Contract for property search

Hello,

my family and I are looking for real estate or plots of land in the Rhineland Cologne-Bonn metropolitan area.
Since the current situation is such that everyone is sniffing a gold rush and currently trying to turn their junk properties into money for exorbitant sums, building new is also an option for us.

With a well-known modular house provider, we are currently at the stage where they offer us a contract for work to support us in the search for a plot of land.
To me, it seems a bit dubious. In the end, it is a contract for about €300,000 for a house for which we do not even have the land yet, and thus the financing is not finalized. Furthermore, the tax situation is not quite clear to me.

Supposedly, I can easily withdraw from the contract if the plots are not suitable or if the financing does not materialize.
We have a free right of withdrawal until 31.12.2017. What happens after that is not contractually regulated.
The decision about the plots lies solely with us as the client. If we do not like any plot due to location or surroundings, we do not have to purchase any.

Has anyone else chosen this procedure? Successful or not.

Regards

Just don’t do that and don’t get caught in a contract. Salesman style. Even without a contractual obligation, you are interested parties and will certainly be contacted immediately when they get a property. However, at that point, all documents and financing should be clarified so that you can react quickly. They act as if they can knit properties out of a signature.

Regards, Yvonne

if you sign a contract for any house worth e.g. 300,000 euros and later actually get offered a plot of land, your planned house will definitely not fit on this plot. Now the construction company is at an advantage and can practically demand an overpriced price for the newly planned house. I would not let myself be persuaded into a house contract and would rather look for a plot of land myself.

LG
Sabine

Quite clearly: hands off. Construction companies that act in this way are not to be recommended.

Supposedly, I can get out of the contract without any problems if the plots are not suitable or the financing does not come through.

Yes, many say that.

There are certainly players in the market who do say that; but the actually documented reservations in writing make it very difficult to get out of the deal free of charge. It can give the impression that some make good business with their legal department precisely in such cases, because they also enter into contracts for work "intentionally" with couples who will never be able to get financing.

So, the written wording of any reservations and withdrawal clauses is very important.

They can gladly offer you plots. And if it fits, you get involved.

Also, try googling your provider and withdrawal. For some, worlds open up there.

Also from a tax perspective, it is an unfavorable matter. House and land from a single source is a combined transaction, on which the real estate transfer tax is due on the total amount. Separate it. Does your bank have no land? Nothing on Immoscout? None at the municipality? Karsten