Construction project with a developer without an official building plan, is a down payment required?

Hello forum,

I’ve just been browsing and the topic has already been discussed in a similar way, but without a result. It is about the following: In a neighboring village of our major city, a building site is currently being planned. The development plan is currently being made available by the city for public participation, the resolution on the weighing of interests and the statute resolution are still pending. The company that wants to develop the building area with single-family houses also sells the plots, so that you get everything from one source and therefore have no room to choose the developer. We have already had 2 meetings with the company, where the development plan was presented to us and we also decided on a plot. Now the company wants to conclude an agreement with us to pay an installment of 20,000 euros, with which the plot is supposedly reserved for us.
The amount seems relatively high to me, as elsewhere in the forum/internet, reservation fees of max. 5,000€ can be found. On the other hand, the text is rather vaguely worded and seems more like a letter of intent than a reservation:

"The spouses .... will commission the contractor to build a single-family townhouse. The client wants to accelerate the construction preparation and construction activities on the building plot in ... (see attached site plan).
Therefore, it is agreed that the client will pay the contractor an installment in the amount of (in words: twenty thousand EURO). This is to be paid immediately into the account to be specified in the contract for work to be concluded at the .... Against this amount, all further payment installments according to the contract for work to be concluded for the house construction will be offset until the installment has been used up.
Subsequent installments according to the contract will then be paid again by the client by direct transfer.
If the development plan is not approved by 31.03.2016 and
therefore the reserved plot of land cannot be built on, if a townhouse is not approvable and the clients cannot obtain a viable financing, so that the contract for work to be concluded does not come about, this agreement will be terminated immediately on 15.04.2016 by repayment of the above-mentioned installment of 20,000.00 EUR.
The parties agree that there is no legal claim to a fixed deadline. The contractor will undertake all professional and organizational measures
to ensure the start of construction as soon as possible.
After presentation of the approved development plan, the contractor will immediately begin the approval planning.
The contractor has no influence on the development technical and building law requirements."

Before I transfer 20,000€, I would like to know what to make of this agreement. I don’t see anything about a reservation in there and my impression is currently that the developer wants to bind us on the one hand with the high amount and on the other hand finance the development.
What do you think? To which places can I possibly turn to gain some more security?

Best regards,
Manc

Hello, so I also find the amount relatively high. What will you do if the provider becomes insolvent, for example? Do you have securities/guarantees? Is there already a concrete offer for the house? Otherwise, you will be bound to the provider afterwards and he can dictate a price to you.

20,000 euros in advance? I couldn’t sleep peacefully with that. I would pay a maximum of 5,000 euros or no deposit at all. And with that contract, I wouldn’t let myself be pressured. Only sign once everything is clarified.

......
If the development plan is not approved by 31.03.2016 and therefore the reserved building plot cannot be developed, a development with a city villa is not permissible and the clients cannot obtain a viable financing, so that the contract to be concluded does not come into effect, this agreement shall be terminated immediately on 15.04.2016 by repayment of the aforementioned partial payment in the amount of 20,000.00 EUR. ...

Shouldn’t a few and actually be replaced by or here?
The meaning here, for example, is that if a development plan should come about, but you do not get financing, you do not get the money back. Everything is connected with an 'and'.
But I'm not so familiar with contracts, maybe someone can say something about it?

Thank you very much for your responses. Yes, the 20k€ also seems very high to me, especially since the developer has not had any major expenses with us so far. It almost seems as if the development or other costs are supposed to be financed through the advance payment. But now we just want to reserve the plot first and then calmly plan the house (also calmly together with this developer). In my opinion, a reservation is not an agreement. And true, everything is linked with one [und]. As an old electrical engineer, I know that the light only comes on (immediate refund of down payment) if all conditions are met. We are now wondering what to do next? We like the plot, we want to build, but we have a bad feeling about this agreement. Should we go to consumer protection, the Association of Private Builders, or a lawyer? No idea.

Very tricky issue. If the development plan is approved (which really can only be on 31.03.2016), the development itself can still take years and you can do nothing about it. That’s why I would definitely include a: "The completion of the construction must take place no later than ..." clause. If you conclude now – have you already received and reviewed the construction specification, the other contracts, and payment plans? You are already committing yourself to the developer now – who knows what astronomical prices he might then demand?!