Difference between Individual House Construction Contract (CCMI) and Sale in Perfectly Completed Condition (VEFA)
by Me Zakine

In real estate matters, two eminently important contracts dictate the relationship between a builder and a buyer: the individual house construction contract (CCMI) and the sale in a state of perfect completion (VEFA).

Although these two modalities are often equated, they have crucial distinctions that require special attention.

Definitions of CCMI and VEFA :

1. Individual House Construction Contract (CCMI) :

The CCMI is a contract governed by law no. 90-1129 of December 19, 1990, known as the "Spinetta law". It commits a builder to carry out the construction of an individual house on behalf of a purchaser. This contract provides for a completion guarantee as well as a perfect completion guarantee.

1. Sale in Perfectly Completed Condition (VEFA):

The VEFA, for its part, is governed by articles L. 261-1 and following of the Construction and Housing Code. It consists of the sale of a property under construction or to be built. The real estate developer then sells a property that he undertakes to be built on time and conditions agreed with the purchaser.

Key Distinctions:

1. Nature of the Contract:

The CCMI is a construction contract where the builder agrees to build an individual house according to the specifications agreed with the purchaser. The VEFA is a sales contract relating to a property under construction or to be built.

2. Responsibilities:

Dans le cadre du CCMI, le constructeur est responsable de l’ensemble du processus de construction, de la conception à la livraison. L’acquéreur est le maître d’ouvrage et le chantier est suivi par le conducteur de travaux du constructeur. En VEFA, le promoteur est responsable de la construction du bien vendu, mais également de sa commercialisation. Le promoteur est le maître d’ouvrage. Le chantier est suivi par un maître d’œuvre ou un architecte.

1. The delivery dateison of the bien : 

In the context of a CCMI, the delivery date is usually fixed in a precise and detailed manner in the contract. This date constitutes a contractual commitment on the part of the manufacturer towards the purchaser. In the event of a delay in delivery, the manufacturer is required to pay the purchaser late payment penalties, except in the event of force majeure or fault on the part of the purchaser.

Unlike the CCMI, the delivery date in VEFA is often less precise and may be subject to uncertainties related to the progress of the work. The VEFA contract generally sets an estimated delivery period, rather than an exact date. The parties then agree on a time range within which delivery should take place.

1. Compensation or penalties in cas late : 

In terms of CCMI, late payment penalties are generally calculated on a daily basis: 1/3000th of the construction amount per day of delay (set by Law).

This amount due as late payment penalties may be added to any other damage suffered, in particular moral damage or financial damage linked to rent paid unduly (rental damage) or linked to the rental of a box or a parking space.

These are damages awarded in addition to late payment penalties.

The VEFA contract does not does not provide for late payment penalties as in the CCMI unless the contract provides otherwise. In this case, it is appropriate to calculate them differently and take into account all the damages suffered. Here are the main losses that the purchaser may suffer in the event of late delivery in VEFA also applicable to the CCMI:

• Financial loss :

Delays in delivery of the property may result in additional costs for the purchaser, such as rent or mortgage payments for the purchaser's current home. The purchaser may also suffer financial loss if the delay in delivery impacts their real estate projects or investments, particularly in the event of resale or rental of the property.

• Moral damage :

Delays in delivery can generate stress, anxiety and uncertainty for the buyer, who sees his real estate project delayed. The buyer may also be forced to extend his current housing situation, which can be a source of discomfort and insecurity.

• Material damage :

In the event of a significant delay, the purchaser may be forced to find a temporary accommodation solution, which may result in additional costs. The delay in delivery may also cause logistical and organizational inconveniences for the purchaser, particularly with regard to moving and the management of their property.

• Loss of enjoyment :

The purchaser may be deprived of the peaceful enjoyment of his real estate during the period of delay, which constitutes a loss in itself. In the event of a significant delay, the purchaser may be deprived of the advantages and specific features of the real estate he has chosen, which may affect his comfort and satisfaction.

• Project damage :

Le retard dans la livraison peut compromettre les projets de vie et les plans futurs de l’acquéreur, notamment en ce qui concerne la planification de son déménagement, de son aménagement intérieur ou de ses projets professionnels liés au bien immobilier. Il est important de noter que les préjudices subis en cas de retard de livraison en VEFA ou CCMI peuvent varier en fonction de la durée et de l’ampleur du retard, ainsi que des circonstances spécifiques de chaque cas.

1. Guarantees:

The CCMI and the VEFA provide a completion guarantee and a perfect completion guarantee for the benefit of the purchaser, offering extensive protection against construction defects. In VEFA as in CCMI, the purchaser benefits from the legal guarantees of perfect completion, proper functioning and ten-year, which respectively cover defects, equipment and damage affecting the solidity of the work.

In short, although the CCMI and the VEFA are intended to build a property, their characteristics and legal regimes differ significantly. It is essential for the parties involved to understand these distinctions in order to best secure their rights and obligations in the context of their real estate transactions. Thus, a specialized legal consultation often remains recommended to avoid any subsequent dispute and ensure perfect execution of contracts.