Payment plan - Completion and land

Good morning,
I received the contract from the notary today for review. The included payment plan is as follows:

1. after the start of the shell construction works 30.00 %

2. after completion of the shell including

carpentry works 28.00 %

3. after installation of the roof surfaces and gutters 5.60 %

4. after installation of the windows 7.00 %

5. after completion of the rough installation of

heating/sanitary/electrical 6.30 %

6. after completion of the interior plaster (without finishing plaster) 4.20 %

7. for the screed 2.10 %

8. after completion of the tiling work in the sanitary area 2.80 %

9. after completion of the façade works 2.10 %

10. after readiness for occupancy of the house 8.40 %

11. after full completion 3.50 %

It concerns a property developer, meaning the land is purchased along with the property. Is the plan acceptable as is, or am I paying too much for the shell and able to withhold too little for completion?

Thank you very much.

1. after the start of shell construction work 30.00 % 2. after completion of the shell including carpentry work 28.00 % 3. after completion of the roof surfaces and gutters 5.60 % 4. after installation of the windows 7.00 %

That would be a solid 70.6% up to this point - clearly too much. You are buying everything from a single source, so I can still understand the first 30%, as this will also cover the down payment for the property. On the other hand, in the worst case, you end up with a nice property and a shell, but no money left to complete the construction project. If I were you, I would try to postpone the first payment to the completion of the shell (masonry, carpentry, roofing + windows), so that by that time you have paid between 57 and a maximum of 60%. The subsequent steps should be adjusted accordingly. The crucial question, however, as always, is whether your contracting partner would accept these changes. Rhenish greetings

Hello construction expert,
thank you for your hint. The seller once said in a conversation, when I asked about the payment plan, that they had wanted to summarize certain points for someone, but the notary did not approve it because the [Makler- und Bauträgerverordnung] sets maximum limits for each step.

If I compare my plan with the [Makler- und Bauträgerverordnung], these are exactly the maximum limits of this regulation. So if I understood you correctly and shift the first payment to the completion, the maximum limit would be exceeded, or am I misunderstanding something?

Regards

just have a look at the Makler- und Bauträgerverordnung, everything is explained exactly there.

§ 3 Special security obligations for developers

(2) The trader may also receive the assets in up to seven partial payments in accordance with the construction progress in the cases of paragraph 1 or authorize their use. The partial payments can be composed of the following percentages: 1. 30 percent of the contract sum in cases where ownership of a property is to be transferred, or 20 percent of the contract sum in cases where a hereditary building right is to be created or transferred, after the start of earthworks.

40/100 after shell construction including carpentry work
8/100 after roof surfaces / gutter
etc...

the 60% with completion of the shell construction is nonsense with the developer because the property is included. 60% including the property at the stage of shell construction with windows and roof is definitely too little paid - at least with more expensive properties. according to the regulation, the whole thing should be chopped into 7 parts. 5% after completion should be feasible. all those 2-3% bits can also be combined somewhat.

Hello construction expert, thanks for your hint. The seller once said in a conversation, when I asked about the payment schedule, that they wanted to combine certain points for someone, but the notary did not approve it because the Broker and Developer Ordinance sets maximum limits for each step.

Argh - I simply forgot the maximum limits; seems like it's not my day. Please excuse me for causing confusion! What securities does your developer provide you? Rhineland greetings

What securities does your BT provide you?

According to the notarial contract, I receive a performance bond. He also offered me a warranty bond for 2,000 euros, but we are still considering whether it is worthwhile for a secured amount of 5% of the project (approx. 15,000 euros).