Authentic Act: An act established or drafted by a public officer (a notary for example), complying with a specific formality, guaranteeing the regularity and truthfulness of the undertaking. It opposes the private act which is established between the parties themselves.
Private deed: Act passed between contractors without the intervention of a notary. A rental contract, a promise to sell or a booking contract may be established under private seal.
Pre-contract: Preparatory act for regulating the negotiation before the signature of the future definitive contract. It is a real contract and not a simple agreement of principles. We find mainly two types of pre-contract, the promise of contract and the Pact of preference.
Commercial lease or Lease 3/6/9: The commercial lease is a rental contract governed by the status of commercial leases (articles L. 145-1 et seq. of the trade Code). It involves the operation of a commercial or artisanal fund in the premises of the lease, the existence of a premises or a building and the registration of the tenant in the register of trade and companies or the repertoire of trades. This commercial lease materializes the renting of an office space, a business, an activity room by a tenant (the lessee) carrying on a commercial, industrial or artisanal activity. Under the contract of lease, the owner (lessor) guarantees him the enjoyment by payment of a rent. The lease is concluded for a minimum period of nine years.
In principle, unless otherwise provided by the Convention, the tenant may terminate the commercial lease subject to a specific formality (bailiff or RAR letter, registered mail with acknowledgement of receipt) and respect of a notice 6 Month (legal minimum) for the maturity of each 3-year period (triennial period), this is why the commercial lease is often called lease 3/6/9.
derogatory lease or precarious lease: The derogatory lease, also known as a short-term lease (or "precarious lease"), makes it possible to derogate from the rules normally applicable to commercial leases, which are more protective for tenants. Its duration is freely fixed by the parties from the moment it does not exceed three years. It may be renewed provided that the lease and its successive renewals do not exceed the term of 3 years (2 years for contracts renewed or signed before 1 September 2014).
Beyond that, if the tenant is left in enjoyment, is in principle formed a commercial lease.
Mixed lease: The joint lease applies to a property of which part is intended for the tenant's dwelling and the other part and the exercise of his or her profession.
Professional Lease: The professional lease relates to the professional use of premises for non-commercial activities (such as liberal or similar professions). Fixed for a period of six years, it may be tacitly renewed, without special formalities, for the same duration. When the lease period exceeds 12 years, it must be established by a notary.
Assignment of Lease: Contract by which the tenant assigns to another person (the transferee) the rights and obligations which he holds of his contract. In other words, the assignment of the lease is the replacement of the tenant by another. In the field of commercial leases, the lessee (the transferor) cannot give up his lease without the express permission of the owner and generally by remaining a joint guarantor of the obligations of the lease until the lease is completed. It may be accompanied by the payment of the sum to the assignor: "The right to the lease".
Loads: Administrative expenses are added to the amount of the rent and are intended to ensure the proper functioning of a property (management, administration, repairs, maintenance).
Turnkey: A "turnkey rental" operation is carried out for the own needs of a user who is a tenant.
Own account: An operation carried out for the own needs of a user who owns it.
Security Deposit: The deposit is the amount given to the lessor (owner) by the tenant at the time of entry into the premises. It is usually recovered at the end of the contract, subject to compliance with the terms of the said contract.
Direct debit: The domicile for a company corresponds to the administrative address (head office) and must be declared at the business formality Centre. Registration at RCS (Trade and Company register) or RM (trades directory) requires a direct debit. The enjoyment of the premises declared as head office must be justified. Without a direct debit, registration is refused. The address of the professional premises must appear on the commercial documents (quotes, invoices, etc.).
Institution receiving from the Public (ERP): Les are public or private places intended to accommodate clients or users other than employees. As a result, these spaces are subject to specific regulations in terms of accessibility, security and development.
First-Demand Warranty: In the same way as the security deposit or surety, the first application guarantee constitutes a guarantee of rent. The beneficiary (the lessor) is liable to require payment of a certain amount of money from a guaranteeing body, at the first request. The guarantor is usually a banking institution. As such, it constitutes an autonomous guarantee, under which the lessor can operate the guarantor, without necessarily ascertaining the failure of the tenant in accordance with his financial obligations as they arise from the lease. It is generally used in public procurement.
Commercial fund: The trade fund refers to a set of tangible elements (goods, equipment, etc.) and intangibles (clientele, reputation, right to lease, goodwill, etc.) formed in order to operate a professional activity.
HQE (high environmental Quality): A voluntary approach to the management of the environmental quality of building and rehabilitation operations. This approach is at the initiative of the real estate and construction professionals and is the subject of a certification procedure established by AFNOR (Association Française de standardization).
Eviction Allowance: The amount of money paid by the lessor, when it refuses the renewal of a commercial lease on commercial premises or when it takes over the rented premises, to the tenant of that lease, if however the latter satisfies the conditions of the right to Lease renewal. The amount of the indemnity shall be equal to the damage caused to the tenant by the refusal to renew his lease. It includes the market value of the commercial fund, the costs of moving and relocating, the fees and transfer fees.
ICC (Construction cost index): The ICC measures the price evolution of new buildings for major residential use every quarter. This is the VAT price included, paid by the owners of works to the construction companies. It excludes prices and costs related to the land (servicing, special foundations, etc.), as well as fees, promotion fees and financial costs. The cost of Construction index is an index applicable in particular for the calculation, in the revision and renewal of commercial leases, of the amount of the rent.
ILAT (rental index for tertiary activities): The ILAT is used for the revision of rents of professional leases. It applies to tenants who have an activity in the tertiary sector: the liberal professions and the activities carried out in logistic warehouses. Commercial or artisanal activities are excluded from its scope of application.
ILC (Commercial rent index): The ILC is used for the revision and renewal of rents for commercial leases. It applies to tenants who have a commercial or artisanal activity.
- NEW: Building built for less than 5 years;
- Restructured: Building having undergone, for less than 5 years, transformations affecting its structure and subject to construction permits;
- Recent: Building less than 10 years old;
- Renovated: Building which has undergone renovation work, for less than 5 years, without entering the field of the building permit;
- Modern: High performance building of more than 10 years;
- Old: Low-performance building over 10 years old.
- Facial: Rent per square metre per year, registered in the lease, expressed without taxes and expenses. Does not take into account the ancillary premises such as car parks, archives, inter-company restaurants (RIE)... In the case of progressive rent, the value chosen is the average of the values of the first three years or the firm duration of the lease;
- Average facial: Weighted average by the surface of facial rents. For quarterly rents, a moving average may be used to present smoothed evolutions;
- Economic: rent per square metre and per annum, expressed without taxes and excluding charges and adjusted to the advantages granted by the owner (rent allowance, construction work, etc.);
- "Premium": the highest facial rent, excluding convenience, for a product:
- Standard size compared to demand in the market sector,
- Excellent quality and offering the best services,
- In the best location for a given market;
- "Top": the highest facial rent of a given market, excluding convenience transaction. The top rent is not always a premium rent.
New/restructured: Premises that have never been occupied and belong to a new or restructured building, which has been delivered for less than five years.
Offer to one year: All premises available within one year, including the new non-pre-marketed offer and the second-hand offer released in certain ways (leases terminated).
Immediate offer: All vacant spaces immediately available.
New offer: All constructions and restructurings still available. They are analyzed according to the state of progress of the projects:
- New offer delivered: building whose construction works are completed;
- Work in progress: building whose construction has started. Pre-demolition work is not taken into account;
- Building permit obtained: permission to build obtained, usually accounted for after purging of the remedy of third parties;
- Building permit deposited: permission to build requested, under investigation;
- Project: Identified Intention to carry out a real estate transaction for which no application for authorisation has been filed.
Preference Pact: Agreement by which the owner of a real property undertakes, in the event that he sells the thing to a third party, to give the preference of that sale to the beneficiary. This type of agreement is often present in commercial lease contracts. Since the tenant wishes to sell his business to a third party, he must give priority to his owner.
Office Park: An office park is a set of existing, occupied or vacant offices. It includes offices in both public and private sectors.
In Île-de-France, the office park is periodically updated by the Regional Observatory for Real estate of enterprises of Île-de-France (theory), by the Regional Directorate of Equipment of Île-de-France (Adewale) from the official statistics on The new construction, the annual office tax, as well as the data on demolitions.
Portfolio: A set of real estate assets held (on different sites) by an investor in order to derive direct income or a capital gain.
Pre-marketing: Commitment of a user more than six months before the actual delivery of a building or building.
Service delivery: A service provision refers to the cash benefits that are paid in execution of certain contracts such as the loan, the terms of reference, the employment contract, the lease agreement or the contract of business that the Civil Code ranges in the "lease of work and industry (Art 1779 and S.).
Promise to Sell: Pre-contract prior to the signature of the Authentic Act, by which a seller (the Promiser) undertakes to sell real property on terms accepted by the purchaser (the beneficiary).
In practice, the purchaser (the beneficiary) pays an asset allowance generally representing 5-10% of the sale price. In the event of the actual conclusion of the transaction, this indemnity will be charged as an advance on the sale price. Failing this, it will either be returned to the beneficiary (e.g. in case of non-obtaining financing) or constitute compensation for the promise if the beneficiary fails.
Technical regulation (RT): The technical regulations set the consumption ceiling according to the user's activity and the location of the property. The latest technical regulation in force, the RT2012, fixes this maximum consumption for new office surfaces at 50 kWh/M2/year.
Second hand: Premises having already been occupied by a user, or delivered and never occupied for more than five years. We distinguish the premises:
- Renovated: Premises that have undergone renovation work;
- Very good condition: high quality, efficient premises;
- State of use: low-performing premises, commendable in the State;
- To renovate: low-performing premises and requiring renovation work.
Sublet: Lease agreement whereby a tenant, taking the position of lessor, obliges to provide a subtenant with the enjoyment of the property which he rents to his own landlord. Subletting may be partial or total. In residential tenancies subject to the law of July 6, 1989, subletting is not permitted unless the owner agrees.
Vacancy rate: The vacancy rate is the ratio between the offer immediately available and the existing park.
Property Tax: Tax that is owed by the tenant: tax or royalty of household refuse, scanning fee, lease right, etc.
Transaction: Rental or sale of real estate, to a user or an investor, concretized by the signature of a lease or a deed of sale, including the turnkey. In the event of suspensive conditions, the transaction shall be taken into account only after they have been lifted.