The Process of Selling a New Home –

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Is your next project to buy something new or near completion and benefit from all the advantages of this type of housing? Do you want to master the process of this type of acquisition? The sale of a new home is done according to a process governed by law. 

It all starts with the search for your future property leading to the signing of the reservation contract between the future owner and the real estate developer.

Better understand the VEFA  

The purchase for sale in the future state of completion (or VEFA) consists of the acquisition of a new property to be built. In some cases, construction of the property in question may have started. Called sale off-plan, this type of purchase is regulated by a decree of 1967.

Presenting numerous advantages for the benefit of the buyer, the VEFA has continued to see its followers increase in number in recent years. 

VEFA regulations 

The VEFA is a contract signed between the buyer and the seller, even before the start of the construction project of a new home. The buyer generally becomes the owner at the start of construction, pays the price gradually depending on the progress of the work, and takes possession upon completion.

Thanks to the appearance of strict regulations, buyers are protected from unpleasant surprises. The law requires that all stages take place in good conditions. The emphasis is therefore placed on various security elements for the benefit of buyers:

  • The buyer can benefit from the right of withdrawal with a validity of 10 days from receipt by mail of the reservation contract. 
  • The buyer benefits from a clause canceling the reservation contract in the event of failure to obtain the necessary financing.
  • A notary is responsible for drawing up the final deed of sale. This professional ensures the legal security of the transaction.
  • The buyer benefits from numerous guarantees aimed at protecting him in the event of poor workmanship or failure of the developer.

Good reasons to buy new 

Purchasing off-plan seems a little complex to new buyers. However, this option has various advantages: 

  • Buying new is an opportunity to save money. Certainly, the acquisition requires a cost often exceeding that of old real estate. However, purchasing off-plan leads to various forms of reduction allowing you to make savings in the short and long term. We can cite, for example, the reduction in operating costs to 2 or 3% in new buildings, instead of 7 to 8% in old buildings. We must also not forget the partial exemption from property tax in the first years. Note that new homes use less energy, which will allow you to save on your energy bills. 
  • Buying something new is also synonymous with comfort in all its aspects. Occupants are guaranteed the quality of sound insulation and protected from heat loss problems thanks to a design according to the latest standards in force. You will also not have to worry about the costs of repair work for several years. All the characteristics meeting your specific comfort requirements are already at your disposal: optimized spaces, recent equipment, favorable exposure, sound and acoustic insulation to current standards, etc.

New property buyers can also, under certain conditions, benefit from various forms of assistance for their property purchase. Like for example the PTZ+ (Zero Rate Loan+) and the PLS (Social Rental Loan).  

What are the stages of selling a new home? 

The sale of a new home is carried out in 10 distinct stages, ranging from searching for accommodation to handing over the keys and putting in place guarantees. 

1- Find your dream accommodation

The future owner of a new home begins by doing research in the targeted geographical area and has plans or a model to get an idea of ​​the situation of the accommodation in the real estate complex and the interior layout plans. 

He can also use virtual reality to view new programs. To make your task easier, you are advised to analyze your needs and your financing possibilities in advance. Depending on your requirements and your financial situation, you identify the districts, towns, or villages that interest you, and define the number of rooms and the ideal surface area.  

2- Sign the VEFA purchase/sale contract

Signing the reservation contract is the step following the search for VEFA real estate. The file serves as proof of the reservation and defines the cost of the lot. The reservation file must be made up of: 

  • The contract defining the chosen accommodation and its price
  • Plans of the accommodation and its annexes
  • The master plan of the real estate project
  • A technical descriptive notice summarizing the characteristics of the property
  • Information on natural, mining, and technological risks in the area where the real estate project is located

The signed contract is returned to the future owner of the new property by registered mail. The date of the first presentation of this letter starts the withdrawal period, a period of 10 days during which the buyer can renounce his acquisition without having to justify himself or be subject to penalties. To do this, you must notify the promoter by registered mail.

3- Pay the security deposit

A security deposit of 5% must be paid into a blocked account when signing the contract if the handover of the key is planned for the following year. It is reduced to 2% if delivery takes place in two years. 

4- Find financing 

Obtaining a real estate loan conditions the possibility of purchasing off-plan. The period during which the buyer can seek financing is mentioned in the reservation contract. Lending organizations base themselves on your financial situation to make a final decision following your request. 

5- Sign the deed of sale

The buyer receives the draft deed of sale 1 month before the date scheduled for signature as part of the sale in the future state of completion. Carefully check the content as well as the various elements highlighted there. The two parties subsequently proceed, and before a notary, to the actual signing of the sales contract.

6- Request changes

By opting for a VEFA purchase, you have the possibility of requesting work aimed at personalizing your future property. This request must be made either when signing the reservation contract, or within a period indicated by the promoter. 

7- Unblock the funds 

Unlike the sale in the old one, the payment of funds is carried out in several stages, depending on the progress of the work and according to a scale which cannot exceed: 

  • 35% of the sale price upon completion of the foundations;
  • 70% after removing water;
  • 95% on completion. 

The last 5% of the funds are paid upon handing over the key. 

8- Construction stage 

The construction time depends on the type of housing and technical specifications. It is approximately 24 months for a residency; while building a detached house typically takes 12 months.

Read also: How to Renegotiate Your Home Loan With Your Bank?

Once construction is completed, the buyer is invited to a visit to check whether the property corresponds to the plans, and that all the equipment provided is present and in good working order. He then has a period of one month to formulate any reservations, if applicable.

10- Report problems 

The purchaser benefits from guarantees in the event of the appearance of disorders, malfunctions, and hidden defects. He can notify the developer of the presence of possible problems up to 10 years from receipt of the work. 

How can C&V Habitat help you?

C&V Habitat is a renowned real estate developer in the Auvergne-Rhône-Alpes region. We operate particularly in Haute-Savoie, Savoie, and Pays de Gex. Our employees, all from the construction world, design and develop more than 150 new homes each year.

Committed to offering the best value for money, the apartments and houses signed C&V Habitat are designed by experienced professionals. All our projects are controlled by independent design offices, to strictly comply with current regulations. Prices are defined rationally following an in-depth cost analysis.

Read also: How to Get The Best Home Loan Rate?

Anxious to satisfy its customers, the C&V Habitat team supports them throughout their new real estate project, thanks to their collective expertise. Also attentive to securing investments, we are committed through legal contracts such as VEFA, guaranteeing the smooth running of construction sites and the conformity of the housing delivered.

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