Glossary

The words of French property

Buying in France means crossing a vocabulary first. Here are the 73 terms that come up in every file, defined in two sentences, without jargon and without detours.

73terms defined, seven families

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Written by working buyer’s agents, for buyers who decide from afar.

The Rotonde fountain and the cours Mirabeau in Aix-en-Provence — Provence - Aix-en-Provence - The Rotonde and the cours Mirabeau

Buying or selling

The steps and the players in a French transaction, from the purchase offer to the handover of the keys.

Purchase offer: Written proposal in which the buyer states the price they are prepared to pay, for a limited period and without any payment, on pain of nullity. Once accepted, it seals the agreement on the property and the price, and the preliminary contract that follows opens the buyer’s cooling-off period.
Preliminary sale agreement: Preliminary contract signed between seller and buyer setting the price, property description, deadlines and conditions precedent, especially mortgage approval. It binds both parties and precedes the final deed at the notary.
Unilateral promise of sale: Deed by which the seller commits to sell to a specific buyer at a fixed price for a limited period, in exchange for an option fee usually around 10 percent. Only the seller is bound during the promise.
Right of first refusal (pacte de préférence): Contract by which an owner undertakes, should they decide to sell, to offer the property first to a named beneficiary, often a relative. A sale made in breach of it gives rise to damages, or even to its annulment if the buyer knew of the pact and of the beneficiary’s intention to rely on it.
Substitution clause: Clause in the preliminary contract allowing the buyer to be replaced, for the signing of the final deed, by another person, most often a property holding company (SCI) set up for the purchase. Without it, changing buyer requires the seller’s consent.
Escrow deposit (séquestre): Sum the buyer pays on signing the preliminary contract, often 5 to 10 percent of the price, held by the notary and later credited against the price. It is returned if a condition precedent fails or the buyer withdraws in time, and may go to the seller if the buyer pulls out for a reason the contract does not allow.
Final deed of sale: Final deed signed at the notary that legally transfers ownership to the buyer against payment of price and costs. The keys are handed over and the sale is registered with the land registry.
Notarial power of attorney: Official document authorising a trusted person or a notary’s clerk to sign the preliminary agreement or the final deed on your behalf. It lets you buy in France without travelling.
Mortgage condition precedent: Clause stating the sale becomes final only if you obtain a mortgage under the agreed conditions. If the bank refuses, the sale is cancelled without penalty and your deposit is refunded.
Cooling-off period: Legal 10-day period from notification of the preliminary agreement during which an individual buyer may withdraw without reason or penalty. After it, the buyer is committed, subject to the conditions precedent.
Urban pre-emption right: Right allowing a municipality, within zones it has defined, to buy in priority a property put up for sale in order to carry out a project in the public interest. The notary sends it a declaration of intention to sell before the sale, and two months of silence count as a waiver.
SAFER pre-emption right (rural land): Right of the rural land agencies (SAFER) to buy in priority farmland and agricultural buildings put up for sale, which can affect a country property sold with its land. Notified of the sale by the notary, the SAFER has two months to decide.
Buyer search mandate: Contract by which a buyer appoints a professional to search for a property to set criteria, represent them locally and negotiate on their behalf. It sets fees, duration and scope.
Buyer’s agent (buying agent): Professional instructed by the buyer alone to find, view and negotiate a property that meets their criteria, including among properties sold without advertising. They work within the Hoguet Act, under a property transaction licence and a written search mandate, as Home Select has done since 2011.
Off-market sale: Sale of a property negotiated without any public listing or presence on property portals, most often because the owner values discretion or wishes to test a price. These properties circulate through the professional networks of agencies, notaries and buyer’s agents, sometimes without ever being advertised.
Sale mandate: Contract by which an owner entrusts an agency with selling the property, on a simple or exclusive basis. It defines the listing price, fees, duration and obligations of each party.
Title deed: Official document drawn up by the notary at purchase, proving you are the legal owner. It states the description, price, previous owners and any easements or mortgages.
Notary (civil law): Public officer who legally secures the transaction by checking title, easements and mortgages and drafting the deeds. Neutral, they act for both parties, with State-regulated fees.
Notary fees (acquisition costs): Sums paid by the buyer to the notary for the signing of the final deed: transfer duties, the notary’s regulated fees, the land registry contribution and disbursements. Despite the name, they go mostly to tax and amount to about 7 to 8 percent of the price for an existing property, 2 to 3 percent for a new one.
Option fee (indemnité d’immobilisation): Sum paid by the buyer to the seller when signing a unilateral promise of sale, often around 10% of the price. It takes the property off the market for the duration of the promise and is deducted from the price if the sale completes.

Financing your project

Credit, down payment, guarantees, currencies: what a French bank looks at, and what it looks at differently when you live abroad.

Mortgage loan: Loan granted by a bank to finance a purchase, usually over 10 to 25 years. For non-residents, requirements on down payment, guarantees and documents are often stricter than for French residents.
Down payment: Amount you invest from your own funds in addition to the mortgage. For a non-resident, French banks often require a higher down payment, sometimes 20 to 30 percent of the price.
Borrower’s insurance: Insurance required by the bank to cover repayment in case of death, disability or sometimes job loss. For non-residents, medical underwriting and acceptance terms can be more specific.
Fixed interest rate: Loan whose interest rate stays the same for the whole term, keeping monthly payments stable and predictable. The most common structure in France, often reassuring for foreign buyers.
Non-resident mortgage file: Set of documents to assess your mortgage application: proof of income, assets, debts, ID, bank statements, sometimes translation and apostille. Requirements vary by bank and country of residence.
Debt-to-income ratio: Indicator measuring the weight of your loan repayments against your income, generally capped at about 35 percent in France. Banks use it to assess your repayment capacity.
Currency transfer: Converting and transferring funds from your country of residence to a French account to pay the price, notary fees or works. Fees and exchange rates can vary significantly between providers.
French bank account: Account opened with a French bank to manage your property’s flows: price, taxes, service charges, works. Opening one as a non-resident may need extra documents and take longer.
Mortgage (charge on the property): Right granted to a creditor, most often the bank financing the purchase, over the property as security for the loan. On a resale, the discharge of the mortgage formalises the end of the guarantee.
Loan offer: Contractual document detailing the terms of the loan: amount, term, rate, insurance, monthly payments, fees and early repayment conditions. The law imposes a 10-day reflection period before you can accept it.
Loan security: Security requested by the bank to cover the loan: guarantee from a specialised body, mortgage or lender’s lien. It determines the cost of the security and the formalities to expect on resale.

Owner taxation

Taxes, capital gains, structures: what an owner, a non-resident above all, should know before buying.

Non-tax resident: Person whose main economic and personal interests are outside France per the tax authorities’ criteria. A non-resident can still be taxed in France on property income or capital gains from French property.
Transfer duties (DMTO): Taxes due on the sale of an existing property, paid by the buyer to the notary, who passes them on to the département, the municipality and the State. They come to about 5.8 percent of the price, and about 6.3 percent between 2025 and 2028 where the département has raised its rate, except for a first purchase of a main residence.
Property ownership tax: Local tax paid each year by the owner, whatever their country of residence. The amount depends on the municipality, the size and the cadastral value, and varies a lot from one city to another.
Residence tax (second home): Tax that still applies to second homes and some vacant dwellings, sometimes with a surcharge in high-demand areas such as Paris, Lyon or Bordeaux. A non-resident’s property is often treated as a second home.
Development tax (taxe d’aménagement): One-off tax due from the holder of a planning permission that creates enclosed, covered floor space, such as an extension or a conservatory, or that covers a swimming pool. It is calculated on a flat value per square metre set each year by the State, multiplied by locally voted rates.
Real estate capital gain: Difference between the selling and purchase prices, after certain costs and allowances. Non-residents are also taxable in France on capital gains, with specific rules and rates.
Joint ownership (indivision): Situation in which several people own the same property together, each for a share, for example after a purchase by two people without a company or after an inheritance. Management is decided by a two-thirds majority of the shares, a sale in principle requires everyone’s consent, and no one can be forced to remain in joint ownership.
French property holding company (SCI): French structure used to hold property jointly, organise succession and sometimes optimise taxation. For a non-resident, setting one up requires understanding the tax consequences in France and abroad.
Split ownership (usufruct and bare ownership): Legal technique splitting usufruct, the right to use the property and collect income, from bare ownership, the long-term economic ownership. Used for estate planning or specific structures.
Tax treaty: Agreement between France and your country of residence determining where each type of income is taxed and preventing double taxation. It prevails over French domestic law and shapes how your French property income and gains are taxed.
Tax representative: Accredited intermediary who represents you before the French tax administration. Depending on your country of residence and the sale price, appointing one is mandatory when a non-resident sells a property.
Social levies: Contributions levied on property income and real estate gains, with an overall rate for individuals in the region of 17%. How they apply to non-residents depends on tax treaties and on the applicable social security legislation.
IFI (French wealth tax on real estate): Annual tax due when the net value of your French real estate exceeds 1.3 million euros on 1 January, on a progressive scale applying from 800,000 euros. It applies to non-residents for their properties located in France only.

Co-ownership

The life of the building you own a unit in: who decides, who manages, and what it costs.

Co-ownership: Legal structure of a building divided into units, each with a private part and a share of the common areas. It is governed by by-laws, a managing agent and general meetings.
Co-ownership rules (règlement de copropriété): Document setting out the intended use of the building, what belongs to the private and the common parts, the co-owners’ rights and obligations and how charges are shared. It comes with the statement of division, which numbers the units and allocates their shares.
Managing agent: Professional or volunteer co-owner running the building: budget, service charges, works, contracts, insurance, claims, general meetings. Their quality directly affects how well your property is managed.
Service charges: Shared building expenses split between owners by their shares: maintenance, cleaning, lift, central heating, caretaker, insurance, managing agent fees. High charges increase the yearly cost of owning the property.
Co-owners’ general meeting: Meeting of co-owners where budgets, works, the choice of managing agent and key building decisions are voted, following majority rules set by law.
Multi-year works plan (PPT): Ten-year programme of the works needed to preserve the building, keep occupants safe and improve energy performance, put to the vote of the general meeting. Mandatory since 2025 in residential co-ownerships more than fifteen years old, it shows a buyer the works and calls for funds ahead.
Horizontal co-ownership: Group of houses, often in a gated estate, governed by co-ownership law: each house is a unit, while the land, the roads and the shared facilities are managed jointly. Some estates are instead run by an owners’ association (ASL), which manages only those facilities and whose membership passes with each house.
Ownership shares (tantièmes): Shares of the common areas allocated to each unit, expressed in thousandths or ten-thousandths. They are used to allocate charges and, often, to weight votes at the general meeting.

Technical and surveys

The documents and measurements that describe a property’s real condition, and what they change about its value.

Energy performance certificate: Mandatory report rating the home from A to G by its energy use and CO2 emissions. A poor rating can affect resale value and restrict future renting.
Energy audit: Study required to sell a house or a single-owner building rated F or G on the energy performance certificate since 2023, and E since 2025, setting out costed works scenarios to move up the energy rating. Handed over from the first viewing, it informs the buyer without obliging them to carry out the works.
Mandatory property surveys: Set of mandatory surveys provided when selling or renting: asbestos, lead, termites, gas, electricity, natural risks, sanitation. They highlight risks and works to anticipate.
Risk disclosure statement (ERP): Document attached to the preliminary contract stating whether the property is exposed to natural, mining or technological hazards, earthquakes, radon or coastal erosion, and listing past claims paid under the natural disaster scheme. Since 2023 it must also be given to the buyer from the first viewing.
Off-mains drainage (assainissement non collectif): System that treats a house’s wastewater on site when it is not connected to the mains sewer, such as a septic tank, inspected by a dedicated public service. The inspection report, less than three years old, is attached to the sale, and the buyer has one year to bring a non-compliant system up to standard.
Carrez law floor area: Legal method for measuring the private floor area of a condominium unit, excluding walls, partitions, steps and areas with a ceiling height below 1.80 m. A key reference to compare prices per square metre.
Habitable floor area: Floor area of a dwelling after deducting walls, partitions, stairs and door and window recesses, excluding parts under 1.80 m high as well as cellars, garages, unconverted lofts, balconies, terraces and conservatories. The reference for leases and the energy performance certificate, it differs from the Carrez area, specific to co-ownership sales, which counts an enclosed conservatory, for example.

Land and planning

What may be built, extended or altered, in town, by the sea or in the mountains, and what ties a plot to its neighbours.

Local urban plan (PLU): Document drawn up by the municipality or group of municipalities that divides the area into zones and sets what may be built in each: use, height, footprint, siting, appearance, green space. It says, plot by plot, whether an extension, a swimming pool or a land division can be considered.
Planning certificate (certificat d’urbanisme): Free document issued by the town hall setting out the planning rules, easements and taxes that apply to a plot and, in its detailed version, whether a specific project is feasible there. It freezes those rules for eighteen months, which secures a purchase tied to a building or extension project.
Prior declaration and building permit: The two main planning permissions: the prior declaration for minor works, such as a small extension, an uncovered swimming pool or a change to a façade, and the building permit for larger constructions and extensions. Once posted on the site, the permission can be challenged by a third party for two months.
Architecte des Bâtiments de France (ABF): State architect and planner responsible for overseeing the quality of works near historic monuments and in remarkable heritage sites, which replaced conservation areas (secteurs sauvegardés) in 2016. Within these perimeters, their opinion, usually binding on the mayor, governs a façade, a roof, joinery or a visible swimming pool.
Coastal Law (loi Littoral): Law of 1986 governing planning in municipalities on the sea and on large lakes: new building in continuity with existing villages and towns, a 100-metre strip closed to building outside built-up areas, protection of outstanding natural areas. It explains why the scope to extend or build is often very limited near the shore.
Mountain Law (loi Montagne): Law of 1985, revised in 2016, governing planning in mountain areas: development in continuity with existing towns, villages and hamlets, preservation of farming and grazing land, protection of lake shores, rules for new tourist developments. It weighs directly on whether a chalet can be built or extended outside built-up areas.
Easement (servitude): Burden on one plot of land for the benefit of another plot with a different owner, such as a right of way, a right of view, water drainage or a ban on building. Attached to the land rather than to people, it passes with every sale, and the notary checks for it in the title deeds and at the land registry.
Boundary marking (bornage): Operation in which a chartered land surveyor (géomètre-expert) fixes and marks with boundary stones the line between two neighbouring plots, by agreement or by court decision. Either owner can require it of the other, with the costs shared, and the sale of a building plot must state whether its description results from one.
Party wall ownership (mitoyenneté): Shared ownership of a wall, hedge or fence separating two plots, whose upkeep and repairs the two neighbours share. A dividing wall is presumed to be jointly owned unless a deed or a mark shows otherwise, and a neighbour can buy into it by paying half its value and half the value of the ground it stands on.

Renting a home

Lease and security deposit: the rules that govern a tenancy in France, for the tenant as for the owner.

Unfurnished rental lease: Lease for an unfurnished dwelling, usually three years renewable. The legal framework strongly protects the tenant and rent increases are regulated.
Furnished rental lease: Lease for a furnished dwelling with a minimum mandatory furniture list and more flexible terms.
Security deposit: Amount paid by the tenant at the start of the tenancy to cover possible damage or unpaid rent. In France it is capped by lease type and must be returned at the end, subject to conditions.
Inventory (check-in and check-out): Joint record of the condition of the home and its equipment, drawn up at the tenant’s move-in and move-out. Comparing the two determines the return of the security deposit and who pays for refurbishment.
Non-occupying owner insurance (PNO): Insurance for an owner who does not live in the property, whether let or vacant. It covers their liability and dedicated guarantees (water damage, fire, neighbours’ claims) where the occupant’s insurance falls short or is missing.

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