Dream plot, but TAFF house - first mistake already made

With the "assignment declaration," one effectively gives up all warranty / performance rights.... without this disadvantage being adequately compensated (therefore ineffective).

The bank effectively becomes a self-service shop for contractors.

The bank only pays if the equivalent value is also there. The builder then gets stuck in the interest trap because they cannot start repaying if the building is not completed without defects, the bank does not disburse, the contractor does not acknowledge the defect and insists on payment.

It's unfortunate, we experienced it too (apparently no one noticed), but the damage was minor (<< 1000 euros) in our case. And because we bought from the developer, the transfer of ownership also gets stuck on the horizon when you argue over the last euros.

The bank only pays if the equivalent value is also present.

Sure? Wouldn't that then have to go through a notary, like a simultaneous transaction?

I just browsed through a contract with an acquaintance. Not only are 5 simple installments agreed upon, which practically amount to an advance payment, but nearly 20 detailed points are mentioned. And the last installment is not "after performance of the services," but "after construction acceptance and transfer of possession"! In conjunction with the assignment, TAFF could regardless of all defects decide that the service has been fulfilled and still collect the last 5%.
And without a construction period specified in the contract, this could drag on forever. Did I already mention that the fixed price guarantee only lasts 12 months?

I’m afraid if TAFF digs in their heels with these terms and conditions, we will distance ourselves from the project — even though my heart would really bleed for the plot of land. As a builder, you simply have zero security and guarantee.

Would it possibly help me to take out builder’s legal expenses insurance? Specifically, I’m considering ARAG. There is a waiting period of 6 months included, but I can actually hold out that long.

Would it possibly help me to take out a builders' legal protection insurance? Specifically, I'm eyeing ARAG. There's a waiting period of 6 months included, but I can actually manage to wait that long.

You can still wait 6 months to close the property, or the contract with the company???

And from the T&Cs:

Builders' legal protection per contract duration –– €10,000

Save your money. In fact, legal protection insurance for construction is not reasonably insurable.

Better take a proper construction supervisor; no matter who you will build with. It's a much better investment.

No, I cannot wait 6 months. But according to ARAG, I can start disputing in 6 months, even if the contract for work, for example, is concluded next month. How watertight that exactly is, I do not know. Surely, there will be a clause that excludes this, and unfortunately the employee was mistaken.
I also found the €10,000, but better than nothing.

I am with the Association of Private Builders and would definitely make use of a construction supervisor from there.

Please disconnect the house connection box thing. So much distrust towards Taff, that will not make you happy. Life experience, the unique opportunity that never comes again, it is very very rare. Another property will come. Karsten

Sure? Wouldn't that have to go through a notary, like a Zug-um-Zug transaction?

I can only speak about our case. Zug-um-Zug works without a notary. The construction is finished, you pay the agreed installment and receive the keys "Zug-um-Zug" (i.e., on the second banking day after).

And the last installment is not "After fulfillment of services," but "after acceptance of construction and transfer of possession"! In connection with the assignment, TAFF can then decide regardless of all defects that the service has been rendered and take the last 5%.

Sort of. With every payment plan you always have a right of retention with regard to defects. And even in connection with the assignment, the bank will only pay if you instruct the payment. If you don’t, no payment will be made. However, because of the assignment, the bank will not pay the remaining loan amount into your account either. They only pay the developer or general contractor. Then you go around in circles: either pay everything so you start repaying the loan, or get a court to decide that you do not have to pay everything (which takes at least a year). Or settle amicably with the developer/general contractor (you hold the significantly weaker position, so a settlement is not to be expected at the middle ground). I would file the TAFF issue away, as I already said. The assignment as such is annoying, but manageable if the rest is okay. Here, in my opinion, nothing is okay.