Reserving a new build property

New build Reservation Contract

When buying off plan in France, the payment of the deposit is accompanied by the signature of a “Contrat de reservation” (reservation contract) which reserves the property in your name and fixes the purchase price.

This is an important benefit when buying an off-plan property as you are paying today’s prices for a property that will be ready in a few months’ time and subsequent price increases will not apply to your reservation price.

The reservation contract document includes your personal details and the developer’s details. It also gives a description of the new property you are reserving and confirms the purchase price as well as specifying the building schedule, stage payments and scheduled date of delivery.

It also confirms whether you are raising a mortgage to finance your new build purchase or whether it is a cash purchase. It is important to have all financial arrangements in place as early as possible as this information is required for insertion into the reservation contract. (More on French mortgages)

The additional contractual documents which are part of the reservation contract are the technical description of the off plan property you are purchasing, its floor plan and sometimes the site plan of the new development. The documents are in French and developers do sometimes provide English translations (not contractual). Although we are not qualified to translate these legal documents we will assist you in understanding their contents. You may at this stage in the buying procedure choose to appoint an independent UK based solicitor proficient in French conveyancing to advise you. We are able to recommend several such established firms in the UK. The cost of this appointment is additional and yours to meet.

New build Reservation contract – Declaration of Natural Hazards

French property reservation contracts must now include new regulations, brought in in June 2006, relating to natural risks (risques naturels) such as flooding, forest fire, earthquake, etc. This document is called the Declaration des Risques Naturels and is prepared by the regional authorities (Arrêté Préfectoral 2006-11-0204).  The buyer is required to sign it at the time of completing the reservation contract. The signed document is later countersigned and dated by the French Notaire and attached to the Deed of Sale.

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