How it works
In an off-plan sale the buyer acquires a property that does not yet exist, or is not yet finished, at the moment of signature. The sale deed is signed before the works are complete, and the price is paid progressively as construction advances.
The developer, as seller, retains the powers of the client until practical completion of the works (Civil Code, art. 1601-3). It signs the contracts with the contractors, manages the site and bears the risks of cost and programme overrun.
The key steps
| The reservation contract | A preliminary contract between developer and buyer. It describes the property, the price, the anticipated delivery date and the withdrawal conditions for a non-professional buyer, ten days (CCH, art. L271-1). The deposit is capped at 5 % of the anticipated price where the sale is to take place within a year, 2 % within two years, and none beyond (CCH, art. R261-28). |
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| Obtaining planning permission | The permission must be free of challenge before the deed is signed. A key point of vigilance for the buyer. |
| The sale deed | Signed before a notary. This is when the off-plan sale is definitively constituted and the statutory payment schedule begins. |
| Staged payments | Progressive payments according to the progress of the works, as set out below. |
| Handover | Keys handed over and a joint inspection made. The buyer can record defects in the visible work. The start of the warranty periods. |
The statutory payment schedule
The law strictly frames the rhythm of payments where the building is for residential use or for mixed professional and residential use. The developer may then not claim more than the following ceilings (CCH, art. R261-14):
| 35 % of the price | On completion of the foundations |
|---|---|
| 70 % of the price | When the building is weathertight, the roof or roof slab being in place |
| 95 % of the price | On completion of the building |
| 100 % of the price | On handing over the property |
A key point: the remaining 5 % can be held in escrow where defects are recorded at handover. If the buyer records significant defects, they can lodge the 5 % with a third party, a notary or the state deposit institution, rather than paying the developer. Those funds are released only when the defects are cleared.
The statutory guarantees
| The completion guarantee | Provided by a financial institution, bank or insurer, assuring that the building will be completed even if the developer fails. Mandatory where the building is for residential use or for mixed professional and residential use and the buyer pays funds before completion: the seller then takes out a financial guarantee of completion or of repayment (CCH, art. L261-10 and L261-10-1). For any other use, those articles do not impose it, and the financial guarantee is negotiated in the contract. It is the buyer's principal protection against developer insolvency. |
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| The one-year defects liability | It obliges the contractor, for one year from practical completion, to make good the defects reported by the client (Civil Code, art. 1792-6). In an off-plan sale, it is the seller who accepts the works, since it retains the powers of the client until practical completion (art. 1601-3). Towards the buyer, the seller answers for apparent construction defects and non-conformities (Civil Code, art. 1642-1). |
| The two-year warranty | Covers equipment separable from the structure, boiler, shutters, taps, for two years. |
| The ten-year warranty | Covers damage affecting the soundness of the building, or rendering it unfit for its purpose, for ten years. Taken out by the contractors and the design team. |
Points to check before signing
- Verify the existence and validity of the completion guarantee: ask for the name of the guaranteeing institution and the reference of the guarantee.
- Examine the planning permission: make sure it is free of third-party challenge before signing the deed.
- Read the descriptive schedule closely: it sets out the materials, equipment and finishes provided. Any later change will be charged as a buyer variation.
- Assess the developer's financial strength: track record, number of operations delivered, level of pre-sales on this one.
- Allow margin on the delivery date: dates announced off plan are often optimistic. Build three to six months of margin into your return calculations.
Related articles: calculating the return on a property project · Financial risks in construction projects
The statutory provisions mentioned are those of the French construction and housing code in force in 2026. Off-plan sale is a complex contract; take advice from a notary and a specialist lawyer for substantial acquisitions.
The nature of the figures quoted
The time margins quoted (three to six months) are orders of magnitude for framing, not measurements. The percentages and the withdrawal period set by law are tied to their articles.
Sources: the BT construction cost indices published monthly by INSEE on its 2010 base, used to update the figures · construction cost statistics from SDES, the statistical service of the ministry responsible for construction · regulatory texts published in the Journal officiel and consolidated on Légifrance for the requirements cited.