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I am considering buying a property "off-plan". Do I have to pay a sum of money in the preliminary contract?
Buy off-plan (VEFA)
If you sign a preliminary contract under a VEFA, you will need to pay a security deposit into a special account.
The maximum amount of this security deposit is set by law. It may not exceed:
• 5% of the estimated sale price, if the time limit for completing the sale does not exceed 1 year,
• 2% of the estimated sale price if the completion time of the sale does not exceed 2 years.
If the completion period of the sale exceeds 2 years, the promoter cannot request any security deposit.
The security deposit is returned to the buyer without withholding or penalty when:
• the sales contract is not concluded within the period provided for in the preliminary contract, by the fact of the seller,
• the selling price exceeds the estimated price by more than 5%, revised if necessary under the conditions laid down in the preliminary contract.
• the loan(s) provided for in the preliminary contract are not obtained,
• one of the equipment elements provided for in the preliminary contract will not be realized,
• the property sold has, in its consistency or in the quality of the planned works, a reduction in value of more than 10%.
The buyer must request the refund of the security deposit, the seller and the custodian of the funds, by registered letter with acknowledgment of receipt.
If his request is justified, the refund is made within the maximum period of 3 months.
The maximum amount of this security deposit is set by law. It may not exceed:
• 5% of the estimated sale price, if the time limit for completing the sale does not exceed 1 year,
• 2% of the estimated sale price if the completion time of the sale does not exceed 2 years.
If the completion period of the sale exceeds 2 years, the promoter cannot request any security deposit.
The security deposit is returned to the buyer without withholding or penalty when:
• the sales contract is not concluded within the period provided for in the preliminary contract, by the fact of the seller,
• the selling price exceeds the estimated price by more than 5%, revised if necessary under the conditions laid down in the preliminary contract.
• the loan(s) provided for in the preliminary contract are not obtained,
• one of the equipment elements provided for in the preliminary contract will not be realized,
• the property sold has, in its consistency or in the quality of the planned works, a reduction in value of more than 10%.
The buyer must request the refund of the security deposit, the seller and the custodian of the funds, by registered letter with acknowledgment of receipt.
If his request is justified, the refund is made within the maximum period of 3 months.
Good to know
The security deposit is not legally mandatory, but highly recommended. This step remains almost inseparable from the sale of a property in VEFA.
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