VEFA projects

Kevin_R Member

Member since 28 June 2021

Kevin_RMember18 March 2025 07:13:31

Hello,

I am a Mauritian national and have invested in a VEFA project 4 years ago with a price mutually agreed with the promoter for a villa.

The initial delivery schedule was 18 months but the project is still in progress.

The promoter is now requesting an additional sum to complete the project, stating that costs of materials have risen. Furthermore there is not GFA (Garantie financière d’achèvement) for the project.

I would like to know if:

legally he is not bound to the price set and for which agreement has been signed?
under the VEFA system, the developer is not obligated to secure a GFA?

Thank you.

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the_expert Active member

Member since 12 April 2025

the_expertActive member13 April 2025 05:34:40

Hi Kevin,

Under VEFA, there is no requirement for GFA. However if you found the project and/or promoter dodgy, you should have ensured that the project is guaranteed by a GFA prior to any payment.

Nevertheless, before any advice, need to know how was the structuring done - was it through a societe, was a under a proper VEFA agreement, etc?