14/ Guarantees required by the French government

This scheme is backed by the French government and for a builder to begin construction, completion must be guaranteed by a bank. This means that whatever happens, the bank will finance the construction and deliver the property to its owner. Mortgage banks will also require this “intrinsic guarantee” or they would not approve the loan. In addition to this, when you buy “off plan” in France, under French law you have the benefit of five different guarantees:

- 2 year guarantee: this covers all defects affecting the functioning of items of equipment separable from the building, for example windows, doors, boilers etc.
- 1 year “perfect completion guarantee” : this covers all defects that are reported on the day of hand-over and those which become apparent during the first twelve months (the management company will appoint a bailiff to check this on your behalf on the day of hand-over).
- 10 year guarantee: this is the builder’s guarantee which starts at hand-over and lasts for 10 years. It covers structural defects.
- 1 year sound insulation guarantee
- 1 month guarantee against obvious defects: this starts at the date the keys are handed over. When the house or apartment is completed, you will receive a document called “attestation d’achèvement de travaux” (works completion certificate) from the vendor. You will be invited to attend an “état des lieux” (literally “state of the premises”) with the vendor and if you do not attend a bailiff will be mandated to represent you. If you, or the bailiff representing you, are satisfied, the property is ready for occupation; the vendor will hand over the keys.