A few months ago, I explained to you that I bought my first off-plan apartment. It was a great experience, not always easy for me, who am really impatient. But what a pleasure to enter new, well-designed accommodation with no lost square meters and adapted to our contemporary lifestyle!
In this article I explained to you what a VEFA was and I received a lot of messages from you asking me for more advice and info on the process. Here is therefore the continuation of the new real estate file, with the different stages of a VEFA.
So I went back a few years to remember how the operation unfolded. Personally, I waited 2 years and 3 months between booking the apartment and its delivery. Everything went as planned and I was able to calmly prepare my move.
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The 3 stages of a VEFA
In my opinion, there are 3 main stages in a Future Completion Sale.
- The first step : choose and reserve your property with the property developer. Reservations are possible from the marketing phase of the program.
- The second stepe is carried out during construction work, and covers:
- Seeking funding (if necessary).
- The signing of the authentic act.
- Settlement of substantive appeals.
- The third and final step : the developer gives you the keys to your new home.
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The reservation of your future apartment
Well done ! You have found the apartment of your dreams! Before fully projecting yourself into the decoration projects, you will of course have to book your accommodation. The reservation contract is therefore the first step in a VEFA. You will sign a contract with the developer, committing them not to offer the property to someone else. For this you will have to make a financial commitment, and pay up to 5% of the selling price of the apartment as a security deposit.
Two conditions precedent are attached to this contract and the final sale of the property will only take place if the 2 suspensives of the sales agreement are fulfilled. These two conditions are as follows:
- Withdrawal period: you have 10 days after receipt of the contract to cancel the purchase if you wish, without having to give reasons and justify your wish.
- Once this deadline has passed, you are committed to buying and you must begin the search for financing. If this step fails, you are in the case of the second condition precedent, the reservation of the property is then canceled.
In both cases, you get your security deposit back.
The second stage of a VEFA: financing and works
You have passed the withdrawal period and have therefore confirmed your willingness to purchase. If you do not wish to have recourse to a loan, the notary can already prepare the authentic deed of sale.
If you need a loan, you need to get started quickly. You can do this by using a broker to negotiate attractive rates for you with different banks. You can also make an appointment and meet with the credit institutions yourself.
Whatever your choice, I advise you to first get an idea of the rates charged at the time of your research by using an online simulator or by looking at the rate barometer. You will thus be able to judge the proposals that will be made to you.
Once the loan has been obtained, you again have a cooling-off period of 10 days to return the offer and accept it from the lender. As soon as the bank receives your agreement for the loan, it sends a copy to the notary so that he can prepare the final sales contract.
The authentic deed of sale at the notary
The sales contract is sent to you at least one month before it is signed so that you can read it quietly. To know the content of the contract, I invite you to reread my article what is VEFA.
You become the owner of the land upon signing at the notary. And parallel to the progress of construction and payment of installments, owner of housing.
Works and fundraising
When signing at the notary, you validated a provisional schedule for calls for funds. Indeed, you must pay for the purchase of your apartment gradually, as the construction progresses.
This staggered payment must not exceed the following thresholds:
- 35% of the total purchase price upon completion of the foundations.
- 70% when it is “out of water”, that is to say after the installation of the roof.
- 95% of the price at most upon completion of the work.
There is therefore 5% of the sale price that you keep aside at the end of the work.
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The last step: reception, handing over the keys and moving in
Here you are in the nicest step of a VEFA: handing over the keys!
The remaining 5% must be paid upon delivery of your property, unless you make reservations for lack of conformity. As with any purchase, the apartment must comply with the expected use and the promoter’s description. If this is not the case, you must report these faults when handing over the keys, and record them in the delivery report. It could be, for example, a tear on a door. The promoter must remedy this within 90 days.
If you notice any defects a few days later, it is also still possible to report them because you actually have 30 days to report them.
In this case, you only pay the remaining 5% once the corrections are applied. This last deadline in a VEFA process then guarantees you satisfaction.
You now master the steps of a VEFA to make your investment in new real estate a success! Discover Cogedim’s ongoing and upcoming projects.
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