Land with ground lease - new construction after demolition - who pays?

Hello,

However, there is still the church and a bell tower, and of course some greenery. What about the costs for demolition and preparation of the building site? Are these included in the development costs and thus at our expense? Or are these expenses that the investor must bear before the plot can be released for construction?

Since the plot remains in the hands of the investor, theoretically he would have to prepare it at his own cost?! I assume it has already been surveyed, since a detailed development plan with dimensions exists.

How do you come to the conclusion that the investor will bear costs out of pure goodwill, which are not his own? He plans the plot and then builds the respective houses on behalf of the builders; if at all, the church "could" cover part of the development (demolition). However, I do not think they will do that.

The builder developer will either pass on the costs required to make the area ready for construction to the builder on whose plot the demolition must take place or distribute it proportionally among all builders. It depends on how the overall situation on site presents itself. As an example: we are currently preparing the development of a larger plot in Solingen Aufderhöhe; a total of 7 single-family houses as row houses and two-family houses will be realized. On the plot stands a basement old building which must give way to the new construction measure. The costs of demolition, the later private road including lighting, as well as surveying/division will be allocated proportionally to all 7 parcels, unless the seller participates in the development costs.

Rhenish regards

Hello Dirk, hello Bauexperte,

I suspect it will go as described in your post, Bauexperte. On the current church property, the two single-family homes will be built and they will have to share the costs. So us and the future owners of the other house.

Dirk, your post has raised questions that we had not thought of before. But we will now be able to incorporate them into the negotiation and planning discussions. Thank you.

So now we will first have to wait and calculate with the 'worst case' when we have our consultation meeting regarding financing with the bank in two weeks. I will report on the final result at the end of February.

Many thanks and best regards, Samean

It's not that unusual with developers: water connection, telephone connection, and gas connection have to be paid for separately.

That's not the point. The question is: Is a purchase contract concluded for a part of a house (as described in the contract documents) on plot XY at a fixed price? Or: Is a contract for work and services concluded for the construction of a house (as described in the contract documents) on one's own land? The much-cited construction and service description is in each case part of the contract documents.

That is initially the question of whether it is a developer or not. After that, further discussion is possible... And I would also be interested in how the hereditary lease issue plays into this.

Everything has to be paid for one way or another, only with the developer does he bear the entrepreneurial risk for any additional costs (which he will try to price in beforehand as far as the market allows).