Glossary

The useful vocabulary around your property, in 68 terms: upkeep, purchase, financing, taxation, co-ownership, rental. Every notion explained simply, and French Realty points you to the right partners.

Resources

French Realty upkeep10 terms

How we work: a dedicated contact and business introducer who makes every useful service available to you, individually quoted.

Dedicated contact

Your single point of contact at French Realty, known in-house as the dedicated concierge. They know your property and your preferences, line up the right partners and providers, and report back on every task.

Business introducer

For services it does not perform itself, French Realty connects you with qualified partners. We introduce and coordinate; the partner delivers the service under its own responsibility.

Introduction

Pointing you to the right professional (notary, broker, buying agent, craftsman, caterer) and coordinating the exchanges, without acting in their place or collecting on their behalf.

Property care

The care given to a property you already own or occupy, and the coordination of all useful services around you: oversight, upkeep, providers and presence on site.

Personal study

The starting point of most projects: a few questions about your project, timeline and constraints, and a concrete step-by-step action plan. The study is complimentary and can be requested online.

Purchase journey

The ten phases of buying property in France as a non-resident, from framing the project to owning it, broken down into steps. Signed in to your space, you move each step on your board and track your progress.

Hours balance

The time already paid for that remains available to you, shown in your client area. Each visit is drawn from it by the time actually spent. Your hours never expire.

Payment before execution

Each accepted quote is paid online, securely, before the mission starts: you always know what you are committing to. Travel and coordination included.

Individual quote

Every French Realty mission is priced through an individual quote, approved by the client before anything starts. French VAT of 20 percent is added at payment. External partners' fees are billed separately at their actual rate.

Activity report

After each task, a clear summary of the actions taken, with photos when useful.

Purchase offer

Written document by which you state your intention to buy a property at a precise price and on precise terms. Once accepted and containing the essential terms of the sale, it can bind both parties: hence the value of drafting it with advice before signing.

We point you to the partners who secure your offer before any commitment.

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.

Your dedicated contact can connect you with a notary experienced in non-resident files to secure your preliminary agreement.

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.

We can point you to a partner notary to review your promise of sale before signing.

Option fee (immobilisation)

Sum paid by the buyer to the seller when signing a unilateral promise of sale, often around 10 percent 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.

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.

Your dedicated contact can connect you with a broker specialized in non-resident clients to check amounts and deadlines.

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.

We can have your file reviewed by a partner professional during the cooling-off period.

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.

Your dedicated contact can coordinate a remote signature by power of attorney, with a French- or English-speaking notary.

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.

We help you prepare a power of attorney from your country of residence, together with your notary.

Purchase closing costs

All costs to plan on top of the price: notary fees, disbursements and land registry taxes, plus agency or search fees where applicable. They usually amount to 7 to 8 percent of the price for existing homes, 2 to 3 percent for new builds.

Simulate your closing costs to size your complete budget.

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.

Your dedicated contact connects you with a bilingual notary and coordinates the paperwork.

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.

If you wish to acquire a property, your dedicated contact connects you with a partner buying agent.

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.

Easement

Burden imposed on a property for the benefit of another property or the public: right of way, pipeline, view. It appears in the title deed or the co-ownership by-laws and passes with the property, whoever owns it.

Mortgage (lien 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 formalizes the end of the guarantee.

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.

Your dedicated contact connects you with a broker experienced in non-resident financing.

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.

We can point you to a partner to size your down payment and financing plan.

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.

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.

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.

A partner broker reviews your loan offer line by line before you sign.

Loan security

Security requested by the bank to cover the loan: guarantee from a specialized body, mortgage or lender's lien. It determines the cost of the security and the formalities to expect on resale.

A partner broker compares the securities offered to you and their real cost.

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.

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.

Your dedicated contact coordinates the preparation of your file with a specialized partner.

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.

We point you to a bank suited to non-residents and coordinate your appointments on site.

Owner taxation13 terms

Taxes, income, structures: what an owner, in particular a non-resident, should know.

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.

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 rents and gains are taxed.

Tax representative

Accredited intermediary who represents you before the French tax administration. Depending on your country of residence, appointing one is mandatory, notably when selling a property or receiving French rental income.

We point you to a partner who fulfils this role or has it fulfilled.

Property ownership tax

Local tax paid each year by the owner as of January 1st, 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. A non-resident's property is often treated as a second home.

We can centralize your administrative mail and make sure deadlines are met.

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.

We point you to a partner to choose between the micro and real regimes.

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.

We point you to a specialist to structure a furnished rental suited to your country of residence.

Micro-BIC

Simplified tax regime for furnished letting: income is taxed after a flat-rate allowance, without detailed bookkeeping, within revenue thresholds. The rules for furnished tourist lets have been tightened recently: the right regime, micro-BIC or real, is chosen with an accountant based on your situation.

We connect you with a partner accountant used to non-resident landlords.

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.

Simulate your capital gain before a resale, or request an introduction to an expert.

Social levies

Contributions levied on property income and real estate gains, with an overall rate for individuals in the region of 17 percent. How they apply to non-residents depends on tax treaties and on the applicable social-security legislation.

A partner tax adviser checks what applies to your situation and country of residence.

Wealth tax on real estate (IFI)

Annual tax due when the net value of your French real estate exceeds 1.3 million euros, on a progressive scale. It applies to non-residents for their properties located in France.

A partner tax adviser can tell whether your estate is liable and how to plan for it.

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.

Your dedicated contact can connect you with a tax lawyer to assess whether an SCI makes sense.

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.

We can point you to a specialized adviser to assess whether split ownership fits your situation.

Your co-ownership6 terms

Keep track of the building you own a unit in, without having to be there.

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.

We follow your building's life on your behalf and keep you posted on what concerns your unit.

Co-ownership by-laws

Deed organizing the co-ownership: purpose of the units, rules of use, allocation of charges, powers of the bodies. It binds any buyer and should be read before purchasing, along with the meeting minutes.

Before a purchase, we can have these documents gathered and translated for your review.

Ownership shares (millièmes)

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.

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.

We can check your charge calls and coordinate their payment from abroad.

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.

Your dedicated contact can liaise with the managing agent and relay your day-to-day requests.

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. An absent co-owner can be represented by proxy.

With a proxy, your dedicated contact can attend the meeting and voice your position on the matters you entrust.

Technical and surveys4 terms

The documents and measurements that describe the condition and make-up of your property.

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.

Your dedicated contact arranges the on-site appointments and sends you a clear report.

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.

We can coordinate a surveyor's visit and follow up on a works plan for your property.

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.

Planning permission

Prior authorizations required for certain works: prior declaration for minor changes (façade, fence, small extension), building permit beyond that. Local planning rules determine what is possible on your plot.

We coordinate the file preparation and the town-hall formalities with partner providers.

Renting out your property16 terms

Leases, guarantees and day-to-day management, with our specialist partners.

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.

Your dedicated contact can point you to a partner to choose between unfurnished and furnished rental.

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.

We connect you with a partner manager for a turnkey furnished rental.

Furnished tourist let

Furnished home let to a passing clientele who does not settle there, for short durations (seasonal and short-stay lets). This status triggers declaration duties and, in many cities, specific caps or authorisations.

Your concierges prepare the property and the formalities; turnkey management is carried by a specialist partner.

Furnished tourist let declaration

Mandatory declaration of the furnished tourist let to the town hall, which issues a registration number to show on listings. Failing to declare exposes the landlord to fines, and some platforms check the number before publishing.

Your concierges put together the declaration file and track the registration number, billed on hours.

Change of use

Administrative authorisation required, in tight cities such as Paris, to let a home that is not your main residence short-term beyond the allowed caps. It usually requires compensation, by creating or buying an equivalent commercial premise.

The procedure is carried by a specialised partner firm; French Realty connects you and coordinates.

120-night cap

Annual short-stay letting cap for a main residence in a number of cities, including Paris: in principle 120 nights a year. Beyond it, you must move to an authorised seasonal use, with a change of use and compensation.

Your concierges track your nights and alert you before the cap; the right regime is decided with a partner.

Tourist tax

Tax charged on short stays, due from the guest and collected by the municipality, either directly through the platform or through a declaration by the landlord depending on the case. It is declared and paid on a municipal calendar.

Your concierges prepare your tourist tax declaration; collection follows your city's channel.

Rent control

Cap on rents for new leases in certain high-demand areas, supplemented in a few cities by an absolute ceiling per square meter. Breaching it exposes the landlord to penalties.

Recoverable service charges

Building expenses the landlord may pass on to the tenant under a legally limited list, by monthly provisions, with an annual adjustment. Other expenses remain with the owner.

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.

Your dedicated contact can coordinate securing your leases and tenant move-ins remotely.

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.

Your dedicated contact can organize remote inventories through a trusted provider.

Rental vacancy

Period during which a rental property produces no rent, between two tenants or for lack of marketing. It directly weighs on net yield and can be managed: preparing the property, rent level, responsive management.

Unpaid rent insurance (RLA)

Insurance taken out by the owner to cover unpaid rent and often tenant damage and legal protection. Non-residents, more exposed to remote management, frequently use it; the insurer sets its own tenant eligibility conditions.

Non-occupying owner insurance (PNO)

Specific insurance for an owner who does not live in the property, whether rented or vacant. It covers their liability and dedicated guarantees (water damage, fire, neighbours' claims) where the tenant's insurance falls short or is missing.

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.

We connect you with a trusted local property management partner.

Rental yield

Ratio of annual rents to the property value: gross, before expenses; net, after charges, taxes, insurance and management fees. It is the benchmark to compare investments, to be weighed against their tax treatment.

Simulate the gross and net yield of your property, rents and charges included.

A term to clarify?

Your dedicated contact answers your questions and connects you with the right people. Introductions come at no charge; French Realty support is individually quoted.