Developer contract with a UG!

Hello,

does anyone have experience or advice regarding a builder contract when the builder is a UG? Are concerns justified that after the completion of the house, the UG will be liquidated quickly and therefore the 5-year warranty is worthless? Could one somehow secure oneself in advance in this case?

Thank you very much for your thoughts.

Could one somehow secure oneself in advance in this case?

No differently than if the developer is a GmbH or GmbH & Co. KG or AG – if they all go bankrupt, you're out of luck. This can happen just as quickly with a UG as with a GmbH.

Not different than if the developer is a GmbH or GmbH & Co. KG or AG - if they all go bankrupt, you're out of luck. That can happen just as quickly with a UG as with a GmbH.

Thank you. Yes, that's true. In our case, the original company is an AG and the managing director sets up a new UG for each new construction project. Normal procedure, or should that rather be a warning?

founds a new UG for every new construction project. Normal procedure,

Yes, this is normal for larger developers. A separate project company for each project.

A developer is not a contractor towards you, but a seller. Warranty claims exist against the contractor - who should, however, be able to ensure their fulfillment. Are you sure that the company is a developer (who builds the house on the land and sells it to you), and not a land developer (who would be the builder, and you afterwards take over this company along with the house it owns)?

You take over this company along with the house it owns afterwards)?

Is there such a thing as a share deal for single-family homes? I haven’t seen that in 20 years and can absolutely not imagine it.

A developer is not a contractor towards you, but a seller. Warranty claims are against the contractor.

Against whom should warranty claims exist if not against the developer? You have a contract exclusively with the developer, not with his employees or subcontractors. When you buy a car, you also have no claims against Bosch, ZF, Prevent, or any other supplier.