FrançaisDelayed delivery of a VEFA property gives rise to liability on the part of the developer, who has an obligation of result. The firm has just obtained a favourable decision in which it obtained an order against a developer to compensate the purchaser, despite the cancellation of the initial planning permission.
VEFA is an acronym that stands for in future state of completion.
I The facts
A private individual purchased a flat from a developer. The deed of sale provided for delivery of the property by the first quarter of 2020 at the latest. Unfortunately, the property was finally delivered more than one year after the contractual deadline.
We then took the matter to court, seeking an order that the developer reimburse the interim interest, the cost of insuring the loan and the rent paid during the construction period for storing our belongings.
II Is the cancellation of the bulding permit a legitimate cause for delay?
The deed of sale included a clause stipulating that the developer could be released from its obligation to deliver the VEFA property within the contractually agreed timeframe in the event of a legitimate and serious cause for delay.
The deed of sale listed legitimate causes for delay, including ‘administrative and judicial injunctions to suspend or stop work’. At first glance, therefore, the Court stated that cancellation of the delay logically fell within this contractual framework.
III Cancellation of the building permit as a result of the developer’s fault is not a legitimate reason for suspending time limits
The firm naturally countered the developer’s argument that, since the cancellation of the building permit was attributable to the company as being based on a town planning rule, it could not rely on it.
The Court upheld this argument, considering in particular that the developer had lost one of the proceedings by failing to serve a notice of claim within the time limit, by failing to provide information explaining why it was not responsible for the cancellation of the planning permission, and by failing to inform the purchaser of the proceedings in progress when the deed of sale was signed.
It was in these circumstances that the decision was favourable, resulting in several thousand euros in compensation.
Do not hesitate to contact Me Ribeiro de Carvalho, Avocat en Droit immobilier, for any dispute relating to a delay in the VEFA. The firm operates throughout France.
