- What is the money back guarantee?
- Implementation of the money back guarantee
- Suspensive clauses giving right to a refund
The money back guarantee is one of the various guarantees used to protect the client in the event of litigation. Unlike other warranties that begin after the work is received, the money back guarantee begins with the signing of the contract and ends at the start of the project.
What is the money back guarantee?
The money back guarantee, as the guarantee of perfect completion or ten-year guarantee, serves above all to protect the client (the client) in case of dispute. It allows the customer who to pay funds before the start of work to have the guarantee that the manufacturer will be able to repay the amount of money given at the signing of the contract. The guarantee goes through a surety given by a credit institution, a bank or an approved insurance. The money back guarantee is attached to the construction contract signed with the contractor.
Implementation of the money back guarantee
The money back guarantee is not mandatory. It is only if the builder asks the customer to pay part of the work before starting the work. It ends as soon as work has begun. The builder must reimburse the customer if the conditions precedent set out in the contract are not fulfilled, if the client chooses to exercise his right of withdrawal within 7 days or if the construction does not start on the scheduled date.
Suspensive clauses giving right to a refund
As stated above, the client may require a refund of funds paid if the conditions precedent set out in the contract are not met:
- Acquisition of land to build: if after signing a sales agreement, the sale of the land does not take place, the customer can ask to be reimbursed.
- Obtaining the building permit: before the start of the works, the building site must have the building permit and any other authorization necessary for the smooth running of the works
- Obtaining the loans requested for the financing of the construction: in the event of refusal of loan of the bank, the customer can be refunded of the paid funds and cancel the building site
- Obtaining the property damage insurance: the client must require a certificate from the builder to be sure that the latter has taken out property damage insurance
- Obtaining the delivery guarantee: the builder is obliged to take out this guarantee to protect and indemnify the customer in case of delay on the site
If one of the clauses is not achieved, a refund of funds paid by the client is possible.