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Buying a new apartment: pay attention to delivery times

© Folhomee

The real estate market is currently experiencing a crisis of rare intensity. If the old market is affected, it is particularly the new housing market which is most affected by the gloomy economic situation in which we live on a daily basis since the Covid 19 pandemic.

Indeed, with the various increases in the prices of materials, as well as the sudden increase in interest rates on real estate loans, it becomes impossible to buy a new house for a lot of French people who want to become owners.

Another terrible point for their finances that buyers did not see coming, the endless increase in delivery times.

VEFA, what is it??

Buying a new apartment: pay attention to delivery times

© Folhomee

Rather popular for people wishing to buy a new home, The VEFA, abbreviation of “Sale in the future state of completion&#8221 ;, is a legal device used in the field of real estate.

This is a sales contract by which a real estate developer sells a property that has not yet been built or completed. Concretely, the buyer acquires a property off plan, that is to say that he buys a home which will be built subsequently, generally as part of a new real estate program.

As part of a VEFA, the buyer pays sums of money as the work progresses, according to a schedule established in the reservation or sales contract. The sale is definitively concluded when the construction is completed and the property is ready for delivery to the buyer.

This system offers several advantages for both the buyer and the real estate developer. For the buyer, this allows them to acquire new real estate, often at an advantageous price compared to the existing market, and to benefit from certain legal guarantees, particularly in terms of construction quality.

For the developer, the VEFA allows him to finance the construction of the project thanks to the funds paid by the buyers as the work progresses, all by securing the sale of goods even before their completion. So this should suit both parties, no ?

New apartment buyers trapped

< p>However, most of the time, buyers of these homes must take out a loan in order to be able to purchase these homes. This simply means that, if the company responsible for the construction of said accommodation falls behind schedule, the economic situation of the buyer can quickly become catastrophic.

Expecting the promised delivery date, many buyers take the plunge, before learning that significant delays are expected, therefore requiring to pay the rent for their rental current, as well as the repayment of the loan taken out to pay for the new accommodation.

Thus and since 2020, the number of delays in deliveries of new housing is becoming more widespread. Rising material prices, supply problems and construction companies going bankrupt, the number of potential difficulties is great.

An economic situation that does not help

In France, it is always more difficult to find accommodation to rent, if we add the increase in borrowing rates from 1 to 4.5% in 2 only , we find ourselves with desperate situations for buyers in VEFA.

< p>It is sometimes obligatory for them to renegotiate their credits, with a rate that has doubled since their first signature, at the risk of having to abandon the purchase of the property altogether. Return to parents, payment of double rent, delay of several years, the testimonies of VEFA buyers are edifying.

What to do if the promoter is late?

Buying a new apartment: pay attention to delivery times

© Unsplash/Maria Ziegler

Each construction delay must be duly notified and justified by the developer. Therefore, we can only advise you to contact a lawyer if you experience multiple postponements of the delivery date, which would cause you moral and financial harm.

The UFC-Que Choisir association notes on average that 30% of VEFAs accumulate delays of 5 months or more, while the Federation of Real Estate Developers rather notes periods which can be counted in years since the pandemic.

The purchase off-plan therefore requires in-depth reflection, and awareness of the increasingly long delays that housing deliveries can take.

  • Purchase in Sale in future state of completionconsists of purchasing a housing project which then leads to the delivery of said housing.
  • A way to buy popular new housing, which suffers like the entire real estate market a major crisis at the moment.
  • According to UFC-Que Choisir and the Federation of Real Estate Developers, since the pandemic a resurgence of delivery of housing which is sometimes counted in years.

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116