Selling a property less than 10 years old: what happens if you have no DO insurance?

Did you build or heavily renovate a few years ago without taking out Dommage Ouvrage (structural damage) insurance, and are you now thinking of selling? This moment in the life of a property is precisely when the lack of DO insurance costs you the most.

Why the 10-year period is so sensitive

The 10-year period following the handover of the works (réception des travaux) corresponds exactly to the duration of the ten-year structural warranty (garantie décennale, Article 1792 of the Code civil / French Civil Code) and of Dommage Ouvrage cover. During this period:

• the builders remain liable for defects that compromise the soundness of the structure or render it unfit for its intended purpose;
• DO insurance can fund repairs without first having to establish who is liable;
• the buyer of a recent property is therefore especially attentive to the home's cover.

Beyond 10 years, the issue automatically disappears. But before that, it weighs heavily on the transaction.

The notaire's duty to inform

This is one of the least-known — and most decisive — provisions. On any resale of a property built or renovated within the last 10 years, the notaire must:

• ask the seller for the Dommage Ouvrage certificate;
• state in the deed of sale (acte authentique) whether this insurance is present or absent;
• inform the buyer of the risks associated with the absence of DO insurance.

The buyer therefore always discovers the situation before signing, which radically changes the dynamics of the negotiation.

Consequence #1: a reduction in the sale price

The absence of DO insurance almost always translates into a price reduction negotiated by the buyer. The typical figures seen in practice:

• a 10-20% reduction on a property with no visible defects;
• up to 30% where there is doubt about the quality of the workmanship or where there are visible warning signs;
• unsellability in some cases, particularly for high-end properties where buyers can afford to be choosy.

On a property valued at €400,000, that means between €40,000 and €80,000 in lost value — far more than the cost of a DO policy taken out at the outset.

Consequence #2: the buyer being refused a mortgage

This is the most dreaded consequence, because it can cancel the sale outright.

Banks are increasingly cautious:

• they systematically request the DO certificate for any property less than 10 years old;
• they refuse or attach conditions to the loan in its absence;
• they may demand additional guarantees (a personal guarantee, a survey, a strengthened mortgage charge);
• some banks exclude these properties entirely from their lending policy.

The practical consequence: your prospective buyer may not be able to finance the purchase. You will then have to either drop the price sharply to attract cash buyers, or wait out the 10 years before you can sell on normal terms.

Consequence #3: your liability after the sale

Even after the sale, you are not in the clear. If a defect is discovered during the 10 years following handover of the works:

• the buyer can take action against the builder(s) under the décennale;
• they can also turn against you, the seller, for non-conformity or latent defects (vice caché);
• the clause excluding the warranty against latent defects, common in property sales, does not apply to a non-professional seller who knew of the defect — and a judge may consider that the absence of DO insurance amounted to knowledge of the risk.

Are there any solutions to the lack of DO insurance?

Several options exist, more or less effective depending on the situation:

1. "Retroactive" or late DO insurance

A few specialist insurers still accept applications after the site has opened, or even after handover, under certain conditions:

• a full survey of the property by an approved expert;
• no visible defects;
• a substantial surcharge (often 2 to 4 times the standard premium).

Delays and refusals are common, but it is still worth exploring if the sale is not imminent.

2. An independent prior survey

Commissioning a technical survey by an independent professional before putting the property on the market can reassure both the buyer and the bank. The report documents the condition of the property and identifies any risks. It is not insurance, but it builds a climate of trust.

3. Transparent negotiation

Rather than suffer the reduction, anticipate it in your asking price. Be transparent about the absence of DO insurance and offer a reasonable reduction upfront (8-12%). You will attract more buyers than if you advertise a "full" price.

4. Waiting out the 10 years

If the sale is not urgent, waiting until the 10 years have elapsed automatically solves the problem: the ten-year warranty no longer applies, and DO insurance is no longer required. The property regains its normal value.

What to do before putting the property on the market

To avoid nasty surprises:

1. Check the exact date of handover of the works (the signed handover report).
2. Calculate how much time remains before the end of the 10 years.
3. Gather all the project documents (quotes, invoices, the builders' décennale certificates).
4. Consult your notaire in advance to anticipate the drafting of the clauses.
5. Make a realistic valuation that factors in the foreseeable reduction.
6. Engage a broker to explore the possibility of retroactive cover.

In summary

• The notaire is required to state the absence of DO insurance in the deed of sale for properties less than 10 years old.
• The reduction typically amounts to 10-20% of the price, sometimes more.
• More and more banks refuse to finance a property without DO insurance.
• The seller remains exposed to claims for 10 years after handover of the works.
• Late solutions exist but are costly and subject to conditions.

Need some guidance?

If you are preparing to resell a recent property, or if you have just discovered that an older project has no DO insurance, acting quickly can limit the consequences. Our team of brokers will support you in choosing your Dommage Ouvrage insurance and in reviewing the available options. Request a personalised quote or get in touch with an adviser.