Contract clause for subsequent purchase price adjustment in the new development area

  • Erstellt am 2021-05-08 21:10:10

BackSteinGotik

2021-05-09 19:57:11
  • #1
Exactly. And after 21 years, then actively fight for more building land.. ;)
 

Hausbauer4747

2021-05-09 20:03:51
  • #2
Whether this is usual, I unfortunately cannot judge due to lack of experience. However, I find the idea disturbing because, in the end, it is a "Wash me, but don’t get me wet" or "I want to have my cake and eat it too" issue. The investor wants the money now, wants no capital tie-up and no risk, and still wants to earn again later. If it does not become building land, he wins now; if it becomes building land, he wins a second time later. In the opposite case, if the standard land value should fall, he probably will not provide any compensation. Maximum profit without any risk is, in my opinion, somewhat odd.

That would be like getting divorced but demanding from the ex-wife that you get the lottery winnings if she should win in ten years. Or selling your rusty bus at the current market value but simultaneously demanding to get the quintupled value later if the rust bucket suddenly becomes as valuable as a Samba bus. Or selling stocks because you want money now but demanding from someone that you still want to participate in the profit if the price rises after the sale.

I might perhaps understand a 50/50 arrangement in terms of risk sharing, but as it is, this is far too one-sided to the disadvantage of the buyer. If the investor wants to profit from an appreciation, he should bear the capital tie-up, the opportunity costs, and the risk himself and hold the property for the next 20 years.
 

Karierteshorts

2021-05-09 20:13:33
  • #3
Thank you all very much! That helped me immensely. This way I can better classify it or come to my decision somewhat more objectively.

Nevertheless, I am of the opinion that I am buying at the current time and it is already an expensively paid piece of meadow. The possibility of subsequent compensation was completely unknown to me and I still find it somewhat unsettling. Basically, this means that at some point I might have to give up my garden because I can no longer afford the land. In addition, I would have a house directly in front of the terrace. Unfortunately, this will not be an easy decision, as there is hardly anything available, plus the rising construction costs, which are already making things more difficult. Crazy times.

Wishing you all a pleasant evening!
 

K1300S

2021-05-09 20:52:35
  • #4
We do not know much about the property, but if it is a standard clause, it might never come into effect. Just saying ...
 

11ant

2021-05-09 20:58:42
  • #5
If you want garden land, not building land, so the upgrading is rather counterproductive for you, then this property is the wrong one for you (?) The improvement clause is only unusual for consumers. Where the occurrence of improvement is highly unlikely or would only be expected in a hundred years, this instrument is not used either. "Highly likely but not certain" and "highly likely and certain, but not certain when" are the typical scenarios for its application. Or also, if an increase in value still requires an investment, which would be practically excluded if the investing buyer had to pay for the potential already at the time of purchase. The instrument and also the wording are common in the business league; only the average savings account holder normally never encounters it.
 

Karierteshorts

2021-05-09 21:12:39
  • #6


I see it exactly the same way. You basically speak from my heart. ;)



Haha, exactly! :D
 

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