Sale in the future state of completion (Vefa)

1Advance Information

Before committing, the buyer must receive important information about the accommodation and the real estate transaction. The seller (promoter) must thus provide the customer with the information needed to understand what he is buying (housing characteristics, project status, technical diagnoses, possible risks, energy performance, etc.) and which could influence the decision to buy.

For example, if the developer knows that the land is located in a flood zone or that an infrastructure project is planned nearby, he must inform the buyer.

2Booking contract

Then the buyer and the promoter may sign an reservation contract. Although it is not mandatory, the signing of this preliminary contract is strongly recommended.

It allows you to reserve the accommodation before signing the final deed of sale.

3Notification of the draft deed of sale

The final draft deed of sale must be notified to the buyer at least 1 month before the signing appointment of the deed. This period allows the buyer to read it and check the conditions of the sale.

4Final bill of sale

Once the 1-month period has expired, the parties have an appointment with the notary to sign thedefinitive deed of sale.

5Delivery of the accommodation

After the signing of the final deed of sale and when the building works are completed, the developer delivers the accommodation to the buyer.

The delivery corresponds to the delivery of the keys. It is at this time that the buyer can check the condition of the accommodation and report any defects or reservations.

Gradual transfer of ownership

In Vefa, the buyer gradually becomes the owner.

As soon as the deed of sale is signed, he becomes the owner of the land and the parts of the building already built.

For works that remain to be realized, ownership is transferred as they are built. For example, if the building is only at the foundation stage at the time of sale, the buyer will then become the owner of the walls, the roof and then the interior fittings as they are made.

Payment of the staggered price

The buyer shall pay the sale price according to the progress of the works and according to the schedule stipulated in the sales contract.

The maximum amounts are as follows:

• 35% of the total price when the foundations are completed
• 70% of the total price when the dwelling is put out of water
• 95% the total price at the completion of the building.

The 5% the remainder shall be paid to the delivery of housing, in the absence of any reservations as to the conformity of the dwelling with the deed of sale.

Conversely, if defects or lack of conformity are recorded at the time of delivery and are subject to reservations, the buyer is authorized to record the balance of the prize.

In the absence of agreement of the parties (buyer and promoter) on the place and conditions of the deposit, it must be made at the Caisse des Dépôts et Consignations using an online service:

Record the balance of the sale price of a Véfa home

Reduced acquisition costs

When buying in Vefa, the buyer benefits from reduced acquisition costs. These costs include, in particular, the remuneration of the notary, formalities, sums advanced by the notary on behalf of the buyer, the contribution of real estate security and taxes paid to the State or local authorities.

In a conventional real estate sale involving an old dwelling, these costs generally represent about 7 to 8% of the purchase price.

In a sale in Vefa, they usually represent about 2 to 3% of the purchase price.

This difference is explained by the fact that the sale of a new home is subject to the real estate TVA. In return, certain taxes due at the time of sale, in particular the property advertising tax, are reduced.

It is possible to make an estimate of the acquisition costs:

Calculate the amount of the cost of acquiring a property

Obligations of the seller (promoter)

Obligation to provide information and advice

The seller in Vefa is required to obligation to provide information and advice in respect of the buyer, in particular on:

• The characteristics of the property (surface area, number of rooms, location in the building, presence of a balcony, terrace or garden, materials and equipment provided, energy performance of the housing or conditions of access to common areas and parking)
• Economic risks (e.g. in case of tax exemption schemes)
• Guarantees and deadlines.

Obligation to construct and complete the work

The seller undertakes to have the dwelling erected (built) and to carry out the works until their completion within the period stipulated in the contract.

Obligation to deliver and deliver in accordance with

The seller has a obligation to issue in conformity : he must deliver a dwelling in accordance with the contract.

Compliance is assessed in particular in relation to the deed of sale, plans, specifications, descriptive notice and, in some cases, commercial documents given to the buyer.

The accommodation must also comply with the applicable technical standards and administrative regulations (urban planning permit, permit, thermal standards, safety, accessibility, etc.) even if these regulations are not detailed in the contract.

Subscription of a guarantee of completion or refund

The seller has the obligation to provide the buyer with a performance guarantee. These may include:

• Either one guarantee of completion of the building, which makes it possible to finance the termination of the works if the promoter can't finish them
• Either one money back guarantee amounts paid if the sale is canceled because the building is not completed.

These guarantees are provided by a bank, financial institution, insurance company or mutual guarantee business.

Obligations of the buyer

Payment of calls for funds

The buyer must pay the price of the accommodation according to the schedule provided for in the contract.

He must therefore pay the calls for funds sent to him by the seller as the works progress.

Checking the conformity of the goods upon delivery

During the delivery, the buyer must verify that the accommodation corresponds to what was provided for in the contract and that it does not present any apparent defect.

It is recommended to compare the accommodation delivered with the plans, the description and the equipment announced to ensure that the agreed services have been carried out.

If the buyer finds defects, defects or non-conforming elements, he can report them by making reservations.

Failure of the seller

In the event of delay, incompletion of the goods or delivery of a non-compliant dwelling, the buyer may take action against the seller.

In particular, it may request:

• The enforcement of the works necessary to complete the dwelling or to obtain its conformity
• A reduction in the sale price
• The payment of damages and interest to make good the damage suffered
• Or, in the most serious cases, the cancelation of the sale.

It is recommended to be accompanied by a lawyer for these procedures.

Failure of the buyer

In the event of delay or non-payment of calls for funds by the buyer, the seller may:

• Claim penalties or interest for late payment, if the contract so provides
• Request cancelation of the sale.