Since the ELAN Act of 23 November 2018, a specific provision in the Code of Construction and Housing (CCH), Article L261-10-1, requires sellers in the protected housing sector to secure a financial guarantee before selling property that is not yet completed. This guarantee ensures that the building will be finished, even if the seller runs into financial trouble. The law outlines conditions under which the guarantee can be activated, such as the seller's financial failure, defined as an inability to fund the completion of the building. The guarantor, typically a bank or insurance company, can appoint an administrator to manage the project and has the sole right to demand payment from the buyer. Additional details are provided in Articles R261-17 to R261-24 of the CCH, which clarify how the guarantee operates in practice. The guarantee is typically structured as a credit line or a bank guarantee, where the guarantor commits to paying the necessary funds to complete the building alongside the seller. However, the guarantee does not cover the completion itself, only the financing of it. This distinction has important practical implications, particularly in two main areas: triggering the guarantee and executing it. The guarantee can only be activated if the seller suffers a financial failure, not just a delay in construction. This failure must be clearly proven, often through a financial and technical audit of the project. The buyer or the guarantor can initiate the guarantee, depending on the terms of the agreement, but the process must be followed carefully to avoid legal complications. Once activated, the guarantor can appoint an ad hoc administrator to manage the project, giving them the authority of the project owner. However, the original seller still retains ownership of the land and unsold lots, as well as the building permit and the right to sell remaining units. This means the seller is not entirely removed from the process and can still affect the project's outcome. The guarantor must monitor the project closely and ensure that any modifications to the building plan are approved, as unauthorized changes may void the guarantee. The seller remains responsible for fulfilling their contractual obligations, including any late penalties or defects in the construction. When it comes to executing the guarantee, the guarantor must prove that the funds they provide are necessary for the completion of the building, as defined by the permit. They have the right to demand the remaining payment from the buyer, but only up to the amount they have financed. Certain aspects of the construction, such as minor defects or reservations, are not covered by the guarantee and must be addressed separately. Delays in the project are not covered by the guarantee either, but buyers may still have recourse through legal compensation or the guarantor's liability if the delay is due to their inaction. One of the most significant risks is the expiration of the building permit, which can render the guarantee ineffective. Buyers must monitor the project closely and ensure that the permit remains valid, as this is crucial for the legal completion of the building.