Advance Payment Plan Experiences

2024-02-22 23:50:06

P.S.: EH55 is practically overtaken by the Building Energy Act and is no longer subsidized by the KfW. Could it be that someone here is fishing for farmers with old project brochures and wants to collect reservation fees from fools, so that the "3% upon contract signing" already lies "beyond fraudulent behavior" and the provider will long have been in the Bahamas?

2024-02-23 06:45:41

Thanks already for the feedback so far.

Yes, the project was probably planned 2-3 years ago. The building plot is in a small town in southern Germany, so development and so on all take a bit longer. EH55 is known to us but would be sufficient since we are not fans of hard-to-plan demands. L-Bank topics are also excluded due to salary limits. The developer is basically reputable, he has been around in the region for over 25 years. Still, this is no guarantee for the future for us.

The completion guarantee through an insurance has now been offered to us, over 150k for 2k additional costs.

2024-02-23 07:12:14

Hello everyone, can you give me an assessment of the following installment payment plan? Conditions: -Terraced house ~450k (+100k land) -Prefabricated house 150sqm -Turnkey except for kitchen and lighting -Wood frame kfw55 -Flat roof -Single garage -Windows, electricity, water, underfloor heating, screed, interior cladding, textured plaster, etc. are all installed later on the construction site. From the consumer construction contract: ... The following installment payment plan applies: 3% at contract signing 15% at the start of the solid construction work 20% at the start of house production in the manufacturing hall 20% upon completion of house production in the manufacturing hall 25% at the start of house assembly on the construction site 10% at the start of installation work (heating, sanitary etc.) 5% upon completion of interior finishing 2% upon final acceptance Changes or overlaps in sequence may be possible due to the construction process. In this case, the change in payment steps will be reported in a timely manner by the construction company to the client. … Completion: 11 months after receipt of the building permit If the completion date is delayed due to force majeure (e.g. extraordinary weather or natural events) or other circumstances unknown at the time of contract conclusion, the construction company cannot be held liable for any delay costs. … The construction company points out that it is neither obliged nor willing to participate in a dispute resolution procedure before a consumer arbitration board pursuant to the Consumer Arbitration Act. Are such clauses and high advance payments usual? This seems very risky and strange to me. Many thanks for your feedback.

Your feeling is not deceiving you. No delay penalty & payment plan are really outrageous. If I were presented with such a contract as a client, I would be out already. It does not help that it is supposedly a reputable provider. You can't buy yourself anything from that if things go wrong or don't run smoothly. I would keep looking around or try to have the contract adjusted in your favor.

2024-02-23 09:10:34

15 % with completion of the structural work
20 % with completion of the house production in the manufacturing hall
20 % with completion of the house production in the manufacturing hall
25 % with completion of the house assembly on the construction site
10 % with completion of the installation work (heating, sanitation, etc.)
5 % with completion of the interior finishing
2 % with the final acceptance

Basically, change "with the start of" to "with completion of." Regardless, you still advance payment with this payment plan.

2024-02-23 12:16:47

Abstention yes, but another provider is difficult with a developer terraced house.

There are also other developers. And existing properties.
With developers of terraced houses and 100k for a terraced house plot, I assume that the small town is not in our Swabian backcountry, but probably within the Stuttgart area. There should then be no great shortage of alternatives. I would definitely not accept the payment plan like that, and because the OP is massively overpaying, I also find a 150k guarantee too little.

2024-02-23 19:43:19

83%, before the technology, a very valuable position, is installed, is almost usury. As far as I remember correctly, for the solid house here, it is often said to be about 55% before the windows are installed. Something like that.

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