When you buy property in Paris, even though you buy it "as is", many guarantees are in place to protect you as buyer. Let's explore what those guarantees are.
🥐 Legal Guarantees Depend on the Property's Age
Once the legal guarantees (builder's guarantees) attached to the years since construction have expired – typically the first 10 years following the construction of a property (apartment or house) – there are no further guarantees. The rule remains that in an "ancient" property, the buyer is not guaranteed. They purchase as is and acknowledge familiarity with the property, having seen and visited it. It is simply the principle of buying a second-hand property.
🥐 What is Meant by an "Ancient" Property in France?
There is no precise legal definition of an ancient apartment. In essence, it is defined in contrast to newly built housing. An "ancient" property is, quite simply, one that is not new, more precisely one that has already been inhabited. An "ancient" property can also be defined as a second-hand purchase.
So if you are looking for one of those typical Parisian apartments, with hardwood floors, moldings or beams and a chimney, it is very likely that you will be dealing with a 19th century (or older) "ancient" property.
🥐 Buyers are Increasingly Protected
Buyer protection now involves better information about the property being purchased. The idea is that the buyer, as an individual, commits with full knowledge and has additional guarantees beyond the simple purchase.
As highlighted in my article, How Do French DPE and Other Diagnostics Impact Property Buyers?, the law now requires the seller to provide the buyer with documents intended to clarify the buyer's consent:
👉 Size obligation: The famous Carrez law
If we go back to the beginning, the very start of buyer protection begins with this law in 1997, which requires the seller to indicate the surface area of the apartment. This law requires indicating the surface area of the unit sold in the sales agreement and then in the deed of sale.
This law stipulates that if the actual area is more than 5% less than the area mentioned in the deed, the buyer can, within one year after the sale, request a price reduction from the seller, proportional to the number of square meters missing.
Note that even if the buyer of an "ancient" property is supposed to purchase the property as is, they still have recourse in case of a surface area error. But in reality since Carrez diagnostics are done by professionals, it is very unlikely that a surface area will occur.
👉 A plethora of diagnostics for a peaceful purchase
To sell a property, the seller must provide the buyer with technical assessments. Depending on the construction dates or installations or geographical location, these may include:
The state of risks and pollution;
Diagnostics for lead, asbestos, termites, gas, electricity, and sanitation, as well as energy performance and the presence of a risk of dry rot.
Please read my article, How Do French DPE and Other Diagnostics Impact Property Buyers? for more details.
👉 Obligation to Provide the "Pré-Etat" and the "Etat"
The buyer of an apartment unit must receive a "pré-état" before the Preliminary Contract (Promesse de vente) is signed and then, before the final deed of sale is signed, an "Etat". The "Etat" must include three parts, and the third is of particular interest to the buyer.
The third part of the Etat mentions the amounts that will be the responsibility of the new co-owner, i.e., the amounts that the buyer will have to pay after the sale. This allows the buyer to know:
The amount of provisions for charges provided for in the building's budget forecast that you will have to pay;
The amount of remaining provisions for works that have already been voted on, payment of which is made at the discretion of calls for funds that are spread over time;
The approximate amount of cash advances, i.e., funds intended by the building regulations or general meeting to constitute reserves.
The Etat includes a multitude of information:
The summary sheet of the building;
The building regulations and the descriptive statement of division as well as any acts modifying them, if they have been published;
Minutes of the general meetings of the last three years;
The amount of current charges in the budget forecast and out-of-budget charges; forecast paid by the selling co-owner for the two accounting years preceding the sale;
The amounts that may be due to the building management ("Syndic") by the buyer;
The overall state of unpaid charges within the association of co-owners and the debt to suppliers;
When the association of co-owners has a works fund, the amount of the part of the works fund attached to the main lot sold and the amount of the last contribution to the fund paid by the selling co-owner for their lot.
To conclude: So now you know that even though you buy your Parisian dream property "as is", with all the information you are provided there should not be any unpleasant surprise after you get the keys to that apartment, And when you team up with me, you can rest assured that I thoroughly review all the above mentioned legal documentation to ensure, as much as possible, that everything is in order.
Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! 🥐 🇫🇷
As always, I love to read your comments and answer your questions.
Comments