Off-plan sale (VEFA)
A contract by which a buyer purchases a property that has not yet been built or is under construction. The buyer becomes owner of the land upon signing, then of each completed floor as construction progresses. Financing is disbursed via successive fund calls tied to legally defined construction milestones, generating interim interest during the pre-financing phase.
Key points
- Ownership of the land transfers immediately; ownership of the building transfers progressively.
- Financing is released in tranches aligned with legally defined construction drawdowns.
- Interim interest accumulates before the loan switches to full amortization.
- The GFA completion guarantee protects the buyer against developer failure.
Frequently asked questions
How does loan disbursement work in practice in a VEFA purchase?
At each legally defined construction stage, the developer sends a drawdown request. The buyer forwards this to their bank, which releases the corresponding tranche directly to the notary or developer. Throughout construction the borrower pays only interim interest on disbursed amounts, then switches to full monthly payments at delivery.
What recourse does the buyer have if the developer delivers late?
The VEFA contract must state a projected delivery date and late-delivery penalties calculated on the sale price. If this date is exceeded, the buyer may claim these contractual penalties. When delay results from a recognised force majeure event, penalties may be reduced or waived.
What is the difference between a VEFA purchase and a CCMI?
In a VEFA purchase the developer sells a unit within a collective programme; the buyer does not act as project owner and does not buy land separately. Under a CCMI the individual already owns the land and appoints a builder; they remain project owner and benefit from a specific legal framework with a guaranteed fixed price.
In practice
A buyer signs a VEFA contract for a €250,000 flat. On foundation completion, the bank releases 5% of the price; on weathertight roof, a further 15%. The buyer pays interim interest only on disbursed amounts until delivery.
Official sources
- Off-plan sale (Vefa): deed of sale · Service-Public.gouv.fr
- Reservation contract for an off-plan home · Service-Public.gouv.fr
- Sale agreement and loan condition precedent · Service-Public.gouv.fr