Inconsistencies in the completion guarantee
By Camille Frati, Lex Kleren Switch to French for original article
The completion guarantee was intended to provide security for purchasers of a home to be built in the event of default by the developer. However, according to feedback from banks, insurers and the Union luxembourgeoise des consommateurs, it is often difficult to implement. Reform is needed now more than ever.
This article follows on from the testimony published last week on journal.lu.
In an article published last week, the Journal referred to the nightmare of families who have embarked on a sale in a future state of completion – in other words, the purchase of a home that has not yet been built. A guarantee was introduced for this specific situation under the Act of 28 December 1976 on the sale of buildings to be built and the obligation to provide a guarantee against construction defects: the completion guarantee, which ensures that the purchaser is not left destitute in the event of the developer going bankrupt or the building work coming to a halt. "This tool was introduced at the time to deal with the bankruptcy of a major developer, when no regulations existed to protect consumers, " explains Jean-Paul Scheuren, vice-president of the Chambre immobilière, which represents developers, among others.
You want more? Get access now.
-
One-year subscription€185.00/year
-
Monthly subscription€18.50/month
-
Zukunftsabo for subscribers under the age of 26€120.00/year
Already have an account?
Log in
