Glossary

The deed glossary

The deed or "acte authentique", or "acte de vente" will generally contain the following headings:

1. Identification des parties = Identification of the parties
Name, maiden name, profession, date and place of birth, date of wedding and type of wedding contract of the parties concerned.
2. Vente = Sale
Statement that the seller sells and the buyer accepts the property concerned by the deed.
3. VEFA (vente en l'état futur d'achèvement) = Acquisition of a property still to be developped
A VEFA acquisition allows the buyer to become the owner of a property under construction. The property developer will call for funds as specified in the provisional sales agreement upon works progress. The lender, if applicable, will release the funds in accordance with these calls.
4. Désignation des biens vendus = Description of the property sold
A full description of the property sold is given, including the Land Registry parcel numbers.
5. Cadastre - Division cadastrale = Land registry - Parcel
Where the sale involves a division of a registered plot, a statement of how the division has been made and registered is given.
6. Frais = Expenses
Statement of who pays the expenses related to the contract, normally the buyer.
7. Négociation = Negotiation
Optional clause about extra fees for negotiation, if the notaire has acted for either party.
8. Propriété - Jouissance = Ownership - Possession
Statement of freedom from encumbrances, tenancies, etc, and when possession will be available.
9. Prix et modalités de paiement = Price and terms of payment
Statement of the price paid, whether it involves a mortgage, description of the terms of payment.
10. Information sur les plus-values immobilières = Information on capital gains tax.
Calculation of the capital gains tax to be paid by the seller (this amount will be paid directly by the notaire out of the sale proceeds).
11. Droits d'enregistrement = Transfer tax
Description of the transfer taxes payable.
12. Calcul des droits = Calculation of fees
Description of the notary fees payable.
13. Servitudes conventionnelles = Easements
Description of any easements, rights of passage,etc... bearing on the property
14. Représentation des parties = Power of attorney
When a party is represented, description of its representative and its power of attorney.
15. Etats d'urbanisme = Planning and zoning
Statement about any planning, zoning, highways, public health, utilities,etc... concerning the property and description of the potential uses of the land.
16. Droit de préemption de la SAFER = SAFER's pre-emption right
When applicable (agricultural land), confirmation that SAFER has not exercised its pre-emptive right.
17. Origine de propriété = Origin of ownership of the property
Detailed recent history of previous ownership.
18. Conditions générales de la vente = General conditions of sale
The buyer accepts the property as it is, without any guarantee from the seller whatsoever concerning its flaws, apparent or hidden, without recourse against the seller, except if the seller is a real estate professional (in which case, the buyer benefits from possible recourse against the seller); The seller covenants that he has not created or allowed to be created any easements other than those described in the deed; The buyer undertakes to take insurance as from the date of possession; the seller will be responsible for all taxes and contributions associated with the property up to the date of possession; the "Taxe d'habitation" - property tax is payable by the sellers for the current year, while the "Taxe foncière" - property tax and waste collection charges shall be divided between the parties in proportion to their periods of possession; the buyer undertakes to transfer into his own name any existing contracts for water or electricity supply, thus allowing the seller to be discharged of any responsibilities in this respect.
19. Etat hypothécaire des biens vendus = Mortgage on the property sold
Statement of freedom of the property from mortgage or any other charges. The seller will provide at its own expense a copy of the release of any former mortgage.
20. Formalités et publicité foncière = Formalities and official registration
A certified copy of the contract will be officially registered by the Notaire who is responsible for the quality of the deed.
21. Election de domicile = Choice of domicile
For the purposes of the contract, the parties normally choose their respective homes as their domiciles.
22. Pouvoirs = Authority
Full authority is given to the Notaire to make any necessary publication and registration relating to the deed.
23. Déclaration de sincérité = Declaration of sincerity
The parties declare that the price defined in the contract is the real price (i.e. that no under-the-table payments have been made)


Mortgage glossary

1. Acompte = Deposit
2. Apport personnel = Personal capital contribution
3. Hypothèque = Mortgage
4. Mandat = Power of attorney
5. Offre de prêt = Loan offer
The loan offer is valid for 11 days before acceptance. It must state the name of the borrower, the address of the property to be financed, and all the terms and conditions of the loan to be arranged, including a capital repayment schedule.
6. Privilège du prêteur de deniers = Lender's priority lien
The "privilège du prêteur de deniers" is a priority lien granted to the lending institution enabling the lender, should the property be sold before the full repayment of the loan, to recover the outstanding debt before any other creditors, to receive payment without necessarily obtaining the approval of the borrower. The "privilège du prêteur de deniers" is less expensive than a mortgage because it is exempt from the 0.5% public registration fee ("taxe de publicité foncière").
7. Taux Effectif Global (TEG) = Annualized percentage rate (APR)
The actual interest rate calculated taking into account all the sums paid by the borrower during the life of the loan. It therefore includes the interest payments, loan administrative fees, expenses related to the surety agreement and additional insurance premiums.
8. Taux= Interest rate
a. Fixed: does not vary over the term of the loan.
b. Adjustable or variable: calculated against a money market index (such as the Euribor) and adjusted periodically.