Buying off-plan property in France: legal rules every foreign buyer should know

Buying property in France before construction is completed is a common practice, particularly among international buyers seeking modern apartments or new residential developments. This type of transaction is governed by a specific legal framework known as VEFA (vente en l’état futur d’achèvement).

While VEFA purchases offer strong buyer protection compared to many other countries, they also involve strict legal rules, staged payments, and mandatory guarantees that foreign buyers must fully understand before signing any contract. Failing to do so can expose buyers to unnecessary financial and legal risks.

This article explains how off-plan property purchases work in France, what protections apply to foreign buyers, and why proper legal review is essential.

What is a VEFA contract under French law?

A VEFA contract is a legally regulated off-plan sale in which the buyer acquires a property that is not yet completed or still under construction. Unlike traditional property purchases, ownership is transferred progressively as construction advances.

Under French law, the buyer becomes the owner of the land and existing structures upon signing the notarised sale deed. Ownership of the future building elements is transferred gradually as construction milestones are reached, until full delivery of the completed property.

The developer remains responsible for managing and completing the construction until delivery, under strict legal supervision.

Why VEFA offers strong protection for foreign buyers

French law provides extensive safeguards for buyers purchasing off-plan, making VEFA one of the most secure frameworks in Europe for new-build acquisitions.

Key protections include:

• Mandatory notarised contracts

• Strictly regulated stage payments

• Financial guarantees issued by banks or insurers

• Statutory construction warranties after delivery

These mechanisms are designed to ensure that buyers either receive the completed property as promised or recover the amounts paid if the project fails.

Stage payments: how and when buyers pay

Unlike traditional real estate purchases, VEFA payments are made progressively as construction advances.

French regulations cap the maximum amounts payable at each stage:

• Up to 35% once foundations are completed

• Up to 70% when the building is weatherproof

• Up to 95% upon completion of construction

• The final 5% at handover of the keys

Each payment request must be supported by a construction progress certificate issued by an architect or qualified professional. Buyers should never release funds without receiving this confirmation.

Mandatory financial guarantees: completion or refund

One of the most important protections in VEFA transactions is the mandatory financial guarantee provided by the developer.

There are two types:

• Financial Guarantee of Completion (GFA): ensures the building will be completed even if the developer fails

• Financial Guarantee of Refund (GFR): guarantees reimbursement of payments if construction cannot be completed

In practice, most residential VEFA projects for private buyers are secured by a completion guarantee issued by a bank or insurer. This guarantees that the buyer will ultimately receive the finished property.

Delivery, inspections and post-completion warranties

At delivery, buyers are entitled to inspect the property thoroughly and list any defects or non-conformities. Minor issues can be noted as reservations, while serious defects may justify withholding the final 5% payment in escrow until resolved.

After delivery, French law provides several warranties:

• 1-year perfect completion guarantee

• 2-year equipment warranty

• 10-year structural warranty

These protections significantly reduce the long-term risk of buying new property in France.

Why legal advice is essential for foreign buyers

Although VEFA contracts are heavily regulated, they remain complex legal documents written in French and governed by strict statutory rules. Foreign buyers should never rely solely on marketing materials or verbal assurances.

A lawyer experienced in French real estate law can:

• Review reservation and sale contracts

• Verify financial guarantees and permits

• Identify hidden legal or tax risks

• Protect the buyer’s interests throughout the transaction

👉 For a detailed legal guide on VEFA purchases in France, see the full article here:

https://frela.law/portfolio-item/off-plan-property-purchase-france-vefa/