New build developments

There are however a number of developers offering condominium type properties in a building development, you are usually obliged to buy it off plan ("vente en etat futur d'achevement") i.e. before it is built. This type of purchase should not be confused with time share.

Similar to developments in the U.K. each appartment is referred to a plot "lot" and you offer to buy in anticipation of the property being built to the specifications advertised on a site plan or in the literature.

The preliminary contract is known as "contrat de reservation" and it is subject to a cooling off period of seven days.
The contract contains the timetable for the property's completion, payment dates etc. Staged payments are required during the construction of the property, unlike other countries where the developer would only receive a deposit and the rest of his money after the property is fully built. Payments are usually spread over 12 to 18 months.

A deposit of initially 5% of the purchase price is required at the signing of the "contrat de reservation" which is usually a fixed price and inclusive of VAT. Funds are then required in stages by the builder, based upon what stage of construction the property is at, subject to confirmation that each stage has been satisfactorily completed.

A five per cent retention is usually made by the purchaser against finishing off and minor defects on completion.
Before entering into any agreement to buy "Off plan", we would strongly advise you to ensure that the developer or builder has a guarantee known as "garantie d'achèvement" which protects against defaulting builders and developers before the property is completed.

All developers and builders must be underwritten by a bank, or by the developer himself, providing he meets liquidity requirements.

For leaseback projects please call us for further advice as there are different types of leaseback projects and we can advise you on the best areas to buy these in.