For expats buying in France, understanding the legal nuances is essential to ensure a smooth property purchase process. One such important regulation is the Carrez Law, which applies to properties in co-ownership and ensures transparency about the property’s size. Whether you’re buying a property in France for personal use or investment, here’s everything you need to know about the Carrez Law.
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What is the Carrez Law?
The Carrez Law, introduced in 1996, mandates that the precise measurement of a property’s private surface area be disclosed in the sales agreement and final deed for properties located in co-ownership buildings. This regulation helps buyers make informed decisions, as property prices in France often rely heavily on size.
The Carrez measurement applies specifically to properties with a surface area of 8 square meters or more, located in co-ownership buildings. It encompasses apartments, commercial premises, and professional spaces. However, individual houses and properties sold off-plan (VEFA) are exempt from this law.
Why is the Carrez Law important?
For expats buying a house in France, understanding the Carrez Law offers several benefits:
- Transparency: The Carrez Law ensures buyers know exactly what they’re purchasing by providing an accurate measurement of usable private space.
- Fair pricing: Since property prices are calculated per square meter, accurate measurements help avoid overpayment.
- Legal protection: If discrepancies arise regarding the property’s size, the Carrez Law provides legal recourse for the buyer.
When does the Carrez Law apply?
The Carrez Law applies to:
- Sales agreements: Including unilateral sale promises, purchase promises, and preliminary sale agreements.
- Co-ownership properties: Apartments, shared ownership houses, and commercial or professional spaces.
However, it does not apply to:
- Individual houses not part of a co-ownership.
- Properties with a total private surface area of less than 8 square meters.
- Properties sold under VEFA (purchased off-plan), which follow different regulations.
How is the Carrez surface area calculated?
The Carrez surface refers to the floor area of enclosed and covered spaces, provided they have a ceiling height of at least 1.8 meters. Certain areas are excluded from the calculation:
- Walls, partitions, and staircases.
- Door and window recesses.
- Areas with a ceiling height below 1.8 meters.
For example, in properties with sloping ceilings or attic spaces, only the sections with sufficient ceiling height are counted. This can make calculating the Carrez surface complex for certain properties.
Do you need a professional to measure the surface?
While the Carrez Law does not legally require sellers to hire a professional, doing so is highly recommended. Measuring the surface area involves legal complexities, and errors can have significant consequences. Professionals, such as certified property diagnosticians, use laser measuring devices and specialized software to ensure accuracy.
A professional report provides an official Carrez Certificate, giving buyers confidence in the stated measurements. Additionally, the professional assumes legal responsibility for errors, offering peace of mind for both buyers and sellers.
What happens in case of disputes?
Absence of measurement: If the Carrez measurement is missing from the sales contract, the buyer can request annulment within one month of signing the final deed. However, once the deed is signed, this right is forfeited.
Measurement errors: The Carrez Law allows for a 5% margin of error in favour of the seller. If the buyer discovers that the actual surface area is more than 5% smaller than stated, they can demand a proportional reduction in the sale price.
For example:
- If a property listed as 100 m² is found to be 94 m², the buyer can claim a price adjustment for the missing 6 m².
- Buyers have one year from the signing of the deed to initiate such claims.
Sellers, however, have no recourse if the actual surface area turns out to be larger than reported.
Implications for foreigners buying in France
For foreigners buying in France, the Carrez Law is a key regulation to understand, particularly when investing in co-ownership properties. Here’s how it can impact your purchase:
- Budget planning: Knowing the exact size of the property ensures you’re paying a fair price, avoiding overvaluation.
- Legal security: The law protects buyers from misleading property descriptions, which is especially important for expats unfamiliar with French regulations.
- Professional assistance: Hiring a professional to certify the Carrez measurement simplifies the process and reduces risk.
Practical tips for expats
- Hire experts: Work with trusted real estate agents and property diagnosticians to navigate French laws effectively.
- Check contracts thoroughly: Ensure the Carrez measurement is clearly stated in all sales agreements.
- Understand your rights: Familiarise yourself with legal recourse options in case of disputes over measurements.
- Plan for associated costs: Be aware that discrepancies in measurements can also affect notary fees, which are calculated based on the final sale price.
Final notes
The Carrez Law is an essential regulation for expats buying in France, ensuring that properties in co-ownership are sold with full transparency regarding their size. By understanding how the law works, you can protect yourself from potential disputes, ensure fair pricing, and enjoy a stress-free property purchase experience.
Whether you’re buying a property in France for personal use or as an investment, partnering with experienced professionals and understanding the Carrez Law will help you navigate the process confidently.
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