Purchasing a home yet to be built
Purchasing a home that is yet to be built (off plan) : the "vente en l'état futur d'achèvement" (or "VEFA")
This is the most common type of contract for the purchase of a home which is not yet completed. Funds are released in instalments as construction progresses.
The parties must also sign a reservation contract ("contrat de réservation") which states, among other things, the price of the home when built, the technical specifications as well as the methods and dates of payment.
The buyer usually pays a deposit of up to 5% of the price. This is subsequently deducted from the overall purchase price. The parties then sign a deed of sale before the notary. This contains the binding agreement of the parties on the various terms of the reservation contract. It is at this stage that you, the buyer, become the owner of your home, irrespective of the stage of completion of the property.
Contract for the building of a home: "Contrat de construction de maison individuelle"
In France, it is quite possible to buy a plot of land and have a house built. In this case, it is advisable to make enquiries with the local authorities about obtaining planning permission. You enter into a preliminary sales agreement for the purchase of the land. A separate contract is then drawn up with your builder, who must be fully qualified and registered in France. Once you have signed these two documents, you can proceed with your mortgage application.