What is the Loi Carrez in French Property Law?
Originally posted on & updated on 26th November, 2024
In our latest article about buying property in France, we look into the Carrez Law, a crucial regulation that ensures the accuracy of measurements for an apartment’s main rooms and living areas. This law plays a vital role in maintaining transparency and fairness in residential property sales, particularly for homes in co-ownership.
In French property law, the Loi Carrez, or Carrez Law, is an essential French law that establishes how the living space of a property should be measured and disclosed for real estate transactions, particularly for condominiums (lots de copropriété). Enacted in 1996, this law ensures transparency in real estate by requiring sellers to accurately calculate and report the floor area of a property being sold or marketed.
What is the Loi Carrez in France?
The Loi Carrez is named after Gilles Carrez, a French politician and public finance expert who sponsored the legislation. It aims to protect buyers by ensuring they receive accurate information about the property size they are purchasing. This law is especially important for properties that are part of a co-ownership, such as apartments in co-ownership or a building.
How is the Living Area Defined?
Under the Loi Carrez, the living area is defined as the enclosed floor space with a ceiling height of at least 1.8 meters (about 5.9 feet). This definition excludes spaces like balconies, terraces, garages, cellars, and attics that cannot be used for living. Only the portions meeting the minimum height requirement are included for areas with sloped ceilings in converted attics and small studios in Paris for example when prices per square meter are astronomically high, and every centimetre is valuable real estate.
The measured area must be explicitly mentioned in the sale contract (compromis de vente) to protect buyers from overpaying based on claims of exaggerated or inaccurate property size. This ensures that buyers are fully informed about the size of the property they are buying.
Protecting Buyers and Investors
One of the key aspects of the Loi Carrez is the protection it offers buyers; if the stated Loi Carrez area is more than 5% smaller than recorded, buyers may be entitled to a price reduction. This adds a level of protection for the buyer and ensures vendors are held accountable for providing accurate information. It’s important to note that the Loi Carrez only applies to properties in co-ownership, not to standalone houses.
Professional Measurement Required
The Loi Carrez measurement is usually carried out by a certified professional, ensuring accuracy and compliance with the law. This standard helps create trust in the property marketplace by providing clear and consistent information about a property’s liveable and usable space.
Importance of the Loi Carrez
For buyers, it ensures transparency and accuracy in selling properties that are part of a co-ownership. It helps to protect buyers from being misled about the size of the property they are purchasing and provides a legal recourse if the measurement is found to be inaccurate.
For sellers, complying with the Loi Carrez is essential to avoid potential legal disputes and to ensure a smooth and fair transaction.
The Loi Carrez is an important piece of legislation in France that you may hear about from time and time or notice on descriptions in listings of properties for sale; it contributes to creating trust in the property market and ensures that buyers and sellers are treated equally fairly.
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