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3Some information not to neglect
Display of energy performance in real estate listings
Starting from January 1, 2011, property owners and agencies selling or renting a property must include the Energy Performance Certificate (DPE) in real estate listings. Energy-related information about the property must be displayed in press publications, online or on paper, as well as on announcements in agency windows.
The electrical diagnosis comes into effect on January 1, 2009
The application decree for the electrical diagnosis was published on April 24, 2008, in the Official Journal. It comes into effect on January 1, 2009. It is carried out in the private parts of premises for residential use and their dependencies, in case of sale of all or part of a dwelling. It complements the real estate technical file. The condition of the internal electrical installation will be examined for installations over 15 years old and must be carried out by a certified professional to assess risks that may compromise the safety of individuals. The diagnosis is valid for three years and must be attached to any new promise or deed of sale.
The gas diagnosis now mandatory
From November 1, a “gas diagnosis” is required for any sale operation involving residential properties with a gas installation over 15 years old. This state of the internal gas installation, with a validity period limited to 3 years, includes:
- The condition of fixed heating and hot water production appliances or those using a thermal engine, powered by gas
- The condition of fixed gas supply pipes and their accessories
- The layout of premises where gas appliances operate, allowing ventilation of these premises and the evacuation of combustion products. This aims to prevent certain risks associated with gas use (leaks, fires, intoxication, etc.).
Energy performance diagnosis Originally scheduled for July 1, 2006, the application of the Energy Performance Certificate (DPE) is postponed to November 1, 2006, for sales. The DPE must be annexed to any promise of sale or, in the absence of a promise, to the authentic deed of sale. This is indicated by the application decree for this diagnosis. These diagnoses carried out by professionals will identify the estimated energy consumption of homes and buildings for sale and will allow the owner to identify the most effective energy-saving measures.
DEED OF SALE: Deed recording the definitive transfer of ownership between the seller and the buyer. The notarial form is mandatory for the needs of land advertising. On average, 8 to 9 weeks are necessary between the sales agreement and the deed of sale to allow the buyer to obtain possible credit and the notary to gather the necessary administrative documents for the establishment of the deed.
ASBESTOS: Every selling owner is obligated to search for the presence of asbestos, measure its degree of degradation, and if necessary, carry out asbestos removal work. The regulations concern all buildings for residential or business use, in condominiums, both for common areas and private areas. – check for the presence of asbestos in coatings: for buildings built before January 1, 1980 – check for the presence of asbestos in thermal insulation: for buildings built before July 29, 1996 – check for the presence of asbestos in false ceilings: for buildings built before July 1, 1997 Before signing the sale at the notary’s office, the seller will be asked to provide the “asbestos” diagnosis.
ADVERTISEMENT: Small ads placed by a real estate agent must be truthful, under penalty of false advertising. Their cost remains exclusively at their expense: they cannot request any reimbursement or contribution from their client. The ad must mention the VAT-inclusive amount of the commission charged to the buyer, if it is not included in the price.
VISIT VOUCHER: Whether for sale or rent, the real estate agent can have the candidate (tenant or buyer) sign a visit voucher. It is a document by which the client of the real estate agency acknowledges having visited a property through its intermediary.
PROFESSIONAL CARD: The real estate transaction activity has been strictly regulated by the Hoguet law since 1970. Beyond the obligations of morality, the agent must justify professional qualifications – diplomas or experience – professional liability insurance, and financial guarantee for the funds held. If he meets all these conditions, the prefecture issues him a professional card that authorizes him to practice. This card is renewed every year after inspection by the authorities.
SALES AGREEMENT: The sales agreement, also sometimes called a “synallagmatic promise of sale,” is a preliminary contract to a final sale. However, the seller and the buyer already commit firmly and definitively. The transfer of ownership and payment are simply postponed to a later date. The sale is virtually concluded, but its effects will only occur later.
SUSPENSIVE CONDITIONS: Suspensive clauses in a sales agreement have the effect of suspending the sale until the realization of a future and uncertain event. Thus, if the event occurs, the sale can take place; if it does not occur, the promise or sales agreement will be canceled – and its beneficiary will recover the amounts paid. A preliminary contract or sales agreement is generally accompanied by the suspensive condition of obtaining a loan by the buyer. Under this principle of contractual freedom, as long as the seller and the buyer agree, a wide variety of suspensive conditions can be included in the preliminary contract (for example, the prior resale by the beneficiary of a promise of his previous housing).
FEES: Real estate agent fees have been free for eleven years and vary between 4 and 8% of the sale amount. There is no official rate. However, the agency is obliged to display its fee schedule in a visible manner for the clientele.
IAC: Information for buyers and tenants (IAC) on risks and disasters. The law of July 30, 2003, concerning the prevention of technological and natural risks and the compensation of damages, introduced the obligation to inform buyers and tenants of real estate by sellers and lessors about the risks to which a property is subject and the disasters it has suffered. From June 1, 2006, on the occasion of each real estate transaction, the buyer or tenant will be informed, by his seller or lessor, of the risks concerning this property, as well as the disasters that have given rise to compensation under a recognition of natural disaster.
CARREZ LAW: Passed in December 1996 and applicable since June 1997, the Carrez law aims to protect buyers of lots in co-ownership. Thus, any promise of sale must indicate the area of the property under penalty of nullity. If the actual area is more than 5% less than that indicated in the sales agreement, the buyer can claim a price reduction, calculated in proportion to the missing square meters. What enters into the calculation of the area: – the surface of closed and covered rooms with a ceiling height of 1.80 m What does not enter into the calculation of the area: – height < 1.80 m – cellar, parking, balcony, terrace – interior staircase – window protrusion, door embrasure The law does not require hiring a professional, but to avoid problems and legal action, it is advisable to contact a surveyor.
SRU LAW: (Solidarity and Urban Renewal) Law of December 13, 2000, which establishes a withdrawal period of 7 days (article 271-1 new code of construction and housing) for the buyer from the day after the first presentation of the letter notifying him of the sales agreement. The right of withdrawal is exercised by registered letter with acknowledgment of receipt or by any other means providing equivalent guarantees.
AGREEMENT MANDATE: Throughout the duration of the sales mandate, you retain the option of seeking a buyer yourself by directing requests addressed to you personally to the agency. In the event that the sale is made with a buyer presented by you, the agency’s remuneration is automatically reduced by half, increasing the proceeds from your sale. However, the agency remains obliged to carry out all legal and administrative formalities resulting from the sales mandate.
EXCLUSIVE MANDATE: You can entrust exclusive sales to a single real estate agent to find a buyer as quickly as possible. Generally, signing this type of mandate will encourage the real estate agent to make more efforts to sell your property. However, be aware that the exclusive mandate must be limited in time. After three months, it can be terminated at any time, regardless of the initially set duration, provided it is done by registered letter with acknowledgment of receipt with a notice period of fifteen days. The exclusive mandate prohibits you from dealing directly with a buyer, even if it is one of your relatives. If you deviate, the agency could claim damages.
SIMPLE MANDATE: It allows you to entrust your property to several agencies while reserving the possibility of concluding the sale yourself with a buyer you have found on your own.
PURCHASE OFFER: The purchase offer contains the price proposed by the buyer and often a validity period, generally one or two weeks, after which it becomes void. Since June 1, 2001, any purchase offer accompanied by the payment of a sum of money by the buyer is prohibited under penalty of nullity. The buyer is committed as soon as his offer and the conditions it contains are accepted by the selling owner: it is considered that there is agreement on the thing and the price, the contract being thus formed. The buyer cannot freely renounce the acquisition without engaging his contractual responsibility, and risks being claimed damages unless, of course, he asserts, if necessary, the non-fulfillment of a suspensive condition provided in the offer.
UNDER PRIVATE SEAL: Said of an act signed without the intervention of a notary. A preliminary contract or sales agreement drawn up by a real estate agent and ratified under private seal is valid. But the final sale must be necessarily recorded by an authentic act, established by a notary.
LEAD ACCESSIBILITY RISK: The risk status is an expertise to identify coatings containing lead and describe their state of deterioration. It also specifies the lead concentration. This condition must have been established less than a year before the promise of sale or purchase or the contract realizing or recording the sale. A lead accessibility risk status must be attached to any unilateral promise of sale or purchase, to any contract realizing or recording the sale of a building:
- used in whole or in part for housing,
- built before January 1, 1948,
- and located in a lead exposure risk area delimited by an order of the department prefect.
