Sale of Property in Future State of Completion (VEFA)
The "sale in future state of completion" (VEFA), or "off-plan sale," is the primary method of acquiring new real estate. This process involves selling the property before construction begins. Future buyers can make their choice based on various documents, including detailed floor plans, site layouts, situation plans, and commercial materials such as brochures and models.
This legal framework for off-plan sales offers numerous guarantees and advantages, including tax benefits, which provide significant protection and flexibility for buyers. This method also allows buyers to request interior modifications, adjust spaces, and make design choices within regulatory guidelines.
THE TWO STAGES OF OFF-PLAN PURCHASE (VEFA)
The VEFA purchase process includes two main stages:
Signing the Reservation Contract: The preliminary contract or reservation agreement is signed between the buyer and the developer or builder.
Final Signature of the Authentic Deed: The final signature is completed at the notary’s office, officially involving both the buyer and the developer.
The reservation contract should include essential information such as:
- The habitable and usable surface area of the property, along with any annexes
- The number of rooms and property type
- Materials used, as detailed in the specifications
- Floor level, orientation
- A comprehensive site layout, including level and site plans
- The preliminary sale price
- The expected date of signing the final sale agreement
- The amount of the deposit
- The payment schedule
The Final Contract: The second stage is signing the authentic deed at the notary’s office, which must detail the following:
- Delivery date
- Habitable surface area
- Price and payment terms
- Co-ownership regulations and descriptive division of the property
- Insurance certificates
- Descriptive specifications
- Lot plans
Key Characteristics of VEFA
The sale in future state of completion (VEFA) is a common real estate contract in France, involving the sale of property that is either under construction or planned for future development. Governed by specific legal provisions, it offers significant guarantees to buyers.
- Property Under Construction: The buyer acquires a property that is either under construction or set to be built, which may include apartments, single-family homes, or other types of properties.
- Contract: A reservation contract is signed between the buyer and the developer, specifying the property’s characteristics, price, payment terms, expected delivery date, guarantees, and more.
- Staggered Payments: Payments are staggered throughout the construction based on key milestones. A portion of the price is generally paid upon signing the reservation contract, followed by scheduled payments aligned with construction progress.
- Guarantees: VEFA offers several guarantees for buyers, including the completion guarantee, which ensures the project will be finished even if the developer faces financial issues, and the perfect completion guarantee, which covers any defects found after delivery.
- Delivery Date: The VEFA contract must specify the expected delivery date of the property. Penalties may apply if this deadline is not met.
Once construction is complete, the buyer becomes the full owner and may move in or rent out the property as desired. VEFA is a popular option for those seeking new real estate with the benefit of guarantees and staggered payments throughout construction. It is essential, however, to understand the contract terms fully and work with real estate and legal professionals to ensure a smooth process.