Feeling pressured into a contract, is that normal?

Hello everyone,

my husband and I quite suddenly stumbled into the topic of building a house. Actually, we were looking for an existing house, but ended up consulting a house-building company, which we wanted to try at least.
At the first appointment, they asked us about our ideas and financial means; the second appointment followed a week later. They presented us a floor plan and told us about a plot of land that we could only view in a few days. When we answered “yes” to the question if we liked it, the lady suddenly prepared a contract.

She explained to us that this was a house purchase contract “with reservation,” meaning that if we didn’t like the proposed plot and couldn’t find another one, the house construction would not take place. The same applied if anything didn’t work out with the financing. If everything worked out but we still withdrew, we would have to bear 15% of the costs. This matter was just too hot for us; in the end, they would somehow twist it and we would have to build the house or pay damages...

We were completely shocked because we never expected such a fast pace. But supposedly the plot was highly sought after and only briefly reserved; if we didn’t more or less agree immediately, we would be out of luck. We did not agree to that. The second reason was that they could not show us the plot if we didn’t sign, because we could buy it privately (the house-building company only mediates) and build with another company. We proposed a contract stating that we would not do this, and if we did, we would have to pay 15,000 euros in damages. The house seller agreed to this proposal, and we at least signed such a contract.

So we will visit the plot in a few days, without having already more or less bought a house. However, we are not allowed to build there with another company.

For us, everything is happening very fast. We thought we would first get an offer to take home and could think it over calmly, taking as long as we needed. If the desired plot was then gone, okay, you have to live with that. Also, we consider it normal to discuss this with family and acquaintances (experiences) and consult various banks and mortgage lenders BEFORE deciding on such a step... But the house seller reacted very unfavorably and acted as if this never happened to her, as if everyone would sign immediately...

I would have liked to know if such an approach is normal and usual? For example, we also did not see samples of bathroom fixtures, floors, or tiles. She always said that we would clarify that later with the architect. But you have to know such things beforehand, right? It is similar with the exact floor plan. The one she showed us does not correspond dimension-wise to “ours,” our floor area would be smaller, we should calculate that down. So we did not even get a personal floor plan, although she emphasized several times how much effort her boss had put into the floor plan.

Well, all in all, the feeling is strange. However, we lack experience; maybe something like this is usual. We always thought that buying such a house would take time, but maybe we were completely wrong?

Thanks for your opinions!

Hello,
with such an approach, I can only say, stand up and walk away. Stay away from such companies! It is not common with reputable ones to be "forced" into a contract.
With our construction company, we first received a floor plan, then went through our equipment, and afterwards were sent an offer with a description of the construction services. Then we could take our time to study everything, ask questions, and we were under absolutely no pressure.
Best regards
Christine

Oh man, what is described here is really intense...

Some salespeople sometimes just want a quick contract signing and then push a bit. But being presented with a contract for signature at the very first appointment?! Oh dear... that's pretty bold. Someone should have asked them if this wasn't a bit unprofessional!

Now imagine you really like the property, but this construction company insists on almost €15,000 more than all the other house providers by coincidence.

Well, it definitely doesn't make a good impression to be presented with a contract at the very first appointment. I would tell the construction company that exactly to their face. You had absolutely no chance whatsoever to assess the range of services and quality of this company.

Still, that doesn't mean you couldn't get a good house from them. But those who compare know more... and then you also know much more clearly what you really want and what you don’t. I think you should take these steps first and then maybe sign something again.

Have fun at the property viewing!

Best regards

Hello,

...We proposed a contract that we would not do this and if so, we must pay €15,000 in damages. The seller of the house agreed to this proposal and we at least signed such a contract.

Sorry, "one" does not suddenly come across a home construction company and naively sign a preliminary contract; if it is even such a contract.

Before you take further steps, sign more documents, go to a lawyer with a copy of the questionable preliminary contract: better to invest €200.00 in legal advice and one-time correspondence than to be stuck with a shady provider. AND: never sign anything when pressure is applied, when there is no chance to review the document calmly! No reputable company works like that!

Best regards

I can really only advise against this company based on what has been described; it hardly gets more untrustworthy.
Furthermore, it is questionable what exactly their concern about the property is based on.
If you had bought the property without building a house, you would just have to pay the broker's commission.
Somehow reminds me of our own property search.
The company did show us the property but only wanted to sell it with a simultaneous house construction contract.
So I simply contacted the seller, who had only appointed the construction company as an intermediary. The pressure was enough; we got the property, and a construction contract never came about.
In any case, I can only recommend purchasing the property independently of building a house and not concluding any further contract with the broker. Otherwise, this counts as a tied contract and you pay taxes on the total sum, not just on the purchase price of the property.
That way, the kitchen is quickly saved.

Well, unfortunately we fell for something like that!!!

He said that this is the only way for us to move forward and that there is a reservation until 12/31/12. When asked about the 10% compensation, he said that so far there has been no chargeable service and therefore no costs for us yet, only starting from the architect appointment, WELL, ALL LIES!!!!!

We were never aware that there is no right to object, or that it was a contract for building a house. We were deceived to the very end, they are trained for that!!!!! I always thought something like this wouldn’t happen to us.
The company O is known nationwide in Germany and yet this still goes through???? Where are our laws here???? They are allowed to lie, cheat, and get money for it, that cannot be.