The authentic deed, or definitive contract, is the act by which the fullness of the right of ownership will be conferred on the purchaser, as and when the building of the building.
The authentic deed must be drawn up and signed by a notary.
Before signing the contract, the final sales contract must be sent to the purchaser at least one month before the date of the signature, so that the latter has the necessary time to have perfect knowledge. Concerning its drafting, this contract is necessarily in conformity with all the legislative conditions on the Sale in State Future of Completion (VEFA).
The contract refers in particular to several points:
The geographical location of the new property development,
The firm and final price, together with the payment terms,
The estimated date of delivery,
All the prior conditions,
Penalties due by the developer in case of late delivery,
The penalties due by the buyer in case of late payment of a due date,
The precise description of the property and its plot (subject to a tolerance of 5%),
The description of the seller’s legal guarantees related to the snagging issues or other faults,
The description of the completion guarantee owed by the developer, to ensure that the work will be completed and delivered no matter what.
This contract also includes a forecast stage payment schedule, based on the progress of construction, as well as legal conditions for payment stages. In this respect, it should be noted that it is also during when you sign the deeds that the settlement of the first stage payment will take place. This regulation is usually as a stage payment made by the buyer which can be complemented by the bank if a French mortgage is in place and payment to be made is more than the buyer’s agreed deposit (for example if the buyer needs to pay 40% of the property price but a French mortgage for 80% of property price is in place. The client pays 20% and the bank pays 20% from the mortgage agreed to make up 40% payment).
For more information on the different types of stage payments when buying an off-plan property in France, see the section: Off-Plan Stage Payments.