How to secure like ETW from the property developer

Well, if liquidation is only intended to circumvent warranty claims, the liquidator as well as the former managing director can be legally pursued. Because provisions may need to be made here upon dissolution of the assets.

If you are foreseeable to have claims and become aware of the insolvency, you can notify the liquidator according to

73 Abs. 2 GmbHG

He will then act in your favor in his own interest! So pay attention to the insolvency announcements, there is also an online page from the federal government for this.

The 5% retention must definitely be withheld in the first installment. There is no need to arrange anything; it is regulated by law.

However, these 5% are then paid after acceptance, and if there are still hidden defects covered by the warranty, the construction company is still liable for 5 years - if it exists!

Of course, you never have a guarantee, but if you always assumed that, you could just keep renting nicely for your whole life...

Of course, you never have a guarantee, but if you always assumed that, you could just keep renting nicely your whole life...

Is there a negative undertone to be read here? Then you just keep renting nicely your whole life and invest smartly elsewhere. But otherwise, I agree with the general tone. There is always a risk, no matter where. Here it is particularly critical because everything goes in.

Therefore risk minimization, but generally interesting. I have already asked myself that with the "short-term" GmbH for such construction projects, how I can implement it most smartly when buying.

You don’t need to arrange anything, it is regulated by law.

I would still discuss it in advance and include it in the contract, otherwise after the first installment there will be a construction halt.

I would still discuss it in advance and include it in the contract, otherwise after the first installment a construction stop is likely.

Right! When withholding payments, contractors become very sensitive very quickly! However, to be honest, I don’t see much chance of agreeing on this amicably beforehand. The contractor will say that you should properly inspect the work and can withhold payments partially until defects are remedied if defects are found. Otherwise, full payment, please. But maybe there are property developers who are nice after signing the contract...