Ten-year builder's warranty
A mandatory 10-year legal warranty covering damage that compromises the structural soundness of a building or makes it unfit for purpose, subscribed by the builder or contractor. In a CCMI or construction context, the bank requires proof of this warranty before any fund disbursement. It protects both the buyer and the lender against major latent construction defects.
Key points
- It covers defects compromising structural soundness or fitness for intended use.
- The bank requires the certificate before any fund disbursement in a construction financing.
- It benefits a subsequent buyer in case of resale within 10 years following completion.
- The contractor must take out this insurance before work begins, under penalty of criminal sanctions.
Frequently asked questions
How can a buyer verify that a contractor holds a valid ten-year warranty?
The contractor must provide a valid ten-year insurance certificate before the contract is signed. The buyer can verify its authenticity with the insurer named on the certificate. In a CCMI, the construction contract must mandatorily include the references of this insurance.
What types of damage does the ten-year warranty actually cover?
It covers serious damage affecting structural soundness (structural cracks, collapse) or rendering the property unfit for its intended use (major water infiltration, waterproofing failures). Superficial or aesthetic defects, grouting cracks, paint defects, fall instead under the perfect-completion guarantee (one year) or the biennial guarantee.
What happens if a contractor has not taken out a ten-year warranty?
The contractor faces criminal penalties. On the civil side, ten-year liability still applies by operation of law, but the absence of insurance means the buyer must pursue legal proceedings to obtain compensation, which can take several years. This gap can also block resale of the property or complicate refinancing.
In practice
During a CCMI financing, the bank refuses to disburse the first tranche of funds until the buyer has provided the ten-year warranty certificate from the structural works contractor.
Official sources
- Builders' ten-year guarantee · Service-Public.gouv.fr
- Guarantees after receipt of works · Service-Public.gouv.fr
- Sale agreement and loan condition precedent · Service-Public.gouv.fr