In France, the purchase of off-plan property is strictly regulated by the off-plan contract. What are the steps?

Signature of the reservation contract

The first step in securing the acquisition of real estate off-plan is the signing of a reservation contract. As with the purchase of an old property, this contract can be signed before a notary or with the assistance of a real estate agency. This contract defines the type of goods purchased, the construction and delivery times. This contract is supplemented by appendices: (i) plans, (ii) a technical notice describing the services provided, and (iii) a notice specifying natural and technological risks. A security deposit, generally corresponding to an amount of 5% of the sale price, is deposited with the notary by the purchaser. This security deposit is kept with the notary until the signing of the sale. Following the signing of this reservation contract, a period of 10 days is granted during which the purchaser can decide to no longer carry out the sale. He then regains his security deposit.

Signature of the deed of sale

In order for the sale to be signed, the developer must provide Damage Insurance (DO for Dommage Ouvrage) and a Financial Completion Guarantee (GFA for Garantie Financière d’Achèvement) from a reputable bank or insurance company. DO insurance protects the purchaser against construction defects. The GFA protects the purchaser in the event of default by the promoter. Once the DO and GFA are provided, the notary can send the official notification to sign the bill of sale. Once the reservation contract has been signed, the deadline for signing the bill of sale can range from a few weeks to several months. These signature deadlines will have been previously indicated in the reservation contract.

Payment Steps

Since the property has not yet been built at the time of the signature, payment is not made upon signing the bill of sale. It is made at each key stage of construction, in accordance with a construction schedule specified in the bill of sale. In practice, as soon as a construction stage is completed, the promoter sends a certificate to the purchaser along with a bill for the amount due.

Delivery

Once the construction is completed, the keys are handed over to the buyer in the presence of the developer. The buyer then takes possession of his apartment.