House construction: Which insurances are necessary? Costs and consultation

Good evening,

we want to build a house. The plot of land has already been purchased. So far, everything went quite well, but by now we have the feeling that some things are going wrong, and we cannot intervene because we have no experience in this area. Of course, the house builder assured us that the entire process is organized on their side. Naturally, the land seller assured us that every possible assistance would be provided on his part, but as I said, at the moment we simply feel that it no longer works.

The house builder sent us a letter informing us that our construction project is delayed because a mortgage deed and the associated entry in the land register are required for financing. And since this can take several weeks, the construction project is also delayed. But the notary immediately registered the total amount for both the land and the house in the land register, and so that is settled, isn't it, or am I mistaken?

Today we received a geotechnical report stating that soil replacement and the installation of a foundation cushion are necessary. Increased expenses should be planned. But of course, the amount of these expenses is not mentioned.

The land seller also tells us in passing that we still need to take out a few insurances.

I’m afraid it can't go on like this. We need a specialist who not only makes empty promises but actually guides us through this construction project.

Now I have many questions, and I hope someone here can give me some answers.

Is the mortgage deed required by the house builder effectively completed at the same time as the registration of the total amount in the land register?

With how much additional cost – of course approximately – must be expected due to the soil replacement and the installation of a foundation cushion? The living area on the ground floor will be about 80 sqm.

Which insurances are necessary?

Are there construction experts, site managers or construction consultants who take on the project? Where can we find them and what costs are to be expected?

Will we probably be able to lay the concrete slab this year or is that rather unlikely due to the weather?

Many thanks in advance to those who take care of my questions.

Jaimee

Regarding insurance: One should take out a builder's liability insurance. As well as a shell construction insurance, whereby fire protection in particular should be integrated. This is important to avoid being stuck with the costs in case of an incident.

As a construction consultant, I can either recommend the Verband Privater Bauherren (as construction supervision/monitoring) or search regionally via telephone book/Yellow Pages (old-fashioned, but still useful) or via Google/Bing etc.; I would have the construction contract and the entire construction project externally reviewed and monitored.

Hello,

Is the registration of the total amount in the land register at the same time the mortgage requested by the house builder completed?

After ordering the mortgage with the notary, the creditor receives a copy. After registration of the mortgage at the land registry office, the creditor receives notification of the registration and usually an excerpt from the land register. Usually, the loan can only be paid out then; therefore, a mortgage order should be applied for with the notary in good time before the desired payout date. If the mortgage is arranged in connection with a purchase contract
- the financing should already be clarified beforehand
- the mortgage can be notarized at the same time as the purchase contract if the mortgage documents are sent to the notary in good time beforehand

If you have the amended land register excerpt – according to the foregoing – this statement from your provider is no longer an issue and they can begin construction.

How much additional cost – of course approximately – can be expected due to soil replacement and installing a foundation cushion? The living area on the ground floor will be about 80 sqm.

No one here can answer that for you because we do not know the soil conditions encountered; what kind of soil was found?

A soft, non-load-bearing subsoil is usually unsuitable as a building ground. Foundation cushions are used where sufficient time for consolidation of the subsoil is available. Also, sufficient water permeability of the soils is required. Lateral leakage of the fill material is prevented, resulting in a load-bearing, almost flexurally stiff soil layer. The advantage of the foundation cushion is its uniform settlement, which avoids damage such as cracks in a building constructed on it or subsidence in a roadway.

This foundation cushion can be made of gravel or basalt, for example. Since costs vary regionally, I can only give you a benchmark value for basalt here in the Rhineland: delivery and installation of mineral crushed stone of grain size 0745, basalt at €32.50 / cubic meter. Call the landfill nearest to you and inquire about the exact costs according to the replacement material recommended in the soil report. Then you have a reliable starting point for negotiations with your provider.

Which insurances are necessary?

Unless your provider includes insurance in their service: construction all-risk insurance, builder’s liability insurance, and building fire insurance. These must be taken out _before_ construction begins; the building fire insurance is usually offered by insurers free of charge until the house is occupied.

Are there building experts, site managers, or construction consultants who can take on the project? Where can they be found and what costs can be expected?

Take a look at the website of the Federal Association of German Experts and Technical Assessors (Bundesverband deutscher Sachverständiger und Fachgutachter e.V.). The costs for commissioning an expert depend on the scope of the assignment. You can commission flat-rate services or book hourly support. The hourly rate for an expert is, in my opinion, around €135 plus VAT; again here in the Rhineland.

Will we probably be able to lay the concrete slab this year or is that unlikely due to weather?

Given that soil replacement still has to be carried out, I consider this wishful thinking. Even if the weather conditions have so far been unusually good, the nights are gradually getting noticeably colder, trending toward ground frost. For founding the concrete slab, it must be ensured that no ground frost is expected for at least 3 days in a row. Even if this applies to Berlin, the craftsmen’s Christmas holidays and the frost period are approaching soon. In my opinion, it would make more sense to start construction in the spring and then build through without weather caprices (which can still occur in April due to the proverbial weather) ;)

Kind regards