Construction obligation in the purchase contract

What I don't understand is why you are now making a fuss over some details when you want to build? Or what do you think will happen within 4 years that should stop you from putting up a house?

The devil is a squirrel and you can't think as dumb as life sometimes plays. One dies, one gets divorced, the builder implodes shortly before construction starts and you have to start all over somewhere else, which makes the project more expensive and puts the financing back in suspense, take your pick. Sure, not very likely, but there are even people who have won the lottery. I've heard.

If the house is not completely finished by that date, nothing at all will happen. Don't worry too much about it, plan your construction and go ahead.

The property would be paid 100% with equity and without bank/financing. Therefore, for me, the clause is actually negligible, right?

It just made me suspicious because of the 20% interest.

Is the house to be built also without financing? Then yes. If you pay for the house construction with external capital, the land charge still lies on the property. The land charge interest rates registered in the land register are significantly higher than the loan interest rates, those are the ones meant. I don’t know how high the rate is for us right now; in practice it doesn’t matter.

Also: The likelihood that they will buy the property back is low. What do you think happens with the money you are paying now? That goes directly to renovating the toilet in the town hall. In other words: in 4 years the municipality won’t have the money to buy the property back from you anyway. For us it’s also 4-5 years and nobody from the municipality cares. There are empty lots everywhere.

Also: The likelihood that they will buy the property back is low. What do you think happens to the money you pay now? That goes straight to renovating the toilet in the town hall. In other words: in 4 years, the municipality won’t have the money to buy the property from you again anyway. For us, it’s also 4-5 years and nobody in the municipality cares. There are vacant lots everywhere.

The municipality will not auction the property from you by force on 01.01.2023. At least another year will pass before they move and anything happens. But as you write, it’s more about the loss if you sell due to reorientation. So just take it easy. If you’re interested in the property, then buy it, and if not, then stay away.

In our new development area, it was even the case that you are obliged to live in the house yourself for 10 years. If you want to sell it before, no matter the reason (e.g. due to divorce, which has happened before), you have to pay a not insignificant penalty to the city. This is meant to prevent speculators but can also hit you hard from actually legitimate reasons. Renting out is also not possible.