Real Estate Lexicon : Definitions

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ABSESTOS STATE : Sellers of real estate whose building permit was issued before 1 July 1997 are required to include in their promise of sale a statement mentioning the presence or absence of asbestos. This obligation applies to both apartments and individual houses. Moreover, owners of residential buildings built before 1 July 1997 with more than one dwelling are required to have asbestos checked and to justify, where appropriate, the execution of the measures prescribed in the report prepared by an approved body. Even if the property is not sold.
AGENT : The one who acts.
AUTHENTIC DEED : The authentic deed is that which has been received by notary according to the required solemnities. It can now be formatted electronically. Most of the time we talk about the bill of sale.

BENEFICIARY: Refers to the person who is the recipient of a unilateral offer of sale.

CARAVANING : Group of travelers. In commercial: Action to go as a team to visit properties, prospect or distribute mailings and flyers.
CERTIFICATE OF URBANISM: Administrative document giving the state of urban planning rules applicable to a land on the day it is established.
CLOSING : Conclude, buckle. In marketing this word is used to close a sale.
CUSTOMER: The person who receives from someone, against payment, commercial supplies or services.
CO-OWNERSHIP : Property rights of several people on the common parts of a building.
C.L.U. : The C.L.U.. (Coefficient of Land Use) is used to define the relationship between the land area and the right to build the net floor area (S.H.O.N.). A C.L.U. of 0.4 allocated to a plot of 500 square meters can build 500 x 0.4 = 200 sq.m. S.H.O.N., if the land use plan (L.U.P.) allows.
C.L.U. RESIDUAL: Defines on a ground where there is already a construction, the right to raise an additional construction. If on a plot of 500 sq.m., there is already a house of 160 square meters (S.H.O.N.) And that the C.O.S; is 0.4 can be built 40 sq.m. (S.H.O.N.), if the P.O.S. permits.

ENJOYMENT OF PROPERTY: Faculty to use real estate or to perceive the earnings.
EASEMENT: An easement is a constraint that is imposed on one property for the benefit of another property. (Right of way...)

FEES: Remuneration paid in return for a service provided by a professional. Each real-estate agency must display its rates.

GOOD: Product of a real-estate agency.
GUARANTEE OF CORRECT FONCTIONING: The elements of equipment of a new building which are not inseparable from the structural work are guaranteed for 2 years in case of dysfunction.

HOUSING-TAX: Tax due for local taxes for any occupant of a dwelling on January 1, whether owner or tenant, for a fee or free.

IMMOBILISATION COMPENSATION: Amount paid to the real-estate agent or notary, either on the occasion of a unilateral promise of sale, or on the occasion of a synallagmatic promise of sale which will remain acquired to the seller in case of non-realization of the sale.

L.U.P.: The Local Urban Plan is developed on the initiative of the municipalities and concerns the whole territory of the municipality.

MAILBOX FLYERS: Action to deposit mailings or flyers in mailboxes.
MAILING: in marketing, contraction of advertising and addressing (sending of advertising).
MORTGAGE: Guarantee granted on real estate for the benefit of a money lender. This guarantee, received by notarial deed and published in mortgages, entails a cost for the borrower.

NOTARY: Public and ministerial officer who receives and writes the acts and contracts.

OFF PLAN TRANSACTION: Buy property off-plan. The buyer pays the price of the property acquired as the construction progresses.

PARASITE CONDITION OF THE PROPERTY: The law of June 8, 1999, requires to produce, at the signing of the preliminary contract of sale, a parasitic state of less than 3 months in case of sale of building located in a contaminated area.
PENALTY CLAUSE: This is the clause by which a person agrees to pay a lump sum in case of non-fulfillment of the principal obligation to which it has committed. This clause can be found, for example, on a promise to sell.
PERFECT COMPLETION GUARANTEE: The guarantee of perfect completion, to which the contractor is held for 1 year from the date of acceptance of the works, is intended to repair all the damages noted in the acceptance report or notified afterwards.
PIGE: Conduct a targeted phoning action with identified sellers, to offer them services.
PROFESSIONAL CARD: An administrative document that must be held by any real estate agent or agency who gives or assists in the purchase, sale, rental, management of the property of others.
PROMISE TO SELL: Pre-contract signed by the seller and the purchaser of real estate. It can be established, either private agreement or before a notary. There are two kinds of promise to sell:

The unilateral promise of sale: this formula doesn’t engage the buyer.
The bilateral promise (synallagmatic contract) also known as a sales agreement: this type of agreement commits the buyer on the same basis as the seller.

PROMISOR: A word designating the person (the seller) who undertakes to transfer his property to the beneficiary (the buyer), when signing a promise to sell.
PROPERTY DAMAGE INSURANCE: Insurance that must be underwritten by the owner in order to guarantee the repair of the disorders likely to engage the decennial responsibility of the companies.
PROPERTY TAX: Tax due by way of local taxes by all owners of real estate located in the municipality.
PROPERTY TRANSFER FEES: Fees and taxes collected by the notary, during a transfer for free or onerous (sale, donation, succession) on behalf of the State and local authorities.
PROSPECT: Potential client.
PROSPECTING: Searching for prospective customers, visiting customers.

RENTAL AGREEMENT: A contract by which one of the parties undertakes to give the enjoyment of a thing for a definite or indefinite period, on payment of an agreed price.
RIGHT OF FIRST REFUSAL: Contractual right that allows a holder or public collectivity to enter a business transaction for a real-estate property, before the owner is entitled to enter a transaction with a third party.
RISK OF ACCESSIBILITY TO LEAD: A state of the risks of accessibility to lead must be annexed to any unilateral promise of sale or purchase, to any contract realizing and recording the sale of a building affected in whole or in part by dwelling, built before 1 January 1948.

SALE MANDATE: Act by which the principal gives power to the agent to sell a property. In practice the powers conferred by the owner are limited to finding a buyer. It is therefore a search warrant that will imply that the compromise is regulated by the seller himself.
SALES AGREEMENT: Synallagmatic sales contract, most often received by private act. (See also "Promise of sale").
SUR LAW: Law known as Solidarity and Urban Renewal.
SUBROGATION: Substitution in a legal relationship, from one person to another.
SUSPENSIVE CONDITIONS: Event beyond the control of the parties to which the execution of their commitments is suspended, such as obtaining a loan from the purchaser.

TRUSTEE: A natural or legal person acting in the capacity of representative of a syndicate of co-owners and exercising the legal functions attached to this quality.
TEN-YEAR GUARANTEE: Any manufacturer of a work is responsible for 10 years to the master of the work disorders that may affect its strength or make it unsuitable for its destination. Are entering the scope of the ten-year warranty, disorders of the same nature that affect the elements of equipment indissociable structural work.

VOUCHER OF VISIT: Recognition by buyers to have visited a property through a real-estate agency.