And you are then also bound to the materials he uses for construction, or are you allowed to choose others for a massive surcharge.
That is usually always the case with a GÜ.
A very clever developer! Ancillary construction costs are the biggest unknowns in building, which almost always ruin any calculation, and he wants to pass them on to you plus real estate transfer tax as a penalty... Respect, but you always find someone who signs something like that.
And yet contracts are signed here in this country multiple times daily. Just look at all the terraced houses etc. This is exactly that constellation. Tied deals are nothing unusual.
But this is how large areas are released for construction and house building is practically made possible for everyone.
That’s not to say this is particularly great, or that I think it’s good. It’s simply everyday and it does not mean that the business is necessarily bad.
I always thought that developer contracts were turnkey including incidental construction costs, if the arrangement is as I have described it to be normal, I think even less of this constellation if not the stupidity of the buyers. Here, every general contractor works cheaper and more transparently.
One would have to look at the contract. Each GU/GÜ has its own provisions. Depending on the size of the company and how it is structured, there is a relatively wide range of materials.