Buying off Plan – VEFA

The OFF-PLAN (VEFA) is a tool that allows you to acquire properties when they are still under construction. The builder, having planned the construction of one or more properties on his own land, undertakes to build the building in accordance with the plan presented and within the time specified in the contract to purchasers.

The reservation contract

With a reservation contract, the seller agrees to reserve the property to the buyer, who pays in exchange a percentage of the total price as a deposit.

The content of the contract

To be valid, this contract must include the following information:

• A description of the building (approximate living space, number of rooms, ancillary buildings …),
• The technical quality of the construction (technical summary note attached to the contract),
• The estimated selling price and possibly the conditions of its revision,
• The date on which the sale can be concluded,
• Eventually, the loans that the seller will get to the buyer.

The deposit

As stated previously, to reserve one of the properties, the acquirer is required to pay a deposit.

The amount depends on the date fixed for the signing of the notarial deed, compared to the date of the reservation contract, but can never exceed the following conditions:

• 5% of the estimated selling price, if the completion period of the sale does not exceed one year
• 2% if this period does not exceed 2 years.
• 0% if the period exceeds 2 years.

The cooling-off period – right to withdraw

It is possible for the buyer to rethink his/her purchase within 7 days from the date of signature of the receipt of the registered letter with which the reservation was sent. If the buyer decides to withdraw, he/she must send a letter of resignation to the promoter with a registered letter. And in this case, the deposit must be returned within a maximum of 3 months.

When the period of 7 days has expired, the buyer may refuse to sign the final notary deed only in the following cases:

• The final contract is not concluded according to the agreed terms,
• The actual selling price is higher than expected by a value greater than or equal to 5%,
• Loans are not obtained, or the amount is at least 10% lower than expected
• At least one of the elements specified in the technical note is not applied to the building or, in any case, the quality of the building has been below expectations,
• The building or dwelling is actually reduced by more than 10% because of the quality of the finishes (carpets, wallpaper, plumbing fixtures).

The period of reflection

The seller must notify the buyer of the terms of the sale proposal at least one month before the date scheduled for the signing of the definitive deed of sale. At this stage of the procedure, the project must be the exact preview of the final act. From the moment of this notification, the seller cannot modify the terms of the final contract.

The buyer, therefore, has a reflection period of one month during which he/she can still abandon the proposed acquisition or at the end of which he makes the purchase.

The sales contract

The final sales contract must contain the following information:

• The description of the building: the characteristics relating to the quality and technical aspect of the building (floors, sections, specifications, equipment, etc.) that must be in accordance with what was agreed at the time of booking.
• The price: payments are made upon completion of the works and divided according to agreed percentages that cannot cumulatively exceed the following amounts:
  • 35% of the price upon completion of the foundations,
  • 70% of the roof installation price,
  • 95% of the price at the completion of the building.

The balance will be paid upon delivery of the keys.

Price review

The price can be revised according to the BT01 index.

The revision covers only the amounts remaining to be paid and can only be carried out within the limit of 70% of the modification of this index.

Warranties of the buyer

The purchase of a residence upon plan requires that payments begin before the end of construction. The law thus protects against the risks of incompleteness thanks to two non-cumulative guarantees (completion and repayment). These must appear in the contract under pain of nullity.

Before completion

The guarantee of completion guarantees that the construction will be completed. This may be the fact that the seller provides his/her own guarantee until completion or that of a financial institution which undertakes to anticipate the sums necessary for the completion of the building.

After completion

In the event of a defect, the guarantee of perfect completion covers visible defects between the following year.

The guarantee of a good functioning covers for 2 years the malfunctions of the elements of the equipment (when they are inseparable from the work or make it unsuitable for its destination).

The ten-year warranty covers all defects that compromise the resistance of the building and its equipment (when they are inseparable from the structure or render it unfit for use).

In case of non-compliance, the responsibility of the promoter can be assumed either by a restoration in the state of the property (when it is possible), or by the termination of the contract. In the latter case, he must be brought to justice.