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How do you know when to use the verb 'être' or 'avoir' in French?

The verb avoir (have) is conjugated in the present tense. 'Avoir' is used when the 'subject' (sujet) 'owns' (has) something or someone.
Example: I have a pet - J'ai (avoir) un animal. My neighbor has(have) a baby - Mon voisin a (avoir) un bébé. 
The verb être (be) is conjugated in the present tense. 'Être' is used to express a 'state' (état) or an 'attitude' of the target 'subject'. 
Example : You really are(be) beautiful - Tu es(être) vraiment joli(e). We are(be) happy for you - Nous sommes(être) contents pour vous.

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