Posted on 28 July 2020

Buying a property on plan

Buying a property on plan
in this case we speak of a VEFA (sale in future state of completion)

You sign a notarised VEFA sales deed, which provides for payment of the total price according to the progress of the construction work.

The developer is obliged to offer you a completion guarantee*1 , which will be attached to the notarial deed of sale and registered with it (*1With this guarantee, your bank undertakes to pay the invoices required for the full completion of the building to the developer in the event of your developer’s bankruptcy or if the seller does not meet his completion obligation. The completion guarantee can be replaced by a money-back guarantee. In this case, the bank undertakes to reimburse the buyer for payments already made if the sale is cancelled due to the non-completion of the property).

The completion guarantee is handed over by the notary. As it is the only original, the guarantee must be returned to the bank in its original form at the time of completion. When you purchase a flat, you also sign a co-ownership deed in which the common areas are specified. This will also be used to calculate the pro rata monthly service charges. A co-ownership rulebook sets out the rules for the co-ownership of all co-owners.

When the keys to your new apartment are handed over, a protocol is drawn up listing all defects and possible faults. By countersigning this protocol, the entrepreneur undertakes to carry out the necessary work as quickly as possible. A report signed by the parties on the complete completion of the building is handed over to the bank, releasing them from the completion guarantee. The legal ten-year guarantee provided by the seller, which covers the building in case of hidden defects for 10 years from the date of handing over the keys.

All Blog posts

Company News
Meta Revolutionizes Digital Real Estate: Exclusive New Website for The Governor

Introduction: The union of two creative forces, Meta, a renowned marketing agency...

By Elena 31 January, 2024
Company News
Choosing the Right Consultant

First, there is the good news. Overall, the Grand Duchy has withstood...

By admin 08 July, 2021
Company News
The Benefits of Investing in Rental Properties

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor...

By admin 26 May, 2021
Company News
Taxation of real estate capital gains

Taxation of real estate capital gains (Updated on 16/12/2020 by LPG) The...

By admin 11 March, 2021