Late payment penalties are only possible in case of delay

The Supreme Court reminds that penalties are imposed only in cases of late delivery. This is therefore not about the time spent on fixing specific potential defects.

If the new house has defects, it is not possible to demand a late payment penalty from the builder. The Supreme Court stated that penalties will only be applied in case of late delivery and will not be valid for the period until the defects detected upon receipt are corrected.

Acceptance is the formality that brings contractors and owners together for the purpose of checking the completion of the work and its compliance with the contract, reviewing its successful completion and recording in a report the client’s acceptance with reservation or unconditional acceptance. In order to eliminate these possible reservations that indicate visible defects, the contractor must make the necessary corrections.

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The house is delivered on the right date

While awaiting move-in, a customer claimed that unless these corrections were taken into account, reservations would not be released and late payment penalties would have to be paid. However, the judges rejected this request.

They observed that the construction and housing law only provides for penalties for late delivery and does not provide for penalties for the subsequent period involving necessary corrections. However, whether a reservation is made or not, the house is delivered on the date of the reception.

According to the law, a contract for the construction of a detached house “with the provision of a plan”, that is, with a design mission, provides for late delivery penalties of not less than 1/3000 per day of delay. at the agreed price.

(Cass. Civ 3, 28.9.2023, C 22-18.237).

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