Buying a new home before it is even built: that is the idea behind VSP, the off-plan sale. It appeals for its prices and its staged payments, but it carries real risks. Here is how to benefit from it without getting caught out.
What is VSP?
VSP, or off-plan sale, is governed in Algeria by law 11-04 of 2011. You buy a property from a developer before or during construction, and you pay in stages as the work progresses. In this way the developer funds the build using buyers' deposits.
The benefits
- An entry price often lower than a finished new-build.
- Payment spread over time, easier to absorb.
- A new home, built to current standards, with no work to plan for.
- A potential gain in value between the off-plan purchase and delivery.
The risks
- Late delivery, which is common, or even the project being abandoned.
- The developer's financial failure.
- A delivery that doesn't match: surfaces, finishes or features differing from the plan.
- A payment schedule disconnected from the real progress of the work.
The guarantee that protects you: the FGCMPI
This is the crucial point. The law requires the developer to take out a financial completion guarantee with the Guarantee and Mutual Surety Fund for Property Development (FGCMPI). In practice, if the developer goes bankrupt or abandons the project, this guarantee protects your money and the completion of your property.
The precautions to take
- Check the developer's track record and history (projects already delivered).
- Verify the building permit and the status of the land.
- Require a properly drawn-up VSP contract, signed before a notary.
- Make sure the payment schedule follows the real progress of the work.
- Confirm the completion guarantee (FGCMPI).
- And of course, pay only through the bank, as the law now requires.
Planning an off-plan purchase in Algiers?
I help you tell a good development from a bad one, and secure every step, from the contract to delivery.
Cet article est fourni à titre informatif et ne constitue pas un conseil juridique. La réglementation et les pratiques évoluent ; faites valider votre contrat VSP et les garanties associées par un notaire avant de vous engager.