GET TO KNOW THE REAL ESTATE LEXICON
AUTHENTIC ACTThe authentic instrument is that which has been received by a notary according to the solemnities required. It can now be prepared electronically. We talk about it most of the time about the bill of sale.
BENEFICIARYMeans the person who is the recipient of a unilateral promise to sell.
VISIT VOUCHERAcknowledgment by buyers of having visited a property through a real estate agency.
PROFESSIONAL CARDAdministrative document that must be held by any natural or legal person who engages or assists in the purchase, sale, rental, management of the property of others.
PENALTY CLAUSEClause by which a person undertakes to pay a lump sum in the event of non-performance of the main obligation to which he has undertaken. This clause can be found for example on a promise to sell.
COMPROMISE OF SALESynallagmatic sales contract, most often received by private deed. (See also "Promise to sell").
RENTAL AGREEMENTContract by which one of the parties undertakes to give enjoyment of a thing for a fixed or indefinite period, subject to the payment of an agreed price.
SUSPENSIVE CONDITIONSEvent beyond the control of the parties to which the execution of their commitments is suspended, such as for example the obtaining of a loan by the purchaser.
TIME LIMIT FOR REFLECTION OR RETRACTIONThe purchaser of a property for residential use has a right of withdrawal or reflection (as the case may be) for 7 days. During this period, no amount of money can be paid, except when the private deed is received by a professional who must return the funds received within 21 days in case of withdrawal from the buyer.
PREEMPTION RIGHTSRight allowing a private person or a public body to acquire a property by replacing the original buyer.
FEESCompensation received in return for the provision of a service by a professional. Each real estate agency must display its prices.
MORTGAGEGuarantee granted on real estate for the benefit of a lender of money. This guarantee, received by notarial deed and published in mortgages, entails costs for the borrower.
CAPITAL ALLOWANCEAmount paid into the hands of the real estate agent or notary, either on the occasion of a unilateral promise to sell, or on the occasion of a synallagmatic promise to sell which will remain with the seller in the event of non-completion of the sale.
ENJOYMENTFaculty to use real estate or to collect the fruits thereof.
MANDANTPerson who gives to another (the agent) the power to perform on his behalf one or more legal acts.
MANDATE OF SALEAct by which the principal gives power to the agent to sell property. In practice, the powers conferred by the owner are limited to the search for a buyer. It is therefore a search mandate which will imply that the compromise is regularized by the seller himself.
PROMISE TO SALEPreliminary contract signed by the seller and the purchaser of a property. It can be drawn up, either by private signature, or before a notary. There are two kinds of promise to sell:
- The unilateral promise to sell: this formula does not bind the buyer
- The bilateral promise (synallagmatic contract) also called compromise of sale: this type of agreement commits the buyer in the same way as the seller.