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Glossary |
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Acompte - Deposit
Sum paid by the buyer to the builder, not to exceed 5% of the total price. |
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Acte authentique de vente - Legalized deed of conveyance
Document signed by the buyer in the pubic notary's office to make the real-estate sale official and legally binding. In France, it is mandatory that the sale of real property be signed in the presence of a public notary, the only public official empowered to witness this type of agreement. The public notary appointed by the buyer draws up the deed, and the public notary of the seller draws up the real-estate file for him (origin of ownership, the existing condominium regulations, etc.), when two public notaries are involved in the transaction. In this case, the public notary fees are divided in half. The deed of conveyance must specify the identities of the seller and buyer, the description and origin of the property subject to transfer, certain provisions related to urban planning and, lastly, the means by which the buyer financed his or her acquisition.
Agent immobilier - Real-estate agent
Intermediary representing an owner during a property transfer transaction. The real-estate agent takes charge of finding a buyer or tenant in accordance with the bill passed by the French parliament in January 1970.
Apport personnel - Personal capital contribution
This contribution is comprised of the savings used by the investor to complete his or her operation. If your borrowing capacities and your garantees allows it, Crédit Foncier will offer to finance your investment in its entirety without requiring you to make any personal capital contribution. In terms of tax relief, this solution can prove to be extremely advantageous in investment operations.
Compromis de vente - Provisional sales agreement
Provisional contract used for the acquisition of real estate or building land. The expression habitually used for the promesse de vente (unilateral agreement to sell). This contract lists the names and addresses of the seller and buyer, their reciprocal obligations, the description of the property in question, its surface area and price. It also lists the conditions of avoidance making it possible to terminate the agreement, notably the buyer's failure to obtain a loan (or planning permission in the case of the acquisition of building land). If these conditions cannot be met, the agreement will be declared null and void. When the provisional sales agreement is signed, you will be asked to pay a deposit by the seller. If the buyer withdraws from the agreement before signing the legalized deed of conveyance, the seller is entitled to retain the deposit. If the seller wishes to withdraw from the agreement, he must pay the prospective buyer twice the sum of the deposit.
Contrat de réservation - Reservation agreement
A contract by virtue of which a buyer reserves a property to be purchased from plan. This provisional real-estate sales agreement is the legal equivalent of a compromis de vente.
Hypothèque - Mortgage
A guarantee demanded by a bank, secured on real estate. In the event of default on the related loan, the lending institution may then take legal action to force the sale of the debtor's property. This is most frequently applied to the asset being financed. The mortgage must be recorded in the local mortgage registry and is subject to a charge equal to 0.60% of the amount borrowed
Maître d'œuvre - Project manager
The person who manages and supervises the execution of construction work. He is responsible for the organization of the building site. His responsibilities frequently include the building design stage, the coordination of studies and related work, administrative procedures, the delivery of the final plans and a proposed completion date. The project manager is the person who decides whether to launch the building project and who finances it. He is the owner of the building land and is consequently the beneficiary of the planning permission.
Mandat - Power of attorney
A legal document authorizing another person (the agent) to carry out one or several predetermined legal acts on the principal's behalf. When a private individual grants this power to a real-estate agent, he or she grants full or limited power of attorney.
Notaire - Public notary
A public and legal officer (on oath) responsible for legalizing the various judicial documents passing through his hands, and for giving private individuals advice related to their investments.
Offre de prêt - Loan offer
A contract by virtue of which the lender grants a real-estate loan to a borrower who accepts the conditions. This offer is valid for 11 days before acceptance. It must specify the identity of the borrower, the address of the real estate financed, and all the terms and conditions of the loan to be arranged, including a depreciation schedule.
Privilège du prêteur de deniers - Money 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 receive payment, and without necessarily obtaining the approval of the borrower. The privilège du pr&ecirec;teur de deniers is less expensive than a mortgage because it is exempt from the 0.5% public land record registration fee ("taxe de publicité foncière").
Promoteur - Property developer
An economic intermediary who commissions construction companies to erect buildings with a view to selling the properties himself.
Promesse unilatérale de vente - Unilateral agreement to sell
A legal document whereby the seller alone undertakes to sell while the buyer simply enjoys an option to buy, i.e. he is free to buy or not during a certain period. The sale will be completed the day he takes up the option. In exchange for this option, he must pay a deposit, usually equal to 10% of the selling price. If the buyer does not proceed with the acquisition, the seller retains the deposit, unless provided for otherwise by the avoidance clauses.
Taux Effectif Global (TEG) - Annualized percentage rate (APR)
An interest rate calculated on all the sums paid by the borrower during the life of his real-estate loan. It therefore includes the repayment installments, initial loan administrative fees, expenses related to the surety agreement and additional insurance premiums.
Taux - Interest rate
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Fixed :
An interest rate that does not vary over the term of the loan. |
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Adjustable or variable :
An interest rate calculated against a money market index (such as the Euribor) and adjusted periodically on the basis of the rule governing this revision. |
VEFA - Homes purchased from plan
VEFA is short for Vente en l'Etat Futur d'Achèvement, or homes purchased from plan. This technique allows the buyer to become the owner of real estate as and when the construction work progresses. The property developer makes his calls for funds on a contractual basis specified in the provisional sales agreement. The lender releases the funds in accordance with these calls for capital made by the property developer. |
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