Which amounts are guaranteed
Any amount paid before delivery: reservation, deposit, private contracts with payments on account, milestone payments, agreed upgrades, applicable VAT.
Types of guarantee
- Bank guarantee: a financial entity is jointly liable with the developer.
- Surety insurance: an insurer covers the refund.
- Special account: developer's account exclusively earmarked for the promotion, monitored by the depositary bank.
When it triggers
- Significant delivery delay.
- Impossibility of delivery.
- Defects preventing normal use.
- Developer insolvency.
- Buyer's termination for breach.
Triggering procedure
- Pre-litigation letter to developer seeking refund and announcing intent to trigger the guarantee.
- Notice to guarantor/insurer with contract, proof of payment and breach evidence.
- The guarantor pays (typically 30-90 days) or opposes (then court).
- In court: claim against guarantor (direct action) + main claim against developer.
Time limits
5 years from when the action could be exercised (CC art. 1964). If the guarantee has its own term (typically 1 year from denial), respect it.
Frequently asked questions
And if I was never given a guarantee or insurance?
It's a serious infringement by the developer. You still have contractual action against them and, per case law, possible liability of the depositary bank for failing to control the earmarking.
Do I get the VAT back too?
Yes, in standard practice. VAT is part of the amount on account and is refunded in full under the guarantee.
And interest?
Yes, legal interest from each payment. Court action secures it.