Hidden costs in the property purchase contract?

Hello everyone,

we plan to build this year. A plot of land is reserved, and we have already received the purchase contract for the land. However, I am wondering on the one hand whether the municipality excludes any work related to development, or if all necessary services are included, and on the other hand what exactly I should imagine under the construction cost subsidy. Here is the excerpt from the contract:

The following services are included in the purchase price:
1. Acquisition of public and areas for compensatory and replacement measures
2. Clearing of public and private development areas
3. Construction of road and sidewalk surfaces
4. Construction of a property access road
5. Street drainage and street lighting
6. Preparation of compensatory and replacement measures
7. Engineer fees for planning and construction management for development plans and F plans
8. Surveying costs for all necessary surveys including surveying the building plots
9. Notary and court costs for public areas

The contracting parties agree that the purchase price settles the proportional costs of the initial development of the building area.

It is further clarified that the construction cost subsidy for water, wastewater, etc. is to be borne by the buyer.

What does initial development mean? Is everything already included, just not for example road maintenance in X years?

Thanks a lot in advance

Best regards
MissMojo

That is called a road construction contribution. However, except for property owners in Bavaria, it can affect anyone and therefore has nothing to do with "hidden costs." This is just a topic that nobody wants to think about beforehand. Of course, such costs cannot be taken into account in advance through development costs. The road maintenance liability lies with the municipality. However, after deducting a municipal share, possible renovation costs can be recalculated onto the developed properties. For example, if a street needs to be renovated for €100,000, the municipality pays €40,000 of that. So, the remaining €60,000 is apportioned among the properties developed by the street. This means that if 10,000 sqm are developed and you own 500 sqm of land, you pay €3,750 for the renovation based on another factor of 1.25.

Unfortunately, I cannot tell you to what extent municipalities actually practice this.

For the purchase price, you get a road to the house. What you do not get is drinking water, wastewater, electricity, possibly gas, telecommunications. What you will face here can only be answered by the municipality. Usually, you have to pay from the handover point of the road, so presumably another €10,000 will come your way. It can also be less or significantly more if, for example, you have to pay a percentage share.

Thank you very much for your answers.
I have also spoken to the municipality again. The initial development is a completely normal, full development with everything that belongs to it. It can only be that if, for example, you have a corner plot and another building area adjoins it and, for instance, the street has to be opened up again to lay new pipes, you might have to pay again. Fortunately, that would not be the case for us.

Best regards
Mojo

Can the term "Ersterschließung" be interpreted differently depending on the municipality? We currently have a draft contract from a notary, according to which the initial development by the developer is included, but all other development costs are not. Quiz question: Is the initial development the construction road or actually the first proper road after the completion of the houses? Unfortunately, the term does not seem to be defined, at least a search does not provide a clear statement.

In essence, it states that with the purchase price for the plot of land you have also already paid the adjoining fees to the municipality for practically the entire development; but you have to pay the municipal utility company a subsidy (= practically your share of the costs) for extending the water pipes from the street in front of your house into your house - that has not yet been paid for.