Summary :
VEFI definition
What conditions?
What interest for a buyer?
What do we mean by ‘finishes’ and ‘equipment’?
What are the implications for the booking contract
Our opinion on the VEFI
VEFI definition
The VEFA corresponds to a Sale in the Future State of Completion during a real estate purchase in new-built property, that is to say that the promoter undertakes to deliver a completed property within a determined period and the purchaser in turn agrees to pay the agreed price for this property.
The VEFI designates a Sale in the Future State of Incompletion. It is in fact a VEFA but in a “ready to decorate” or “ready to finish” version with the execution of certain finishing works that the purchaser reserves for himself.
Indeed, since 2019, article 75 of the French Elan Law enshrines the right of buyers to reserve the execution of certain finishing works and equipment installations in their new home purchased off-plan from a property developer.
If they take advantage of this possibility, their VEFA sales contract then becomes a VEFI contract.
Note that the “reserved works” in the context of a sale in VEFI has nothing to do with your “buyer modification works ».
What conditions?
This possibility for the buyer to reserve work is offered only if the promoter offers it.
L261-15 “II.- The preliminary contract may provide that in the event of conclusion of the sale, the purchaser reserves the right to carry out finishing works or installation of equipment that he obtains himself . »
What is the advantage for a buyer?
If you are a seasoned handyman or if you want to call upon craftsmen after the delivery of your new home, if you want to choose other materials, coatings and finishes than those proposed by the promoter but the latter refuses to install materials that you have chosen outside the catalog of references that it offers…
The list of possibilities remains restrictive for these works that the purchaser reserves the right to do himself. However, it widens the range of possibilities.
NOTE: these works reserved by the purchaser are not covered by the perfect completion guarantee since it is not the promoter who carries it out.
What exactly do we mean by ‘finishes’ and ‘equipment’?
For example, you can ask to leave the floors bare to lay your own coverings.
Finally, but this is generally always the case, you have complete freedom with regards to the decoration of the walls.
What exactly is meant by ‘installation of equipment’?
For example, you can refuse the promoter’s sanitary facilities for the toilets or bathrooms to install those of your choice after the delivery of the accommodation. Do not forget in this example to ask for a loss and expectations to be applied for the piping.
Most homes come with electric convectors known by the colloquial name of ‘toasters’, which are energy-intensive and inefficient in terms of heating. It is possible to install yours post-delivery and choose a more efficient technology such as inertia radiators or another heating mode of your choice, providing that they respect the powers authorised by the accommodation.
What are the implications for the reservation contract?
If the developer offers it and you decide to opt for this VEFI option by reserving a certain number of works for yourself after the delivery of your accommodation, then be vigilant upstream regarding the reservation contract, especially if you are not certain of your decision and that you would like to be able to reverse course.
!!!!!! To backtrack, the purchaser must inform the seller within the reasonable repentance periods as provided for in the reservation contract by registered letter with acknowledgment of receipt.
This is the rule laid down by the CCH, Art. R. 261-13-2. “When pursuant to 2° of II of Article L. 261-15, the purchaser intends to reconsider the clause by which he has expressed his wish to reserve the execution of finishing works or installation of equipment, he notifies his decision to the seller by registered letter with acknowledgment of receipt or by electronic registered letter within the period stipulated in the preliminary contract”.
By accepting a VEFI, the purchaser must ensure that the reservation contract includes additional information:
- The definition of reserved work
- The costing of the reserved works described and costed by the seller, who will undertake to carry them out himself if the buyer changes his mind during the period of repentance
- A reasonable period of repentance: a period during which the reserving party may reconsider their decision to carry out the finishing work themselves as determined in the contract.
- The price of the reserved property broken down as follows:
1. The agreed selling price;
2. The cost of work for which the purchaser reserves the execution, these being described and quantified by the seller;
3. The total cost of the building equal to the sum of the agreed price and the cost of the works mentioned
This price detail allows the buyer to view the prices and become aware of the financial interest or not for him. This also gives him flexibility in putting together his mortgage file depending on his final decision.
Our opinion on the VEFI:
The game is not necessarily worth the candle in view of the significant disadvantages of the VEFI.
Indeed a VEFI implies a deferred move-in since the buyer must carry out additional works after the handing over of the keys and therefore possibly additional costs in rents if the buyer is renting for example.
Still from a financial point of view, this work in itself has an additional financial cost that should be assessed in the overall budget of your acquisition.
In addition, the choice of VEFI generates a cost in time spent either carrying out the reserved works yourself or calling on craftsmen and monitoring the work… After waiting 18 or 24 months for the delivery of your home, are you ready to bear the additional stress caused by this work?
Last but not least, the works reserved by the purchaser are not covered by the Guarantee of Perfect Completion or the Ten-Year Guarantee. The buyer must therefore take responsibility for the works he carries out.
Concretely, this means that if you decide to resell your property within 10 years after receipt of the works that you carry out or have carried out, it is you, the purchaser, who will be considered to be the ‘builder’ within the meaning of the article 1792-1 of the French Civil Code and therefore will have to assume the responsibilities with regards to the guarantees of the manufacturers.
In conclusion, unless you are a great handyman, have time to carry out post-delivery work on your new home and really have very specific wishes in terms of coverings and equipment different from the choices offered by the developer, we advise against going down this path.