You have found an apartment or a house in France under a forward sale agreement (VEFA).

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Several pieces of advice, for informational purposes, regarding this common sales formula in France.

This acquisition formula under forward sale is a contract by which you acquire a real estate to be built or under construction.

You become the owner of the land upon signing the sale contract, and then the owner of the property as construction progresses.

The seller commits to delivering the property as soon as construction work is completed.

This property can be a house or an apartment.

The seller (developer) is the project owner, which can be:

A public or private entity on behalf of which real estate work or project is carried out. 

They must perform the following tasks:

• Choose architects, contractors, and other technicians

• Establish conventions / Written agreements that legally bind the signing parties to fulfill an obligation with the selected professionals

• Carry out the acceptance / Act of the project owner (usually the developer) expressing their intention to accept the completed works.

Once all conditions for the sale of the property to be built are met, the sale contract is signed before a notary.

It may be preceded by the signing of a reservation contract (or preliminary contract). 

Note 

The developer must notify the buyer of the draft sales deed at least one month before the signing date of this deed.

The information contained in a VEFA sales deed differs depending on whether it concerns an apartment or a house: 

In the case of purchasing an apartment:

The VEFA contract must necessarily be concluded in the form of an authentic deed

Document drafted and signed in the presence of a notary as part of their public authority role.

It must specify the following elements: 

• Detailed description of the property (area, equipment, and annexes)

• Price, payment methods, and potential revision rules

• Delivery deadline

• Proof of financial repayment guarantee (GFR) A guarantee made by a surety (a bank, a financial institution...) to reimburse payments made by the purchaser in case of an amicable or judicial dissolution of a sale for non-completion or a financial guarantee for the completion of the works (GFA) Guarantee made by an institution (banking, financial...) to advance the necessary sums for the completion of the works

Note 

It must specify if the price is revisable. The revision is then calculated based on the variation of the BT01 index National building index for all trades measuring the evolution of production costs in the building sector. This index evaluates the evolution of costs in the building sector.

The following documents must also be attached to the sales contract: 

• Co-ownership regulations if the property is located in a co-ownership

• Detailed plan and notice indicating the equipment specific to the property

• Details on the consistency and technical characteristics of the building

• Conditions for exercising the right of withdrawal

• Potential late payment penalty not exceeding 1 % per month

• Potential termination clauses

  • Clause providing for the automatic termination of the contract in case of a contractual breach by one of the parties (example: non-payment of rent) and suspensive clauses

In the case of purchasing a house:

The VEFA contract must necessarily be concluded in the form of an authentic deed:

Therefore, a document drafted and signed in the presence of a notary as part of their public authority role.

It must specify the following elements: 

• Detailed description of the property, its equipment, and annexes

• Price, payment methods, and potential revision rules

• Delivery deadline

• Proof of financial repayment guarantee (GFR) Guarantee made by a surety (a bank, a financial institution...) to reimburse payments made by the purchaser in case of amicable or judicial dissolution of a sale for non-completion or a financial completion guarantee for the works (GFA) Guarantee made by an institution (banking, financial...) to advance the necessary amounts for the completion of the works

• Description of the work the buyer has decided to undertake when preceded by a preliminary contract (for example: finishing interior walls, coverings, or installing heating or sanitary equipment, and furniture that can accommodate them)

Note 

It must specify if the price is revisable. 

The revision is then calculated based on the variation of the BT01 index, the national building index for all trades measuring the evolution of production costs in the building sector. This index evaluates the evolution of costs in the construction sector.

The following documents must also be attached to the sales contract: 

• Co-ownership regulations if the property is located in a co-ownership

• Detailed plan and notice indicating the equipment specific to the property

• Details on the consistency and technical characteristics of the building

• Conditions for exercising the right of withdrawal

• Potential late payment penalty not exceeding 1 % per month

• Potential termination and suspensive clauses / Clause providing for the automatic termination of the contract in the event of a contractual obligation breach by one of the parties (example: non-payment of rent)

In the framework of purchasing an apartment and / or a house, does the buyer have a withdrawal period to renounce their purchase?

You have a withdrawal period of 10 calendar days

This corresponds to all the calendar days of the civil year, from January 1 to December 31, including public holidays, to reconsider your commitment to purchasing the property. This period applies only when there has been no reservation contract.

This period starts the day after the first presentation of the RAR letter: RAR: Registered with acknowledgment of receipt notifying the formality by which a procedural act or decision is brought to the knowledge of a person to the seller or of its delivery by hand.

If the last day of the withdrawal period falls on a Saturday, Sunday, public holiday, or holiday (non-working day), the period is extended to the 1st working day next, which corresponds to all days of the week except the weekly rest day (usually Sunday) and public holidays usually not worked in the company.

You must notify the seller, by RAR letter (Registered mail with acknowledgment of receipt), of your renunciation of the purchase before the expiration of the withdrawal period.

Does the buyer have staggered payments during their acquisition?

You must stagger the payment according to the progress of the work and according to the schedule planned by 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 property is watertight

• 95 % of the total price at the completion of the building

In the absence of reservation regarding the conformity of the property with the sales deed, the 5 % remaining is paid upon delivery of the property.