The VEFA Process Explained: Buying Off-Plan Ski Property in France (2026 Buyer’s Guide)

VEFA — Vente en l’État Futur d’Achèvement, literally ‘sale in the future state of completion’ — is the French legal structure used for almost every new-build property purchase in France. If you are buying a new-build apartment or chalet in the French Alps, you are almost certainly buying through a VEFA contract, and understanding how the structure works is one of the most important pieces of practical knowledge for a successful purchase. VEFA is unusual among European off-plan frameworks because it delivers strong buyer protections, staged payments tied to construction progress, and significantly reduced transaction costs versus resale purchases — all codified in French law since 1967.

Despite its ubiquity in the French market, VEFA is often poorly explained to international buyers, who may come to it expecting similar structures to off-plan buying in other European markets. It is not the same as buying off-plan in Spain or Portugal, it is not the same as buying pre-construction in the UK, and the legal protections it provides are meaningfully stronger than most buyers initially realise. At the same time, VEFA has specific timing, payment and completion mechanics that buyers need to plan for, particularly those using French non-resident mortgages or coordinating the purchase from abroad.

This guide walks through the complete VEFA structure, from the initial reservation contract (contrat de réservation) through each payment stage to final handover of keys. It explains the legal protections the buyer receives, the typical 2-3 year timeline from reservation to keys, the reduced notaire fees (2.5-3% versus 7-8% for resale), and the practical steps international buyers need to take at each stage. The guide is written for 2026 market conditions and incorporates the specific considerations that apply to ski property in the French Alps.

VEFA is codified in Articles 1601-1 to 1601-4 of the French Civil Code and has been the standard legal framework for French off-plan property sales since 1967. The fundamental structure is simple: the buyer purchases the property at a point when construction has not yet begun (or is partially complete), pays a sequence of instalments tied to specific construction milestones, and takes title progressively as each stage is completed. The developer (promoteur) retains ownership until the buyer has paid the full purchase price at handover of keys.

The law was created specifically to protect buyers from the developer failures that had damaged the French property market in the 1950s and 1960s. Before VEFA, buyers purchasing off-plan in France had limited legal recourse if a developer went bankrupt mid-construction, and many lost significant deposits. VEFA fixed this by requiring that every payment be backed by a bank guarantee for the full value of the contract, meaning that if the developer fails, the buyer’s funds are refunded or the construction is completed by another contractor at no additional cost. This guarantor mechanism (garantie financière d’achèvement or garantie de remboursement) is non-negotiable in a VEFA contract and is the single most important buyer protection in the structure.

The contract is a dual-stage process. The first stage is the contrat de réservation (reservation contract), which the buyer signs after identifying a specific lot in the development and paying a 5% reservation deposit (typically held in an escrow account). This triggers a 10-day statutory cooling-off period during which the buyer can withdraw without penalty. The second stage is the final acte de vente (sale deed), signed at a notaire’s office once the building permit is granted and the developer has commenced construction. This is the legally binding sale contract and the point at which the purchase becomes formally committed.

Throughout the construction phase, the buyer makes staged payments (appels de fonds) triggered by architect-certified construction milestones. Each payment is a statutory maximum percentage of the total contract value at the defined milestone, and the buyer’s bank (for mortgage-financed purchases) releases the funds directly to the developer’s escrow account on verification of the milestone. The sequence and percentages are fixed in law and cannot be altered by the developer — this is another important protection for buyers because it prevents developer cashflow manipulation.

The statutory VEFA payment schedule is set in French law and follows a predictable sequence across the construction phase. The exact percentages vary slightly by contract type and regional practice, but the standard structure is: 5% at reservation contract, 30% at foundations (fondations) completion, additional 35% at the watertight (mise hors d’eau) stage — when the roof is on and the building is weatherproofed — 25% at final structural completion (achèvement), and the final 5% at keys handover (livraison). Each stage is triggered by a certificate signed by an independent architect confirming that the relevant construction milestone has been reached.

The reservation deposit (5%) is paid when the buyer signs the contrat de réservation and is held in an escrow account during the cooling-off period and until the acte de vente is signed. If the buyer withdraws during the 10-day cooling-off window, the deposit is fully refunded. If the buyer withdraws after the cooling-off window but before signing the acte de vente, the deposit is typically retained by the developer as compensation for the reserved lot (subject to specific contractual exceptions). After the acte de vente is signed, the reservation deposit is applied against the purchase price.

The construction-stage payments (30%, 35%, 25%) are the largest components and are typically funded by the buyer’s French mortgage, which releases funds in tranches matched to the construction milestones. For buyers using cash rather than a mortgage, the staged payment profile is helpful for cashflow because funds are only required at the point of each certified milestone rather than all at once. The typical construction timeline from foundations to keys is 18-30 months depending on the project complexity, with most Alpine ski property VEFA projects falling in the 24-month range.

The final 5% is paid at keys handover (livraison), which is the formal delivery of the completed property to the buyer. At handover, the buyer conducts a detailed inspection of the unit with the developer’s representative, notes any defects or snagging items (réserves) in the handover report, and takes possession of the keys. The 5% retention can be held by the buyer as security against the resolution of any snagging items noted at handover — this is an important practical protection that buyers should use deliberately rather than releasing the final payment immediately.

The core legal protection in VEFA is the garantie d’achèvement (completion guarantee), which is a bank guarantee issued in favour of the buyer for the full contract value. If the developer fails or becomes insolvent during the construction phase, the guarantor bank is obligated to either refund all buyer payments or fund the completion of the construction through another contractor. This guarantee is mandatory — no VEFA sale can proceed without it — and is one of the strongest buyer protections in any European off-plan framework.

Beyond the completion guarantee, VEFA buyers benefit from three further statutory warranties on the completed building. The garantie de parfait achèvement (perfect completion warranty) covers all defects noted at handover or during the first year of ownership — the developer is obligated to remedy any such defects at no cost to the buyer. The garantie biennale (two-year warranty) covers separable equipment in the unit (boilers, appliances, plumbing fixtures) for the first two years after handover. And the garantie décennale (ten-year warranty) covers structural elements and anything integral to the building’s solidity or habitability for ten years after handover.

The garantie décennale is particularly valuable and distinctive. It covers any defect that compromises the solidity of the building or renders it unfit for its intended use, and it applies regardless of whether the defect was apparent at handover. The developer is legally required to hold specific insurance (assurance dommages-ouvrage) that funds remediation of any décennale-covered defects, meaning buyers can rely on the warranty even if the developer has subsequently ceased trading. For off-plan ski property buyers, this long-term protection is significantly stronger than the equivalent warranty structures in most other European jurisdictions.

Buyers should ensure before signing any VEFA reservation contract that they receive copies of the developer’s bancaire guarantee documentation and assurance dommages-ouvrage policy. These documents are the legal basis for the buyer protections and should be reviewed by a French-speaking notaire or specialist property lawyer as part of pre-purchase due diligence. This review is inexpensive (often included in the notaire’s standard fees) and is the single most valuable piece of legal protection the buyer can access before committing capital.

Notaire fees on a VEFA purchase are approximately 2.5-3% of the purchase price, compared to 7-8% for existing resale stock. On a €500,000 purchase, this saves the buyer roughly €20,000-25,000 in transaction costs — a material difference that is one of the core reasons new-build remains the preferred route for international ski property buyers in France. The reduced fees reflect the different tax treatment of new-build versus resale: new-build is subject to VAT rather than droits de mutation (transfer duty), and the notaire’s own fees scale down on new-build because less title history research is required.

The 2.5-3% VEFA fee breakdown includes the notaire’s professional fees (roughly 1% of purchase price, regulated by French law), government taxes on the transaction (roughly 0.7%), and administrative disbursements (typically 0.3-0.5%). The notaire is a public officer and their fees are partially regulated, meaning there is relatively little scope for negotiation — the standard scale applies uniformly across all VEFA purchases in France.

In addition to the notaire fees, VEFA purchases are subject to the 20% French VAT rate (TVA) on the property value. This VAT is included in the headline purchase price quoted by the developer, so buyers do not pay it separately at the notaire signing. For buyers who qualify for the VAT reclaim scheme — available to those committing to classified meublé de tourisme operation through an approved commercial operator — the VAT is refunded over the first years of ownership, effectively reducing the all-in cost by 16.67%. This is a specific structure that should be considered upfront and does not apply to casual owner-use purchases.

Beyond the notaire fees and VAT, buyers should also budget for mortgage broker fees (0.5-1.5% of loan amount if using a broker), mortgage application fees (typically €1,500-3,000), French life insurance premiums if the mortgage requires them, and initial syndic and running costs for the first year. These are not included in the notaire settlement and need to be budgeted for separately — total purchase-stage costs beyond the headline price typically run 3.5-5% for mortgage-financed VEFA purchases.

International buyers purchasing ski property in France via VEFA face some specific practical considerations that domestic French buyers do not. The first is language and document translation — all VEFA contracts are written in French, and while English translations are sometimes available as courtesy, the French version is always the legally binding document. Buyers should work with a French-speaking notaire or specialist property lawyer for document review and should consider working through a buying agent who can coordinate translations and explanations throughout the process.

The second is remote signing. French law permits notaire signings by power of attorney, which means an international buyer does not need to travel to France for each payment stage or even for the final acte de vente. A power of attorney (procuration) can be granted to the notaire’s office or to a representative (often the buying agent or lawyer), which authorises them to sign the final documents on the buyer’s behalf. This is standard practice and is used by the majority of non-resident ski property buyers. The procuration itself must be prepared in accordance with French notarial requirements and signed in front of a notary (in France or in the buyer’s home country).

The third consideration is mortgage financing. French non-resident mortgages are widely available but have specific documentation requirements (proof of income, tax returns, bank statements from the buyer’s home country) that take longer to process than domestic French mortgages. The typical non-resident mortgage application timeline is 8-14 weeks from initial application to drawdown authorisation, which needs to be factored into the VEFA milestone payment schedule. Domosno works with specialist brokers who handle non-resident ski property financing regularly and can advise on documentation requirements upfront.

The fourth is tax implications in both France and the buyer’s home country. French property owners are subject to French taxe foncière (property tax), taxe d’habitation (in some cases), and income tax on rental income (at either the 20% flat rate for non-residents or the standard French scale rates, whichever is lower). Rental income may also be taxable in the buyer’s home country under local tax residency rules, typically with double-taxation relief available via the relevant treaty. Buyers should get specific tax advice from an accountant familiar with both French and their home country’s tax rules before signing any VEFA reservation contract.

A typical VEFA journey from initial interest to keys handover spans 18-36 months depending on the construction phase at reservation. Buyers reserving on a residence that is already under construction (foundations poured, watertight stage visible) typically see keys within 12-18 months. Buyers reserving on a newly-launched residence with construction yet to begin should expect 24-36 months from reservation to keys. For planning purposes, buyers should budget toward the longer end of these ranges because construction slippage of 2-4 months is common and rarely causes issues with the final payment protections or legal structures.

Month 0-1 is the initial interest and residence selection phase. Buyers identify a specific lot in a specific development, review the architect plans and specifications, negotiate any inclusions or upgrades with the developer, and sign the contrat de réservation with a 5% deposit held in escrow. The 10-day cooling-off period runs from signing and can be used for due diligence. Month 2-4 is the notaire signing of the acte de vente once the building permit is finalised and the reservation contract is converted into a formal sale. This is the point of legal commitment to the purchase.

Months 4-24 (or longer, depending on start) are the construction phase. Architect-certified milestones trigger the staged payments, typically at foundations (30%), watertight (35%), and final structure (25%). For mortgage-financed buyers, the bank releases funds in tranches matched to each milestone. For cash buyers, funds are transferred from escrow to the developer’s account on milestone certification. Throughout this period, the developer provides regular construction updates and the buyer can visit the site to inspect progress if desired — most do not, but it is an option for buyers who want to verify construction quality independently.

Month 24-36 is the handover phase. The developer notifies the buyer that handover is scheduled, and the buyer conducts a detailed snagging inspection of the unit with the developer’s representative. Any defects are noted in the handover report (procès-verbal de livraison) and become the developer’s obligation to remedy under the garantie de parfait achèvement. The final 5% payment is made at handover, the keys are handed over, and the buyer takes formal possession of the property. From this point forward, the buyer is the legal owner and begins paying syndic charges, property taxes and insurance directly.

For first-time VEFA buyers, the most valuable practical step is to engage with a specialist buying agent early in the process — ideally before a specific residence has been identified. Buying agents who specialise in French Alps ski property bring three specific benefits: honest assessment of developer track records (which promoters deliver on time and which have a history of slippage), current knowledge of off-market opportunities and upcoming launches, and coordination with notaires, mortgage brokers and rental management operators who work routinely with non-resident buyers. The cost of working with a buying agent is usually paid by the developer rather than the buyer, which makes the service essentially free to the buyer in most cases.

The second practical piece of advice is to build sufficient buffer into your financial planning for the full construction timeline. Budget for the exchange rate movement between reservation and keys (particularly important for non-Euro buyers), potential construction delays of 2-4 months, variable interest rate movements on the mortgage, and the full range of initial running costs in the first year of ownership. A reasonable total buffer is 5-10% of the purchase price, held separately from the committed VEFA payment schedule.

The third is to understand upfront whether VAT reclaim is right for your use case. If you intend to use the property primarily yourself and rent casually, VAT reclaim is probably not the right structure because the operational commitment limits your personal use. If you are buying primarily for yield and are comfortable operating the property through a commercial operator, VAT reclaim can deliver roughly a 16.67% reduction in all-in cost over the first decade of ownership, which is one of the most impactful financial levers in French Alps ski property investment.