VEFA statutory regulation
Written by, Séphora Amsellem on May 23, 2019
Most of the French leaseback schemes start with a two stages process contract: a contrat de réservation (preliminary contract) is signed before entering into the final vente en l’état futur d’achèvement (VEFA) contract.
The VEFA contrat provides many benefits such as payment plan, construction completion guarantee, etc…
The French Supreme Court ruled that the premises in the building which is in the process of being converted into a residence hotel could have such legal framework if the buyer made payments before the completion of work and if the building is used for residential use only (as opposed to business use).
(Supreme Court, Civ. 3rd, 23 May 2019, n° 17-17.908)