The Project Owner's Obligation

This decision sheds important light on your property law. Here is what it changes for you.

The situation

The project owner has the obligation to take out an insurance policy that covers him independently of any investigation into liability against damage resulting from defects arising from the liability of builders as defined by Article 1792 of the Civil Code; this guarantee may possibly operate before any acceptance in the event of termination for non-performance of the works contract concluded with the contractor. The compulsory insurance for the builder's liability takes effect only after acceptance of the works, so any insurance taken out for the prior period is necessarily subject to the principle of freedom of contract. An appeal court violates these provisions by allowing a direct action by the injured third party against the insurer whereas the guarantees provided in the contract appeared as an insurance for damage taken out for the benefit of the insured contractor who was required to redo at his own expense the defective work before delivery and not as an insurance for his liability.

What the law says

This decision confirms the fundamental principles of property law.

Key points

• Strictly adhere to the statutory time limits for recourse
• Keep all your supporting documents (title deeds, instruments, letters)
• Anticipate: preventive advice always costs less than litigation

For an analysis of your situation: 30-minute consultation at €45 with Maître Zakine.