website www.pap.fr are the French leading magazine and Real Estate website in France.
■ How to read an ad?
The text of the ads comprises a description of the property, the town
where it is located, the sale price, its surface area and often a picture
(or several on the internet). Sometime the owner does not wish to
indicate the price of his property. Do not hesitate to send him a mail
or call him.
We also provide on www.pap.fr an alert by email service, which
allows you to receive all incoming ads as they are posted on the
website: our service will email you any property that has been listed
matching your criteria.
(1) Les mots soulignés sont définis dans le lexique en annexe de ce guide.
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■ First contact
Most of the time, it is a phone call (either directly if you are lucky
enough to be bilingual, or with someone’s help). Do not forget to ask
questions requiring precise answers (yes, no) and specifying your
requirements. This is also true for the viewing. It goes without saying
that you will probably have exchanged emails if the seller has indicated an email address in his ad.
■ Viewing
You will be in direct contact with the owners. To help you organize
successful visits try to regroup them and remember to take a camera
to better recall properties later. No specific permission is necessary to
take pictures of the façade and/or communal areas of building (staircase, lift) or the village streets. You will however need the owner’s
permission to take photos inside his home.
For this first viewing, we recommend you prepare forms that you will
carefully complete for each viewing so that you do not forget to ask
questions and remember the property better. You can download form
models on our website www.pap.fr
If you are interested in the property, ask the owner for copies of the
following documents:
– the title of ownership
– document relating to co-ownership, in the case of an apartment,
– inspections,
– tax notices of local taxes.
If the owner does not have these documents available with him, give
him your address, fax or email so that he can send them to you. The
owner will ask you for your financing details and your schedule for
purchasing the property. (refer to “Financing” section)
■ Negociation
– Negociation
In France, trying to negociate the price of property is common. Either
the owner accepts your offer and you go to the next step, or, he makes
a counterproposal. He can also simply refuse to negociate in any
manner.
Tip: When you negociate the price, avoid saying: “your property has
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such and such a defect”. but rather: “ My budget is X euros. Would
you accept that I send you a bid ?”
– Bid
In France, buyers and sellers usually reach a prior oral sale agreement.
This agreement is then legally finalized at the notary’s with the signature of a preliminary agreement (Compromis de vente). So now you
know what you have to do: in order to complete your project, you
must rapidly contact a bilingual notary. This will make it easier and
eliminate the need to pay for an interpreter. Should you not be able
to be present during the entire sale process your selected notary will
act in your interests. You can also find a person to represent you in
France. More and more English people are setting up businesses in
France providing these types of services and you can also contact
non-French-citizens associations to help and assist you in your project.
■ Financing
■ How to obtain funding
There are two choices:
– You can take a loan in your own country, in your local currency,
English pounds for example. If you already owns a property it is
possible to put this up as collateral for a mortgage in your own country.
– Or you may take a loan in France in euros and you mortgage the
French property.
– Financing in your own country
No need to go into detail on how financing operates in one’s own
country: The enforced regulations are those of the country where the
loan is granted, with few exceptions. Money transfers are performed
from bank to bank or from bank to notary. Indeed, most non-resident
borrowers do not have a French bank account. Therefore, funds may
be transfered into the bank account of the notary in charge of the sale.
It is then essential that borrowers open a bank account in France, to
be able to pay all bills involved with the property, if nothing else.
– Financing in France
What are the benefits of borrowing in France?
By choosing to borrow in France, many foreign buyers are aware that
one enjoys the same benefits – quite numerous and attractive – as a
French resident. Indeed, interest rates are very attractive in
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France (3/4% against 6/7% in the United Kingdom and 8/9% in the
United States). French financial institutions have made significant
changes to adapt to this new clientele: bilingual services, translation
of documents into English, websites dedicated to non-resident customers (for example: www.ucb-french-mortgage.com, www.mortgagein-France.com, [email protected], etc.). The
French real estate market is very attractive. Banks declare that approximately 50% of non-residents borrowing in France wish to take mortgages in euros.
How does it work, basically?
The same regulations and conditions apply to residents and non-residents when financing a property.
Compliant with the Rome Convention of June 19th, 1980, the legal regulations that apply are those of the country in which the property is located,
and therefore French law for a property bought in France (conditional
clauses for mortgage approval, outstanding debts and liabilities, etc.)
In general, banks require a download payment representing 20% of
the price of the property (but this is not an absolute rule).
The assessment of the client’s application is performed in a similar
manner as for a French resident :
– All documents required for a mortgage application are the local
equivalents of the documents requested from a resident borrower (tax
notices, pay slips, preliminary agreement...)
– The debt and loan ratios are performed in a similar manner, using
taxes and incomes in the native country.
The loan offer is written in French, but the rest of the documentation
can be available in the language of the borrower (generally in English).
The various types of loans available
French and foreign clientele are offered the same type of loans, but
their choices are often very different. British people for example prefer
long-term loans at variable rate to fixed rate loans. In general, a variable rate loan offers a more attractive rate than a fixed rate loan. But
it evolves according to the index to which it is attributed. Therefore
you are not certain of the amount of future repayments and of the
global cost of the loan. The variation of the rate can be reflected in
three different ways: on the monthly installments, the duration of the
loan or both.
Fixed rate loans guarantee on the other hand a fixed rate for
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the duration of the loan. Therefore, one can be assured that monthly
installments will remain the same during its entire term.
Moreover, most non-resident clients are more attracted by In Fine
loans, i-e credits where the borrower refunds the interest before refunding the borrowed capital. In this case the borrower only pays the
interest for the duration of the credit.
Finally one must be aware that no bank will offer 100% financing. It
is important to remember that the maximum financing obtainable is
85% of total purchase costs.
Now financing institutions have developped specific services to care
for their foreign clientele’s needs and it should be easy for you to get
the right answers. One thing is certain: you must choose a banker you
really trust because he will play a major role throughout your entire
purchase process, and he is the person who will make the loan offers
to you.
The loan offer
Once the bank has accepted a loan application, it sends a loan offer
by registered mail. Its objective is to inform the borrower of all conditions and costs relating to the loan.
The content of the offer must specify:
– the identify of the borrowers, and when applicable, of the guarantors,
– the type of loan, its purpose (purchase of a principle residence or
secondary residence, purchase of building land in order to build a
home) and dates and conditions of availibility of funds,
– the amount of the loan, its global cost, its Total Effective Rate (including the interest itself increase of all the expenses, commissions or
remunerations of any nature, insurance premium), and it’s indexing
modes,
– insurance policies required by the bank (death, life insurance),
– Guarantees taken out in the event of payment failure. This can either
be a mortgage or a refinanceable mortgage, putting up your property
as collateral or sometimes a guarantee by a specialized financial organization, but this is quite rare. But the guarantee may also be putting
up stocks as collateral or a life-insurance contract delegation.
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These guarantees allow the bank to be refunded in case of borrower’s
failure to meet his repayments obligations.
The borrower is not really in the position to request a specific type
of guarantee. It is up to the financial institution to select the guarantee
according to the type of purchase and the borrower’s details.
– the conditions in case of loan transfer,
– the validity timelines of the loan offer and approval procedures,
– the penalties that can be incurred in case of loan cancelling.
In addition to this information, with each payment the bank must send
an amortization table, i-e a schedule stating the amount of capital paid
off, outstanding interest and capital. In other words, for each repayment term, one knows exactly what has already been paid and what
remains to be paid. This is convenient, when deciding to refund a loan
before its term.
When to accept the loan offer?
In order to give you time to think before committing, the French law
has granted a mandatory 10-day cooling-off period starting from the
receipt date of the offer before its acceptance. In no manner whatsoever can the bank oblige you to give your answer prior to the expiry
date of this legal cooling-off period. If a bank decides to overrule this
obligation, it can be sentenced to pay a legal fine.
Note that the day of receipt of the offer does not count in the cooledoff period: your approval cannot therefore be accepted before the eleventh day. For example, for an offer received on June 9th, the answer
cannot be given before June 20th at O am. At the end of this period,
you must let the bank know your decision. The loan contract is then
signed immediately upon giving your approval to the bank.
Validity of the offer
The offer is valid for a minimum of thirty days. In other words, the
bank is required to maintain the conditions offered during this period.
It is free however to extend this period (usually four months).
When the thirty days have expired, the financial institution must
inform the borrower of its new conditions, repeating the aforementioned procedure: by sending a new loan offer with a cooling-off period...
Loan related fees
During the loan negociation, do not forget the application fees you
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will have to pay. These fees are not set, for both the banker and the
financial institution and vary according to the financial institution and
amount to approximately 1% of the loan. Mandatory insurance fees
(death-disability for approx. 0.5% of the total loan) and optional fees
(job loss, approx. 0.5% of loan) must also be paid. Finally, a property
mortgage or putting up the existing property as collateral fees implies
fees of approx. 1.5% of the loan. These loan fees will always be
charged to the borrower. For a real estate sale, this means that the
buyer will bear these fees.
The fiscal obligations of a property owner in France
Council tax : This tax is due by the occupier (tenant or owner) of the property
on January 1st of the current year. For a deed of sale signed on January 2th,
the owner will not be liable to pay the council tax for that current year
Property tax : This tax is due by the owner (occupier or not) on January 1st
of the current year. The contract may define a proportional payment. For example, for a deed of sale signed on April 1st, the owner will be charged 9/12th of
the yearly tax amount.
Tip : In order to know the amount of these two taxes, ask the seller how much
he was paying. You will have to pay approximately the same amount.
Other taxes : Consider that like everybody else, you will have to pay for water,
electricity, gas, telephone. Accordingly, a French bank account must be opened. It is advisable to set up direct debit procedures to avoid unpleasant
surprises.
Multiple risk house insurance : Do not forget to insure your property the day
of signature of notarial act (water damage, fire, thefts and personal liabilities)
For more information, do not hesitate to contact :
Centre d’impôt des non-résidents
10 rue du centre 93465 Noisy le Grand Cedex
Phone : 01-57-33-88-88 or 33 1 57 33 83 00 from outside France
Email: [email protected]
■ Notary fees
In France, the buyer must add “notary fees” to the property price
which amount to approximately 7% of the property’s price. These fees
are due on the day of signature of the deed of sale at the notary’s
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office. These fees can be calculated precisely (info on our website
www.pap.fr , menu “Notary’s fees”) or using the following tables.
The purchase fees comprise the following :
– The notary fees
The notary fees are fixed by a national scale depending on the selling
price. (see following chart). This schedule applies for purchase of both
old and new prooperties.
Price range
Percentage
Up to 6,500 €
6,501 € to 17,000 €
17,001 € to 30,000 €
Above 30,000 €
For rapid calculation, add:
4.00 %
1,65 %
1,10 %
0,825 %
152,75 €
246,25 €
328,75 €
VAT: Add 19.6% to result
Example
You buy a property for 200,000 €
The notary fees will be : 200,000 X 0.825% = 1,650 €
1650 + 328,75 € = 1 978,75 €
VAT : 1978.75 x 19.6 % = 387.835 €
1,978.75 + 387.835 = 2,367 € (rounded off)
Beware ! In addition to his regular fees, the notary can receive additional fees as stipulated in article 4 of 8 March 1978 decree. The
notary charges these fees for legal transactions and services performed
during his activity and their rate is not set in the decree. It can include
the time the notary will spend with you to explain or translate legal
documents, etc. Generally, these types of services (tax consultant, legal
advisor) are charged in the same manner. Both the buyer and the
notary agree on the fees the notary will charge. Buyer must receive
detailed information on the fees he will be charged for specific services, explaining on what the calculation is based.
– Land Registration Tax
As of January 1st, 2006, the Land Registration Tax amount to 5.09 %
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(as opposed to the previous 4.89%) for the purchase of an existing
house and 0.715% for the purchase of a new development. Are considered as new, houses which are currently built, refered to as “sale
in the future condition of completion” (VETA) but also all houses and
apartments completed in the past 5 years, providing that they are being
sold for the first time since their completion. This tax is collected by
the State.
Example : Purchase of an existing property for 200,000 €
200,000 x 5.09 %= 10,180 €.
Example : Purchase of a new development 200,000 €
200,000 x 0.715%=1,430 €.
– Other fees
Registrar of mortgages
This fee is proportionate to the purchase price, with a ratio of 0.10%
and a minimum of 15 €.
Example: Purchase of property for 200,000 €
200,000 x 0.10% = 200 €
Formality fees
These fees vary according to the various formalities performed by the
notary and amount to approximately 500 €. They usually cover requests
for “Civil Status” information, copies of Land Registry records, the
possible value-added declaration, or the requested filling of a VATrelated form for the purchase of a property less than 5 years old.
Various fees
They are mainly fees paid to third parties for the account of the
notary’s client and include the Land registry records or the Mortgage
status paid to the cadastral register services or to the Land registry
(approximately 500 €).
■ Signing the correct contracts
■ First step: signing a preliminary agreement (Compromis
de vente)
You have found your dream house and agreed on the price with the
seller. The next step will be then: buying the property. In France, this
is always a 2-step process.
First step: Signing a “compromis de vente” or preliminary agreement,
which is a written contract of sale agreement in which the seller agrees
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to sell his property and the purchaser agrees to buy it. This first step
is essential before the final sale which constitutes the second step. The
final deed of sale takes place three to four months after the signature
of the preliminary sale, the time necessary for the notary to perform
various legal processes and verifications.
Note: In these guidelines, we only cover the most usual of contract
agreements: the aforementioned “Compromis de vente“. One must
however be aware that other types of agreements exist, including
“Offer to sale”; a notary may recommand this type of contract but the
rights and obligations of parties are very similar.
Moreover, these guidelines only apply to the purchase of existing
properties, with the exception of sales of new developments with specific contracts.
– At the notary’s office or between buyer and purchaser only?
The preliminary agreement can be signed directly between the seller
and the buyer (this procedure is called in French “sous seing privé”)
or before a notary. We however strongly recommend signing all contracts in the presence of a notary. He will then take care of everything,
verifying all requested documents necessary to prepare legal proceedings, drawing up all contracts that will only have to be signed. Moreover, he is the person present throughout the entire sale process, from
the signature of this preliminary agreement to the signature of the final
deed of sale. The success of your purchase depends therefore on him.
You can choose your notary, but he has to be French. The seller and
the buyer can have different notaries, this does not cost more since
the notaries will share their fees.
The notary:
The notary is a Public Officer designated by the Lord Chanceller and whose
main function is to draw up notarial acts, pertaining to real estate transactions,
but also to family and company legal matters. All property sales in France
require a notary. He prepares all deeds and agreements in advance, using the
Title of Ownership granted him by the seller and the various information he will
collect and verify. For the signature of contracts, the seller and the purchaser
make an appointment at the notary’s office. The notary can then check the
identity, the capacity and the authorities of both parties. They can take this
opportunity to ask all questions relating to the transaction before signing before
him. The notary also signs the contract, thereby signifying his responsibility on
its content, date and validity: he therefore insures the authenticity of the
contract.
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– In which languages should the deeds be written?
The deeds signed before a notary are “notarial acts” (see chart on
page 25) and must always be written in French. This very old obligation dates back to the period of King François 1st, and remains in
practise today. The explanation is simple: the notary checks all information and details given by both parties and that will be stated in the
deed. The signature of deeds before a notary makes these documents
legal.
All parties signing the deed must understand its content. It is possible
to have the deed translated prior to its signature. For this, one can
refer to translators specialized in legal translations. In this case, the
document translated into the buyer’s native language is appended to
the French deed. This solution may however prove quite costly, and
this translation is not required by law, even when one of the parties
does not speak French.
– Understanding the deed
What matters is that parties signing the contract understand its content.
People who do not speak French can simply have someone orally
explain the content of the contract. The ideal and cheapest solution is
to choose a notary who speaks your language. He will be able to
explain you the content of the contract in detail and make sure it is
understood.
You may also refer to a third party, a friend or a trustworthy person
who will act as a go-between with the notary during the entire transaction process. In choosing this solution, one simply gives power of
attorney to the person helping. In order to do this, the notary prepares
a power of attorney agreement which is translated so that it can be
signed. This solution is simple, a power of attorney agreement is a
short document whose translation is not very expensive.
Finally, French speakers may perform this transaction directly with
the seller and sign in before the notary.
In other words, many options are available. In any case, the notary
makes sure all parties understand the content of the deed prior to
signature.
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This agreement for sale is an important legal document, and therefore
the French Law provides a specific protection for the purchaser: the
right of retraction which allows the purchaser to change his mind once
he has signed the preliminary contract, penalty-free. Here is how it
operates:
– Right of retraction
In France, the purchaser of a property enjoys a right of retraction.
Once the agreement for sale is signed, the purchaser is granted a period
of seven days to change his mind. The procedure is the following:
one signs a preliminary agreement before a notary. The notary gives
a copy of the agreement and requests the signature of a registry certifying the date of delivery of the agreement. Starting the next day,
one has seven days to retract by sending a registered signature upon
receipt letter to the seller or the notary. No explaination for the decision is required and one is totally released from any commitment.
If, on the other hand, the purchaser still wants to buy the property, he
does not have to do anything to express approval once the agreement
for sale has been signed.
Once ready to sign this agreement, here is a description of its content.
– The content of the preliminary agreement
This preliminary agreement comprises the necessary conditions of the
agreement between parties which will be stated in the final deed of
sale, a few months later. It is therefore very important to know exactly
what the agreement contains before signing it.
Identity of parties
The notary indicates the full names of purchaser and seller along with
their birth dates. Their married status or “pacs” are also specified. In
order to prepare the contracts, the notary needs to verify your details
and will request a copy of your passport and birth and marriage
certificates.
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Indentification of property
The property sold, along with its “accessories” (garden, cellar, parking...) must be described precisely in the preliminary agreement.
Generally the Ownership Title used to draw up the agreement contains
all details pertaining to the origin of the property. These details are
stated in the agreement and allow one to research the history of the
property.
Tip: If you wish to buy an old house and investigate its origins, you
can refer to our brochure: « Retrouvez l’histoire de votre maison ».
Obligation of surface area
Only privative condominium units are concerned by this obligation
(to be clear, all apartments). This is almost never the case with houses,
for which the seller has no obligation to indicate surface area. The
Carrez Law obliges sellers to indicate the surface area of apartments
upon signature of the preliminary agreement. The seller can carry out
the measurement himself, but usually he entrusts a professional.
What you must know about the Carrez Law
According to the Carrez Law, the area of a private unit is the area of the closed
and covered floors of the buildings (except balconies and terraces) after deduction of the surfaces occupied by the walls, partitions, steps and stairwells,
sheaths, embrasures of doors and windows. It does not take into account premises whose height is lower than 1.80 m. If the area measurements indicated
on the sale contract proves to be lower of more than 5% of the real area
measurements, the Carrez Law authorizes the purchaser to obtain a proportional price reduction. The purchaser has one year starting from the date of the
final deed of sale to pursue this action.
Note: For plots of land, the official measuring of the surface area
(boundary marking) is only mandatory if the plot is part of a housing
development and not an isolated plot.
Declarations of seller
After the description of the property, each party will agree on certain
obligations to be respected if the sale is completed. These are the usual
clauses that are stated in any preliminary agreement. Below are detailed explanations of these clauses :
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The status of the property regarding privileges and mortgages
When the seller has bought the property with a credit, the bank has
generally taken a guarantee called a privilege or mortgage. The notary
performs all necessary procedures and makes sure that the mortgage
is satisfied at the time of the sale.
Date and procedures to enter into possession of the property
This clause is essential since it indicates the date when the seller will
hand over the keys to the buyer. This date usually corresponds to the
date of signature of the final deed of sale.
Easements and town planning
The notary will require a town planning certificate before the signature
of the deed of sale. This document provides details of the planning
rules applicable to the property.
Condominium units/joint co-ownership
For the sale of condominium units, the notary will provide the purchaser with a copy of the condominium regulations during the final
deed of sale.
Prior to purchase, one may call the management agent of the building
to ask if any works are planned. In any case, the management agent
must send the notary a detailed statement of charges so that the purchaser knows the amount of charges he will pay once he owns the
apartment. These maintenance charges are paid on a quarterly basis
and cover the maintenance of the building and all works planned for
the building.
Finally, the seller and buyer may indicate in the preliminary agreement
the works voted for and not yet paid.
Note: The management agent will ask the purchaser to provide a provisional amount to cover these charges at the date of signature. Each
co-owner pays this provision which constitutes common reserves. The
amount is slightly less than the quarterly charges due.
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Works in joint-ownership
Works concerning the communal parts of the buildings are voted on during the
yearly meetings of co-ownership: the annual meetings. Once they have been
decided upon, these works are paid by the co-owners as work proceeds. The
management agent (the organization in charge of the management of communal parts of a joint co-ownership building) sends each of the co-owners in the
building a notification stating required fees for voted communal works.
Prior to purchasing the apartment, it is interesting to know whether works have
been recently voted for. This can be done by consulting the minutes of the last
annual meeting. If works have been voted for, we recommend discussing the
matter with the notary before signing the preliminary agreement, since it is
possible to negociate with the seller in order to have him pay for these works.
Inspections
In France, you are protected by the law when purchasing a property
since the seller has the obligation to provide various inspection reports
regarding the condition of the property. The notary checks whether
the property must be inspected or not, and gets these survey from the
seller.
The list of all inspections which may be carried out is listed below.
Asbestos
The seller must append to the preliminary agreement a survey report
carried out by a certified inspector. Indeed, asbestos has been used
for many years for its insulating qualities, but it is considered a health
hazard when it deteriorates. Therefore, if the property contains asbestos, the report must indicate its location and the conditions of the
materials containing asbestos. The materials inspected are essentially:
flocking, lagging, false-ceilings, and also bottom tile floorings and
projected plaster. This information allows the buyer to know exactly
the asbestos situation so that he can assess the costs of the possible
removal work.
Detached houses and apartments whose planning permission was granted before July 1st 1997 require asbestos reports.
The seller must also provide the purchaser of an apartment with a
comprehensive asbestos report pertaining to the communal parts of
the building that he has obtained from the building management
company.
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Lead
The seller must append a “lead inspection report” to the agreement
for sale for all houses and properties built before January 1st 1949.
This inspection measures the concentration of lead in old paints. The
ingestion of lead-based paint by young children may indeed result in
serious poisoning (saturnism).
However, to be truly harmful, lead has to be accessible (deteriorated
paint). The inspection consists of measuring the concentration of lead
in walls, partitions and ceilings.
Note: For apartments, the lead report exclusively concerns the private
parts of the accommodation, including exterior paint (shutters, bars,
gate...).
Termites
This is the sole survey that is required only at the signature of the
final deed of sale. It must be less than three months old.
This regulation applies to all buildings, houses and apartments, situated in a contaminated area. In order to find out whether the property
is located in a contaminated zone, one may ask the town council or
the prefecture of the departement where the property is located.
The natural and technological inspection report
The seller must append to the agreement for sale a report on natural
and technological hazards established less than six months prior, if
the property sold is located in an area subjected to such risks.
This document (which may be provided in English) allows you to
know whether the property is located in an area susceptible to flooding, quarry area, etc. This regulation is recent. In any case, do not
worry if such a document is established. Indeed, such risks exist everywhere in the world, they depend on climates, grounds, climate variations and industrial activities. However, in France, it is considered
essential to provide the potential buyer with the maximum amount of
information related to the property and its environment.
If the property has been subjected to damage
Finally, the seller must inform the purchaser in a written document
upon the signature of the preliminary agreement of any disaster on
the property resulting from a technological or natural catastrophe and
leading to the payment of an insurance compensation during the time
he owned the property or for any previous damage notified to him.
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The final deed of sale shall also mention these damages. In this case,
the seller must specify the type of damage, along with the date and
reference of the certificate of natural or technological catastrophe stating the cause.
Note: If the property you are expecting to purchase has been subjected
to such damages and if the seller fails to provide you with these documents upon the signature of the deed of sale, you may require the
cancellation of the contract or a price reduction.
Energy performance inspection.
This inspection is for information purpose only. It informs the buyer
of the quantity of energy consumed or estimated for the normal use
of the property. It contains a classification according to reference
values in order to evaluate energy performance.
It has been appended to the preliminary agreement since November
1st 2006. When the property sold is part of a condominium unit, the
document refers exclusively to the private quarters. It must have been
established less than ten years prior to sale.
Who carries out these inspections?
The asbestos, lead, termites and power performances surveys must be
performed exclusively by certified inspectors. Only the report on technological and natural hazards can be completed directly by the seller,
using information obtained from the city council or the prefecture.
What are the penalties?
If the seller fails to provide these documents upon the signature of
the preliminary agreement, the buyer can sue the seller for latent defect
in order to claim damages or even the cancellation of the sale. Only
the power performances report is not liable to this penalty.
Expected future inspections
Further surveys shall be established in the future :
– a gas inspection for premises with an interior gas installation ;
– inspection of interior electrical systems.
Furthermore, in order to simplify the delivery of the various property survey to
the buyer, in the future, all documents will be regrouped into one document:
the technical inspection file. However, as of today, this is not yet enforced.
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Swimming pool safety
If the house you purchase has an open air and not fenced swimming pool,
it must be equipped with safety devices preventing drowning risks. We
recommend asking the seller if the swimming pool is equipped with safety
devices (protection barriers, alarm, safety cover or shelters) and to provide
a certificate of compliancy to safety standards).
The price
The price must be indicated and paid the day of the signature of the
final deed of sale. This means that the whole price is paid in one time
on the completion date of sale, even when the purchaser is financing
his property with a loan. However, in this case, the preliminary agreement may contains a conditional clause in case the loan is refused
(see below).
Conditional clauses
The preliminary agreement always contains a list of conditional clauses. A conditional clause is a condition which, if not met, allows the
buyer to withdraw from the agreement. The most important conditional and required clause relates to the acceptance of loan to finance
the property.
Financing conditional clause
When a private buyer finances his purchase with a loan, the preliminary agreement must state that he will only buy the property on the
condition that his application for a loan is granted. This clause applies
automatically whenever the buyer applies for financing in France for
a property located in France, wathever his nationality is.
So if you wish to finance your property with a loan, you should indicate in the preliminary agreement a clause specifying the amount of
the loan you are looking to borrow, the duration of repayment terms
and the maximum rate of interest that you are willing to accept: for
example, 100,000 € on fifteen years with a fixed rate of 4.5% maximum. The minimum period to obtain the loan is one month, but it is
usually forty-five days minimum, or even two months or more.
Once the preliminary agreement is signed, one should apply for a loan
as soon as possible in order to recover ones freedom from obligation
in the case the loan is refused. Indeed, if the loan compliant with the
stipulated conditions is not obtained, the preliminary agreement will
be null and void and all parties will be free from obligation.
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Planning conditional clauses
No sale contract is signed today if the notary has not obtained town
planning information. This document provides details of all easements
that may exist on a plot of land or building, and indicates in which
planning area it is located, if it is built on quarries, close to listed
monuments, etc.
Pre-emptive rights
What is a pre-emptive right? It is a right giving priority over the sale.
This “substitution“ right is granted to certain persons or administrative
bodies.
Who can substitute the buyer? A tenant occupying the property, under
certain conditions defined by law. If a tenant lives in the property you
wish to buy, ask the notary whether the tenant is granted this preemptive right before commiting.
Furthermore, in certain cases French authorities (usually town councils) may enjoy a pre-emptive right to buy a property for sale. This
is typically the case when the city is conducting a urban redevelopment project or similar infrastructure project.
Your notary will inform you but he will need a period of about two
months to obtain this information.
– Deposit payment
When signing the preliminary agreement, one must usually pay a
deposit equal to 5% to 10% of the purchase price. This deposit allows
one to reserve the property before the signature of the final deed of
sale.
Often by bank transfer
Most buyers do not have a bank account in France. The deposit is
therefore paid by bank transfer. The buyer’s notary sends his professional bank details to the buyer, who transfers the money into this
account.
If the seller has a different notary, the buyer’s notary upon receipt of
the deposit writes a check of the same amount to the seller’s notary.
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What happens with this deposit?
This money is debited from your account and blocked in the notary’s
escrow account until the signature of the deed of sale, where it is then
deducted from the total purchase price.
The deposit is refunded if you retract during the seven-day period
after the signature of the preliminary agreement. (see above: retraction right) or if the loan is refused. If you retracts while this sum has
already been debited, the notary will refund you the whole amount
within a maximum period of twenty-one days.
On the other hand, if you change your mind after the retraction period
has expired or after you have obtained the loan, you will lose your
deposit and it will be granted to the seller.
– Completion date of sale
The preliminary agreement specifies the date of signature of the final
deed of sale. No time limit is required but it takes about 3 to 4 months
in general. This is the limit date: if all parties agree, and if the notary
is ready, it is possible to sign before. This is the date you actually
come into possession of your property.
And then?
Both seller and buyer will come to the notary’s office at the fixed
date in order to sign the final deed of sale.
If you finance your purchase with a loan, we strongly recommend
starting your loan application as soon as possible. Your notary will
ask you for some details: bank references, civil status, details of sale
shares if you have a co-buyer... He carries out all legal procedures.
■ Last step: signature of the final deed of sale
It is simply a matter of reiterating the agreement between parties. All
sale conditions and clauses stipulated in the preliminary agreement
are considered accepted.
The seller and the buyer meet at the notary’s office and the notary
reads them the deed of sale in French out loud. If he is bilingual, he
will explain the content to you, unless you have appointed someone
specifically for this. If you have decided to have the deed translated,
the translation is appended to the deed. You then sign the deed of
sale, and the sale is completed.
After the signature, the buyer pays for the property. The deposit is
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deducted from the selling price. In addition, the buyer must pay the
notary fees.
The seller must hand over the keys of the property to the buyer, a
symbol of the delivery of the house. You can immediately enter into
possession of your property, it is now “your home”.
After the signature, the notary gives the buyer a certificate stating that
he is the owner of the property.
■ Title of Ownership
After the signature, all formalities are not yet completed. The notary
must proceed to the registration of the sale. This explains why the
buyer receives his Title of Ownership and statement of notary fees
paid upon completion of sale (see section: notary fees) only 4 to
6 months after completion of sale.
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RENTING ACCOMMODATION
ON A LONG TERM BASIS
●
Thinking about trying the French way of life but not yet ready for the
purchase of a house? Then why not rent a property? Whether on a
yearly basis or for a short period of time, renting offers a flexible and
secure way of living in France.
■ French regulations regarding rentals
■ Renting a house: a protective and regulated contract
First of all, the regulations applying to rentals, just like property purchases, are those of the country in which the property is located, i-e
French regulations.
In France, renting a house is strictly regulated. When the principal
residence of the tenant (the place where one lives al least eight months
a year and where one works and has his family), the content of the
contract is strictly regulated (see below). On the other hand, if it is a
secondary residence, which will probably be your case, its content is
more flexible.
Note: When a contract contains a clause non compliant with regulations, the clause is considered “not written”, i-e without any legal
effectiveness. The contract is not questionned, but the clause is ruled
out. For example, a clause forbidding pets cannot be enforced since
the law authorizes having pets in living quarters.
It is also important to know that French regulations protect the tenant
very effectively: from a general point of view, the contract must be
fair to both parties and should not include clauses giving excessive
advantages to the owner. Moreover, specific regulations (obligation
to rent accommodation in good condition, to provide inspection
reports, to secure swimming pools...) guarantee that the place will
meet your requirements.
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Rentals as a principal residence
Two types of rentals exist: furnished and unfurnished.
Unfurnished rentals
"Unfurnished" rentals designate accommodation rented without furnishings and
used as a principal residence by the tenant. This type of rental and all its
subsequent regulations are defined in the Law of July 6 1989: obligations of
parties, duration of contract and notices, setting of rent and maintenance charges, calculation of indexation, etc.
This type of contract is the most protective for the tenant: the lease is long-term
(three years minimum) after which it is tacitly ("tacitly" meaning without any
formality to complete) renewed for the same period. During the term of the
lease, the owner may not take his accommodation back. He is indeed allowed
to give notice to the tenant only at the end of the three-year term, with a sixmonth notice, and he must prove his decision to sell the accommodation or
take it back for himself or a close relative. The tenant may on the other hand
give his notice at any time, without having to give any explanation and with a
shorter notice period (generally three months).
Furnished rentals
A rental is considered "furnished" when the accommodation is equipped and furnished in such a manner that the tenant can live decently in the premises upon
arrival (bed, table, chair, kitchenware, a minimum of household appliances, etc.)
The contract is valid for one year renewable by tacit reconduction (see aforementioned definition) of one year. The owner may only take back his accommodation at the end of the term, and he must explain his reasons and give a
three-month written notice. The tenant may leave the premises at any time,
without any motivation and providing a one-month written notice.
For example, you are about to rent accommodation in France as a
secondary residence or only for a short period of time (seasonal rental). These two types of rentals are explained in this document.
■ The condition of the accommodation
– Decent accommodation in good condition
The Law (article 1720 of the Civil Code) specifies that the owner has
the obligation to deliver the tenant accommodation along with all equipment mentioned in the contract in good use and operating condition.
This law does not mean that the accommodation must be totally renovated for each new rental, but that everything constituting and equipping the accommodation must be in good condition.
The rented accommodation must be sufficienty ventilated and not
damp.
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It must also be equipped with complete in-door sanitary equipment (shower or bathtub, toilets) and with a heating system allowing normal heating.
Note: If the accommodation consists of only one room, the sanitary
arrangement may only be limited to an exterior toilet, providing it is
in the same building. Finally, the accommodation must be exempt
from any materials constituting health hazards for the tenant (accessible lead and asbestos above legal thresholds) and the gas and electricity systems must insure the safety of users.
■ Finding a rental
In order to find a rental, consult the website www.pap.fr. Once you
have selected the ad(s) corresponding to what you are looking for
(note that more and more ads include photos or a dedicated small
website), contact the owner by phone or e-mail.
Beware: You must be quick! Finding a flat for rent in large cities is
very difficult, so think about setting up an “Alert by email” service
we provide on www.pap.fr allowing you to receive all new ads matching your pre-selected criteria directly in your mailbox and check it
as often as you can.
■ Selecting a tenant
The selection of a tenant depends essentially on his credit rating. Generally the owner wishes to have a tenant with a minimum income of
three times the amount of rent plus service charges.
In order to verify income, the owner may ask potential tenants to
produce related documents (work contract, latest pay slips). If you are
unable to provide sufficiently probative documents (translated into
French for example), the owner may negociate for a significant deposit
and/or an advance payment of rents and charges to be assured of
payment or the guarantee from a third party. This guarantee is a person
who commits to paying the rent and charges should the tenant fail to
do so himself.
Note: The owner has the right to choose his tenants, however this
choice may not be based on discriminatory criteria (ethnic origin,
physical appearance, age, sex, etc.) These practises are penalized under
French law.
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■ Signature of the contract
If, for seasonal rentals, the contract between the owner and the tenant
is often remotelly conducted, via email, and without visiting the
accommodation (see next section), for long-term rentals, the contract
is usually established at the premises after the viewing.
– A contract signed directly by both parties
Unlike the deed of sale (see previous section), the rental contract is
not a notarial act (before a notary), it is signed between private parties
(“sous seing privé” in French). It is possible to use the services of a
legal expert (notary, sollicitor), but this is extremely rare and greatly
superfluous. We recommend you simply sign the contract with the
owner, using a model contract compliant to current regulations. This
model contract is always provided free of charge by the owner. We
make model contracts which are the most usual type of contracts in
France available to you. If you wish to familiarize yourself with these
contracts (or have them translated), they can be downloaded
www.pap.fr (guidebooks and contracts) or received by regular mail.
– Written contract
Setting up a written contract is always necessary. This document specifies the beginning and end of a rental period, the amount of rent and
charges, and defines the obligations and rights of each party. A wellwritten contract will avoid all ambiguity and future litigation.
Note: In the event that a written contract is not provided, do not worry!
Oral leases are indeed valid. Therefore, when accommodation is made
available to someone providing the periodical payment of a sum, the
legal situation will be qualified as a lease and the person will be able
to remain in the premises. However, one should always require a
written contract: it is a guarantee of security.
■ Appended documents to the lease contract: Inventory of
the premises, inventory of furniture and inspections
– Inventory of the premises
This is a written document which must indicate the condition of the accommodation at the beginning (the day the keys are handed over to the tenant)
and at the end of the lease (the day the keys are returned to the owner).
Note: In the absence of an inventory of the premises at the beginning
of lease, the tenant is assumed to have received the premises in good
order of usage and maintenance, whereas in the absence of an inventory of premises at the end of the leasing period, it is the owner who
will be assumed to have delivered the premises in good usage and
maintenance condition.
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Beware: The beginning and end of rental period inventories are usually
established directly between private parties. They may however be
drawn up by a bailiff.
Two situations are possible:
– If one party requires bailiff, although the inventory of premises is
possible between both parties, this party will bear the bailiff fees alone,
– If having a bailiff detail the inventory is necessary because one of
the parties refuses to proceed to the inventory of premises, the bailiff
fees will then be shared between both parties.
– Inventory of furniture and contents
If the premises are rented furnished, it is usual to make an inventory of
furniture and contents in the presence of both parties. At the end of the
leasing period this allows the owner to make sure that all objects made
available to the tenant are present and to check their condition. For the
tenant it is also a means of verifying that all expected equipment and
furniture are really provided.
Inspections
In order to provide the tenant with all relevant information at the signature of
the lease contract, the owner must append a technical inspection file whose
content will be progressively added.
As of today, only one inspection report is required: the natural and technological risks inspection report.
This document, which must be less than six months old on the day of contract
signature, indicates whether the rented premises are located in an area exposed
to technological risks (dangerous factory) or in an area exposed to predictable
natural risks (forest fire, avalanche, ground movements, etc) or in a sismic area.
You may consult the official website www.prim.net which provides, in various languages, a model inspection report along with further detailed information. Moreover,
the owner must also inform the tenant of any claims paid out following a natural
or technological disaster having affected the premises in a written declaration.
As of July 1st 2007, the owner will also have to provide an energy performance
report. This document indicates the quantity of energy consummed for standard
use of premises. The tenant will therefore be able to identify his estimated
energy costs. The understanding of the report is facilitated by an estimation in
euros and by the use of a scale rating (from "A" to "G" and from green to red).
The report also contains advice on how to increase energy performance, allowing one to identify the most effective works to complete for energy savings.
Finally, as of August 12th 2008, a report stating the risks incurred by exposure to lead for any premises built before January 1st 1949 will also be required.
This report pertains to the detection of lead in old paint. However, to be truly
harmful, lead has to be accessible (deteriorated paint), which is rare.
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■ What type of contract to sign ?
To make sure you will not forget any essential condition or to avoid
any errors, we strongly recommend you use a model contract (see
example of contract translated in english on www.pap.fr, menu: Contrats et guides). Whatever the type of contract selected, it must include
the following required minimum information:
– the identity of landlord and tenant;
– the type of accommodation (apartment, house) and its possible outbuildings and elements (cellar, garage);
– the duration of contract and its termination conditions (see below);
– the date on which the beginning starts. Indeed, the date of rental
may be later than the date the contract is signed (which may prove
useful to “reserve” the accommodation);
– the amount of rent, service charges and deposit;
– the respective obligations of owner and tenant.
■ The duration of the contract
The duration of the rental period is completely open. The contract
must stipulate the initial length (for example: three months, six
months, one year, etc), then the length of possible renewal by tacit
reconduction. Note that renewals may be for a period different from
the initial lease. For a secondary residence, the lease is usually for a
duration of one year renewable.
■ Termination
The tenant may generally terminate the lease at any time whereas the
owner may only terminate the lease at the end of each term of the lease.
However, nothing forbids
– stipulating that the owner may also terminate the lease at any time
(in practice very rare)
– stipulating that the lease is set for a definite period forbidding the
tenant to terminate the lease before that date. In this case, which is
dangerous for the tenant, leaving the premises does not release him from
the obligation to pay the rent and charges until the end of the contract.
In addition, advance notice (during which all rents and charges must
be paid to the owner) is generally longer when the notice is initiated
by the owner than by the tenant.
Beware: The notice may not be oral and must always be sent by
registered mail with acknowledgment of receipt. The notice starts upon
the date of receipt of this letter.
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■ Rent, deposit and charges
■ Rent
The initial rent is set freely by the owner. During the lease, the increase
of rent is regulated: it may be revised only once a year as stated in a
condition which is always appended in lease contracts.
The choice of the index allowing the increase of rent is limited since
only two indexes exist: the National Index for Construction Costs
(ICC) and the Rent Reference Index (IRL). These two indexes are
calculated by French authorities and are published quartely by the
National Institute of Statistics (INSEE).
The rent consequently is revised on a yearly basis depending on the
variation between the index stated in the contract the day of its signature (the latest index published is used) and the new index (indexes
and a calculation program are available on www.pap.fr in the menu
“calcul”: “calculs de la révision de loyer”.)
The following indicates how the calculation is performed:
rent x new index
= new rent
previous index
Note: If we consider the past few years with a low inflation rate, rent
increases have been approximately 2 to 3% per year. Consequently,
rent should not increase too much in the next few years.
Rent is generally paid on a monthly basis and in advance. However,
nothing forbids setting a longer frequency (quarterly, half-yearly.) The
rent may be paid by check (if one has a bank account in France), by
bank transfer or in cash. At the tenant’s request, the owner must provide him a free rent receipt attesting the payment of rent and charges.
■ Deposit
A deposit is required the day the keys are handed over to the tenant.
Although not mandatory, the owner always asks for a deposit, since
it represents an advance payment covering some or all costs should
the tenant deteriorate the accommodation or leave outstanding rent
debts upon his departure.
Its amount is not defined by law but generally it amounts to two to
three months rent. The deposit may however be higher:
– when the accommodation is furnished and equipped with recent and
valuable equipment.
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– when the owner wishes to use the deposit as a guarantee against
failure of rent payments.
The deposit must be returned within a period stated in the contract
(generally within two months after the keys are returned), and may
possibly be deducted from costs incurred through damage and losses
caused by the tenant (with supporting evidence).
In addition, the owner may retain 25% of the deposit until outstanding
charges all fully paid, when the contract stipulates that charges are
paid according to the “real charges” method. (see below)
Finally, the deposit cannot be revised during the lease term.
■ Charges
Rental charges correspond to the payment of various services and supplies provided to the tenant (water, heating, etc.) They may also be
referred to as “recoverable” charges. They are paid by the owner who
in turn passes them on to the tenant. Rental charges are higher for a
joint co-ownership (salary of a caretaker, lift, collective swimming
pool, etc) than for a private house. Two different methods are used to
calculate rental charges: “effective” charges and “inclusive” charges.
– Effective charges
The tenant refunds the owner the charges based on the effective cost
of invoices. During the year, the tenant pays provisional charges . At
the end of the year, the amount of provisional charges is compared to
the effective cost of expenses. This is the end-of-year adjustment. If
the amount of provision charges exceeds the effective cost of expenses, the owner refunds the tenant the difference. If the provision charges are insufficient, the tenant must pay the difference in which case
the provision charges are reassessed.
Example
The owner has collected
12 months x 10 € provision charges = 120 € per year.
The tenant has consumed a yearly total of 150 €
The owner will therefore ask for the difference i-e
150 € – 120 € collected = 30 €
The new provision of charges will be revised to
150 € / 12 months = 12.50 € per month.
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In order to determine the type and magnitude of recoverable “effective” charges, owners usually use the decree nº87-713 of August 26th
1987 defining an exhaustive list of recoverable charges pertaining to
rentals of a principal residence. Even if legal, it is rare that the owner
defines his own list of recoverable charges which is indeed a tedious
and uncertain process.
Inclusive charges
In this case, charges are a fixed amount that does not vary, whatever
the effective charges amount to. This flat rate is indexed once a year
only, just like the rent, when stipulated by contract (which is the case
of contracts published by our group.) This method has the merit of
being simple:
Note: The inclusive charges cover all charges and the owner may not
require the tenant to pay any additional charges. If, however, the owner
wishes to receive extra charges (tax for household garbage collection,
for example), this must be expressely stipulated in the contract.
In the same manner, if the tenant thinks the flat rate is excessive
compared to his actual consumption, he cannot demand a refund of
his charges.
■ Owner-tenant relationship
It is essential for the tenant to know his rights and obligations for the
lease term precisely. These rights and obligations are generally defined in the contract, under the sections “Obligations of lessee (tenant)”
and “Obligations of lessor (owner)”. Considering that the rental of an
accommodation which is not a principal residence is not regulated, it
is these rights and conditions that will apply. There is no need to
worry, they are generally the conditions that are stipulated in all rental
contracts.
■ The use of accommodation
One must rent the premises to live in and not for any professional or
commercial activity. One must respect the rental contract along with
co-ownership rules, or interior rules in the case of an apartment. Therefore, one must use the communal parts of the building in conformity
with their usage. For example, one is not allowed to leave strollers,
bikes or dustbins in the lobby.
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If one rents a house with garden, one must respect the municipal rules
when applicable. For example, the hours scheduled to mown the lawn,
the regulations regarding recycling of household garbage.
In all cases, noise should not exceed the normal neighbourhood inconveniences: parties at night or loud noise during the day.
The tenant is also not allowed to house people for a long period of
time who are not close friends or relatives who may stay for a few
days or weeks. Equally, it is forbidden to sublet the accommodation.
Finally, one may not transform the accommodation, i-e performing
major fittings without the owner’s prior agreement. For example, one
may not take down a partition wall to extend the living room, or on
the contrary, build a partition wall to have two bedrooms. One is also
not allowed to change floorings (replace carpet with tiles or parquet
or conversely). In such a case, at the end of lease the owner would
have the right to demand that the premises be restored to their original
condition.
■ Insuring the accommodation
The tenant must take out an All Risks Housing insurance, including
the risks of water damage and fire. The insurance must also cover the
personal liabilities of the tenant. Therefore, whether one suffers from
damage (a neighbour let his bath overflow and your kitchen is flooded)
or causes damage (you flood your and your neighbour’s apartment),
the insurance will pay to repair the damage. For a long-term lease
(generally one year), you may contact an insurance company in
France, unless your insurance company, in your country, accepts to
insure you in France. In the contracts that we make available to you,
the owner may ask for proof of insurance upon the date of entry in
the premises, and then each year thereafter.
■ Maintenance of premises
As we have just seen, the owner must rent his accommodation in good
condition with all equipment in operating condition. Note that if
defects have been identified during the inventory of premises performed at the beginning of the lease, the owner must correct them.
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In other words, signing the document does not mean one accepts the
accommodation in its current state. Therefore, if for example the boiler
does not work or a tap is broken, the owner must repair them or ask
to have them repaired and reimburse the tenant.
Generally, the tenant is not responsible for normal wear and tear. For
example, if the carpet shows traffic marks, this is considered normal
wear and tear. If it has to be replaced, it is the owner who must pay
the bill. On the other hand, if the carpet is stained with bleach, this
is considered deterioration and the tenant must then pay for its cleaning or replacement. One is therefore only liable for deterioration
resulting from incorrect use.
Tenants are also responsible for the day to day maintenance of premises, including cleaning and minor repairs. Thus, the premises must
remain clean but one need not repaint it. For example tenants must
change the taps washers but not replace old taps.
Tenants are also held responsible for informing the owner of urgent
works on the premises, i-e those that cannot wait the end of lease, to
be performed.
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Holiday Rentals
●
Lots of people choose to rent houses for their holidays. This is what
is known as a seasonal rental which is a variation of a furnished rental,
agreed upon for a short term, one whole season maximum. Since the
accommodation is chosen without any viewing, potential clients need
as much information as possible to make their choice. This is where
internet and its images are brilliant!
In addition, this type of agreement is less regulated than long term
rentals. Except for the owner’s obligation to provide a detailed description of the accommodation, the conditions that apply are freely
agreed upon by both parties.
■ Rental offers
A high percentage (approximately 80%) of holiday rentals are concluded directly between private owners and tenants, via an ad. If looking for a holiday home, the first thing to do is to consult available
offers. Nothing is simpler today thanks to the internet. You can consult
our seasonal rentals ads posted on our various websites: www.pap.fr
(presenting “last minute“ holiday rentals), www.papvacances.fr (website dedicated to seasonal rentals), www.belleslocationsdevacances.com
(for the most exclusive offers). You will then discover that various
types of seasonal rentals exist (see chart below)
After having selected a few ads meeting your criteria, contact the
owner by phone or email. Do not hesitate to ask him for any possible
information you might need: availability, price, equipment and modern
conveniences, address of property... Ask simple questions requiring a
precise answer. Then go to the website of the town or village where
the accommodation is located and try to locate the property using
“Google Earth”. This often proves very useful in determining, for
example, where the sea is in relation to the property. Unfortunately it
is sometimes not easy to find the accurate location.
Other websites like www.mappy.fr or www.michelin.fr also provide
a map of the place and allow you to define your route.
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Tip: You may ask owners to send you more pictures of the property
since they usually post only a few in their ads.
Various types of holiday rentals
As you browse through the adverts, you will identify various holiday rental
categories.
An owner wishing to rent accommodation in a tourist resort for the holidays,
can simply post an ad to advertise his property, without having to do anything
else. This is a classical rental.
The owner can also ask his local town council to list his property as furnished
tourist accommodation. The accommodation must comply with a set of standards regarding their amenities and are listed in five categories accordingly.
The surface area of the premises and garden are also considered, but it is
mainly the quantity and quality of equipment and furnishings which are relevant
to the accommodation’s classification.
You will also see B&B and Guest House offers. This type of accommodation
offers a very friendly way of discovering a region and we strongly recommend
it. Again, the owner can post an ad directly or subscribe to one of the French
associations specialized in holiday rental, providing the fittings of his accommodation and hosting facilities comply with thier required standards.
Finally, rural owners or farmers also provide tourists with furnished accommodation. These are also often listed by the same associations. Again, their
modern conveniences and amenities must comply with set standards. According to the quality of these amenities, the accommodation gets different
classifications.
There are also other types of accommodation, including campsites, holiday
villages or tourist residences.
■ Reservation of holiday rental
If you find suitable accommodation and agree to rent it with the owner,
you will need to reserve it, and this procedure has to be completed in
writing.
■ A descriptive statement is essential
The owner must send a descriptive statement of the rental. This constitutes an obligation which may result in penalties if he fails to do so
(order of May 16th 1967).
This descriptive statement allows one to get all necessary informations
about the accommodation, its equipment, the surroundings and the
rental conditions. Photos and videos can be appended.
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Swimming pool safety
If the holiday rental you have selected has an inground swimming pool which
is not fenced in, it must be equipped with safety devices (protection barriers,
alarm, safety cover or shelters) The description of the rental must therefore
indicate what types of safety devices the pool is equipped with. This reduces
worry when one has young children.
Tip: We provide descriptive statement models, compliant to regulations, translated into English, that you can download from our website
www.pap.fr (see menu "contrats et guides").
The descriptive statement is usually sent by post but the owner can
also send it by email, which is of course faster.
If the descriptive statement meets your requirements, you then reserve
the place. You confirm your agreement to rent the accommodation
according to the conditions stated in the descriptive statement by post
or email, specifying the rental dates and price and send the owner a
first installment payment, generally amounting to 25% to 30% of the
total price of the rental.
The payment is made by bank transfer to the owner’s bank account,
who must send you his bank details (including international IBAN
references)
■ Deposit or advance payment
?
The money you send to reserve the rental generally represents a deposit. This means that if you cancel the reservation, you lose your deposit. If the owner cancels the rental, he will have to reimburse you
double the amount of your deposit. Sometimes the money you send
is qualified as a down payment. In this case, the contract is definitive
and may not be changed. Cancellation is forbidden for both parties
and the tenant must pay the entire rent.
Note: In the seasonal rental contracts we provide, we have a condition
stating that if the tenant cancels his reservation more than three weeks
prior to the starting date of the rental, he then loses his deposit. On
the other hand, if the cancellation takes place within the three weeks
prior to the starting date of the rental, not only will the tenant lose his
deposit but will also have to pay the owner the entire rental amount.
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■ Signature of the contract
Upon receipt of your reservation, the owner sends you two copies of
the rental contract. You must sign them and return one copy.
Remember that a example of holidays rental contract is available in
English on our website: www.pap.fr
Note: the owner (Lessor), just like the seller of a property, must provide the tenant with a report on natural and technological risks. This
document (which may be provided in English) allows one to know
whether the property is located in an area susceptible to flooding,
quarry area, etc. This regulation is recent, and perfectly justified for
purchases, perhaps less so for seasonal rentals. In any case, do not
worry if such a document is provided.
This is the only required condition in the contract which can easily
be concluded by an exchange of mails. We however advise signing a
“real contract”. This is absolutely not complicated. Simply check the
conditions described below carefully.
■ Rental period
The contract must obviously specify the rental dates along with the
arrival and departure times. It should also specify how the exchange
of keys is handled. The owner is generally present but he may also
appoint someone for this procedure. In this case, the identity of the
person must be specified in the contract.
■ Rental price
The rental price is made up of three elements: rent, deposit and service
charges.
Rent: after the reservation, one must send the balance of rent due.
This payment is performed according to the conditions stipulated in
the contract. Generally, a second bank transfer is made one or two
weeks prior to the beginning of rental. The contract may also specify
a cash payment upon arrival or exchange of keys.
Note: the rent is always VAT inclusive. When applicable, VAT is
therefore always included in rent and cannot be charged in addition.
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Charges: for seasonal rentals, charges are fixed according to a flat
rate. The rent is always inclusive of charges. However, the contract
may stipulate that water and electricity are paid according to actual
consumption. In this case the owner must read the meters upon arrival
and departure of each tenant.
Tip: the owner may also ask you to pay for tourist tax. This local tax
is enforced by local authorities of some tourist towns, who define its
amount per day and per person (approximately 1 euro). The owner
pays this tax to local authorities and in turn charges the tenant
accordingly.
Deposit: A deposit may be required upon arrival to guarantee the
owner against potential damage identified at the end of the rental
period. Its amount depends on the importance and quality of amenities
provided. It usually ranges from 20% to 30% of the rent. We recommend stipulating when it should be refunded in the contract. The payment can be made by bank transfer or in cash upon arrival against a
receipt.
Note: A payment by check is possible with the agreement of the owner.
In this case, ask your bank about fees and procedures.
■ Insuring accommodation
For seasonal rentals, the tenant is responsible for deterioration and
losses that may occur in the accommodation during the rental period.
It is therefore important to stipulate the insurance conditions in the
contract. The simplest for you is to have the owner take out an insurance policy which covers him against all possible damage caused by
renters. He will then be assured that his accommodation is insured for
the rental period and you do not have to take out an insurance policy
yourself.
Note: Further clauses may be stipulated. In particular, the owner can
indicate the maximum number of people accepted in the accommodation, in order to curb any abuse. On the other hand, the presence of
pets cannot be forbidden (article 10 of 9th July 1970 law). You can
therefore bring along your dog or your cat but certainly not your boa
or monkey.
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■ Arriving at your holiday rental:
This moment is ... essential! This is indeed the time when the owner
will hand you over the keys and you take possession of the accommodation. You will just have to complete a few formalities before
fully enjoying your holidays.
■ Formalities
If you have not already paid the rent by bank transfer, it is upon
reception of the keys that you pay the balance of the rent along with
the deposit, in cash (or by check if previously agreed with the owner).
The next step is then proceeding with the owner to the inventory of
premises and fixtures. Two copies of these documents are generally
established and signed by both parties.
We remind you that the inventory of fixtures is in fact the list of
furnitures and objects in the accommodation. The inventory of premises is an assessment of the condition of the accommodation. These
two formalities should not be neglected and in practice should not
take too long. Generally, the owner shows you around. You check
that all equipment listed in the descriptive statement (TV, washing
machine, oven, dish-washer...) is actually there and in operating condition. During this visit, you must also check that the accommodation
and furniture are in good condition (floor, bathrooms, furniture, etc)
If, upon your arrival, the accommodation does not correspond to the
contract or if you identify some problems, you must react immediately.
■ An amicable agreement with the owner.
If the owner is present, you can immediately notify him of the problem
and negociate. If, for example, an appliance does not work, the owner
should immediately have it repaired or replace it. If this is not possible,
you can obtain a rebate on the rental price (stated in writing on the
contract) or the cancellation of the rental with restitution of money
already paid.
If the owner is not present or if you are not able to reach an agreement,
you can then proceed to the following procedures.
– Initial procedures
As a tenant, you must first try to establish proof of conformity defects.
Ideally, it is best to have a process-server’s affidavit established by a
bailiff (minimum 150 euros). In order to contact a bailiff, one can
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either call the “Chambre nationale des huissiers” or refer to the website www.huissier-justice.fr. This might prove a bit difficult: if you
cannot find the details of any bailiff, or he does not work on saturdays,
which is the day of your arrival... then, you must try to find other
pieces of evidence, testimonies, photos, etc.
Note: When the non-conformity is so serious you want to cancel the
rental, it is preferable that you do not enter into possession of the
premises.
– People or legal bodies to contact
You may also attempt to reach amicable arbitration by contacting legal
authorities.
– If the rented accommodation is a furnished tourist accommodation,
one can contact the Regional Tourist Commission at the Prefecture’s
office by sending a registered letter with receipt of acknowledgment,
in the eight days following the first day of rental.
The commission will remove the accommodation from the listings of
furnished accommodation, and it will try to reach an amicable agreement between tenant and owner.
– If accommodation is classified in an association, then one must contact it, that will help in reaching an amicable agreement.
– In case of unlisted accommodation, one may contact the «Direction
Départementale de la Consommation et de la Répression des Fraudes » After examining the place, they will draw a process server’s
affidavit that they will then transmit to the District Attorney. You
must however be aware that this procedure will not allow you to reach
an amicable agreement, nor to be reimbursed.
If you are unable to reach an amicable agreement, you can contact
our services and we will explain the procedures involved in the prosecution of the owner. But you shouldn’t worry: every year, hundreds
of thousands of people rent houses from 95,000 owners without a
problem!
– The obligations of the owner and tenant during the rental period:
owner
The owner must deliver accommodation corresponding to the descriptive statement and in good working order. He must also maintain the
premises in the operating condition stipulated in the contract. Therefore, during the rental period he must perform all necessary repairs to
meet these requirements. He must also guarantee the tenant peaceful
use of the rented premises. In particular, he must guarantee the tenant
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against any trouble occuring during the rental period, whether due to
him or any third party.
Tenant
The tenant is responsible for any deterioration and losses incurred
during the rental period which he caused and must take care of the
accommodation and maintain it in the same manner as he would his
own property.
– Departure from premises
Yes, your holidays are over! You must leave the accommodation at
the agreed date and schedule. Note that an hourly compensation for
late delivery may be stipulated in the contract. You must return the
keys and proceed with the owner, or the person he has appointed, to
the end of rental inventory of fixtures. In order to do this, one uses
the same documents and procedures as upon arrival. If everything is
OK, the owner must refund the deposit within the timeframe stated
in the contract, i-e immediately in cash against a receipt or later by
bank transfer.
On the other hand, in the case of deterioration, the owner must take
the steps necessary for repairs. He will have the right to deduct the
amount for repairs from your deposit with subsequent invoices. In the
case where that the total amount of invoices exceeds the amount of
security deposit, he will have the right to claim for extra damages.
Indeed, any deterioration of the accommodation due to abnormal use
of premises is liable to the tenant.
Tip: If an end-of-rent inventory of premises signed by both parties
has not been signed by both parties, the owner has no right to claim
for any compensation since he has no proven evidence of deterioration. The same rule applies if he is not able to justify any necessary
repairs with relevant invoices.
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What to do in case of litigation?
Rental litigations can be handled exclusively by the Court of Law (or the judge)
who has jurisdiction over the area where the rented property is located. A
lawyer is not required therefore making the procedure inexpensive.
Before taking the matter to court, it is possible to refer to the "Commission
départementale de conciliation" (Arbitration commission) present in each
department, at the prefecture’s office.
This might prove useful and save you the trouble of proceedings. Referring to
the Commission is free of charge. It will try to reconcile both parties and if not
possible, will write a report that will be transmitted to the judge if the parties
take the matter to court.
The Commission is competent for the following matters: rent increase, inventory of premises, deposit, decency of accommodation, charges and repairs.
In order to find a property, simply consult the ads published in our
various magazine.
87
The magazines of the Group
De Particulier à Particulier
and related websites
●
– De Particulier à Particulier (weekly)
www.pap.fr (Number one real estate website in France)
– PAP Vacances (3 issues/year)
www.papvacances.fr
– Vacances de dernière minute (special issue)
www.papvacances.fr
– Chambres d’hôtes et Séjours insolites (3 issues/year)
www.papvacances.fr
– Belles Locations de vacances (issues/year)
www.belleslocationsdevacances.com
– Demeures de charme (bimonthly)
www.demeures-de-charme.com
– PAP Belgique (monthly) www.pap.be
– Journal des particuliers (monthly)
www.journaldesparticuliers.com
– Faire construire sa maison (monthly)
www.construiresamaison.com
– Immoneuf (monthly) – www.immoneuf.com
– Acheter en régions (special issue) – www.immoneuf.com
– Le Guide du neuf (monthly, supplement of PAP)
– Magazine de l’immobilier (monthly, supplement of PAP)
– Guide adresses (monthly, supplement of PAP)
– S’installer (6 issues/year)
– Bureaux & Commerces (monthly)
www.bureaux-commerces.com
89
■ You can buy these magazines in any newspaper
stand or in our agencies listed below:
Paris :
– 40, rue du Docteur-Roux - 75015 Paris
Phone : (33-1) 40 56 35 35 – Métro : Pasteur ou Volontaire
– 195, boulevard Voltaire - 75011 Paris
Phone : (33-1) 40 24 22 12 – Métro : Boulets-Montreuil ou Nation
Bordeaux
115, cours d’Alsace-Lorraine - 33000 Bordeaux
Phone : (33-5) 56 44 06 61 – Tram : Sainte-Catherine
Lille
15, rue des Ponts-de-Comines - 59000 Lille
Phone : (33-3) 20 55 96 46 – Métro : Lille-Fandres
Lyon
12, rue de la Charité - 69002 Lyon
Phone : (33-4) 78 24 62 32 – Métro : Bellecour
Marseille
165, rue de Rome - 13006 Marseille
Phone : (33-4) 91 47 02 20 – Métro : Castellane
Nantes
Cours des 50-Otages
2, allée Duquesne - 44000 Nantes
Phone : (33-2) 40 12 20 02 – Tram : Place-du-Cirque
Nice
4, rue du Maréchal-Joffre - 06000 Nice
Phone : (33-4) 93 16 20 82 – Bus : Longchamps
Rennes
11, quai Chateaubriand - 35000 Rennes
Phone : (33-2) 99 78 85 60 – Métro : République
Toulouse
32, rue de Metz - 31000 Toulouse
Phone : (33-5) 62 26 73 37 – Métro : Esquirol
Tours
109, rue des Halles - 37000 Tours
Phone : (33-2) 47 76 60 30
91
■ Our subsidary in Belgium
De Particulier à Particulier
Chaussée de Vleurgat
184-1000 Bruxelles
Phone : (32-2)655 04 65
Website : http://www.pap.be/
:
93
LEXICON
●
Deposit
Sum paid by a buyer or a tenant which is deducted from sale price or
for holidays rental on it’s price. Paying a deposit is a definite commitment. In the case of withdrawal, one has to pay the balance of the
price.
Notarial act
Act drawn by a public officer. In France, it is the notary who guarantees the legality and truthfulness of property contracts. This act is
mandatory to finalize property sales.
Deed of sale
Final contract through which the purchaser officially becomes the
owner. This is a notorial act which thus must be signed before a
notary.
No agencies
If an ad stipulates: no agencies, this simply means that the owner
wishes to sell his property directly, and even don’t wishes to get in
touch with any intermediary.
Penthouse
Apartment on the top floor of building, generally with a large terrace
and open view
Floorthrough apartment
Apartment with double exposure, allowing the sun to pass through.
Planted with trees
For a garden or planted area
Architect
A qualified person registered in the Architects Order. The services of
an architect are mandatory for any construction requiring a building
permit and for a net surface area of over 170 m2. One may also refer
to an architect for significant works.
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Down payment
Sum paid against sale of a property or to reserve a seasonal rental. It
is deducted from the total price when the potential purchaser or tenant
confirms his choice or lost if they change their minds. Moreover, the
person who has received the payment must reimburse double the
amount of the down payment if he or she withdraws.
Lawyer
Auxiliary of justice who advices, assists, defends and represents his
clients in Court. A lawyer’s fees are not regulated, they are agreed
upon directly with his clients, in respect to the official convention that
outlines legal fees.
Lease
A lease is a contract, also called a rental contract, under which one
of the parties, the Lessor (owner), engages to provide the other party,
the tenant (or Lessee), the peaceful and normal use of rented premises
for a fixed period of time and in consideration of the payment of a
certain price, called rent.
Lessor
A legal term designating the owner of a property who engages to rent
his property, whatever the type of rental (private use, professional or
commercial).
Provencal country house
An isolated farmhouse or countryhouse, sometimes fortified, in
Provence.
Boundary marking
Operation consisting of determining the boundaries of properties or
plots of land with boundary stones. Boundary marking is performed
by an expert land surveyor who establishes an affidavit, including a
map, indicating the location of all boundary stones. Two types of
boundary markings exist: The amicable boundary marking established
by a land surveyor after parties have agreed on the precise limits of
their properties and the legal boundary marking performed by decision
of justice in the case where one of the neighbours refuses the amicable
procedure.
Washroom
Little room with washbasin.
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Local town planning register
A public register for each town defining the surface and value of
properties which is used in the calculation of land tax. This document
can be consulted for free in any town hall and in the near future on
the internet.
Guarantee
Act by which a third party engages to pay should the contractor fail
to meet his obligations. The guarantee may be required by a bank to
insure the payment of a real estate loan or by an owner to guarantee
the payment of rents should the tenant fail to do so.
Guarantee required
The owner placing an ad to rent his accommodation asks the tenant
to provide a guarantor, eg a person called “Guarantor” who engages
to pay the rent of the tenant during the rental period. Generally the
parents of the tenant are his guarantors.
Storeroom
Small room for storage of food or wine.
Joint ownership charges
Joint-ownership charges cover all expenses pertainting to the maintenance and repair of communal areas, and to the operation of collective
services and equipment of a building under joint ownership. All coowners must contribute to the payment of building charges. There are
two different categories of charges:
– Charges relating to the collective services and the communal equipment that are distributed according to the use of the service and equipment for each unit. (for example: a person living on the first floor will
pay less charges for the lift that a person living on the fifth floor);
– Charges relating to the maintenance of communal parts are distributed according to the surface area of units.
Thatched cottage
A rural house with a thatched roof, common in western France.
4-star
Applies to seasonal rentals. The 4-star classification is granted to
luxury furnished rentals.
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Attic, loft
Volume comprised between the top floor and the roof of a house. The
attic can be or not be used for living quarters or converted (a converted
floor under the roof).
Preliminary agreement
Contract through which seller and buyer engage to respectively sell
and buy the property. This is a legally binding contract, upon signature. This agreement for sale contract may be signed privately by both
parties or before a notary.
Concubine
A man and a woman living together as husband and wife, without
being married.
Conditional clause
Clauses stipulated in contracts prior to a sale (preliminary contract).
Preliminary contracts always include conditions which, if not met,
will allow the buyer to withdraw and recover his deposit (conditional
clause). If for example, and in the timetable defined in the contract,
the buyer does not obtain his loan, the preliminary contract is null and
void and both parties are free from all obligations.
Termination
Act engaged by one party to terminate a rental contract. Its procedures
vary according to the type of rental (principal or secondary residence).
Mortgage Registry
Administrative body answerable to the Treasury. Its mission consists
of recording all property transfers and mortgages. This service is
accessible to the public. An application form has to be filled to obtain
the information (12 euros fee).
Architect contract
A written contract between an architect and his client for the execution
of construction works. This type of contract is not regulated and its
content may vary substantially ranging from simple planning to the
entire execution of works, from design to completion.
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Joint ownership
Distribution of ownership of a building or a group of buildings between several persons, in units, with each unit having private quarters
(apartment, cellar...) and a share of communal parts (staircase, lift,
courtyard, garden...). When a building belongs to two different owners
and is divided into units, it is considered under joint ownership and
complies with subsequent regulations.
Co-ownership is regulated by the law of July 10 1965 and March 17
1967 decree.
Fitted kitchen
Kitchen with furniture but no appliances.
Open-plan kitchen
Kitchen opening directly onto the living room, no partition wall.
Equipped kitchen
Kitchen with furniture and appliances
Built-in kitchen
Equipped kitchen with built-in cabinets which cannot be separated
(custom-built cabinets secured into the kitchen walls).
Purpose of building
The purpose of an apartment building in generally indicated in the
co-ownership declaration of codes, covenants and restrictions and
must be respected by all co-owners. For example, in a luxurious building strictly defined for private occupancy, it is strictly forbidden to
all co-owners to open a shop, for example.
Quotation
A detailed estimate of works to execute and/of materials to use provided by a contractor, indicating prices. The quotation is established
by a contractor and subjected to the approval of the main contractor.
In France, in order to establish a quotation, entreprises come to visit
the place free of charge and will indicate prior to their visit if the
quotation will be free or charged.
Surveys
A generic term used today to designate all the documents that the
seller must provide the buyer and attesting the condition of the property regarding various elements:« detection of asbestos, lead, termites, energy performance, statement on natural and technological risks,
measurements... These documents are drawn up by professionals called “surveyors”.
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Duplex
Apartment on two floors, connecting via an interior private stairwell.
Notary emoluments
The fees charged by the notary for each deed he executes. For a property sale, his emoluments are fixed by a national scale and proportionate to the price of property.
Mortgage report
Document delivered by the « Bureau des hypothèques » and stating
the mortgage status of the property.
Notary fees (see section “To buy a property in France”)
All fees charged to the buyer when purchasing a property in France.
These fees include notary fees, legal fees and additional taxes. These
fees are called “notary fees” since it is the notary who collects them
and transfers them to the State and the various administrative bodies
after deduction of his compensating fees (emoluments).
Reduced notary fees
Fees charged to the purchaser of a new development or a house completed in the past five years. These fees include the notary fees, legal
fees and various additional fees and amount to 2 to 3% of the purchase
price as opposed to the 6 to 7% for houses older than five years.
Scrubland, garrigue
Vegetation typical of Mediterranean regions, sometimes impenetrable,
constituted mainly of small bushes forming thorny thickets.
Barn
Enclosed outhouse used to store crops.
Hectare
Surface area measure equalling to ten thousand square meters. One
hectare corresponds to 2.47 acres.
Bailiff
Public Officer in charge of making the decision of the courts available
to the public and of the execution of the courts’ decisions and authentic deeds with enforcement warrant. He performs various duties, including summons, process server’s affidavits, seizures...
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Mortgage
The guarantee taken out by a lender on a property for which he has
granted a credit. The mortgage allows the lender to have the property
seized and sold in justice should the borrower fail to refund the sums
he is due to reimburse.
Local taxes
Taxes collected by local governments (regions, departement, communes). They comprise a property tax for properties with houses built
on them, a land tax for vacant plots of land and a local tax. A few
annex taxes are collected in addition to these local taxes. This is the
case for the street cleaning tax, the garbage collection tax and the
equipment tax. In order to know how much they amount to, do not
hesitate to contact the buyer, you will get an approximate idea of what
you will have to pay.
Joint ownership
Legal situation in which several persons have the same right to particular property without a material division of their shares. An example of this is a couple buying an accommodation together.
Tenant
Person granted the use of an accommodation stated in a lease contract.
The legal term used in contracts is: lessee.
Loggia
A covered balcony whose back part is set back from the facade wall.
Carrez Law
The Carrez Law requires that the seller mentions the surface area of
joint ownership units in premilinary agreements and deeds of sale. It
applies to all apartment sale. It does not apply to house sale for which
the seller has no obligation to indicate surface area (with rare
exceptions).
Scrivener Law
Law of 13th July 1979 codified in articles L 312-1 and followings of
the Consumer Code and relating to the information and protection of
borrowers in real estate transactions. All potential buyers having taken
out a property loan are consequently protected by this law (cooling-off
period, required stipulations in loan offers, etc.)
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Longère
A rural and long house very common in many French regions, constructed with period local materials (for example granite in Brittany).
Housing development
Operation consisting in dividing a plot of land into several adjacent
units in order to build houses (generally detached houses).
House with character
House presenting specific features, regarding architecture or materials
used. Example: House with half-timbering
Prefabricated house
House constructed with industrial elements, i-e manufactured elements easy to assemble on site.
Traditional house
House built with traditional materials (stone, plaster, wood, slates,
thatch) built on site in a tradtional manner (the frame is assembled on
site by a master carpenter).
Provencal farmhouse
Farmhouse or countryhouse of traditional style in Provence.
Mezzanine
Intermediate level, fitted in the height between two floors (also called
half-floor) It is often wooden made.
Semi-detached, party wall
A wall, a fence or a partition jointly owned by two adjacent properties.
Rustic furniture
Country-style furniture, generally wood made and traditional.
Transfer
Transfer of property ownership to another person. This property transfer may be performed against a compensation (sale, exchange, shares)
or on a free basis (donation, succession...)
Notary
The notary is an independent government official, whose primary duty
is to authenticate deeds and documents: pertaining to real estate transactions, but also to family and company legal matters. Using a notary
is mandatory when buying a property in France.
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Public Order
In France, most laws regulating housing are Public Order. A Public
Order law is mandatory for all, and cannot be overruled by any specific clause stipulated in the contract. In this case, the contract is still
valid, but the clause is not applied. It is said to be “not written”.
PACS or Civil Solidary Pact
Contract by which two persons organize their life in common without
having to be married. Since 1999, people who have contracted a
“PACS” benefit from specific rights regarding housing and successions which are not granted to concubines.
Communal areas
The parts of plots of land or apartment buildings allocated to the use
or usefulness of all co-owners. They comprise the stairwell, the courtyard, the roofing, access drives...
Private areas
Parts of apartment buildings or plots or land dedicated to the exclusive
use of a particular co-owner.
Small joint ownership (or condominium)
A joint ownership comprising a small amount of units. It often designates a joint ownership with ten units maximum.
Room
In France, real estate ads indicate the number of main rooms (living
room, sitting room or lounge, dining room, study and bedrooms), whereas the kitchen, bathrooms and oubuildings (utility room and cellar)
and not taken into account. Therefore, you will find 1-roomed, 2-roomed, 3-roomed accommodations, etc. They can also be referred to as:
T1, T2, T3 or F1, F2, F3, etc. A 1-roomed apartment corresponds to
a studio, a 2-roomed apartment corresponds to a 1-bedroom with living
room apartment, etc.
At street level
designates an accommodation whose main rooms on ground floor open
onto the exterior plot of land. One can therefore access directly to the
accommodation, without having to step across a landing.
Prefecture
The term prefecture designates, in France, the town when the Prefect
is based, his services and the building housing them. When it designates a town, the term prefecture is generally used as a synonym for
the administrative centre of a “département”.
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Lessee
Legal term designating a tenant.
Near all services
Accommodation close to schools, shops, public transportation and
services.
Land registration
Formality whose purpose is to inform third parties of any property
transfer. It is performed by the Mortgage Registry and generates the
payment of the land registration tax.
Rent receipt
The owner provides a rent receipt to the tenant attesting the payment
of rent and charges.
Joint ownership regulations (declaration of codes, convenants and
restrictions) or condominium regulations
Document defining the rights and obligations of co-owners and the
regulations appling to the joint ownership. It defines the communal
and the private areas and relevant applicable regulations, the common
charges and how they are distributed between co-owners. .
RER, local trains
Stands for Réseau Express Régional. Partly unerground Parisian
suburban trains (covers Ile de France).
Principal residence
Accommodation where tax payer lives with his family most of the
year (minimum eight months per year)
Shower room
Room with shower
Bathroom
Room with washbasin and bathtub.
Escrow agent
A person designated by private or legal bodies to guarantee the consignement of a property or liquid assets. For a property sale, the notary
is designated as an escrow agent for the funds paid by the buyer for
reservation of property.
Private agreement “sous seing privé”
A deed signed directly by private parties, without the services of a
notary. A rental contract, a preliminary agreement or a reservation
contract can be concluded via a private agreement.
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Surface area
Area of floors calculated after deduction of walls, partitions, stairwells
and shealths. It does not take into account cellars, basements, garages,
balconies and non converted attic, and living quarters whose ceiling
height is lower than 1.80 m.
Management agent of joint ownership
In a joint ownership, some decisions have to be made regarding the
works to perform in the building, its maintenance, choosing a new
caretaker, etc. For this the co-owners appoint a professional management agent (or a volunteer agent for small co-ownership). Once a
year, he convenes to a General Meeting to all co-owners.
Association/council of co-owners
Term designating all the co-owners of a building. Major decisions are
taken by the co-owners during General Meetings. Before the meeting,
all co-owners receive a summons to attend, stating all questions on
the agenda. If a co-owner cannot attend the meeting, he may designate
someone to represente him.
Percentage
In order to have the service charges of a building (lift, cleaning, communal areas, works) distributed fairly between co-owners) in all declaration of codes, covenants and restrictions, are defined percentages
granted to all private units. Each owner will consequently own “x”
percentage of the building, duly stated in his deed of sale. This percentage will define the number of votes granted to him for the General
Meeting. Joint ownership is very democratic!
Council tax
Local tax due by any person (tenant, owner or occupier) of a furnished
accommodation on January 1st of the current year.
Tourist tax
This local tax is enforced by local authorities of some touristic towns,
who fix its amount per day and per person (approximately 1 euro). It
also applies to owners of seasonal rentals, who in turn charge it to
their tenants.
Property tax
A local tax due by an all owners of properties (built or vacant), also
called land tax. It is established under the name of the owner of the
property on the 1st January of the current year. When the property is
115
sold, the new owner may be charged a pro-rata rate of the tax. In this
case, the rate is defined in the deed of sale.
Rental taxes
Taxes recoverable by the owner and charged in turn to the tenant:
garbage collection taxes, cleaning taxes and contribution to rental
incomes (for the rare cases where it is still enforced).
Latent defect
A defect not detectible by a regular survey of premises and situated
in inaccessible places or which can be detected only by usage. A right
of action against the seller is possible in the two years following the
detection of defect.
117
USEFUL ADDRESSES
●
■ Tax Collection Office for non residents
10, rue du Centre – 93465 Noisy-le-Grand Cedex
Tél. : 01 57 33 88 88.
■ Bailiff National Chamber
44, rue de Douai – 75009 Paris
Tél. : 01 49 70 12 90. www.huissier-justice.fr
It will be easy to find someone speaking English.
■ Legifrance
www.legifrance.gouv.fr
The official French website of enforced legal regulations (sections
translated in English and Spanish).
■ Notaires de France
www.notaires.fr
Provides information relating to property sale in English.
■ Prim.net
www.prim.net
Provides information related to major risk prevention translated into
several languages.
119
The Group
de Particulier à Particulier
Founded in 1975
by Catherine NERESSIS and Patrick JOLlY
The group De Particulier à Particulier
is the number one Real Estate press group in France.
The success story of the number one French Real estate press group
started in 1973, when 2 students and friends from childhood, Catherine
and Patrick were looking for a flat. They soon realized that French
Real Estate agencies charge handsome commission fees. They also
notice that private owners simply advertise their properties in local
shops. They answered one of these ads, liked the flat and signed a
lease agreement directly with the owner.
By avoiding a « go-between » they have just saved lots of money, and
moreover, a new idea was born: regrouping all these ads from private owners in one magazine. They worked at various student jobs
to fund their studies and after two years of drastic savings, Catherine
and Patrick create their own company. Their vision became a magazine titled: “from seller to buyer” and the first issue was published in
1975. To advertise it, Catherine and Patrick put up posters in Paris
with the help of their friends. The operation was a smashing success
and 99 % of the first issue was sold the first month. Private owners
immediately loved the idea, and this first success has been followed
by many others since.
In over thirty years of existence, De Particulier à Particulier has
widened its offers into a wide range of specific magazines in order to
cater for all private owners needs, rent or sale, old or new houses, or
holiday rentals. And naturally all ads are posted on our websites. Our
photo galleries and websites allow you to visit your potential new
121
home from your own home. You may also receive all ads matching
previously selected criteria directly in your mailbox in real time.
Now the group De Particulier à Particulier has become the number
one Real Estate press group in France. Its founders along with its
personnel of over two hundred people are dedicated to the successful
completion of each private owner transaction.
The headquarters of the group occupies a entire building in the 15th
arrondissement of Paris, close to the Montparnasse train station. The
group has also ten regional offices in major cities of France, all offering the same services as the headquarters.
A susbsidiary has been set up in Belgium and the Group is expecting
to pursue its expansion in further European countries.
■ Thanks
We would like to thank for their invaluable collaboration :
– Maître Deneuville, Notary in Paris (bilingual English);
– Mrs Catherine Patin and Mrs Géraldine Talbot of UCB;
– Mr. Philippe Vasseur of GE Money Bank.
123
Découvrez nos autres publications
Envie de partir en vacances
en France ou dans les îles
françaises ?
Feel like spending your holidays in France or in the
French islands ?
Trois fois par an, nous éditons un
très gros guide rempli de locations de vacances proposées
directement par leurs propriétaires (pas de commission d’intermédiaire en sus du prix de la
location). Vous pouvez vous procurer ces guides chez les grands
marchands de journaux ou
retrouver toutes ces offres sur
www.papvacances.fr. Ce site est
traduit en langue anglaise et si
vous-même possédez une location, vous pouvez y passer votre
annonce pour un prix très modique et bénéficier de l’impact de
notre place de leader sur le marché immobilier français.
Three times a year, we publish a
comprehensive seasonal rental
guide listing ads posted directly
by private owners (no commission fees added to rental prices).
These guides are available in
major newspaper stands or on
www.papvacances.fr. Our website is translated into English. If
you have a rental and wish to
place an ad, we offer very competitive rates, furthermore you
will benefit from an extensive listing exposure due to our leading
position on the French real estate market.
* All our newspapers and website are in color.
* Ce guide étant en noir et blanc,
il nous est impossible de vous
montrer que tous ces journaux et
sites sont en couleurs !
papvacances.fr
124
Discover our other publications
spring issue
summer issue
winter issue
Envie d’une très belle location pour vous ou pour la
partager avec des amis ?
Feel like finding a superb rental for your family and your
friends ?
Spécialisée dans les locations
de vacances de caractère et
de grand confort, cette revue
tout en couleurs s’adresse à
une clientèle sensible aux
belles prestations. Vous pouvez retrouver aussi toutes ces
annonces avec des galeries
photos ou des sites personnels sur :
belleslocationsdevacances.com
This colour magazine is dedicated to the most exclusive and
character seasonal rentals listings enjoying top-of-the-line
features and amenities and is
meant for a demanding clientele
looking for exclusive rentals.
All these offers are posted on
our website along with photo
galleries and personal websites :
125
Envie d’acquérir un appartement ou une maison en
France ?
Considering buying an
a partment or a house in
France?
L’hebdomadaire De Particulier à
Particulier est le premier journal
immobilier français. Il
publie près d’un million
d’annonces par an
(987 302 exactement en
2006). En France, plus
d’une transaction sur
deux se réalise directement, ce qui permet
d’économiser la commission d’un intermédiaire
(de 5 à 10 % du prix).
Vous trouverez des
annonces de locations
et de ventes dans toute
la France, à la mer, à la montagne
et à la campagne. L’hebdomadaire
De Particulier à Particulier sort
tous les jeudis, il fait jusqu’à 500
pages et chaque numéro peut
comporter 30 000 annonces.
Our weekly magazine De
Particulier à Particulier is the
number one real estate magazine in France.
It makes available to
you nearly one million
ads per year (987 302
in 2006). In France,
more than half real
estate transactions
are concluded directly
between private
people, allowing to
save on realtor commission fees (5 to
10 % of price).
Seaside, mountain, country, our
listings cover the entire French
territory, for properties to rent
or for sale. De Particulier à
Particulier is published every
Thursday, and may list up to
30 000 ads in one issue of 500
pages.
pap.fr
Retrouvez toutes ces annonces
(avec une traduction automatique en anglais) sur :
www.pap.fr. C’est le premier site
immobilier français (5 millions
de visites par mois, source
Médiamétrie 2006) et c’est aussi
le 7e site français le plus recherché sur Google France (source
Google, octobre 2006).
All these ads are posted on our
website www.pap.fr. They are all
automatically translated into
English. Our website is the number one on its market (which
5 millions hits per month,
Médiamétrie source 2006), and it
is also the 7th most researched
French website on Google
France (Google source, October
2006).
126
Envie d’un bien ou d’une propriété de caractère ?
Looking for a property with
character?
Demeures de Charme, six éditions
par an (janvier, mars, mai, juillet,
septembre et novembre), est une
revue tout en couleurs qui présente, dans chaque édition, des centaines de propriétés ou d’appartements à vendre en France ou dans
les îles françaises. Chaque annonce est traduite, par une traductrice,
en langue anglaise et de nombreuses annonces proposent une
visite photos ou un site personnel
sur Internet.
Demeures de Charme is a
colour magazine with six
i s s u e s p e r y e a r ( Ja n u a r y,
March, May, July, September
and November). In each issue,
it makes available to you hundreds of properties and apartments for sale in France or in
the French islands. All ads are
translated into English by a
translator and many ads include a photo gallery or a personal website.
demeures-de-charme.com
127
Envie d’acquérir un logement
neuf ?
Looking for a new development ?
Chaque mois, tous les
promoteurs construisant en France des
appartements ou des
maisons dans de
nouveaux villages annoncent leurs nouvelles réalisations dans
Immoneuf. Tout en
couleurs, ce mensuel
d’environ 450 pages
vous informe sur tout
ce qu’il faut savoir
pour acheter dans le neuf.
Retrouvez toutes ces informations sur www.immoneuf.com
Each month, all
property developers
developing residential
complexes of apartments or private
houses in France
publish their development projects in
Immoneuf. The monthly colour magazine
p r o v i d e s detailed
information related
to this specific sector
and are available on our website
www.immoneuf.com
immoneuf.com
Envie de faire construire une
maison en France ?
Considering having a house
built in France ?
Pour trouver une
maison ou le constructeur qui pourra
réaliser votre projet, Faire Construire
sa Maison est le
seul magazine spécialisé de ce secteur. Retrouvez-en
les principales
rubriques sur www.
construiresamaison.
com
In order to find a
house or a building
contractor who will
complete your project, Faire Construire
sa Maison is the only
magazine specialized
in this sector. Its
main information are
available on www.
construiresamaison.
com
construiresamaison.com
128
Envie de vous installer en
France et d’y avoir des
bureaux ou un commerce ?
Considering relocating in
France and are you looking
for commercial space ?
Le mensuel Bureaux
et Commerces est leader en France des
transactions commerciales et il publie des
milliers d’offres de
bureaux, boutiques et
autres locaux qui
peuvent vous donner
des idées de création.
Retrouvez toutes
ces offres sur www.
bureaux-commerces.
com
Our monthly magazine Bureaux et
Commerces is the
leader in France on
the commercial real
estate market and it
lists thousands of
ads (office space,
retail space, etc.).
All ads are available
o n w w w. b u r e a u x commerces.com
bureaux-commerces.com
Nos adresses
Siège social : 40, rue du Docteur-Roux – 75015 Paris – ☎ : 01 40 56 33 33
Paris (Est) : 195, boulevard Voltaire – 75011 Paris – ☎ : 01 40 24 22 12
115, cours d’Alsaceet-Lorraine
15, rue des Pontsde-Comines
12, rue de
la Charité
33000 Bordeaux
☎ : 05 56 44 06 61
59000 Lille
☎ : 03 20 55 96 46
69002 Lyon
☎ : 04 78 24 62 32
165, rue
de Rome
Cours des 50-Otages
2, allée Duquesne
4, rue du
Maréchal-Joffre
13006 Marseille
☎ : 04 91 47 02 20
44000 Nantes
☎ : 02 40 12 20 02
06000 Nice
☎ : 04 93 16 20 82
129

To buy or to rent in France

Transcription

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