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Looking for OFF-PLAN PROPERTY FOR SALE in FRANCE

Looking for OFF-PLAN PROPERTY FOR SALE in FRANCE

What is ‘off-Plan' property – well off plan property is when you are not buying the actual building but you are buying the plans for a building on a plot of land from a developer with the promise of it being built as he/she says.

    It's also quite common in France, whether for a future investment or ones own property.
I'm sure allot of people would be rather sceptical about off-plan property after the many scandals in recent years in Spain and other countries, however the French off-plan market is reasonably safe and there are a few safety precautions taken to help keep you safe.  Note that the developer is rarely going to be the actual builder. Even though it can be a great investment. As always – be careful and vigilant.

Contrat de reservation – Preliminary Contract
Purpose – The purpose of this is to get the agent to commit himself to reserving the property for you, without fully committing yourself.
Details – The contract must be in writing and must state (by law) a detailed description of the future property, the estimated sale price, the date the final contract will be signed and the quality of construction (materials, equipment etc)


Deposit and Cooling Off Period
When you sign the Preliminary Contract, the purchaser pays a deposit which cannot be higher than 5 % of the estimated price if the completion date of the sale does not exceed a year. 
This amount is brought back to 2 % when this time does not exceed two years if it does exceed 2 years you pay nothing. You will then be notified of the signed preliminary contract. As from its reception, you have a 7 days cooling off period to retract. During this time you can withdraw from the contract and get your full deposit back. However it only starts once you have received a copy of the full documentation. If you withdraw after 7 days you will loose your deposit.
Checking Your Developer
There are over 900 property developers in France. Please use common sense, make sure you use a developer who has had previous work experience. Remember if it's too good to be true – it usually is.

VEFA Contract (The Final One)
       This will be the final contract, and will be prepared by the Notaire under the instructions of the developer – it will be used for all sales in the development so it would usually be to the advantage of the developer.
        It should contain a full description of the property, its precise location and the plans and professional descriptions of all the materials and equipment used in the construction of the property.
You should definitely try and get your own Notaire to act on your behalf.
        Check that all the details are the same as the ones from the Preliminary contract.  Please note that at anytime you will be able to consult the document at any time, also note that it will be in French and will contain allot of professional technical terms the average person would not have come across so make sure you have professional help at hand – as with any property transaction or project abroad.
            However you won't be rushed into signing anything, you can have a full copy of the document supplied to you at least one month before; to make sure you understand everything that is being said and all the contents and to make sure you agree.
         Make sure you are firm with the developer; you can never be sure what people are capable of these days so have a professional at hand, don't give the developer any leg room and check everything. Remember that is your money he is spending.


Financial Guarantee
Due to the Terms of the VEFA contract the developer must provide a financial guarantee, in case of bankruptcy or failure of the business during the project.
Building Guarantee
Due to the terms of the VEFA document the developer is obliged to sort out any problems with the property that occur within the first year of it being built. In addition to this he is also obliged to give a 10 year statutory guarantee for the property.

Payment
You will have to make payments to the developer in stages. They will be a percentage of the total sale price.
Apartment


House

The deposit from the preliminary contract counts towards these figures.
The contract will contain a penalty in case the buyer pays late,  a maximum of 1% per month on the outstanding sum. 
If not paid within one month the developer can end the contract and sue for compensation.