As we explained earlier, there is an almost total lack of statutory control governing the standard of new construction in France. It is left to the insurance companies to bridge any gap between an owner's rights and a builder's performance.

This is achieved through a special insurance called "Dommage-Ouvrage" (normally abbreviated to "D-O") which is taken out by the owner prior to the start of building. In its wisdom the government has passed a law making such insurance obligatory but has not seen fit to punish those owners who do not meet their obligations.

It is therefore extremely common-place to find new-build which does not have the benefit of this insurance, either because of ignorance on the part of the owners or simply to save money.

D-O is not the same thing as the 10-year (or "decennale" in French) insurance which all builders must have, by law. It is an insurance for the owner which guarantees to quickly fix any defects before attributing liability. This can best be explained by the experience of someone who did not take D-O insurance and who wished he had - see The Landslide for more details.

D-O insurance requires a one-time premium and although expensive can be invaluable. It lasts for 10-years and covers all manner of defects and is transferred to the new owner in the event the property is sold.

Because D-O is a legal obligation it can give rise to problems if you (or your heirs) were to sell the property within 10-years of its construction. If you have not taken out D-O insurance - the notaire is legally obliged to bring this to the attention of the prospective owners who may then decide not to buy or may insist on a reduction in the price. Worse still, any defects in the property will remain your liability after the sale and you may find yourself having to meet the costs of future repairs. Even if the new owner was made aware of the lack of D-O insurance and waived his rights in the sale contract, such a contract term is illegal and you would still remain liable.