Your property development lawyer, Goldwin Avocats in Paris

Whether it’s collective or individual housing, shops, offices or industrial premises, property development involves a wide range of projects. The developer imagines and oversees a complete project, from the design of the property to its delivery. While they manage the financial and technical aspects as the purchaser of the initial property, their role also involves risks. Site clearance operations, land collapses, problems with the marketing of property products… There are many possible areas of litigation. Our lawyers, who are both damage and financial experts, work in the field of property development to ensure the security of the operation for all parties and to resolve disputes before the courts.

The lawyer’s role in the property development transaction

A property development involves thepurchase of a plot of land on which the developer wishes to build a project in accordance with the PLU, which defines the local land-use regulations. Issues such as floor space and maximum height are used to study the technical and financial feasibility of the project.

Different players to be represented

Property development involvesa number of different players and intermediaries. Lawyers can work alongside :

• The owner of the land that the developer wishes to acquire for his project: plot of land for a town house, building land, agricultural land recognised as suitable for building;
• The local council ;
• The property developer;
• The various parties involved in the design and construction of the building: materials suppliers, building firms, architects, contractors, etc;
• Future buyers of the property.

Different areas of expertise

Lawyers specialising in property development have the necessary expertise to advise and defend their clients’ interests at every stage. They are involved from marketing through to construction and handover.

They are fully conversant with :

• private law issues: contract law, property and asset taxation, construction law, common law liability of participants, special guarantee schemes, insurance law, etc;
• public law and town planning issues.

When carrying out these tasks, theconstruction lawyer works with building professionals and technical experts. They can seek advice from architects, design offices, surveyors, site remediation specialists, etc.

Calling on your lawyer upstream of the construction project

Property developers, clients andpurchasers of properties under construction are well advised to seek the advice of a lawyer before any building work is carried out. Beforehand, the lawyer will check the legal feasibility of the building project, particularly with regard to town planning regulations. So you can avoid wasting time and money! His multi-disciplinary expertise also enables him to help negotiate the sale contract, and advise on the legal arrangements and tax optimisation of the project.

As regards the purchase and sale agreement, your lawyer, who specialises in property development, will negotiate the contractual clauses to suit your needs. The contract may, for example, provide for justifiable reasons for delay. On the developer’s side, there will be a tendency to increase this list in order to limit the compensation due in the event of delay. On the buyer’s side, this will be a specific point to negotiate. The same applies to clauses relating to late payment penalties!

Legal advice for property developers

Property developers rely on the work of their lawyers right from the marketing stage of their project, when they lock in their sales contracts. This is a crucial stage, as the developer needs to secure between 30% and 40% of reservations from future buyers in order to obtain bank support for the financing of his project. He also sells his products under a VEFA ( vente en état futur d’achèvement) contract, which he delivers once he has checked that the building work has been completed properly and that the plots are compliant.

The date on which the work is handed over marks the starting point for the compulsory guarantees that can be called upon in the event of a dispute:

• Guarantee of perfect completion;
• The guarantee of good working order;
• the ten-year guarantee.

In particular, developers may be faced with the problem ofsite abandonment. This is a common occurrence in the construction industry, resulting in damage caused by late delivery. These problems have intensified in recent years in the wake of the global health crisis, particularly because of difficulties in obtaining supplies of materials affecting many areas of the construction industry. The lawyer’s preventive work helps to cover the risks in the event of delays on the building site.

Legal advice for private individuals

Recourse against the property developer with your lawyer in Paris

A property development lawyer can intervene at an early stage in the transaction to cancel the deed of purchase or sale. The buyer has a 10-day cooling-off period without penalty. After that, the developer is entitled to claim up to 10% of the sale price. Note that the seller may also cancel the sale, in which case he must return the deposit within 3 months.

Under the terms of the agreement between the buyer and the property developer, there are a number of other incidents that may give rise to a claim against the developer:

• Late delivery of the property;
• Non-conformity and defects: cracks, defects in materials, waterproofing problems and any other problems that may affect the building.

Tailor-made solutions

As a first step, you can seek an amicable solution as an alternative to legal action. As a professional, property developers are required to sign up to a mediation solution. However, if you still have a problem with a negligent property developer, you should take legal action. For all these questions, call on your Goldwin Avocats expert!

Your lawyer will assist you in challenging the property developer on the grounds of :

• Late delivery of the property: late delivery penalties and compensation;
• Cancellation of the reservation contract: reimbursement of the deposit paid;
• Hidden defects in the construction;
• non-conformity of the work with the plans or defects.

A property development lawyer can provide you with comprehensive assistance in :

• Refusing delivery of a non-compliant property;
• Draw up a report mentioning the imperfections, signed by both parties;
• Take legal action for damages;
• Obtain damages.

Are you a property developer looking to secure your reservation contracts? Are you a private individual with questions about buying a property off-plan? Contact our expert property lawyers!