What is VEFA (Vente en l'Etat Futur d'Achèvement)?
What are the late penalties in the context of a VEFA?
What are the obligations of the parties in the context of a VEFA?
For what type of property is VEFA permitted?
What are the mandatory terms of the VEFA contract?
What are the terms of payment for a VEFA?
What are the late penalties in the context of a VEFA?
What is VEFA (Vente en l'Etat Futur d'Achèvement)?
The Sale in the Future State of Completion (VEFA) is a legal framework which makes it possible to acquire a property not yet built or under construction. This legal form of the contract for the acquisition of real estate provides additional guarantees to the purchaser in comparison to a classic real estate acquisition called “off plan”. Particularly in terms of respecting the construction deadline, and the solvency of the promoter.
The promoter or seller undertakes to deliver a complete property and in accordance with the plans and descriptive notices, within a specified period.
The VEFA is concluded under a contract between the buyer and the property developer. Upon signing, the purchaser becomes the owner of the land before construction, then of the property as it is built.
What are the obligations of the parties in the context of a VEFA?
Article 618-1 of Law 107-12 defines the sale of a building in the future state of completion (VEFA), by an agreement which obliges the seller to build a building within a prescribed period, and to transfer the property to the purchaser in return for a price to be paid by the latter.
In this context of a VEFA, the seller retains his rights and attributions as project owner until the completion of the work on the building.
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For what type of property is VEFA permitted?
The sale in the future state of completion is permitted in Morocco regardless of the use of the property:
Residential use
Professional use
Commercial use
Industrial use
Artisanal use
What are the mandatory terms of the VEFA contract?
Article 618-3 of Law 107-12 has determined the mandatory elements that must include a preliminary off-plan sale contract:
The identity of the contracting parties;
The election of agreed domicile, together with the obligation to declare any change in the agreed domicile;
The number of the title of the property of the registered building, object of the construction, or the references of the property of the unregistered building, specifying, the real rights, the charges and the easements encumbering the building;
The date and number of the building permit;
The location, description and approximate area of the property being sold;
The final sale price per square meter and the terms of payment or the overall sale price for the sale relating to the acquisition of a building in the context of social housing as defined by the legislation in force;
The delivery time ;
The references of the guarantee of reimbursement of amounts paid in the event of non-performance of the contract by the seller, of the guarantee of completion of the work or of the insurance.
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What are the terms of payment for a VEFA?
Article 618-6 of Law 107-12 determined the terms of payment according to the progress of the work in the following phases:
5% of the amount after concluding the reservation contract;
5% upon conclusion of the preliminary contract or 10% if there is no prior reservation contract;
10% upon commencement of works;
60% according to the agreement of the parties, depending on the progress of the work of each phase:
Phase of the works relating to the foundations of the construction at the level of the ground floor;
Phase of works for the major works of the entire building;
Phase of the finishing works and obtaining the residence permit or the certificate of conformity.
20% remaining upon conclusion of the final sales contract and delivery of the keys to the purchaser.
What are the late penalties in the context of a VEFA?
Article 618-12 of Law 107-12 defines the penalties as follows:
If the purchaser does not respect the payment deadline, he will have to bear a penalty of 1% per month of the amount payable, without exceeding 10% per year.
For any delay in the completion of the works, the seller or the promoter must pay an indemnity of 1% per month of the sum due, without exceeding 10% per year.
If one of the two parties refuses to conclude the final sales contract after sixty days from the date of notification, article 618-9 of law 107-12 entitles the injured party to terminate the contract as of right. , or take legal action to conclude the contract with the right to compensation.
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