According to Articles R

This decision provides important insight into your property law. Here is what it changes for you.

The situation

According to Articles R. 231-8 and R. 231-11 of the Construction and Housing Code, the completion guarantee at the agreed price is intended to protect the client against the risks of non-performance or defective performance of the construction as provided for in the contract, and if the person who undertook the construction shows that they are covered against the pecuniary consequences of the professional civil liability they may incur by reason of their activity and the liability imposed on them by Articles 1792 and 2270 of the Civil Code by an insurance contract taken out with an insurance company or an approved insurer pursuant to Articles L. 321-1 and L. 321-2 of the Insurance Code, the guarantor is only liable, towards the client, for cost overruns of the agreed price exceeding 5% of the said price. The judgment that, in order to limit the cost overrun of the contractual construction price caused by the additional cost of completion and remedial works, holds that such overrun is limited to the difference between the cost of the completion and remedial works alone and the construction price of the house as provided in the contract and increased by 5%, must therefore be quashed, whereas the cost overrun covered by the completion guarantee is constituted by the difference between the actual total cost of the construction and the overall price stipulated in the contract.

What the law says

This decision confirms the fundamental principles of property law.

Key points

• Strictly observe the statutory time limits for appeals
• Keep all your supporting documents (title deeds, deeds, correspondence)
• Plan ahead: preventive advice is always cheaper than litigation

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