Security in the acquisition of a VEFA (vente en l’état futur d’achèvement) property requires preventive measures to ensure that potential buyers can make informed decisions and protect themselves against potential problems. Explanations with JLSK’s Managing Director, James Simon, for whom the presentation of trustworthy promotions is of paramount importance.
Check the promoter’s reputation
Before investing in a VEFA property, it’s crucial to check the reputation of the property developer. Thoroughly research its past achievements, consult customer feedback and make sure it is registered and complies with regulatory standards.
Consult local experts and the Economic Development Board (EDB)
Consulting an expert specialized in local real estate law is an essential step to ensure your security. These professionals will examine the preliminary reservation contract (CRP) in detail, checking the clauses, delivery deadlines, penalties for delays and guarantees offered by the developer; this will enable you to fully understand the terms of the contract and protect you legally.
Examine the contract before signing the CRP.
Read each clause carefully and ask for any necessary clarification. Take an interest in the plans, building materials, quality standards and equipment included. Make sure that legal guarantees are in place, such as the financial guarantee of completion (GFA) in the event of the developer’s bankruptcy, or the damage to work guarantee (DO), covering defects and faulty workmanship.
Ask for bank references
Make sure the developer has the necessary financing to complete the project. Ask for bank references to confirm the developer’s ability to finance the construction of the VEFA property. This will reduce the risk of project delays or abandonment. In addition, when signing the CRP, ensure that the deposit is paid into an escrow account.
JLSK – Pointe aux Canonniers (Grand Baie): 5498 8875.
