On the protection offered by the individual house construction contract (CCMI) compared to the sale in future state of completion (VEFA)

The individual house construction contract (CCMI) and the sale in future state of completion (VEFA) are two legal regimes governing the construction of new homes in France. While both contracts aim to protect buyers, the CCMI offers additional guarantees compared to the VEFA. We will examine in detail the specific features of the CCMI that make it a more protective contract, drawing on legislative and regulatory texts as well as legal doctrine.

I. Reinforced obligations for the manufacturer within the framework of the CCMI

A. The obligation to deliver a house that complies with the contractual stipulations

Article L. 231-1 of the Construction and Housing Code (CCH) provides that the CCMI is "the contract by which the builder undertakes to the project owner to construct a building for residential or mixed use on land belonging to the latter." This contract must be drawn up in writing and include a certain number of mandatory details listed in Article L. 231-2 of the CCH, in particular the precise designation of the land and the work to be carried out, as well as the technical characteristics of the building.

The builder is required, under Article 1604 of the Civil Code, to deliver a work that complies with the contractual stipulations. Case law has clarified the scope of this obligation of conformity: the Court of Cassation thus considers that the purchaser is entitled to demand strict conformity of the construction with the contractual provisions (Cass. 3rd civ., May 11, 2011, no. 10-11.527). Failing this, the builder incurs contractual liability. This obligation of conformity is stricter under the CCMI than for the VEFA.

B. The obligation to guarantee delivery

Article L. 231-6 of the CCH provides that the manufacturer is required, upon conclusion of the contract, to subscribe to a delivery guarantee. This guarantee, issued by a financial institution, a credit institution or an insurance company approved for this purpose, is intended to reimburse payments made in the event of default by the manufacturer (bankruptcy, liquidation, etc.).

The delivery guarantee constitutes one of the major protections of the CCMI. As Professor Philippe Malinvaud explains, "this guarantee is a security that protects the project owner from the consequences of the builder's default" (Construction Law, Dalloz Action, 2019, no. 473.340). Its mandatory nature and the strict conditions surrounding its implementation make it a particularly effective tool for protecting buyers. Such a guarantee does not exist within the framework of the VEFA.

II. Extended rights and guarantees for the purchaser in the CCMI

A. The right of withdrawal

Article L. 271-1 of the CCH grants the non-professional purchaser a 10-day withdrawal period from the day after the first presentation of the letter notifying him of the deed. During this period, no payment may be required.

This right of withdrawal allows the buyer to withdraw from their initial commitment if they wish, without having to provide any specific reasons. This is an exorbitant prerogative of common contract law, which reflects the legislator's desire to ensure enhanced protection for the buyer of off-plan housing. Indeed, as Professor Hugues Périnet-Marquet points out, "in because of the importance of commitment and the fact that training of the contract often takes place under the influence of aggressive commercial techniques", it was appropriate to allow the purchaser "to exercise his reflection with a clear head" (JCP N 1990, 101067). This right of withdrawal does not exist in the matter of VEFA.

B. Guarantees of proper functioning, perfect completion and ten-year warranty

Article L. 231-8 of the CCH states that the builder is liable to the project owner for the guarantees provided for in Articles 1792, 1792-1, 1792-2 and 1792-3 of the Civil Code. These provisions establish a system of legal guarantees applicable to the builder:

• The warranty of proper functioning (art. 1792-3) covers equipment elements that can be separated from the construction for a minimum period of 2 years from receipt.
• The guarantee of perfect completion (art. 1792-6) obliges the contractor to repair all defects reported upon receipt or during the following year.
• The ten-year guarantee (art. 1792) requires the builder to repair damage, even resulting from a defect in the ground, which compromises the solidity of the work or makes it unfit for its intended purpose, for 10 years from receipt.

This tripartite set of guarantees forms “a complete and autonomous system of liability” (Construction Law, Ellipses, 2nd ed., 2018, p.132). Its application to the CCMI ensures very broad coverage of disorders likely to affect the construction. The purchaser in VEFA also benefits from these guarantees, but the CCMI goes further.

C. Money-back guarantee and delivery guarantee at agreed price and time

Article L. 231-4 of the CCH states that before the conclusion of the contract, the builder must subscribe to a reimbursement guarantee for the sums paid before the opening of the siteArticle L. 231-6 provides for the compulsory subscription of a delivery guarantee at the agreed price and time.

Thanks to this dual mechanism, the buyer is assured of either being reimbursed for the sums advanced if the work does not start, or of obtaining delivery of his house at the price and within the planned timeframe, possibly at the expense of the guarantor. As Professor Olivier Tournafond explains, this system of financial and completion guarantees specific to the CCMI "tends to put the project owner in a situation of maximum protection and allows him to have a home corresponding exactly to his expectations" (RDI 2007, p.8). Such guarantees do not exist in the case of VEFA.

At the end of this analysis, it appears that the individual house construction contract offers enhanced legal protection to the purchaser compared to the sale in future state of completion. The specific obligations imposed on the builder, particularly in terms of compliance and delivery guarantees, combined with the extensive rights and guarantees granted to the project owner, form a comprehensive and coherent regime ensuring the security of the operation, both technically and financially. Even if the formalities of the CCMI are more cumbersome than those of the VEFA, it constitutes in many respects a more balanced contract and protects the interests of the buyer of the property. Faced with an investment as significant as the acquisition of a new home, these additional guarantees appear fully justified.