Firstly, the developer needs to prove to a bank or guarantor, prior to starting build that they have 50% of the capital needed
Secondly, every developer needs to work with a lawyer to draw up a contract document called the VEFA (Vente en l'etat futur d'achevement). This contract was introduced as law in 2002 and I am led to believe works as a two-way security for uncompleted properties.
The VEFA is drawn up by a notaire or lawyer after the foundations and ground floor have been built and prior to the promotion of the project to potential buyers. The VEFA contract must contain the following information:
- The building permission documents
Selling Price
Delivery schedule
Stages of payment
Methods of payment
Guarantee from the bank that capital is secured
Certified copies of architect plans
Attestation from engineers that the foundations and ground floor are completed
Once you are happy with the VEFA, you and the developer will sign it in front of the notaire and pay a deposit. At the same time as signing, you should receive a Cahier de Charge - detailing what building materials, furnishings, fittings, white good and finishings you will have in the property.
Now - my questions are:
1) Has anyone else heard of the VEFA?
2) Does anyone know if one exists for Alkudia Smir?
3) How does it relate to the Prelim Contract (Compromis De Vente)
Alan