Glossary

The words of French property

Buying in France means crossing a vocabulary first. Here are the 37 terms that come up in every file, defined in two sentences, without jargon and without detours.

37terms defined, six families

Written by working property finders, for buyers who decide from afar.

Talk about your project

Buying or selling

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

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.
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 authorizing 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.
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.
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.

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 investors.
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, rents, works. Opening one as a non-resident may need extra documents and take longer.

Owner taxation

Taxes, income, 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 rental income or capital gains from French property.
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.
Rental income (unfurnished): Income from renting an unfurnished property, taxed as rental income. You may use the micro regime with a flat allowance or the real regime deducting actual expenses, even as a non-resident.
Non-professional furnished rental (LMNP): Tax status for individuals renting furnished property without making it their main activity. It often allows depreciation and a strong reduction of tax on rents, very attractive to non-resident investors.
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.
French property holding company (SCI): French structure used to hold property jointly, organize succession and sometimes optimize 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.

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.
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 can reduce rental yield.
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.

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.
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.
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 meter.

Renting out your property

Leases, guarantees and day-to-day management, when the property works while you are elsewhere.

Unfurnished rental lease: Lease for an unfurnished dwelling, usually three years renewable. The legal framework strongly protects the tenant and rent increases are regulated, which affects your investment strategy.
Furnished rental lease: Lease for a furnished dwelling with a minimum mandatory furniture list and more flexible terms. Combined with the LMNP status, often chosen by non-resident investors.
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.
Property management: All tasks linked to renting out a property: finding tenants, viewings, drafting leases, inventories, rent collection, reminders, claims. Essential for a non-resident who cannot easily travel.

A word missing?

Vocabulary is never the real subject: your project is. Tell us what you are looking for and we will answer in your language.

Talk about your project