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What Are Developers' Obligations When Property Delivery Is Delayed?

What Are Developers' Obligations When Property Delivery Is Delayed?

Published on : 02/09/2025 02 September Sep 09 2025
Firm news
Firm news / INTERNATIONAL REAL PROPERTY DISPUTES IN FRANCE

In the world of new-build real estate, timely delivery of a property is not just a matter of convenience—it marks the completion of the buyer’s investment. When buying off-plan (VEFA – vente en l'état futur d’achèvement), buyers commit financially long before the property is built, making adherence to the agreed delivery timeline critical.
 

Unfortunately, delivery delays are not uncommon in new property developments. To address this, French law provides clear rules and remedies for buyers facing late delivery by developers.
 


 A Legal and Contractual Duty to Deliver on Time


Under French law, particularly Article L 261-11 of the Construction and Housing Code, the VEFA contract includes a projected delivery date, which is a binding obligation for the developer.


( In practice, delivery is considered to have taken place upon the handover of the keys—typically after any identified issues (reservations) have been addressed).

 

If the developer fails to deliver the property by the agreed date without a valid excuse, this may be considered a breach of contract, entitling the buyer to various forms of legal recourse.

 

Are All Delays a Breach? Not Necessarily.

 

Delays are not always due to negligence or mismanagement. Legitimate causes of delay, sometimes referred to as force majeure or contractually exonerating causes, can excuse the developer—but only under strict conditions.
 

Some acceptable grounds may include:
 

  • Exceptional weather conditions

  • Strikes or labor disputes

  • Shortages of materials

  • Unforeseeable external events
     

However, these reasons:
 

  • Must be clearly and specifically mentioned in the contract (general language is not enough)

  • Must be proven with concrete evidence

  • Cannot be used to justify vague or undefined delays
     

Legal Remedies and Penalties for Late Delivery

 

When no legitimate cause exists, or the delay exceeds acceptable limits, buyers have the right to take action. The available remedies include:

Late Penalties

  • Most VEFA contracts contain a penalty clause, often calculated as 1/3000th to 1/5000th of the purchase price per day of delay.
     

  • These penalties apply automatically, without the buyer needing to prove harm.

 Compensation for Damages

Buyers can also claim additional compensation for:
 

  • Temporary housing costs (if the buyer must rent while waiting)

  • Extended bridging loans or mortgage expenses

  • Moral damages due to stress, disruption, or family hardship

 Termination of the Contract

In cases of serious or prolonged delays, buyers may request the termination of the contract, under Article 1224 of the Civil Code, and seek reimbursement and damages.
 

What Should Buyers Do If Their Property Is Delivered Late?

If you're facing a delay, the first step is to send a formal notice (mise en demeure) to the developer. This should:
 

  • State the breach (delay)

  • Explain its consequences (financial or personal)

  • Clearly request a resolution (e.g., payment of penalties or delivery within a new timeframe)
     

If the situation is not resolved, buyers can:
 

  • Seek forced execution of the contract

  • Initiate legal proceedings for compensation

  • Request cancellation of the sale, if applicable
     

 Important: Always review the VEFA contract carefully, especially clauses related to timelines, suspensive conditions, penalty clauses, and procedures for raising complaints.
 

Key Takeaways for Off-Plan Buyers

  • Delivery on time is a legal obligation, not a courtesy.

  • Developers may be excused only under strict and proven conditions.

  • Buyers are entitled to penalties and compensation in the event of unjustified delays.

  • Early legal action and proper documentation are essential for protecting your rights.
     


Are you facing a delay in the delivery of your off-plan property?

Consult a legal professional with experience in VEFA and construction law to assess your options and defend your interests.
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