Am I on the safe side - contract for work?

  • Erstellt am 2012-10-30 11:53:05

danielh

2012-10-30 11:53:05
  • #1
Hello, I have a question. Tomorrow, after we have signed our financing contract with the bank, we will also sign the construction contract for the house. It states in an annex to the contract the following provisions (for your information, the notary appointment for the property is on November 8th):

Anlage 1 - Grundstückskauf zum Hausauftrag vom .........:
Die Firma XXX räum dem Bauherren bis zum 09.11.2012 ein kostenloses Rücktrittsrecht für den Fall ein, dass der geplante Kauf des Grundstückes nicht realisiert werden kann. Die Leistungen gemäß Hausauftrag beginnen nach Entfall des Rücktrittsrechts.

-----
Is that sufficient? The property is being purchased from the municipality, the appointment is, as mentioned, on November 8th.
 

Micha&Dany

2012-10-30 12:40:47
  • #2
Hello Daniel
Sufficient for what?

That the tax office only demands the real estate transfer tax on the land, but not on the value of the house? Possibly not. No.
Why do you absolutely want to sign the contract for work now??
You risk having to pay an additional 5% tax on the value of the house. You risk significant problems if something goes wrong.
What can go wrong? Everything can go wrong. Or maybe nothing.
What did your appraiser advise you? Did you even ask him?

If your construction company is a reputable provider, then you can still sign the contract in 3 weeks. If you have the notary appointment on 8.11., then I would not sign the contract before 20.11. - 22.11., or better yet, wait until the tax office has made contact and only then sign the contract.
If the construction company is pushing you to sign now, then that should be a clear warning not to sign at all...

Regards
Micha :cool:
 

danielh

2012-10-30 13:01:38
  • #3
Sufficient in case something goes wrong with the purchase of the property. According to my information, I only have to pay real estate transfer tax on both if I do not have separate purchase contracts from different sellers, but now I do. Unfortunately, our house supplier does the usual trick of making an offer in October. The price for the house is really good, we have compared sufficiently and obtained offers. We have also spoken with builders of this supplier, including those self-selected (it is a very common supplier) and they were all satisfied. Regards Daniel
 

DaveS

2012-11-04 23:59:27
  • #4
This is also regulated this way - only if both sellers are connected does the tax office consider it a single transaction instead of two independent deals.

That is at least the common practice. However, I would set the deadline longer or remove it altogether. In our case, the development plan/utilities have already been postponed twice due to numerous requirements/citizen initiatives etc.

DaveS
 

Similar topics
01.12.2014Real estate transfer tax / what is the tax applied to? Which developer MUST?30
28.04.2014Cost estimate - contract for work16
20.10.2014Preliminary contract with the general contractor for building a house after purchasing land16
26.12.2014No disbursement of funding - Tax office is slow44
05.02.2015Is it possible for the partner to contribute to the real estate transfer tax?11
14.12.2017Property acquisition tax notice for land same contract document21
06.12.2016Contract for work before property purchase - real estate acquisition tax?10
04.07.2016Purchase of property under a work contract12
24.03.2017Property acquisition tax - Was everything calculated correctly?16
12.06.2017The tax office wants to know how we are financing our construction project50
29.11.2017Timeline of real estate acquisition tax and house construction contract20
31.12.2017Construction financing - duration of land purchase / house construction13
08.01.2018Finance the purchase of land yourself in advance or wait?17
24.02.2019Property acquisition tax on a house not yet built - yes/no?13
19.03.2019Planning of a classic single-family house with approx. 127 sqm25
10.05.2019Subcontract before purchasing the property?30
30.01.2020Tax office questionnaire for the assessment of real estate transfer tax11
16.01.2021Property purchase - Risk of a "linked transaction"?61
05.02.2021Property acquisition tax on house construction - when?15
16.02.20254 years after construction, the office also demands land acquisition tax on the house96

Oben