As good as new

If you’re thinking of buying a new property off-plan in France, Clint Goffin van Aken outlines what you need to know

- Clint Goffin van Aken

Before committing yourself to the acquisition of a property off-plan to be your main or secondary residence, you need to understand the risks and guarantees specific to this type of purchase.

The acquisition process is known as a ‘sale in the future state of completion’, or VEFA (vente en état futur d’achèvement) in French. Under this contract, the buyer becomes the owner of the land as well as any pre-existing buildings as soon as the sale is completed. As the work progresses, he then becomes the owner of the building and is required to pay the price in instalments after each phase.

FIRST STEPS

Signing a reservation contract: The purchaser and the property developer start by signing a preliminary reservation contract (contrat de réservation), which has the purpose of determining in advance the conditions of the future sales contract.

It also compels the seller to book the property chosen by the buyer. In return, the purchaser undertakes to pay a security deposit.

The reservation contract must also include all the information listed below relating to the parties, the future accommodation and the terms of the sale.

Information relating to the parties: The contact details of the seller and the buyer must be included in the contract. If you wish to set up a specialist company (Société Civile Immobilière) to buy the property, you must include a clause authorising it to take your place as purchaser.

The seller must also provide certain guarantees to the purchaser (see below). These guarantees must be mentioned in the contract.