INVESTING IN A RESIDENTIAL PROPERTY
Residential units promoted off plans are sold under the VEFA (Vente en Etat Futur d’Achèvement) scheme. The sales are essentially governed by the same rules as those laid down by the French Civil Code, on which Mauritian civil law is almost entirely based.
The VEFA scheme implies that a bank guarantee (GFA-Garantie Financière d’Achèvement) is provided by the promoter to the buyer to ensure the project's completion. Upon reservation, the conditions of the sale are described in the CRP (Contrat de Réservation Préliminaire), while the deposit made by the client will be deposited in an Escrow Account hence acting as a safeguard for the buyer.
These funds will be released once the go-ahead for the project is given and the VEFA contract signed. The buyer will then provide payment at different stages of construction that will be certified by an independent Quantity Surveyor.