Sales of properties to be completed: reservations regarding external factors do not prevent handover… and preclude compensation for loss of rent
Published on :
11/02/2026
11
February
Feb
02
2026
A buyer purchases a property off-plan, i.e. sold before completion, for which the price is paid as work progresses and which is handed over once construction is complete. Delivery is contractually set for 30 October 2019 and is subject to a penalty clause, providing for the payment of a lump-sum compensation in the event of a delay in fulfilling this obligation. Handover took place before this date, subject to reservations regarding external fittings, which were lifted on 24 June 2020. The purchaser then sought the application of the penalty clause and, in the alternative, compensation for loss of rent.
The Court of Appeal, upheld on this point by the Court of Cassation, dismissed this claim, holding that the property was habitable and fit for its intended purpose on the contractual date of delivery, the reservations relating solely to external elements. The building was therefore to be regarded as completed within the meaning of Article R. 261-1 of the Building and Housing Code.
However, the Court of Cassation partially overturned the ruling insofar as it had declared the secondary claim for compensation for loss of rent inadmissible; such a claim may only constitute a necessary complement or consequence of the initial claim based on an alleged delay in delivery.
History
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Sales of properties to be completed: reservations regarding external factors do not prevent handover… and preclude compensation for loss of rent
Published on : 11/02/2026 11 February Feb 02 2026Actualités
A buyer purchases a property off-plan, i.e. sold before completion, for which...