{"id":33436,"date":"2022-09-26T12:57:23","date_gmt":"2022-09-26T08:57:23","guid":{"rendered":"https:\/\/preprod.villa-vie.com\/?p=33436"},"modified":"2022-11-03T08:53:04","modified_gmt":"2022-11-03T04:53:04","slug":"what-is-vefa-off-plan-property-sale-in-mauritius","status":"publish","type":"post","link":"https:\/\/www.villa-vie.com\/en\/2022\/09\/what-is-vefa-off-plan-property-sale-in-mauritius\/","title":{"rendered":"What is VEFA ? Off-plan property sale in Mauritius"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<p class=\"wp-block-paragraph\">In terms of <a href=\"https:\/\/www.villa-vie.com\/index-en.htm\" target=\"_blank\" rel=\"noreferrer noopener\">real estate in Mauritiu<\/a>s,<a href=\"https:\/\/www.villa-vie.com\/news\/1183\/vefa.htm\" target=\"_blank\" rel=\"noreferrer noopener\"> VEFA (off-plan sales)<\/a> stands as a sales deed governing the acquisition of a real estate property off-plan, which has not yet been completed. Inspired by the French VEFA but strictly governed by the Mauritian Civil Code, the VEFA contract is meant to protect both Mauritian and <a href=\"https:\/\/www.villa-vie.com\/en\/invest-real-estate-mauritius.htm\" target=\"_blank\" rel=\"noreferrer noopener\">foreign property buyers<\/a>.<\/p>\n<\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"362\" src=\"https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1-1024x362.png\" alt=\"\" class=\"wp-image-447\" srcset=\"https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1-1024x362.png 1024w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1-300x106.png 300w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1-768x271.png 768w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1-1536x543.png 1536w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/08\/image-1.png 1744w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\"><strong>Signature of a Reservation Contract (CRP)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The signature of a Reservation Contract allows the future buyer to reserve a property in a future real estate project. For the purchaser, the signature of a CRP must be accompanied by a deposit to be paid into an escrow account at the bank or at the notary. Generally, this down payment represents 5% to 10% of the value of the property. It has to be noted that the CRP remains <strong>optional<\/strong> \u2013 it is possible that the promoter skips this step and opt for a final sales agreement.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the signature of the Reservation Contract (CRP), the promoter may decide not to take the project forward. In such circumstances, he will be legally obliged to refund the deposit made by the buyer. The promoter is not allowed to claim for any payment from the buyer before the signature of a CRP.&nbsp;<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\"><strong>Establishing the CRP<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For greater security, it is recommended to hire a notary to prepare the VEFA reservation contract. The document should contain:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The content of the property<\/li>\n\n\n\n<li>A description notice<\/li>\n\n\n\n<li>The sales price and any possible conditions for its variation<\/li>\n\n\n\n<li>The date of conclusion of the final contract<\/li>\n\n\n\n<li>The time required to complete the work<\/li>\n\n\n\n<li>A reminder of the legal conditions for the buyer to renounce his purchase, with recovery of the security deposit<\/li>\n\n\n\n<li>The condition precedent of financing if the buyer wishes to use a loan<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\"><strong>Security Deposit<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When the buyer signs the preliminary reservation contract in order to book his real estate property under VEFA, he is required to pay a security deposit to a special account (escrow account), opened through the notary or within a financial institution in the name of the buyer. Until the conclusion of the sales contract, this sum remains untouchable, unless the sale before completion does not concretize.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Concerning the amount of the security deposit with regards to a VEFA, in accordance with article 1601-42 of the Civil law of Mauritius:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It amounts to a maximum of 2% of the selling price if the VEFA deed of sale is signed between 1 and 2 years after the reservation contract. In case the time limit for completion of the sale is more than 2 years, the seller may not ask for a security deposit.<\/li>\n\n\n\n<li>It amounts to a maximum of 25% of the selling price if the signing of the final sales contract takes place in the same year as the signing of the reservation contract.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\"><strong>The notarial deed<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The deed of sale before completion must be drawn up by a notary. According to the Civil law of Mauritius, the document must contain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An exact and detailed description of the property under VEFA<\/li>\n\n\n\n<li>The construction completion date<\/li>\n\n\n\n<li>The delivery date expressed in months, with penalties for delay in case of overflow<\/li>\n\n\n\n<li>Financial guarantees for completion and\/or reimbursement as well as all construction insurance (biennial, 10-year\u2026)<\/li>\n\n\n\n<li>Mention of administrative permits (building permits\u2026)<\/li>\n\n\n\n<li>The price of the property<\/li>\n\n\n\n<li>The schedule for the compulsory phasing-in of payments<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The draft VEFA deed of sale together with supporting documents (site plans, technical specifications detailing the nature and quality of the materials used, the components of the private and common parts) and the financial Completion Guarantee document (<a href=\"https:\/\/fr.wikipedia.org\/wiki\/Garantie_financi%C3%A8re_d%27ach%C3%A8vement\" target=\"_blank\" rel=\"noreferrer noopener\">Garantie Financi\u00e8re d\u2019ach\u00e8vement<\/a>) must be communicated to the buyer at least one month before the date scheduled for the signing of the final VEFA in order to allow him to examine them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"782\" height=\"521\" src=\"https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-782x521.jpg\" alt=\"\" class=\"wp-image-33430\" srcset=\"https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-782x521.jpg 782w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-300x200.jpg 300w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-768x512.jpg 768w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-1536x1024.jpg 1536w, https:\/\/www.villa-vie.com\/wp-content\/uploads\/2022\/09\/kam-idris-kyt0PkBSCNQ-unsplash-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 782px) 100vw, 782px\" \/><\/figure>\n\n\n\n<div style=\"height:37px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\">Payment process under the VEFA<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The payment of the purchase price of a property under VEFA is staggered, divided to follow the progress of the work. The seller is authorised to raise funds from the VEFA buyers after an independent professional has verified the progress of the work. As for the timing:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>25% upon signature of deed&nbsp;<\/li>\n\n\n\n<li>10% Upon completion of the foundations&nbsp;<\/li>\n\n\n\n<li>35% upon completion of the roofing&nbsp;<\/li>\n\n\n\n<li>25% upon completion of the building works<\/li>\n\n\n\n<li>5% upon delivery of the property<\/li>\n<\/ul>\n\n\n\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\">Delivery of a property under VEFA<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">VEFA delivery occurs when the keys are delivered by the real estate developer to the buyer. This step activates the biennial and 10-year guarantees that the builder is responsible for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Perfect completion guarantee (article 1642-1 and 1648 al. 2)<\/li>\n\n\n\n<li>Guarantee of the proper functioning of dissociable equipment items (article 1646-1 and article 1792 of the Civil law on biennial guarantees),<\/li>\n\n\n\n<li>10-year guarantee (article 1646-1 and article 1792 of the Civil law)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the buyer accepts the work without reservation, he has the year following the receipt to assert the guarantee of perfect completion, for example, if defects were not found during the receipt of the work and the preparation of the report (provided, however, that they are denounced within one month of taking possession). For this, he will be required to provide a registered letter with acknowledgement of receipt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the buyer expresses reservations when the works are received, he may ask the developer to remedy the situation and to resume the works within a fixed period agreed with him.<\/p>\n\n\n\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\">Guarantees related to construction<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">During a <a href=\"https:\/\/www.villa-vie.com\/news\/1183\/vefa.htm\" target=\"_blank\" rel=\"noreferrer noopener\">VEFA purchase<\/a>, the buyer has several guarantees:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operation of equipment. This optional guarantee, valid for 2 years, covers in particular the entire equipment that can be dissociated from the construction (shutters, taps, tiles&#8230;).<\/li>\n\n\n\n<li>The 10-year guarantee, also called the &#8220;hidden defects guarantee&#8221;. The buyer has a period of 10 years from the date of receipt of the property to indicate and have repaired all the defects that may concern the solidity of the building (foundations, roof, etc.)<\/li>\n\n\n\n<li>The property damage insurance is contracted by the developer to allow the insurer to immediately take over the work covered by the 10-year guarantee. This insurance is valid for the whole duration of the guarantee.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"has-villavie-blue-color has-text-color has-medium-font-size wp-block-heading\">Are properties purchased under VEFA customisable or not?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the property schemes, residential units purchased under VEFA can be customised. It is possible to some extent, to ask for some modifications from the promoters (choice of flooring, installation of additional cabinets, &amp; dressings, installation of bathtub instead of shower\u2026). Some real estate projects are marketed as turnkey projects featuring complete arrangement and furnishing. In other cases, the buyer is allowed to customise to a great extent his future residential unit; however, this type of option will definitely trigger additional costs which shall be borne by the buyer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In terms of real estate in Mauritius, VEFA (off-plan sales) stands as a sales deed governing the acquisition of a real estate property off-plan, which has not yet been completed. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":33409,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[130],"tags":[],"class_list":["post-33436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mauritian-legislation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is VEFA ? 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