Pre-contract - provider offers financing and land

In our case, the situation is that our property still needs to be developed (the 2019 municipal budget still needs to be approved). Therefore, the timing is not entirely predictable.

Just for that reason alone, definitely stay away from it.

We bought our property in February 2017 and it is still neither developed nor surveyed.

- In the first letter (purchase information) from the municipality, summer 2017 was stated as the development deadline.
- The purchase contract stated December 2017.
- At the notary appointment, the second mayor said, probably summer 2017.

With something like this, I am really glad that I didn’t want a complete financing :-)

The question is not meant to sound stupid, but you do know what [Bereitstellungszinsen] are. With possibly €400k, that’s no fun.

thanks guys for the answers.

The question is not meant to sound stupid, but you do know what commitment interest is. With possibly €400k, that’s no fun.

yes, I know that by now too :-)
but I would only finalize the financing once it is clear when construction could start. so the plot wouldn’t need to be included in the financing.
then it would be a different situation.

but what I definitely take away is: hands off!
at least there has been no positive feedback so far.

As a rule, a "pre-"contract is unnecessary. When everything is clarified, you conclude a contract and that's it. Getting out of the typical "pre-contracts" usually costs a hefty five-figure amount (more details are in the pre-contract, you just have to read it).

In general:
- Do not sign pre-contracts.
- Only conclude proper contracts.
- Check contracts before signing.

With a mobile phone contract or a gym membership, it does not matter; the damage is limited in any case. With a house contract, you can(!) also ruin yourself. So the risk is high. Insert: Risk is the product of probability of occurrence and extent of damage.
Example: Nuclear power: probability of occurrence low, extent of damage very high.
Example: Being taken advantage of in a house contract: probability of occurrence low to medium, extent of damage very high (measured by the individual).
Therefore very important: Do not sign anything hastily!

The contract should be reviewed by experts. Normally, it exceeds one's own abilities, but for a moderate fee, you can always find a specialist lawyer for construction law who reads the contract draft, explains the consequences, and suggests improvements.

The beaver is completely right. And something else for your own psyche. Only act when the time is right. A piece of land not yet developed is not yet building land. Therefore, negotiations with sellers are not yet on the agenda. Karsten

Thank you all. I wouldn't have signed anything at the moment anyway. I just wanted an assessment from those who have already gone through all these phases.

Der Bieber hat völlig recht. Und noch was für die eigene Psyche. Handle erst dann, wenn es dran ist. Ein noch nicht erschlossenes Stück Land ist noch kein Bauland. Somit sind Verhandlungen mit Verkäufern noch nicht auf der Agenda. Karsten

I had to read that twice now... Negotiations are definitely not on the table yet, but collecting and comparing offers is. We still have enough time and do not have to make a decision. Regarding building land, I have to agree with you. It is still raw land and therefore unusable. However, I hope that will change in the new year :-)