Off-Plan Purchase (VEFA) and Late Delivery Lawyer in France

The French off-plan sale, or VEFA (Articles L. 261-1 et seq. of the Construction and Housing Code, Article 1601-3 of the Civil Code), binds the developer to deliver a conforming property on an agreed date. Late delivery is the leading cause of disputes: it costs the buyer rent, bridging interest and sometimes the loss of a tax incentive. Foreign buyers are particularly exposed, as the contractual mechanisms are unfamiliar.

The firm acts for buyers, private individuals and investors, against developers and their guarantors.

The risk: a delay the contract makes painless for the developer

Reservation contracts and deeds of sale almost always list legitimate causes of suspension of the delivery period: bad weather, failure of a contractor, appeals against the building permit, strikes, pandemic. Drafted broadly, these clauses allow the developer to justify months of delay without compensation. Courts review them, but the buyer must demand supporting evidence and contest them methodically.

The second risk is the weakness of contractual penalties, often set at a token amount or capped. The buyer nevertheless retains the right to claim full compensation for his loss under Article 1231-1 of the Civil Code where the delay is unjustified, provided he can prove it.

The legal solution: scrutinising the causes of suspension and quantifying the real loss

The first step is to obtain from the developer the justification for each day of delay invoked, then to check that each cause is provided for in the contract, actually affected the works and was notified in due form. Whatever is not justified is compensable.

The loss includes rent paid or lost, bridging interest, storage and double removal costs, and the loss of a tax incentive where the delivery date conditioned it. The firm has detailed this method in its practical guide on VEFA delivery delays and its six-point analysis.

How the firm assists you

The firm analyses the reservation contract, the deed of sale and the developer’s correspondence, sends a quantified formal notice and negotiates compensation. If refused, it brings the matter before the French civil court, in summary proceedings where appropriate to obtain a provisional payment or an expert appraisal when defects accompany the delay.

It also assists at delivery: attendance at the inspection, drafting of snagging reserves, monitoring of their remedy within the time limit, escrow of the price balance, and calling upon the completion guarantee of Article L. 261-10-1 of the Construction Code if the developer defaults.

Typical matters

The situations below are illustrative scenarios drawn from the firm’s practice and anonymised.

Fourteen months’ delay attributed to bad weather

A buyer receives his apartment fourteen months after the agreed date, the developer invoking 190 days of bad weather. The firm obtains the weather records, reduces the justified days to 40 and obtains compensation for the rent paid over the remainder.

Investor deprived of a tax incentive

An investor loses a tax incentive because delivery did not occur within the statutory period. The firm obtains compensation for the lost incentive in addition to the contractual penalties.

Developer in liquidation before completion

The developer of a residence is placed in liquidation at 80 % completion. The firm calls upon the completion guarantee and monitors the resumption of works by the guarantor.

Once the property has been delivered, the developer’s liability continues under the ten-year guarantee. Defects that appear afterwards are handled under construction defects and ten-year liability.

Frequently Asked Questions

What is a VEFA contract, and when does ownership pass?

A sale in a future state of completion transfers ownership of the land immediately and ownership of the construction as the works progress, while the buyer pays in instalments capped by law at each stage: foundations, roof and weathertightness, then completion. The developer keeps the powers of the owner of the works until acceptance. The contract must state the delivery date or period, the technical description and the price, and the preliminary reservation contract is followed by a notarised deed after a statutory reflection period.

What can be claimed when delivery is late?

Compensation for the loss actually suffered, which for an owner occupier is typically the cost of alternative accommodation, storage and removal, and for an investor the rent lost over the period of delay. Where the contract provides liquidated damages per day or per month those apply, and a clause that is manifestly excessive or derisory may be reviewed by a court. A formal demand is sent as soon as the date passes, because compensation runs from that moment rather than from the day the buyer complains.

Which causes of delay can the developer legitimately invoke?

Only those the contract identifies as legitimate causes of suspension and which are proved in the manner it requires, typically exceptional weather recorded by the meteorological service, strikes, the insolvency of a contractor or administrative delays not attributable to the developer. The developer must notify them and justify the number of days claimed, usually by a certified statement. A vague reference to supply difficulties is not enough, and checking that arithmetic day by day frequently removes a substantial part of the delay invoked.

Can the sale be cancelled because of the delay?

Rarely, and never automatically. Resolution requires a breach serious enough to justify it, and courts prefer compensation where the building is finished or close to it. A contractual termination clause may apply, and a very long delay combined with an inability to deliver can justify resolution with restitution of the sums paid and damages. The commercial reality is that a buyer who has financed the purchase rarely wants the sale undone, so the claim is usually built around compensation and delivery.

What should be done at delivery?

Attend, inspect thoroughly, and record every reservation in the delivery report, including those that seem minor, because apparent defects that are not reserved are difficult to raise afterwards. Photographs and, for a significant purchase, an independent surveyor are worth their cost. The balance of the price may be placed in escrow where reservations are made in the forms provided. The buyer then has one month to notify further apparent defects discovered after delivery, and the developer must remedy the reservations within the period laid down.

Which guarantees protect the buyer?

The completion guarantee, which ensures that the building is finished or the sums repaid if the developer fails; the one year guarantee of perfect completion covering the reserved defects; the two year guarantee on equipment that can be separated from the structure; and the ten year guarantee covering damage compromising the solidity of the building or making it unfit for its purpose. Damage insurance taken out before the works allows repairs to be financed quickly, without waiting for liability to be determined.