Title VIII bis: Property development contracts

A property development contract is a mandate of common interest whereby a person known as a “property developer” undertakes to the project owner to carry out, for an agreed price, by means of project leasing contracts, a construction programme for one or more buildings and to carry out itself or to have carried out, for an agreed fee, all or part of the legal, administrative and financial operations contributing to…

The contract empowers the developer to enter into contracts, receive work, settle contracts and generally to perform, up to the overall agreed price, on behalf of the project owner, all acts required for the completion of the programme. However, the developer does not bind the project owner, by the loans it takes out or by the acts of disposal it enters into, except by virtue of a special mandate contained…

If, prior to completion of the programme, the project owner assigns the rights it has in the programme, the assignee is substituted ipso jure, actively and passively, for it in the entire contract. The assignor is guarantor of the performance of the obligations placed on the project owner by the assigned contract. Special mandates given to the developer continue between the developer and the assignee. The developer may not substitute…

The developer’s role does not end on delivery of the building unless the construction accounts have been finally agreed between the project owner and the developer, all without prejudice to any liability claims that may belong to the project owner against the developer.

Judicial settlement or liquidation of assets does not automatically result in termination of the property development contract. Any stipulation to the contrary shall be deemed unwritten.