2. Preliminary Contract for 'Off Plan' French Property
2.2. Deposit
The law strictly forbids the payment of any deposit before the signature of the intial contrat de réservation.
Accordingly, if you are asked for a deposit by a developer before you sign the contract, you should refuse.
At the time you do sign you will be asked for a dépôt de garantie
The maximum deposit that can be requested depends on the planned delivery date of the property, as follows:
- Within one year - 5%
- Between one and two years - 2%
- More than two years – 0%
The deposit cannot be used by the developer to fund the development. It must be placed in a client account, either with a bank, or through the notaire, and cannot be withdrawn until the sale is completed.
The preliminary contract must state the latest date when the final VEFA contract will be signed.
If this date passes, without the VEFA contract having being signed, then you have the right to withdraw and obtain reimbursement of your deposit.
Next: Cooling Off Period
Back: Purpose of Contract
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