Reservation deposit, staged payments, completion security and handover: the practical framework for a properly controlled off-plan purchase.
Key points in 30 seconds
Maximum reservation deposit: 5% within one year, 2% within one to two years and none beyond two years.
Cumulative payments: 35% at foundations, 70% weather-tight, 95% at completion and 5% when made available.
The VEFA deed is notarised; plans, specifications, time limits and guarantees should be annexed.
For a non-citizen, VEFA never removes the PDS, Smart City, IHS or G+2 approval requirement.
VEFA is more than a reservation
A vente en l’état futur d’achèvement transfers rights in the land at signature and ownership of the works progressively as construction advances. The notarised deed should define the unit, plans, specifications, price, deadlines, penalties, conditions precedent and guarantees. For a non-citizen, the sale contract never replaces acquisition approval: the PDS, Smart City, IHS or G+2 route and the required authorisation must be confirmed before the commitment becomes unconditional.
Deposit and payment caps
The reservation deposit is capped at 5% when the final sale is due within one year, 2% when it is due in one to two years, and zero beyond two years. It should be protected through the contractual escrow mechanism. Cumulative VEFA payments may reach 35% on completion of foundations, 70% when weather-tight, 95% on completion and the balance at handover. Any commercial schedule should be checked by the buyer’s notary against Mauritian civil law and independently certified progress.
VEFA versus vente à terme
Under VEFA, land and existing works transfer at the deed and future works become the buyer’s progressively. Under a vente à terme, ownership transfers on completion after contractual payments. Residential or mixed-use property sold before completion with advance payments must follow the statutory form. The notary should explain why the selected structure fits; a reservation contract cannot be used to sidestep VEFA protection.
What the preliminary contract should contain
The reservation agreement should identify the unit, approximate area, principal rooms, position, construction quality, forecast price, anticipated deed date and relevant finance. It should name the depositary and special account. Conditions precedent should cover acquisition approval, finance, permits, delivery of the guarantee and no material change. A condition with no deadline or refund mechanism is weak protection.
Who certifies progress?
A stage call should not rest solely on the developer’s invoice. The deed should identify the professional who certifies foundations, weather-tight stage and completion, together with the evidence supplied to the buyer. Obtain the certificate before paying and compare it with site progress. The 35%, 70% and 95% caps are cumulative, not additional amounts at each stage.
Delay, changes and non-conformity
Define the delivery date, permitted extensions and evidence required. Broad wording such as “any matter outside the seller’s control” reduces certainty. Material substitution, area reduction or plan changes should trigger notice and a defined remedy. At handover, distinguish cosmetic snags, malfunction and departures from the notarised specifications.
After key handover
Delivery to the buyer and formal acceptance of the works by the developer are distinct. Obtain minutes, conformity evidence, warranties, manuals, as-built plans, keys and meter readings. Confirm when warranties start, the co-ownership insurance and the first common-area budget. Retain the deed, annexes, progress certificates, payments and correspondence as the transaction evidence file.
Seven red flags
Payment before a valid contract; deposit to an operating account; a guarantee promised but not produced; plans or specifications missing from the deed; calls without certificates; a delivery date with no contractual consequence; and a unilateral right to change areas or materials. Any one warrants pausing for independent review.
The guarantees that matter
Obtain the completion or refund guarantee itself, not merely a reference to it. Check the guarantor, duration and calling conditions, together with land title, permits, the project’s EDB certificate where applicable, construction insurance and the identity of the payment recipient. A show unit and a developer’s brand are not substitutes for these documents.
Handover must create evidence
Before key collection, commission an independent inspection and record every departure from the deed and specifications with photographs, a correction deadline and an identified responsible party. Review areas, equipment, common parts, meters, ventilation, waterproofing and plan compliance. The final instalment should not be treated as automatic while material defects remain.
Pre-signing checklist
Confirm foreign-buyer eligibility; appoint an independent notary; obtain permits, title and guarantee; tie instalments to progress certificates; budget duty, professional fees, FX and furnishing; set a long-stop date and delay consequences; and document the snagging and refund process.
Frequently asked questions
Is VEFA only for foreign buyers?
No. It protects qualifying off-plan buyers generally. A foreign buyer additionally faces property eligibility and acquisition approval rules.
Can a developer take 10% at reservation?
Not as the statutory reservation deposit described here: the cap is 5%, 2% or zero depending on time to the deed. Further sums should follow a valid contract and lawful stages.
Does the GFA guarantee delay compensation?
Its primary purpose is financial completion. Delay consequences, penalties and extensions are mainly governed by the deed, so both instruments must be read.
Can I withhold the final 5%?
Where conformity is disputed, the balance may be consigned through the applicable procedure. Do not simply withhold payment without the notary’s advice.
What if the bank refuses finance?
Refund depends on the finance condition and evidence. Loan amount, maximum rate, term and deadline should be written into the reservation agreement.
Who chooses the notary?
The buyer may appoint an independent notary. Separate advice helps focus the review on the buyer’s circumstances and risks.
How long should records be kept?
Keep the complete file for the relevant warranty and limitation periods and ask the notary which retention period applies to the deed.
Related MYKEYS guides
2026 Foreign Buyer’s Guide: How to Purchase Mauritian Property Legally
G+2 Apartments in Mauritius: The Accessible Foreign-Buyer Route
Property Development Scheme: Buying PDS Property and Obtaining Residence
Browse property for sale in Mauritius | Contact MYKEYS
Sources
Government of Mauritius Non-Citizens (Property Restriction) Act, consolidated version
Government of Mauritius EDB (Property Development Scheme) Regulations 2015, consolidated
Government of Mauritius EDB (Smart City Scheme) Regulations 2015, consolidated
Government of Mauritius EDB (Invest Hotel Scheme) Regulations 2015, consolidated
Government of Mauritius Registration Duty Act, consolidated version
Government of Mauritius Land (Duties and Taxes) Act, consolidated version
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