Buying real estate on plan: what to pay attention?
30 JANV. 2019
A real estate purchase is often one of life, in any case it is always a significant investment, which commits us for several years, financially and morally. That is why it is important to take into account all the elements and to understand all the steps to make your real estate purchase, be it classic or off plan, in order to carry out your project.
Step 1: The choice
The VEFA (Sale in the state of future completion) or the purchase on plan means that the property, object of the plan, is for the moment only at the stage of project. Real estate companies offer potential buyers to book a new home, by providing them with a map, brochure, technical documentation, and for some to offer a virtual tour through a 3D plan, or even a visit to an existing "control" dwelling. .
This step is very important because it is taking all the parameters into consideration that you will make the best choice, according to your desires. The location of the accommodation is crucial: shops, services, schools and transport nearby should be considered according to your needs.
Step 2: the reservation
When you have made your choice of real estate, you must to guarantee the reservation to sign a reservation contract with the seller. Unlike the sale of an existing property, and the sales agreement, this booking contract does not require, in principle, the intervention of a notary at this stage. The signature of this contract implies the payment of a deposit which can not exceed 2% of the price of the accommodation and which must be paid into an account opened in your name.
The reservation contract must obligatorily mention certain information:
> the estimated price of the accommodation and the legal conditions under which it may be revised;
> the legal conditions under which you can exercise your right of withdrawal and waive the acquisition of the property, object of the contract;
> the period within which the deed of sale may be signed before a notary;
> the description of the dwelling , including the approximate living space, the number of rooms, the description of the outbuildings, the clearances and parts of services;
> the technical description indicating the quality of the construction and the materials used.
Some real estate companies also offer to manage the demand and obtain financing for your account. In this case, the financing contract (s) containing all the related information (identification of the banks, amounts and conditions of the loan (s)) must be attached to the reservation contract .
If the delivery date is not part of the mandatory information at this stage, we advise you to insist to have it specified, this in order to avoid unpleasant surprises.
Step 3: The signature
The sales contract can not be signed before the competent authorities issue the permits required for construction.
The contract of sale of your property on plan must be signed before a notary. From this signature, you own the land and what is, perhaps, already built.
The notarial act drawn up must mention the following elements:
> the identity of the owner;
> the date of issue of the administrative authorizations and the related conditions;
> the description of the dwelling , object of the contract, and the degree of completion agreed upon delivery;
>price and terms of payment;
> the delivery time .
To add for the VEFA: the guarantee of the complete completion of the building.
To be annexed to the contract of sale:
> all building plans with facades, level plans and a cut plan of the property;
> a complete description of the technical characteristics;
> the co-ownership by-law , if applicable.
Step 4: the payment
Payments are made to the account opened on your behalf for the payment of the deposit as the progress of the work.
According to the law in force, the payment is made as follows:
> 10% for the land at the beginning of the work, after signing the sales contract;
> 15% at the completion of the foundations of your place of residence (are excluded garages and any separate outbuildings);
> 50% at the completion of the last slab between foundation and roof;
> 20% upon completion of the building;
> 5% on delivery.
These progress payments allow the seller to have the cash needed to pay for construction materials.
Step 5: Delivery
When the work is finished, the seller calls you for delivery. The time has come to take possession of your property. Take the time to go around the owner and carry out any compliance checks that are required.
If you notice any anomaly that does not conform to the specifications stipulated in the sales contract, record the said findings in the delivery report before signing it. The real estate company must then remedy it as soon as possible.
If your real estate purchase meets all your requirements and all the elements defined in the contract, congratulations! All you have to do is take possession of the place.
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