The advantages of new build property
Property
New build
In 2025, 64,867,000 new homes were sold in France. The highly regulated new-build sector favors homeowners by offering them solid guarantees and numerous benefits.
New-build properties are often marketed under the term VEFA (sale before construction completion), also known as off-plan buying.
This status enables a developer to begin marketing some of the units in a building prior to construction in order to obtain a financial guarantee of completion (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.
Différents dispositifs fiscaux LMNP, LLI ou encore Jeanbrun permettent aux investisseurs de bénéficier d’avantages financiers et fiscaux, dont un taux de TVA réduit lors de l’acquisition, voire d’une récupération complète de la TVA, de réductions d’impôt pouvant aller jusqu’à une défiscalisation des revenus locatifs.
Updated standards
All new buildings are required to comply with the latest building regulations (RT 2012 for all planning applications submitted before 1 January 2022 and RE 2020) from that date onwards.
The buyer therefore enjoys a comfortable lifestyle and energy savings whilst keeping costs under control.
The HPE* and THPE** labels complement the RT 2012 standard and offer an additional energy saving of 10 per cent (HPE) and 20 per cent (THPE).
These labels no longer apply to buildings subject to the RE 2020 regulations, as the latter are already more stringent.
Reduced notary fees
New-build properties are subject to VAT. Notary fees are reduced and generally amount to around 2.5 per cent of the sale price (as opposed to 8% for resale).
*High energy performance **Very high energy performance
Avantages
for the buyer
VEFA
sale
1. 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 reservation contract are the site plan, the flat plan, the property description, the car park plan and the administrative documents, such as the ERP (Risk and Pollution Report) .
The buyer then transfers the deposit to the solicitor’s account; this is usually 5 per cent of the sale price.
2. The 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 notary calls for the payment corresponding to the work progress schedule on the day the deed of sale is signed.
The buyer officially becomes the owner of their property on the day the deed of sale is signed, even if they do not take immediate possession of it.
3. Progress on the construction work
The owner of the off-plan property pays the developer directly into a centralised account as the work progresses. This phased payment, known as a ‘call for funds’, is set out in a payment schedule. It generally coincides with specific stages of construction: start of works, completion of the foundations, ground floor slab, etc., right up to the completion of the works, at which point there will usually be 5 per cent remaining to be paid before handover.
The purchaser may ask the developer to carry out alteration work (TMA), which will give rise to capital gains or losses.
4. Delivery
Once the property has been completed, the buyer is invited to attend the handover appointment.
On this occasion, the purchaser is invited to view the property and, where appropriate, to raise any objections should they identify any discrepancies with the property 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.
The financial guarantee of completion (GFA) is a mandatory safeguard that ensures the buyer of an off-plan property (under a VEFA contract) that their home will be completed even if the developer goes bankrupt.
It is issued by a bank or an insurance company.
In the event that the developer abandons the project or becomes financially insolvent, the bank steps in to finance and complete the works. This ensures that the construction is completed.
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.
The guarantee of satisfactory completion (GPA) is a legal obligation in the property construction sector which requires the builder to rectify any defects, poor workmanship or faults reported by the client for a period of one year following handover of the works.
It covers defects identified during the handover inspection (reservations recorded in the handover report) as well as any new defects that arise during the first year following the completion of the works.
This includes all types of faults, whether minor or serious: cracks, water leaks, doors that do not close properly, etc.
If the builder is not the developer (which is often the case with off-plan sales), the developer remains the purchaser’s legal point of contact, as the purchaser has no direct relationship with the construction companies.
Any defects must therefore be notified to the developer by registered letter with acknowledgement of receipt (LRAR); it is then the developer’s responsibility to take action against the builder or the contractors responsible for the building works to ensure that the repairs are carried out.
In the event of a breach by the latter, the purchaser retains the right to bring a direct claim against the manufacturer and the subcontractors.
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.
Like any seller subject to the provisions of Article 1642-1 of the Civil Code, the developer is bound by the warranty against apparent defects and lack of conformity.
However, in the case of off-plan sales, as the buyer is unable to view the property at the time of sale, the law grants them a period of one month after the handover of the keys to report any obvious faults (such as a door that does not close properly or a scratch) and non-conformities (such as materials that differ from those ordered).
These defects may be identified within one month and may be added to the reservations already noted at the time of delivery of the property.
If the seller refuses to carry out repairs, the buyer may bring a claim under the warranty before a court, with effect from the date on which the one-month period following taking possession expires.
This guarantee is similar to the guarantee of satisfactory completion, as both cover non-conformities and hidden defects reported at the time of delivery of the property or within one year of taking possession.
However, the difference lies in the fact that, in one case, the guarantee is the responsibility of the builders (guarantee of satisfactory completion) and, in the other, that of the seller (the developer).
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.
The two-year warranty (or performance warranty) covers faults in the equipment of the property sold, for up to two years after completion of the works.
It covers plumbing (taps, water heaters, sinks, toilets), heating and ventilation (radiators, boilers, mechanical ventilation systems), doors and windows (roller shutters, internal doors, windows) and electrical fittings (intercom, thermostats, household appliances supplied on delivery).
This warranty does not cover any work relating to the structural work, nor does it cover faults resulting from a lack of maintenance or the incorrect use of the equipment.
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.
The sound insulation guarantee, valid for one year from the date the keys are handed over, protects the buyer of a property purchased off-plan against noise pollution that does not comply with current regulatory standards.
The developer is, in fact, liable to the first occupant of each dwelling for ensuring compliance with the regulations concerning the minimum sound insulation standards that must be met: communal areas, rooms within the dwelling, communal facilities (pipes), external areas, etc.
It is advisable to have an acoustic survey carried out by an independent expert in order to prove non-compliance before the one-year deadline.
All equipment (radiators, shutters, taps, etc.) is guaranteed by the developer for two years.
The ten-year guarantee is a legal obligation that protects the owner against serious damage to a building for a period of 10 years from the date of acceptance of the works.
This refers to damage that compromises the structural integrity of the building (major cracks, risk of collapse, leaky roofs, etc.), defects rendering it unfit for its intended purpose (serious insulation problems, significant water ingress, etc.) or integral fixtures and fittings (built-in pipework, central heating, etc.).
All construction professionals (bricklayers, roofers, plumbers, electricians, architects, property developers) must take out ten-year civil liability insurance before work begins, failing which they face criminal penalties.
In the event of the builder’s or developer’s insolvency, the ten-year guarantee may be invoked by contacting the insurer named on the insurance certificate provided by the builder.
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.
Building defects insurance (DO) enables the cost of repair work for significant defects that threaten the structural integrity or habitability of a property to be reimbursed quickly, without having to wait for a court to rule on the contractor’s liability.
It covers serious cracks in the walls or the collapse of the roof; major water ingress through the roof or walls; and defects relating to the foundations, the structural framework or the building’s integral fixtures and fittings.
It must be taken out before work begins and remains valid for ten years after the work is completed (at the same time as the ten-year guarantee).
In the event of a problem, the insurer must make a refund offer to the purchaser within 90 days.
THE 7 GUARANTEES
of new-build purchase
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