Financing confirmation for equity

We have been going around in circles for a month with the financing confirmation, which is required by our construction company before the start of construction: how did you obtain a financing confirmation for equity? We would like to finance the last installments for the house construction from equity and the rest from our loan.

The construction company proposed an advance payment (no, thank you). The alternative was a [Nontaranderkonto] but no notary offers this service in connection with house construction.

A bank guarantee, escrow account, or bank surety bond could still be an option... but after phone calls with 5 different banks, such products are not offered to private customers.

I would be very happy about tips & experiences.

Why do you want to service the last installments from equity? Wouldn't it be better to service the first ones from equity to avoid paying interest yet? Or has your loan already been drawn down?!

According to the description, the general contractor would probably like an assignment of the entire amount, so it does not solve the problem of bringing the equity payment forward.

R+V offers a builder's guarantee exactly for these cases. There, a part of the construction sum can be "insured" as a guarantee for little money and assigned to the general contractor.

Correct, the GU wants a financing confirmation for the entire construction sum.

Part of the loan has already been drawn for the land. We thought we would pay the last installments from equity so that we enter the repayment phase earlier + we possibly still have some leverage at the handover if there are defects.

Best regards

In the case of assignment of the full amount, unfortunately there is no leverage. THE child has fallen into the well. I did it myself through R+V, it is completely hassle-free and cost around 200€.

The construction company proposed an advance payment (no, thanks).

It would actually be the first choice for me as a real estate financier as well. In return, the main contractor/the construction company gives you a payment advance guarantee. This way, the main contractor has your money and his security. You have a guarantee that is like cash if the main contractor messes up.

P.S. It is a practiced daily procedure in every major construction project or in the industrial sector.