Off-Plan Purchases and VEFA
Most new residential units sold to non-citizens in Mauritius are sold off-plan under a Vente en l'État Futur d'Achèvement, or VEFA: a sale in a future state of completion. The buyer becomes owner of the land share and the building as it is constructed, pays in stages tied to progress, and relies on a financial guarantee of completion from the developer's bank.
At a glance
| Contract | A VEFA deed signed before a notary, transferring ownership progressively as construction advances |
|---|---|
| Payments | Staged against construction milestones, typically on signature, foundations, structure, roofing, and handover, in proportions fixed in the deed |
| Completion guarantee | A garantie financière d'achèvement from a bank or insurer, covering completion of the building if the developer fails |
| Delivery | A contractual delivery date, with penalties for late delivery set out in the deed |
| Defects | Statutory guarantees against defects after handover, including the ten-year structural guarantee |
Where the risk sits
The protection in a VEFA lies in the completion guarantee and in the staging of payments. A buyer who has paid ahead of construction, or whose guarantee is weak, is exposed if the developer stalls. The questions to ask before signing are therefore who has issued the guarantee, on what terms, and whether the payment schedule in the deed actually follows the building.
We have acted for buyers whose developments have been delayed, and the difference between a recoverable position and a difficult one is almost always decided at the point of signature rather than afterwards.
What we do for a buyer
Review the developer's standing, the EDB approval of the project, the guarantee and its issuer, the payment schedule, the delivery terms and the penalty provisions. Coordinate with the notary. Manage the EDB application. And, if a development runs into difficulty, work through the guarantee framework, the notary and the developer on the buyer's behalf.
Buying through a structure
A VEFA unit may be bought through a Mauritian Domestic Company held in trust, as with any scheme property. The structure must be in place before the deed, and the bank, the notary and the EDB must each be satisfied with it. We prepare the structure in parallel with the reservation so that the deed is not delayed.
Before you reserve
The buyer's position is decided at signature, not afterwards. If you are looking at a development, speak to us before the reservation deposit is paid and we will tell you what to examine.