How to secure like ETW from the property developer

Payment plan is as follows:

30.0 % of the purchase price after the start of earthworks


28.0 % of the purchase price after completion of the shell including carpentry work


12.6 % of the purchase price after completion of the roof surfaces and gutters, after window installation including glazing

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6.3 % of the purchase price after rough installation of the heating system(s), after rough installation of the sanitary systems, after rough installation of the electrical systems


8.4 % of the purchase price after completion of the interior plaster, excluding additional plastering work, after screed, and facade work,


11.2 % of the purchase price after readiness for occupancy and simultaneously against transfer of possession


3.5 % of the purchase price after full completion.

You can't change the payment plan anyway. It's a standard 08/15 property development company. All good.

I know it like this: the developer (a "mailbox GmbH") goes "bankrupt" immediately after completion and thus gets out of any warranty and possible defect rectification. I wouldn’t know what you can do about it. Except to report defects as early as possible (if he hasn’t finished all the apartments yet, he can’t shut down the business.)

That sounds like a loophole to me. Or do you think it is intended that way because the construction companies' lobby is so strong?

Has nothing to do with the construction companies' lobby but with corporate law - if a 25 thousand-euro GmbH wants to undertake a new bridge construction, the public sector will rightly demand a guarantee due to the drastic disproportion between potential damage/performance/warranty amount and liable capital.

And if the federal government is okay with it, why should one step back oneself? Just on principle....

Yes, it's just an LLC. And they did build it. They just don't feel like standing responsible for possible defects for another 5 years. In the end, it probably costs more effort and resources than the scheming with the mailbox company. However, I do think that an LLC shouldn't just be allowed to make a complete profit transfer if it still has warranty claims for 5 years. There should be some kind of grace period, otherwise insolvency is practically planned to avoid obligations. But it hasn't been settled with us yet either. The LLC probably still exists for now.

The 5% deduction must definitely be retained in the first installment. There is no need to agree on this; it is regulated by law.