New constructions in Luxembourg, represent an important volume of the real estate opportunities.
It might be an option to consider if you are ready to wait for the two years or more that the construction will take. If you have a doubt, take our quizz! Are you fit to buy off-plan?
Buying off-plan, commonly known as VEFA (from the french “Vente en l'état futur d'achèvement”), involves several steps.
- In some cases the developer will want you to sign a reservation contract. This may be part of the policy. If so, make sure the contract explicitly gives you the option of pulling out.
- Once the required authorisations have been obtained, you will sign the notarial deed of sale based on the future state of completion. In concrete terms, this means you pay for the land and then the construction work as completion goes on.
- The seller provides you with a guarantee of completion attached to the notarial deed of sale. Under the deed, a bank undertakes to pay all amounts needed to complete the project if the developer fails to meet his obligations. This is usually the developer’s bank.
- In the case of an apartment, the condominium rules delineate communal areas and are attached to the deed. Read these rules carefully to avoid any unpleasant surprises in the future.
- You will be requested to make choices for the differents components and materials like bathrooms fittings, tiles, …
- During the construction you will have multiple opportunities to inspect the construction work. The earlier the adjustments are, the easier they are to make.
- An final inspection checklist is completed when the keys are handed over. This is the time to take an inventory of fixtures and to note any existing flaws. You should inspect the property carefully with the help of an expert. Afterwards, it will be too late.
- Signed by each party, the building completion report is then sent to the bank which issued the completion guarantee.