Dictionary of key real estate terms
Navigating the world of real estate can sometimes be like learning a new language. Between technical jargon, legal terms and financial expressions, it’s easy to get lost…
To assist you, we’ve created a clear, simple and practical dictionary of key real estate terms. Whether you’re a buyer, seller, investor or tenant, this guide is for you!
1. Buying and selling terms
Visit
The moment when a potential buyer discovers a property (house, apartment or plot of land), often accompanied by an agent.
Real estate appraisal
Professional appraisal of the value of a property.
Offer to purchase
Written proposal from a buyer to purchase a property at a given price.
Counter-offer
Response from the seller proposing a price or conditions different from the initial offer.
Compromis de vente
Pre-contract signed between seller and buyer committing both parties to conclude the sale, sometimes subject to certain conditions.
Délai de rétractation
Period during which the buyer can withdraw from the sale after signing the compromis without having to pay any compensation.
Suspensive clause
Condition that must be met for the sale to become final.
Acte authentique
Official document signed at the notary’s office, definitively validating the sale.
Notaire’s fees
All costs (taxes + fees) payable to the notaire when buying a property.
Net selling price
Amount actually received by the seller, excluding agency fees.
Mandat de vente
Contract by which an owner entrusts the sale of his property to an agency.
Negotiation
The process of agreeing the price and conditions of sale between buyer and seller.
2. Financial terms
Personal contribution
Amount of money that the buyer invests in his project from his personal funds.
Mortgage
Loan granted by a bank to finance a property purchase.
Interest rate
Percentage applied to the amount lent by the bank, which the borrower must pay to the bank in addition to the principal repayment.
Borrowing capacity
Maximum amount a buyer can borrow based on income and circumstances.
Monthly instalments
Total amount the borrower has to pay the bank at each instalment, including principal, interest and insurance.
3. Investment terms
Rental yield
Ratio between annual rental income and property price.
Cash flow
Difference between revenues generated (rental income) and expenses.
Real estate capital gains
Gain realized on the resale of a property compared with the purchase price.
4. Legal and administrative terms
Real estate diagnostics
All mandatory inspections for sale or rental (asbestos, lead, DPE, electricity, gas, sanitation, etc.). Not all diagnostics are mandatory, depending on the location of your property.
DPE (Diagnostic de Performance Énergétique)
Indicates a home’s energy consumption.
Servitude
Constraint imposed on a property (e.g. right of way to a neighboring parcel, passage of a pipeline under the ground, etc.).
Co-ownership
Organization of a building shared by several owners.
Co-ownership charges
Common expenses for building maintenance.
5. Rental terms
Lease
Rental contract between landlord and tenant.
Security deposit
Sum paid by the tenant at the start of the lease to cover any damage that may occur during the term of the lease. The security deposit is returned to the tenant at the end of the lease if the property is returned in its original condition.
Inventory of fixtures
Document describing the state of the property on the tenant’s arrival and departure.
Rent including service charges
Amount including rent + service charges.
Advance notice
Minimum period to be respected before leaving a property between the letter informing the landlord of your departure and the end date of the lease.
To sum up
Real estate is based on many specific terms, but once understood, they become real allies in securing your projects.
We’ve only listed the main terms here, and we’ll be happy to answer any
questions you may have about a legal or technical term in your real estate project.
Our advice : keep this dictionary handy when you’re on the move – it’ll save you time… and peace of mind!
Need help or guidance with your real estate project in the Jura and surrounding areas?
Our team is on hand to guide you every step of the way.
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Erwan de Fraissinette
06 99 57 09 05
contact@lechene.ovh
