Want to invest in real estate? Maybe you're wondering what a VEFA purchase is in Mauritius?
In this article we will explain everything you need to know about buying in VEFA so that you can prepare and make the right decisions.
What is this, a VEFA sale?
The VEFA or sale in future state of completion is an offer to sell a real estate before the end of the construction site.
It's a contract between promoter and purchaser at the signature of which both parties agree on the construction and future delivery of a real estate that has not yet been completed.
VEFA is a common form of sales in the building sector. The promoter sells a property that he must build and the acquirer purchases it at the completion stage of the project, without the proponent being required to comply with the original delivery date. Under certain conditions, the VEFA can be concluded between an individual and a real estate professional (e.g. a real estate civil society).
The VEFA can be concluded in the same way as the sale of a finished property, particularly in legal terms. However, this is a contract between the promoter and the purchaser equal in rights and obligations There's both of them. Accordingly, the sponsor is required to deliver property corresponding to the returns made. In all cases, VEFA is governed by the provisions of the Civil Code relating to the sale of finished property, in particular articles 1604 to 1624.
What are the advantages of buying in VEFA in Mauritius?
Buying real estate in VEFA is an interesting option for individuals. They can thus buy new accommodation at a lower price at the financed selling price. Furthermore, the promoter does not exert any pressure on the customer since delivery is not immediate. It is also possible to intervene on the project by choosing its own equipment, à la carte.
A VEFA purchase in Mauritius is often less burdensome for finance as the promoter does not require the cessation of other credits (real estate loan, works, etc.). This formula is more cost-effective and flexible.
Why buy a VEFA in Mauritius?
The sale of VEFA in Mauritius is an excellent option to allow you to diversify your portfolio. VEFAs are high value real estate assets with a good rate of return. Under the laws of Mauritius, you can make your capital a profitable investment.
The real estate market in Mauritius is a dynamic, flourishing and growing market. Investors can build good long-term profits. The laws on the Mauritian real estate market are very advantageous for foreign investors who want to acquire houses under a VEFA.
Most owners of VEFA transfer their real estate assets to Mauritius in order to increase their pension capital. They can then making considerable profits by relying on real estate prices in Mauritius. In 2009, the Mauritian government introduced a Single Taxation System (SITU) to encourage foreign investors to acquire real estate assets on Mauritius.
And the Mauritian government's incentive to attract foreigners for real estate investment continues to grow.
What are the different stages of sale in future state of completion?
The sale in future status of completion concerns the sale of real estate. It is broken down into different stages and procedures. Let us start by looking at the various stages of the sale in future state of completion:
- Writing the sales compromise This is a written contract signed by both parties (sponsors and purchasers) which defines all the terms of the contract. To be valid, the compromise must be accompanied by a promise of sale.
- The promise of sale : It is a legal act which specifies the modalities for the sale in a future state of completion. This is the document which defines all commitments of the purchaser and the promoter. The promise of sale, provided for by law, is signed by both: purchaser and promoter. It lays down the terms of sale and the date of signature of the sales compromise.
- The signature of the sales compromise : The compromise must be signed by both parties (sponsors and purchasers) and only the sponsor's signature is worth ratifying the compromise.
- Payment of the prize : The buyer shall pay the price within the time specified in the sales compromise.
- Implementation of the work : The developer must deliver accommodation in accordance with the sales compromise. The purchaser must inform him of any reserves within 10 days.
- Payment of the balance : The balance is paid on handing over the keys to the purchaser.
- Reception and delivery of keys : The purchaser may make a visit to the dwelling and require repair or improvement work. He may then ask the promoter to pay him an advance on the purchase price of the dwelling, or to repay part of the price if he considers the dwelling insufficient.
Guarantees offered by a VEFA purchase in Mauritius
For a buyer, the warranty is one of the most important things he can ask before buying a real estate. Thus, in the case of a VEFA purchase, guarantees are generally provided for in a notarized contract. Indeed, the promoter is required to comply with the contract and give the guarantee defined therein. If the proponent fails to meet its commitments, it may be prosecuted.
There are several types of guarantees that can be given by the promoter of a VEFA property.
Financial guarantee
The financial guarantee is the most common and weakest guarantee that the promoter must make. It consists of: pay an amount of money to the purchaser if the property has been sold, but the latter is not in conformity with commitments made by the proponent. This amount may be equal to the purchase price or a fraction thereof.
The warranty against maintenance defects
The guarantee against maintenance defects is more severe than the financial guarantee. It consists of: replace the property or to perform work if it is defective or does not meet the sponsor's commitments. This type of guarantee can be limited in time.
Guarantee against default
This guarantee is the most severe. The promoter undertakes to replace the property or repair it if it has a defect. This warranty may be limited in time, and repair costs are borne by the promoter.
Legal guarantee
Legal guarantee is a legal obligation. In other words, the promoter must guarantee the property he proposes for sale. It is referred to as a legal guarantee of origin, if the property was manufactured by a person authorized to manufacture this type of product. However, if the property was manufactured by an unauthorized person, it is referred to as legal guarantee of conformity. She concerning the use of the property and the promoter must repair or replace the property if the property has a malfunction. This legal guarantee is valid for 2 years.
The sustainability of the home
Sustainability is a concept that is often set aside in choosing a home or building. However, it becomes paramount when buying a home. Sustainability a measure that takes into account the time between the purchase of a good and maintenance of this one. When you buy a house, you want it to be for a long time. That is why it is important that it be well built. This can be due to the quality of its watertightness, strength, weather resistance, strength and durability. All these features are important and allow you to’optimiser la durabilité de la maison.
Quality of materials used
It must be said that the quality of the materials used in the construction of the house is paramount. She depends on the quality of the materials used, the way they are assembled and their sealing. If you make a purchase in VEFA in Mauritius, it is ideal that you can visit the construction site when the work is underway.
This will allow you to check the materials and know-how of the workers. You can also request references from suppliers. You will find reliable companies and know how far the materials used are of quality.
To conclude, as you can see, Purchase in VEFA from Mauritius is a nice option. This way, you can benefit from a new, high-end and you can see the construction stages.
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