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What is “LOI Carrez”? How is it measured? - Vivre à Paris, a real estate agency “unlike any other”

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The Loi Carrez

What is “LOI Carrez”? How is it measured?

 

The LOI Carrez in brief...

In what case must one issue the certificate of measurement of the “Loi Carrez”?

The Loi Carrez indicates that in the case of a sale of a property, it is necessary that an expert determine the square meters of the lot or of the fraction of the lot before the purchase. The measurement must by issued to the purchaser by the seller before the signature of the initial sales agreement (promesse de vente).

What buildings fall under the requirements by the Loi Carrez?

All buildings that are subject to the statutes of the homeonwers association, no matter what their designation (lodging, office, warehouse . . .) are subject to the regulations of the Loi Carrez.

What is the reference of the language of the Loi Carrez?

Law number 96-1107 dated December 18, 1996 modifying the law of July 10 1965.

Decree number 97-532 from May 23, 1997.

What is the duration of the validity of the certification of the surface Loi Carrez?

The certificate is valid with no expiration of time, in the absence of the modification of the plan of the lot.

Who can validate the measurement certificate of Loi Carrez?

The law does not specifically state who is competent to perform the measurement of the surfaces for purposes of the Loi Carrez. In theory, any person can perform the measurement and validate the measurement of the Loi Carrez. In practice, the certificate is validated by any of the following: a real estate agent, a geometric expert, an architect or a company that performs real estate diagnostics.

Tout sur la loi Carrez…

What is Loi Carrez? How is it measured?

Promulgated on June 19, 1997, the LOI Carrez requires the seller of a lot of the homeowners association indicate the surface in the preliminary contract (or the initial sales agreement) and the final sales agreement (the final document signed at the notaire’s office). If there is a discrepancy as defined by the law, the seller can cancel the sale. Thus, when we speak of the surface of the LOI Carrez, we speak of the surface measured in accordance with the provisions as defined by the law.

What does the law state?

In article 46 of the law number 65-557 from July 10 1965, referencing the statute of building homeowners association states:

"art. 46. - Any unilateral promise of sale or purchase, any contract carrying out or noting the sale of a lot or a fraction of lot mentions the surface of the private part of this lot or this fraction of lot. The nullification of the act can be called upon on the basis of the absence of any mention of surface.

This surface is defined by the decree in Council of State declared and stated in article 47.

The provisions of the first subparagraph above are not applicable to the cellars, garages, parking lots or to the lots or fractions of lots of a surface lower than a threshold fixed by the decree in Council of State envisaged in article 47.

The beneficiary in the event of commitment to sell, promising it in the event of undertaking to purchase or the purchaser, can bring the action for annulment, at the latest with the expiration of deadline one month as from the final sales agreement signifying the realization of the sale.

The signature of the final sales agreement signifying the realization of the sale mentioning the surface of the private part of the lot or the fraction of lot involves the forfeiture of the right to engage or continue an action for annulment of the promise or contract which preceded it, based on the absence of mentioning this surface.

If the surface is higher than that expressed in the act, the surplus of measurement does not give place to any additional charge.

If the surface is lower of more than one twentieth than that expressed in the act, the seller, at the request of the purchaser, supports a reduction in the price proportional to the smaller measurement. The proceedings in reduction in price must be brought by the purchaser, within one year as from the final sales agreement signifying the realization of the sale, at least of forfeiture.

What is exactly necessary to measure in the surface for Loi Carrez?

The surface to be measured, known as “private”, is equivalent to that of the floors and buildings closed and covered after deduction of the surfaces occupied by the walls, partitions, steps and stairwells, gutters, downspouts, frames of doors and of windows and the parts of the buildings at a height lower than 1,80 m in height.

The Loi Carrez does not link, however, surface to the price, nor does it indicate that surfaces not entered are not counted. Generally, these surfaces bring more value significance to the lot of the homeownership. One should not, in addition, confuse the usable surface with the livable surface. The latter excludes cellars, basements, overhangs, garages, verandas, loggias and balconies, whereas by definition the Loi Carrez takes them into account since they are closed, covered and under at least 1,80 m in height.

What sales are regulated by the Loi Carrez?

All lots in joint ownership or homeowners association are regulated by the Loi Carrez. On the other hand, standalone buildings and single family homes not belonging to an allotment in joint ownership are not subject to the law. Similarly, in a homeowners association, lots of less than 8m², as well as cellars, garages, parking lots, parking spaces sold in separate lots are exempt from the Loi Carrez. All types of sales, including: sales in freehold, usufruct or in shell-property. Conversely, lots transferred by donation and succession are excluded from the Loi Carrez. Lastly, Gilles Carrez created an amendment to the Solidarity and Urban Renewal Law in order to exclude from the pervue of the Loi Carrez, sales of property purchased by an existing tenant. Measurements will be necessary, however, at the time of the sale for the tenant who will have exercised his right of first refusal, or from the signature of the initial sales agreement (promesse de vente) with another buyer.

What happens if the surface measurement is overestimated?

If the surface mentioned in the sales agreement has a discrepancy of more than 5%, the purchaser can demand a reduction in price proportional to the discrepancy. In practice, in the case of an erroneous measurement, buyers and sellers almost always find a compromise or middle ground, through mediation without the requirement of a judge or legal action. These negotiations are often concluded at the detriment of the seller, who may not find it beneficial or in his best interest. However, if the negotiations do not succeed, judicial action is taken to reduce the purchase price, which must be brought less than one year after the conclusion of the final sales agreement.

 

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