Real estate glossary
All Luxembourg real estate terms explained simply
Agency commission
Fee paid to the real estate agency for its services. In Luxembourg, it is generally borne by the seller and represents 3% to 5% of the sale price.
Condominium
Legal regime that applies to buildings divided into units belonging to several owners. Each co-owner holds a private part and a share of the common areas.
Capital gain
Difference between the sale price and the purchase price of a property. In Luxembourg, it may be subject to taxation depending on the case.
Condominium rules
Document that defines the rules for the operation of a condominium: common areas, charges, rights and obligations of co-owners.
Energy certificate
Mandatory document in Luxembourg that evaluates the energy performance of a building. It rates the property from A (very efficient) to I (low efficiency).
Exclusive mandate
Type of mandate entrusting the sale to a single agency for a determined period. The agency generally commits to more significant marketing efforts.
Easement
Charge imposed on a property for the benefit of another property (e.g., right of way). It is mentioned in the deed of sale and applies to successive owners.
Life annuity
Sales method where the buyer pays a pension to the seller until their death, in addition to an initial capital. The seller generally retains the use of the property.
Mortgage
Security taken by a bank on a property in exchange for a loan. In case of default, the bank can seize and sell the property.
Notarial deed
Official document drafted by a notary that formalizes the sale of a property. It legally transfers ownership from the seller to the buyer.
Notary fees
All fees related to the deed of sale: registration duties (7% in Luxembourg), notary fees, and various administrative costs. Generally borne by the buyer.
Property valuation
Assessment of the value of a property carried out by a professional. It takes into account location, surface area, condition of the property and market prices.
Price per m²
Indicator for comparing real estate prices. It varies according to location, type of property and condition. In Luxembourg, it is particularly high in the capital.
Property manager
Person or company responsible for managing the common areas of a condominium and executing the decisions of the general assembly of co-owners.
Property tax
Annual local tax paid by property owners. In Luxembourg, it is calculated by municipalities and remains relatively moderate.
Real estate agency
Company specializing in intermediation between buyers and sellers of real estate. In Luxembourg, agencies must be approved by the Ministry of Economy.
Right of first refusal
Right allowing certain entities (municipality, State) to purchase a property as a priority when it is put up for sale, at the price and conditions agreed with the initial buyer.
Sales agreement
Preliminary contract that binds seller and buyer. It precedes the notarial deed and sets the sale conditions (price, deadlines, conditions precedent).
Sales mandate
Contract by which an owner entrusts a real estate agency with the mission to sell their property. It can be simple (several agencies) or exclusive (one agency only).
Simple mandate
Type of mandate allowing the seller to entrust their property to several agencies simultaneously, and to sell themselves. Only the agency that concludes the sale receives the commission.
Ready to sell your property?
Now that you master the vocabulary, find the ideal agency to accompany you.
Start now