A property developer who had interior renovation and extension works carried out on a building and sold the studios created by these works cannot claim the benefit of the provisions of the laws of 3 January and 7 July 1967, which apply only to sales of buildings under construction.

Application pratique:

The 1978 decision confirms that sales of renovated existing buildings do not benefit from the special guarantees granted to off-plan purchases (VEFA). Sophie cannot rely on the developer's completion guarantee or mandatory new-build insurance. She should have insisted on a detailed structural survey and a 'latent defects' clause before signing. Now, if defects appear, she must pursue claims under standard hidden-defect rules, which require proof that the defect existed before sale and was not apparent, and seek legal advice promptly.

Application pratique:

Under the Court of Cassation's ruling, a developer who renovates an existing building cannot claim the benefit of laws governing sales of buildings under construction. Julien therefore lacks the financial completion guarantee and two-year new-build warranty. He should have verified whether the contract was a VEFA (off-plan) or an ordinary sale of an existing property. Now, if he discovers major construction issues, he must pursue the developer through ordinary contract law, possibly claiming latent defects, but this requires proving the developer's fault and acting within the legal time limits. He should gather all pre-purchase marketing materials and have the flats inspected immediately.

Application pratique:

This decision makes clear that renovation projects do not fall under the off-plan sale regime, so the developer was not required to provide the financial completion guarantee (garantie d'achèvement) that protects buyers if the developer defaults or work is defective. The co-owners' association cannot demand this guarantee now. Instead, they should collectively commission an independent expert report to document the defects, then pursue the developer under the general law of sales for hidden defects affecting common areas. If the developer is insolvent, they may have to fund repairs themselves and seek damages through legal action, so prompt legal consultation is critical to avoid exceeding the strict limitation periods.