1
Off-plan purchase (VEFA), step by step
Most new homes in France are sold off-plan, under a “vente en l’état futur d’achèvement” (VEFA): you buy the home before or during construction and become the owner of the building as it goes up.
- Reservation contract: you choose your home and sign a preliminary contract describing it (plans, specifications, price, expected completion date).
- Cooling-off period: you have 10 days after receiving the signed contract to withdraw, without giving a reason and without any cost.
- Deposit: at most 5% of the price if the deed is signed within a year (2% if within two years), held in a blocked account and refunded in the cases provided by law.
- Deed of sale: signed before a French notary, once your financing is in place. You can sign remotely through a power of attorney.
- Handover: you visit the finished home with us, note any reservations, and receive the keys.
2
Staged payments, capped by law
You pay as the construction progresses, and the law caps each instalment:
- up to 35% of the price when the foundations are completed;
- up to 70% when the building is watertight (“hors d’eau”);
- up to 95% when the building is completed;
- the balance on handover of the keys.
3
Guarantees that protect you
- Completion guarantee (garantie financière d’achèvement): if the developer fails, a bank or insurer finances the completion of your home.
- One-year guarantee of perfect completion (parfait achèvement) for any defect reported at handover or during the first year.
- Two-year guarantee on equipment (doors, windows, fittings).
- Ten-year structural guarantee (garantie décennale), backed by building-damage insurance (dommages-ouvrage).
4
What it costs on top of the price
- Notary fees on a new home: about 2 to 3% of the price, against 7 to 8% for an older property.
- French VAT (20%) is included in the advertised prices.
- Property tax (taxe foncière): new homes may be fully or partly exempt for their first two years, depending on the town’s decision.
- Annual charges of the building (co-ownership) for apartments, and your own insurance.
5
Financing your purchase
French banks lend to buyers living abroad, usually with a larger personal contribution and with your income and credit history checked in detail. Bank interest is often paid only on the amounts released as the work progresses. We can put you in touch with our partner banks and brokers.
6
Holiday homes and renting out
Many of our buyers in ski resorts use their apartment as a second home and rent it out part of the year. The rules on furnished holiday rentals (registration with the town hall, taxation) have changed in recent years and vary from one town to another: ask us, a notary or a tax adviser before you decide.
This guide gives general information on French law for new homes; it is not legal or tax advice. Your notary will confirm the rules that apply to your purchase.
