Is the payment method to the construction company usual?

Hello,

these are rather sparse details ...

we are planning to build a semi-detached house. After the first meeting with the construction company, we were informed that the basement payment is due 100% after the ceiling installation (makes sense to me) and 95% of the purchase price after the interior finishing. The remaining 5% is then paid after the house handover.

I will try to untangle this as I think it could be correct ...

Are you buying "everything" from a single source - including the plot?
Or do you have two contracting parties?
Are you building a semi-detached house using prefabricated construction and have to buy the basement separately?

Is this procedure common, how is the loan then drawn?

Your bank advisor will request the purchase documents from you, including the payment schedule, and will prepare an offer based on them.

Best regards from the Rhineland

Hello construction expert,

exactly right untangled :) We are buying a house (prefabricated house) & land from the house construction company. The basement is being built by a local company, which is not a service provided by the house supplier.
Is this payment method okay like this?

These are great conditions. 95% after interior finishing corresponds to -> before handover - what should come after the interior finishing? The remaining 5% until the "defects" are fixed. Sounds almost like the payment plan from FH,.. Are you commissioning the basement yourself, or is the prefabricated house company doing that as well? If you commission it yourself, I would also transfer the full amount only after acceptance/inspection.

Hello,

We are buying a house (prefabricated house) & land from the house building company. The cellar is being built by a local company, which is not a service provided by the house provider.
Is this payment method okay?

Let's put it this way - I know worse payment plans ;)

The broker and developer regulation speaks of "a maximum" of 7 installment payments; this is binding for a developer to apply. I just want to recommend that you only pay for the cellar once it has been inspected and accepted by an expert. Of course, the best is an external construction supervision throughout the entire construction period.

Rhineland regards

Hello construction expert,

thank you for the hint regarding the basement inspection. We have also been considering hiring an external construction supervisor. Do you have any experience with which insurances are necessary during the construction (builders' liability, fire and shell construction insurance, etc.)?

Bavarian greetings

Hello,

no, we don't actually commission the basement ourselves. The construction company has the company on hand that does it. Ultimately, we place the order with our signature. It is a local company that carries it out – with the contact being arranged by the construction company.