How VEFA protects off-plan property buyers in Mauritius: the statutory payment schedule, construction milestones, and bank-backed completion guarantee.
If you are buying a Mauritian property before construction is complete, you will sign a VEFA contract. VEFA stands for Vente en l'État Futur d'Achèvement, a French-law contract framework that governs off-plan purchases and protects buyers throughout the construction period.
What VEFA Protects
VEFA exists primarily to protect the buyer. When you sign a VEFA contract, you commit to pay for a property that does not yet exist as a finished building, and you do this over a period of months or years. The framework ensures that your money is not at risk during that period.
The contract sets out the construction milestones, the payment schedule tied to those milestones, the firm delivery date, the snagging and warranty terms, and the procedure if the developer fails to deliver.
The Statutory VEFA Payment Schedule
Under Mauritian Civil Law, VEFA payments are staggered and tied to verified construction milestones. The developer cannot collect more than the legally permitted percentage at each stage, and each call for funds (appel de fonds) must be justified by an independent professional verifying that the corresponding stage of construction has actually been reached.
The maximum cumulative payment schedule set by Mauritian law is as follows: A security deposit at reservation, capped at 2% of the sale price if the deed of sale is signed between one and two years later, or up to 25% if the deed is signed within the same calendar year. If the time between reservation and the final deed exceeds two years, no security deposit can be requested.
35% of the total price upon completion of the foundations.
70% of the total price upon weatherproofing (mise hors d'eau, when walls and roof are in place).
95% of the total price upon completion of the building.
100% of the total price upon delivery of the property and handover of the keys.
These percentages are maximums set by law. Promoters can ask for less at each stage, but never more. Each call for funds is validated by an independent professional and channelled through the notary, never paid directly to the developer.
What Happens If The Developer Fails To Deliver
The VEFA framework includes specific protections in case the developer does not deliver as agreed:
If construction is delayed beyond the contractual delivery date, the developer owes compensation to the buyer, typically a percentage of the purchase price per month of delay.
If the developer fails entirely (bankruptcy or abandonment), the bank guarantee or notarial escrow returns the funds to the buyer.
If the property is delivered with defects, the buyer has a snagging period to identify and require correction, and a multi-year warranty for structural defects.
The Notary's Role
The notary is the central legal figure in a VEFA purchase. The notary holds the escrow funds, drafts the deed of sale, registers the transaction, and confirms each release of funds is justified by a construction milestone. Working with a competent notary is one of the most important practical decisions in a VEFA purchase.
French-Law Contract In An English-Speaking Context
VEFA contracts in Mauritius are written in French, even when both parties are English-speaking. The French version is the legally binding document. Buyers should request an English translation for understanding but cannot rely on it as the primary reference. Working with a French-speaking notary or with a development platform that operates in both languages is essential. The Hub manages every VEFA contract on its projects in both French and English, with full document review available in either language.
Why Foreign Buyers Choose VEFA
VEFA gives foreign buyers access to brand-new properties at the developer's price, before any resale premium. It allows phased payment, which spreads the financial commitment over the construction period. It comes with construction-period legal protections that simply do not exist in resale purchases.
For most off-plan purchases in Mauritius, VEFA is the standard. If a developer offers an off-plan property without a VEFA contract, that is a significant red flag.
For a clear breakdown of the VEFA structure on any of our projects, contact our team. We will walk you through the contract and the payment schedule before you sign.