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The Completion Guarantee Must
Droit Foncier

The Completion Guarantee Must

📅 Decision of 14 April 2010🔄 Updated on 18 October 2026⚖️ Cour de cassation👁️ 15 views📖 2 min read

The completion guarantee must ensure the completion of the building up to the final cost of the programme expenses as described at the time of concluding the contract stipulating this guarantee, and therefore the financing of works in accordance with the planning permission. Completion must be assessed under the terms of Article R. 261-1 of the Construction and Housing Code. The building may be considered complete within the meaning of this text provided there is no substantial non-compliance, but only defects for which the guarantor is not liable.

Reference decision: cc • No. 09-65.475 • 2010-04-14 • View decision →

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

The Situation

The completion guarantee must ensure the completion of the building up to the final cost of the programme expenses as described at the time of concluding the contract stipulating this guarantee, and therefore the financing of works in accordance with the planning permission. Completion must be assessed under the terms of Article R. 261-1 of the Construction and Housing Code. The building may be considered complete within the meaning of this text provided there is no substantial non-compliance, but only defects for which the guarantor is not liable.

What the Law Says

This decision confirms the fundamental principles of property law.

Key Takeaways

  • Strictly comply with the statutory time limits for appeals
  • Keep all your supporting documents (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.

📌 Does this apply to your situation? Maître Cécile Zakine, French real estate lawyer, practises throughout France.
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Legal information

  • Number: 09-65.475
  • Court: Cour de cassation
  • Decision of: 14 April 2010

Keywords

droit immobilierjurisprudencefoncier

Practical use cases

1

Off-plan flat has different kitchen layout than approved

Alice, a first-time buyer, purchases a 90m² flat in a new development in central Paris for €450,000. The contract guarantees completion by June 2025, but during a site visit she notices the kitchen is placed on the opposite wall, contrary to the planning permission drawings she initialed.

Practical application:

This case law states the completion guarantee must ensure the works match the planning permission as per the contract. If the change is substantial (e.g., affecting usability or value), Alice can treat it as non-completion. She should immediately photograph the discrepancy, write a formal letter to the developer and the guarantor bank demanding correction, and if ignored, seek a court order to enforce the guarantee. Keep all initialled plans and correspondence.

2

Delayed luxury rental investment with unfinished lobby

Bruno, a landlord, buys two 75m² apartments off-plan in Lyon for €600,000 total, aiming to let them from September 2025. The developer delivers the flats, but the building’s lobby and lift are incomplete, making the property unrentable. The contract’s completion guarantee covers the final cost of all programme expenses.

Practical application:

Under this ruling, the completion guarantee must fund works according to the original contract and planning consent. Bruno can treat the unfinished common areas as a substantial non‑compliance and invoke the guarantee. He should notify the guarantor (usually a bank) in writing with a formal demand to complete within a reasonable time, referencing the Cour de cassation decision and Article R. 261‑1. If no action, legal proceedings can compel performance.

3

New residence missing half of promised parking spaces

The co‑ownership of a 40‑unit new‑build in Marseille realises the underground car park has only 20 spaces instead of the 40 approved in the planning permission. The developer argues the change was necessary for technical reasons, but the contract’s completion guarantee explicitly lists the 40‑space carpark as part of the programme.

Practical application:

This decision confirms that a building is not ‘complete’ if there is substantial non‑compliance with the planning permission. The co‑owners’ syndicate should formally notify the guarantor that the parking provision is a material breach, demanding completion or compensation. They should gather the original contract, planning consent, and a huissier’s (bailiff’s) report recording the shortfall. If the guarantor refuses, the syndicate can sue to enforce the guarantee and recover costs.

Maître Cécile Zakine

About the author

Maître Cécile Zakine — Lawyer at the Alpes-Maritimes Bar, Doctor of Law. Every article in this magazine is based on the analysis of a real court decision, commented and put into perspective by Maître Zakine’s team.

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Disclaimer: The analysis presented on this site is for informational purposes only and does not constitute personalised legal advice. For advice tailored to your situation, contact a qualified lawyer.

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