Developer or general contractor! Safety?

  • Erstellt am 2017-09-04 08:01:45

Zaba12

2017-09-04 13:49:05
  • #1
The topic interests me, so ask me...

- I don't understand where the problem is? Here safety seems to be viewed purely from a financial perspective, right?
- A developer will offer you a property where he has margin security. If the land is difficult to build on, there is an estimated risk surcharge which will be at a level that covers everything. Accordingly, the price will be high.
- I recently had a general contractor contract in my hand in which I would have no house rights, i.e. in the worst case you can be expelled from the construction site if you are inconvenient.
- If it is a tied deal, you will also pay taxes on the entire amount.
- Do developers also follow payment plans or must the full amount be transferred after purchasing the land? This would be more critical for me in terms of insolvency than with a construction contract that uses specific payment plans.
 

RobsonMKK

2017-09-04 13:55:28
  • #2
I would dispute that. Developers settle accounts according to the Real Estate Agent and Developer Ordinance.
 

Zaba12

2017-09-04 13:56:45
  • #3

That's why I asked as a question. What is the Real Estate Agents and Developers Ordinance?

Seems like some kind of escrow account (in terms of purpose). Depending on the construction progress, the developer could access it. For me, that means you pay the entire amount upfront.

But if the developer files for insolvency, is the money then gone?!?
That wouldn't be the case with a construction payment insurance as long as there is a "real" payment plan.
 

Jay69

2017-09-04 13:59:29
  • #4
Broker and Developer Ordinance
 

RobsonMKK

2017-09-04 14:06:23
  • #5
Exactly, and the payment schedule according to the [Makler- und Bauträgerverordnung] is better than some from the [BU].
 

Zaba12

2017-09-04 14:16:31
  • #6
That is certainly debatable. I don’t build with either of the two variants, so I don’t care.

From the OP’s safety perspective, "regulation or not," the developer would be considered the higher risk from my layman’s point of view, because if they go bankrupt, all your money is gone. If the contractor goes bankrupt, in the worst case you have paid for the drywall work without them having started it, right?
 

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