Understanding the Carrez Law: Essential guide to Loi Carrez in France

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Understanding the Carrez Law: Essential Guide to Loi Carrez in France

When it comes to purchasing property in France, understanding the Loi Carrez, or Carrez Law, is crucial for both buyers and sellers. This comprehensive guide will delve into the intricacies of this important French law, exploring its impact on property transactions, measurement methods, and buyer protection. 

What is the Loi Carrez and why is it important for property buyers in France?

Definition of Loi Carrez

The Loi Carrez, named after Gilles Carrez, is a French law enacted on 18 December 1996 that governs the measurement and declaration of property surface area in France. This law specifically applies to the sale of fractions of lots in co-ownership properties, such as apartments (name for condominiums in France). The Loi Carrez requires sellers to provide accurate measurements of the property’s private area, ensuring transparency and protecting buyers from potential misrepresentation of the living space.

 

Historical background of the Carrez Law

The Carrez Law was introduced to address issues of inconsistent and often misleading property measurements in the French real estate market. Prior to its implementation, buyers frequently encountered discrepancies between the advertised and actual usable surface area of properties. This led to disputes and, in some cases, significant financial losses for buyers who discovered that their newly acquired property was smaller than expected. The law aims to standardize the measurement process and provide a clear, legally binding definition of the superficie Carrez, or Carrez area.

 

Importance for property transactions in France

The Loi Carrez plays a crucial role in French property transactions, particularly for apartments. It ensures that buyers receive accurate information about the size of the property they are purchasing, which directly impacts its value and utility. The law applies to all properties where the Carrez area is greater than 8sqm, and it requires sellers to include the precise Carrez measurement in the deed of sale. This transparency not only protects buyers but also helps prevent disputes and potential legal issues after the sale has been completed.

 

 

How is the Carrez Law surface area calculated?

*In blue area included in Loi Carrez 

*In grey area not included in Loi Carez 

Understanding the calculation method

The Carrez Law surface area calculation is based on the enclosed floor area of the property that is directly accessible and usable by the occupant. This measurement focuses on the private areas of the property and excludes certain spaces that are considered non-habitable or of limited use. The calculation method takes into account the interior dimensions of the rooms, measured at floor level and between the walls (compare to how the US sqft are measured). It’s important to note that the Carrez measurement is not the same as the total floor area or the habitable surface area, as it follows specific rules and exclusions.

 

Areas included in Loi Carrez measurements

The Carrez Law includes several key areas in its surface area calculation. These typically encompass the main living spaces such as bedrooms, living rooms, kitchens, and bathrooms. Enclosed balconies that are integrated into the living space are also included. Additionally, built-in storage spaces, closets, and alcoves are generally part of the Carrez measurement. Any area with a ceiling height of at least 1.80 meters (5.11ft) is included in the calculation, which is particularly relevant for spaces under sloped roofs or in attics.

 

Excluded areas in Carrez Law calculations

Several areas are excluded from the Carrez Law calculations, even if they contribute to the overall utility of the property. These exclusions help to focus the measurement on the primary living spaces. Areas that are typically excluded include cellars, garages, parking spaces, and unenclosed balconies or terraces. Staircases and stairwells are also excluded from the Carrez measurement. Additionally, any area with a ceiling height of less than 1.80 meters is not included, which often affects portions of attics or spaces under sloped roofs. It’s worth noting that while these areas are excluded from the Carrez measurement, they may still be valuable features of the property and could be included in other types of surface area calculations.

INCLUDED AREASEXCLUDED AREAS
– Bedrooms, living rooms, kitchens, bathrooms.– Cellars, garages, parking spaces.
– Built-in storage spaces and closets.– Unenclosed balconies and terraces.

– Enclosed balconies integrated into living space

– Staircases and stairwells.
– Areas with a ceiling height of at least 1.80 meters (5’11”)– Areas with a ceiling height less than 1.80 meters (e.g., portions of attics).

 

What are the differences between Loi Carrez and other property measurements?

 

Loi Carrez vs. total floor area

The Loi Carrez measurement differs significantly from the total floor area of a property. While the total floor area includes all spaces within the property, regardless of their usability or accessibility, the Carrez area focuses specifically on the private, enclosed, and directly accessible living spaces. This means that areas such as balconies, terraces, gardens, and common areas in co-ownership properties are included in the total floor area but excluded from the Carrez measurement. The distinction is crucial for buyers, as the Carrez area more accurately represents the usable living space of the property, which is often a key factor in determining its value and suitability for the buyer’s needs.

 

Comparison with Boutin Law measurements

The Boutin Law, introduced in 2009, is another important measurement standard in French real estate, particularly for rental properties. While both the Carrez and Boutin laws aim to provide accurate property measurements, they serve different purposes and have some distinct differences. The Boutin Law focuses on the habitable surface area of rental properties, including spaces with a ceiling height of at least 1.80 meters. Unlike the Carrez Law, the Boutin measurement includes areas such as verandas and may include some spaces that would be excluded under Carrez calculations. Understanding these differences is crucial for property owners who may need to provide both Carrez and Boutin measurements, depending on whether they are selling or renting their property.

 

Understanding habitable surface area

The concept of habitable surface area is closely related to, but distinct from, the Carrez measurement. Habitable surface area generally refers to all spaces within a property that are suitable for living purposes, including areas that might be excluded from the Carrez calculation. For example, a habitable surface area might include spaces like finished basements or attics that meet certain criteria for livability, even if they don’t qualify for inclusion in the Carrez measurement. This distinction is important for buyers to understand, as a property’s habitable surface area may provide a more comprehensive view of its overall living space and potential uses, beyond what is reflected in the Carrez measurement alone.

 

How does the Carrez Law affect property sales and buyer protection?

Legal requirements for property sellers

The Carrez Law imposes specific legal obligations on property sellers in France. Sellers are required to provide an accurate Carrez measurement of the property as part of the sales process. This measurement must be included in the deed of sale and any preliminary contracts. The law applies to all properties where the Carrez area is greater than 8 square metres, which covers most apartments. Sellers must ensure that a qualified professional conducts the Carrez diagnosis and measurement. Failure to provide this information or providing inaccurate measurements can have serious legal and financial consequences for the seller.

 

Buyer rights under Loi Carrez

The Loi Carrez provides significant protections for property buyers in France. Under this law, buyers have the right to accurate information about the surface area of the property they are purchasing. If the actual Carrez area is found to be more than 5% less than what was stated in the deed of sale, the buyer has the right to seek recourse. This typically involves requesting a price reduction proportional to the discrepancy in surface area. The buyer has a one-year period from the date of the deed of sale to make such a claim. These rights ensure that buyers are protected from significant misrepresentations of property size and provide a legal framework for addressing such issues.

 

Consequences of inaccurate Carrez measurements

Inaccurate Carrez measurements can have serious consequences for property sellers. If the actual surface area is found to be more than 5% less than the stated Carrez measurement, the buyer can demand a price reduction proportional to the discrepancy. In some cases, if the discrepancy is significant enough to have influenced the buyer’s decision to purchase the property, they may even have grounds to seek annulment of the sale. Additionally, sellers who knowingly provide false information about the Carrez area may face legal penalties. These potential consequences underscore the importance of obtaining accurate Carrez measurements from qualified professionals and ensuring that all property documentation reflects these measurements accurately.

 

What is a Carrez diagnosis and when is it required?

 

Purpose of a Carrez diagnosis

A Carrez diagnosis is a professional assessment of a property’s surface area in accordance with the Loi Carrez. The primary purpose of this diagnosis is to provide an accurate and legally compliant measurement of the property’s Carrez area. This measurement is crucial for property transactions, as it forms the basis for the property’s valuation and is a legal requirement for the sale of co-ownership properties. The Carrez diagnosis ensures transparency in property transactions, protecting both buyers and sellers from disputes related to property size. It also helps to standardize property measurements across the French real estate market, making it easier for buyers to compare different properties accurately.

 

When to obtain a Loi Carrez measurement

A Loi Carrez measurement must be obtained whenever a co-ownership property with a Carrez area greater than 8 square metres is being sold. This typically applies to apartments, but can also include other types of properties that are part of a co-ownership arrangement. The measurement should be conducted before the property is put on the market, as the Carrez area needs to be included in all sales documentation, including preliminary contracts and the final deed of sale. Sellers should obtain this measurement early in the sales process to avoid any delays or complications. Even if a property has been measured previously, it’s often recommended to obtain a new Carrez measurement if significant time has passed or if any structural changes have been made to the property.

 

Professionals qualified to perform Carrez measurements

Carrez measurements must be performed by qualified professionals to ensure accuracy and legal compliance. In France, several types of professionals are authorized to conduct Carrez diagnoses, including certified real estate experts, architects, and specialized surveyors. These professionals must have specific training and certification in Carrez Law measurements. Property sellers need to choose a reputable and experienced professional for this task, as the accuracy of the Carrez measurement can have significant legal and financial implications. Many diagnostic companies offer Carrez measurements as part of a comprehensive property assessment package, which can be convenient for sellers preparing their property for sale.

 

How does Loi Carrez apply to different types of properties in France?

Application to apartments

The Loi Carrez is most commonly associated with apartments, as these types of properties typically fall under co-ownership arrangements. For these properties, the Carrez Law applies to all private areas within the unit, including living rooms, bedrooms, kitchens, and bathrooms. Common areas shared with other residents, such as hallways or lobbies, are excluded from the Carrez measurement. The law is particularly important for apartment buyers, as the Carrez area often closely aligns with the usable living space of the property. In multi-level apartments or duplexes, special attention is paid to areas with sloped ceilings or reduced headroom, as these may be partially or fully excluded from the Carrez measurement depending on their ceiling height.

 

Loi Carrez for houses and individual properties

While the Loi Carrez is primarily associated with co-ownership properties, it can also apply to individual houses in certain circumstances. For instance, if a house is part of a lotissement (a housing development with shared facilities) or if it’s divided into multiple units, the Carrez Law may be applicable. In these cases, the measurement principles remain the same, focusing on enclosed, private areas with sufficient ceiling height. However, for most standalone houses, other measurement standards are typically used, such as the total floor area or habitable surface area. Buyers and sellers of individual properties need to clarify which measurement standards apply to their specific situation, as this can impact the property’s valuation and sales process.

 

Special considerations for attics and terraces

Attics and terraces present unique challenges when it comes to Carrez measurements. For attics, only areas with a ceiling height of at least 1.80 meters are included in the Carrez area. This means that in many cases, only a portion of an attic space may be counted, even if the entire space is finished and usable. Sloped ceilings in attics require careful measurement to determine which areas meet the height requirement. As for terraces, they are generally excluded from the Carrez measurement unless they are fully enclosed and integrated into the living space. Open terraces, even if they add significant value to the property, are not included in the Carrez area. However, it’s worth noting that while these spaces may not contribute to the official Carrez measurement, they can still be important selling points and may be included in other types of property assessments.

 

Key Elements of the Loi Carrez

  • Definition:

    • Governs the measurement of private property areas in co-ownership (e.g., apartments).
    • Applies to enclosed spaces larger than 8 sqm.
  • Purpose:

    • Ensures accurate disclosure of surface area to buyers.
    • Protects buyers from misrepresentation of property size.
  • Application:

    • Relevant for co-ownership properties (e.g., apartments, some shared developments).
    • Excludes common areas or outdoor spaces.
  • Requirements for Sellers:

    • Must provide a certified Carrez measurement in the deed of sale.
    • Required before marketing a property for sale.
  • Buyer Protections:

    • Right to a price reduction if the Carrez area is overestimated by more than 5%.
    • Legal recourse for discrepancies within one year of purchase.
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Marius

Your Expert on Real Estate and Investment in Paris

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