Pre-contract with a prefabricated house provider?

Hello,

They only start searching (with criteria that I provide) once I have signed the preliminary contract. I don’t have a contract here yet, so I can’t say exactly what it looks like. However, my suspicion is that such a contract is common practice, as I have experienced this with several providers already.

At least it is increasing; unfortunately, that is true. The goal is to remove potential builders from the market for competitors.

You have to look very carefully at WHAT you sign – if you are unsure because you are a layperson – have the reservation/work contract checked beforehand. From final binding, through reservation fees, to free expiration after "x" months, I have had everything on my desk.

Nevertheless, I have concerns that you bind yourself and might have to pay a certain amount if you don’t find anything or have difficulty getting out of such a contract. But on the other hand, I expect more success with the search for a plot.

It is true that many landowners approach a broker directly. These brokers, in turn, often have fixed partners (single-family or multi-family home providers) with whom they collaborate; I have even experienced this with a municipal subsidiary. BUT that does not mean that the broker relinquishes their assignment. It "may" be that they advertise on the internet both with builder-free sales and tied providers. In the latter case, it makes no difference how you learned about the plot; the binding comes with the purchase.

In my opinion, you must not focus exclusively on the plot. Certainly, it is the prerequisite for the actual build, but you should at least know what the respective provider, to whom you intend to give your signature, has committed to in writing in his contract including general terms and conditions. Because – as everywhere – what is not written does not count as purchased.

Furthermore – as correctly written by my predecessors – in such a construct, 5% real estate transfer tax on land and house becomes due. The tax offices are not dumb and have their own scouts whose sole job is to scour the internet and relevant newspapers for land advertisements!

Every plot places different demands on the later house build, which should be clear in my opinion. Where are you searching for a plot?

Best regards from the Rhineland

How high do you estimate the probability that these companies will offer you a plot of land that you do not already know? During our search for land, we also had such conversations and with two providers we were shown a few plots to be brokered (without a preliminary contract). There was none that we did not already know and had ruled out.

I have had the same experience. One of the house sellers also discreetly told me that all providers draw from the same pool of plots. At first, I was under the impression that a provider secures certain plots (e.g. in a new development area of the municipality) via a preliminary contract for resale and then possibly sells them on to the interested parties. This assumption triggered vigorous nodding and a knowing smile from the representative of a well-known franchise company. However, following up with the municipality brought clarity. This is not to say, however, that there are no companies that actually buy up an entire area and build their houses there exclusively (this happened with friends of ours – the houses all look the same except for color accents).

Hello everyone,

first of all, thank you for the numerous responses.

We have already read about the issue of real estate transfer tax elsewhere. But this would be no more than organizing a plot of land through a real estate agent who then charges a brokerage fee on the land price, right?!

Strictly speaking, it is a contract for work with the granting of a right of withdrawal. The contract contains the clause "The buyer is entitled to withdraw from the above-mentioned contract for work if, for reasons for which the buyer is not responsible: a building-ready plot is not available or not available by ..... at the latest". The contract does not stipulate under what conditions we would have to accept an offered plot. I therefore conclude that even if the plot is not liked, the offer would not have to be accepted.

Regarding the contract review, we want to meet with the consumer advice center. However, we wanted to gather experiences in advance through this forum.

Regarding building gaps and contacting the owners, we have not taken any action yet. How do I get information about who owns a building gap and whether building is allowed there?
I have not found any "suitable" plots in foreclosure through online searches. Do you perhaps have a good site/recommendation?

We are generally looking for a plot in the Cologne area with >550 sqm.

Thanks again
Staedtler

Hello,

since I am not allowed to post links here, I advise you to search for zvg on Aunt Google.

There is a site where all German local courts publish every forced auction (ZVG).

If you want to find out who owns a building gap, you usually learn it directly from the neighbor if you ask politely.

It is also often successful if you ask the landlord in the local pub whether he has heard from the "guys" at the regulars' table about an inherited property that is to be sold (this usually only works in the village).

These are the tips that a friend who is a real estate agent gave us.

Regards,

Dirk

Good evening,

We have already read about the issue with the property transfer tax elsewhere. But wouldn't that be not much different than if you organize a plot of land through a broker who then charges a brokerage fee on the land price?!

No. You only get a plot of land from your provider on the condition that you also build the single-family house with your provider; therefore, for this - still to be named - plot, there is no free choice of the provider. In these cases, it is almost impossible to convince the tax office that you searched for the plot and the provider independently and after thorough examination; it sometimes works, but mostly not. In the worst case, this means 5% property transfer tax on house and land will be due.

Regarding building gaps and contacting the owners, we haven't done anything yet. How do I get information about who owns a building gap and whether you are allowed to build there?

Many municipalities maintain building gap registers; some of them online as well. If the owner of a building gap agrees - the authorities usually know this - you will be given the address upon request.

We are generally looking for a plot in the Cologne area with >550 sqm.

Have you ever considered Rommerskirchen?

Best regards from the Rhineland

...
Strictly speaking, this is a contract for work with the granting of a right of withdrawal. The contract contains the clause "The buyer is entitled to withdraw from the above-mentioned contract for work if, for reasons not attributable to the buyer: a building-ready plot of land is not available or not available by ..... at the latest." The contract does not regulate under what conditions we would have to accept an offered plot of land. From this, I actually conclude that if the plot of land is not liked, the offer does not have to be accepted.
...

I derive the meaning exactly the opposite. They offer you a plot of land and have fulfilled their contract. Whether you like the land or not. ...

House building companies as well as real estate agents are ALWAYS looking for potential properties; that is their job; they do not wait to start searching only when a customer expresses interest.
The strategy is that they advertise your house, e.g., on plot x or y.

We were called unsolicited for half a year by various house providers from whom we had ordered catalogs... The usual statement was, they now have a plot of land for us, when can we meet to plan our house together with them?

-> I would not sign anything at all! They should register you in a database and possibly call you.