What is the reimbursement guarantee ?

Modified on Tue, 17 Jan 2023 at 05:54 PM

Only the French version is legally valid.


REIMBURSEMENT GUARANTEE = To reimburse the sums you have already paid to the Insured, (i) when the Building cannot be physically or legally completed; or (ii) in the event of the Insured's Default, if the Guarantor makes use of his right to substitute the reimbursement guarantee for the completion guarantee or vice versa.


The reimbursement is for the part of the principal price that you have actually paid to the Insured on the day of the Default.


It does not include : interest, penalties or other indemnities that may be due by the Insured.


The refund implies the prior termination, either by mutual agreement (and approved by the Guarantor) or by legal action, of the Sales Contract.


The reimbursement guarantee is excluded in particular in cases where : 

> the Building can be used in accordance with its intended purpose, even if certain works or non-essential items of equipment have not been completed, and even if there are defects of conformity provided that they are not substantial or faults provided that they are not redhibitory; 

> the Contract of Sale is terminated for reasons of personal convenience or for non-payment on Your part; 

> the Contract of Sale is cancelled or declared null and void; 

> the Contract of Sale is cancelled or terminated for reasons arising after the completion of the Building; etc.



The Guarantor reserves the right to use the option, under the same conditions as those referred to in Article 4 of the Grand-Ducal Regulation of 24 February 1977 in implementation of Article 1601-5 of the Civil Code, to substitute the reimbursement guarantee for the completion guarantee at any time, and vice versa. If this substitution option is exercised, the Guarantor shall notify the Buyer of the said substitution by registered letter.


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