Assignment Declaration of Credit

Hello, I also have the problem that my construction company wants a security. I also want to pay the construction project completely in cash. I had read the notes in the construction company's terms and conditions, but did not think they would apply to my cash payment. However, I have not studied credit/interest law. Now my construction company wants to offer me a solution through a notary account (I bear the costs) or a solution where I open an account at a bank (overnight money) and sign a form "Pledging of funds" of this bank and then send it to the construction company. Then something will be done to the reference account (I have not understood this yet) and I can only send money to the construction company's account. Nowhere else. Has anyone ever heard of something like this? Gerald

According to § 650 m of the Building Code (new version) (for the new consumer construction contract according to § 650 i Building Code): Yes, up to the 20% limit.

Furthermore, § 650 m can be contractually deviated from – even to the detriment of the consumer – see § 650 o, which explicitly excludes lit. § 650 m Building Code.

This also modifies the provision in § 650 f Building Code regarding security payments within the framework of the construction craftsman's security, which there applies more to entrepreneurs than consumers – who are explicitly excluded in § 650 f (VI) Building Code / are not supposed to provide security. But this is also dispositive there (see § 650 f (VII), which does not mention paragraph 6 there). And § 650 m Building Code takes precedence over this according to § 650 i (III) Building Code.

And: Cash under CC = freely available / collectible = risk for the construction company (even if of rather academic nature).

According to § 650 m of the Building Code (new version) (for the new consumer construction contract according to § 650 i of the Building Code): Yes, up to the 20% limit. § 650 m can also be waived - even to the disadvantage of the consumer, see § 650 o, which explicitly excludes lit. § 650 m of the Building Code.

Somehow I don't understand the fuss about security with a general contractor! With single trade contracting, the trades (especially the shell builder) also advance 30-50k€ with me.

So far, no one has asked whether my financing is sufficient and whether I am sure that money will flow after the service is rendered/at the time of the interim payment.