10 tips for successfully buying a new-build property

According to recent statistics, the number of new-build construction starts appears to be picking up again, according to data published on the site des services de l’Observation et des Statistiques (SOeS) of the Ministry of the Environment. The Sextant team has taken the opportunity to carry out a small analysis in terms of the type of construction and their evolution over the last 30 years.

As you can see above, the trend is upwards after a peak in construction in the mid-2000s. This applies to both multi-unit housing and individual houses. However, in 2015, the focus was mainly on multi-unit housing, i.e. investment. The Pinel tax relief is surely partly responsible!

Whatever your type of project, we have prepared a list of 10 tips for successfully buying a new-build property.

The developer is the main contractor for the project, so you should start your research with them.

1 Find out about the developer’s financial stability As a general rule, companies with at least 10 years of experience are safer – they have the experience and financial backing in place to ensure the construction of your property. You can also check their financial health on Infogreffe or other similar independent websites.

2 Only pay the minimum legal deposit The legal guarantee deposit amount varies depending on the date of the final deed of sale. If it takes place within the next 12 months, it is 5 years. Beyond this date, and up to 2 years, it will be 2%. If the developer asks for more, you should look elsewhere.

3 Consult the technical specification This document is in addition to the initial contract and will serve as a reference for the final deed of sale. Before construction begins, you should read it to check the quality of your project. On delivery, you will need to check everything again – you have up to 30 days to report any defects or imperfections.

4 Developer’s guarantees after delivery Beyond delivery, you will also want to ensure the longevity of your project. For any issues that arise within 12 months, you benefit from the ‘perfect completion’ guarantee – the developer is obliged to intervene. Similarly, the two-year guarantee covers all issues with equipment such as taps, etc. – it lasts, as the name suggests, 2 years. Finally, the ten-year guarantee, which is compulsory and taken out in your name by the developer, will allow you to have major defects that would render the property uninhabitable repaired.

5 Discovering the neighbourhood Now that you are sure about your developer, you will need to explore the neighbourhood – visit the surrounding area, take a trip to the town hall and if possible, find out about future tenants. Ultimately, this is all common sense – let’s now move on to the construction and its completion.

6 Compensation in the event of delay Unfortunately, delivery delays are quite common. In such cases, penalties are imposed on the developer, but you must absolutely include them in your contract – otherwise, it will be a trip to court that awaits you.

7 Check everything on delivery Whether for the dwellings or the communal areas, check everything meticulously. For minor imperfections, you will simply need to negotiate a friendly agreement. However, for major defects, you can withhold 5% of the final price while awaiting restoration. If the works are not finished, do not under any circumstances sign the minutes.

8 Recovering the guarantee deposit within 5 years According to the law and once the reservation contract is signed, you have 5 years to withdraw from the purchase without losing your guarantee deposit in certain cases. They are as follows:

• Final date of signature delayed
• Final price of the project at least 5% higher than the original price
• Removal of equipment
• Loan amount at least 10% lower than the original value
• Modifications that reduce the value of the property by at least 10%

9 The conditional clause If you are making a mortgage application for your new project, you will sign your reservation contract with the developer under the conditional clause of obtaining it. Just make sure there are no special mentions, as some are very restrictive.

10 Strictly adhere to the payment schedule Finally, a last tip for the various payments: 35% of the sale price on completion of the foundations, 70% for weathertightness, 95% on completion of the building and 100% on delivery. It is important to pay on time – otherwise, you will in turn receive penalties.

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