What is the sale in future state of completion (VEFA?)

VEFA stands for sale in future state of completion. It consists, for a purchaser, of buying a home off-plan and therefore not completed. The VEFA is a contract between the purchaser and the developer which guarantees the completion of the construction for the purchaser and allows the developer to be paid as the work progresses. To do this, a payment schedule is set by the developer and the balance is paid on delivery of the property by the purchaser. In the case of a VEFA sale for residential properties, the developer is obliged to take out a Financial Guarantee of Completion to guarantee the completion of the work.

In addition, there are tax advantages linked to buying a new property: reduced notary fees because it is a new property (2 to 3% compared to 8% for an old property), the Pinel law which allows you to benefit from tax advantages by renting the property for a minimum of 6 years, and zero rate loans to finance up to 40% of the purchase of a new property, the costs of which are covered by the State.

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- What is the Financial Guarantee of Completion?
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