Advantages of new build property
Property
New build
In 2018, 128,000 new-build properties were sold in France. This highly regulated sector offers homeowners solid guarantees and numerous advantages.
New-build property is often marketed under the name VEFA (Vente en l’état futur d’achèvenement).
This status enables a developer to start commercialising part of a building’s assets prior to construction, in order to obtain a completion guarantee (GFA).
The latter is a key element in guaranteeing that the site is finished properly, and in securing the buyer’s rights of recourse in the event of a construction fault.
Low maintenance costs
No major works are required for several years on either the private or communal areas. In general, the latest technological and environmental standards have been anticipated.
Personalise your home
One of the major advantages of buying off-plan is that you can personalise your property by modifying the living space, choosing the floor coverings, kitchen and bathroom furniture, and so on.
Financial benefits
New-build properties are exempt from property tax for two years if the local authority has approved this.
If you are eligible, you may qualify for a zero-rate loan (PTZ). Acquisition grants are available subject to certain conditions.
The PINEL tax incentive scheme allows you to benefit from a tax reduction over 6, 9 or 12 years, subject to certain conditions, for property investment.
Updated standards
Since January 1st 2013, all new buildings have been required to meet the latest RT 2012 thermal standards. As a result, buyers benefit from comfortable living and energy savings, while keeping their budgets under control.
The HPE* and THPE** labels complement the RT 2012 standard and offer an additional energy reduction of 10% (HPE) and 20% (THPE). The E+C- label, launched in 2016, is currently being tested. It is awarded to buildings that produce more energy than they consume.
Reduced notary fees
New-build property is subject to VAT. Notary fees are reduced and represent 2 to 3% of the sale price.
*High energy performance **Very high energy performance
Avantages
for the buyer
VEFA
sale
Reservation
Buyers reserve their homes by signing a reservation contract with the vendor (developer). The document sets out the agreement reached on the price, the conditions of sale and the property itself.
Attached to the CR are the site plan, the floor plan of the property, the descriptive note, the parking plan and administrative documents such as the ESRIS. The buyer then transfers the deposit to the notaire’s account, which is generally 5% of the sale price.
Progress of the construction work
The buyer officially becomes the owner of the home on the day of the deed of sale, even if he or she does not have immediate use of it. They will pay the developer directly into a centralised account as construction progresses.
The purchaser may ask the developer to carry out alteration work (TMA), which will give rise to capital gains or losses.
Deed of sale
When all the conditions have been met by both parties and the suspensive clauses have been lifted, the notary will provide the buyer with a draft of the deed.
The call for funds corresponding to the work progress schedule is called by the notary for the day the deed of sale is signed.
Delivery
Once the property has been completed, the buyer is invited to attend the handover meeting. On this occasion, the buyer is invited to visit the property and, if necessary, to express any reservations if he finds any non-conformities with the description.
More and more often, developers organise a visit one month before the handover date in order to anticipate any reservations.
Before completion
It protects the purchaser in the event of the developer defaulting (bankruptcy, for example). In this case, the bank or insurance company will take over so that construction can continue and the project can go ahead.
After delivery
If the buyer notices any faults when the property is handed over, he or she will note down what are known as reservations. They have one month after the keys have been exchanged to notify the developer of any shortcomings. The developer is obliged to rectify any defects within one year. This guarantee also covers sound insulation, so the buyer has 12 months from taking possession of the property to report any acoustic defects.
All equipment (radiators, shutters, taps, etc.) is guaranteed by the developer for two years.
The developer has taken out damage insurance to cover repairs for a period of ten years. It covers the solidity of the structure and its inseparable equipment, unfit for purpose and collapse resulting from a construction defect.
Protections
for the buyer
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