📰 BREAKING NEWS 📣
The response of Mr Henri Kox, Minister of Housing, Mrs Yuriko Backes, Minister of Finance, Mrs Sam Tanson, Minister of Justice to parliamentary question n°7963 concerning VEFA completion guarantees clearly establishes that a completion guarantee issued by an insurer complies with the essential objective of bill n°1637 as long as the terms and conditions of articles 2 to 5 of the grand-ducal regulation of 1977 are respected.
The completion or reimbursement guarantees intermediated by EuroCaution respect all the conditions and, as the Minister of Housing specifies, the degree of protection of purchasers depends above all on the content and terms of the guarantee, whether it is issued by a banking and savings institution or by an insurance company.
EuroCaution, as an innovative company, has been offering its clients the option of including the reimbursement of amounts paid for the land by buyers in completion guarantees for several months now.
Guarantors are often faced with situations where the construction cannot be completed, either materially or legally, which means that the completion guarantee is automatically transformed into a repayment guarantee.
Protecting buyers has become a selling point for many of our customers.
Indirectly, the Minister for Housing is confirming that an insurer can issue completion or repayment guarantees, because by confirming that a completion guarantee issued by an insurer complies with the essential objective of draft law no. 1637, he is validating the principle defended by insurers that article 1 of the Grand Ducal regulation of 1977 does not comply with the Luxembourg Constitution.
Some interesting articles from our partner DSM Avocats à la Cour , all written by Me. Vanessa Lomoro :
❓ Commentary on the reply by the Minister for Housing, the Minister for Finance and the Minister for Justice to parliamentary question no. 7963 concerning completion guarantees for VEFA:
https://lnkd.in/e8iZz7-P
❔ VEFA: The practical limits of legislation on completion guarantees :
https://lnkd.in/ebkWCCP7
⚡ The importance of professionals fulfilling their obligation to provide information and advice on VEFAs:
https://lnkd.in/ewb-x5cZ
