2CHAPTER
The VEFA
A valuable asset for the buyer
G overned by articles 1601-1 to 1601-45 of the Mauritian Civil Code , the VEFA ( Vente en l ’ État Futur d ’ Achèvement ) is often preceded by a preliminary reservation contract ( PRC ) which stipulates :
• The date of conclusion of the final VEFA contract
• The deadline for completion of the work
• A description of the construction project
• The terms and conditions for the recovery of the deposit by the purchaser in the event of non-completion of the work
Following this , the sales contract , which must be executed by a notary , contains :
• A detailed description of the property
• The price of the property
• The schedule of compulsory payment instalments
• The delivery date
• The penalties for delay in the event of overruns
• Financial guarantees for completion of the work and / or reimbursement
• All construction insurance ( biennial , decennial , etc .)
• Duly obtained administrative authorisations
WHY INVEST IN MAURITIUS
The successive deposits are established as follows , as the construction work proceeds :
35 % of the price on completion of the foundations . |
70 % after the waterproofing . |
95 % on completion of the property . |
100 % when the property is made available to the buyer . |
However , as stipulated in the Mauritian Civil Code , a security deposit may be required from the purchaser when signing the PRC :
Selling time within 1 year : up to 25 % of the property price
Selling time of 1 to 2 years : limited to 2 %.
Time period - over 2 years : no deposit can be required
This deposit is paid into an escrow account held by the notary , or into an account opened in the name of the applicant , in a bank appointed for this purpose . These funds are withheld until the conclusion of the sales contract , after which they must be returned to the potential buyer if the VEFA contract is not regulated .
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