Preliminary contract with the general contractor for building a house after purchasing land

Dear forum members,
I have been reading along here for a while but have not yet found an answer to my problem, so here is my question:

We want to build a house. In the meantime, we have also found a suitable plot of land. The plot was "organized" by a prefabricated house provider who contractually wants to ensure that you can only build on the plot with their company as the general contractor.

My question now is what the usual or recommended procedure is in this case. The prefabricated house provider suggested that one signs a preliminary contract with them for the construction of a single-family house. Then one may buy the plot from a third party. After that, the details of the house can be agreed upon and the actual construction contract signed.

I see the problem with this procedure in that after signing the preliminary contract, we will no longer have any room for negotiation in the construction contract. The construction company will then already have us "in their pocket."

The safest would certainly be if the construction contract is already finalized when buying the land. Is there a recommended approach for the case that this is not so, or is everything else "nonsense"?

Exactly right - then the company has you in their pocket. Additionally, the tax office also has its fingers in your pocket - after all, it is basically a single connected transaction, so property transfer tax should be paid for the land + house construction.
Is it still sensible to do it that way? You can't really say that in general - if the construction partner fits perfectly, the land fits perfectly, and nothing comparable exists otherwise, it can definitely make sense to sign. But without knowing the land, house details, and final house price, something like that was out of the question for us back then.

Good evening,

We want to build a house. In the meantime, we have also found a suitable plot of land. The plot was "organized" by a prefabricated house provider, who contractually wants to ensure that you can only build on the plot with his company as the general contractor.

Understandable.

My question now is what the usual or recommended procedure is. The prefabricated house provider suggested that one signs a preliminary contract with them to build a single-family house. Then one may buy the plot from a third party. After that, the details of the house can be agreed upon and the actual construction contract can be concluded.

This procedure is only recommended if there is urgency; for example, if the plot is in a very desirable location with many potential buyers.

I see the problem with this procedure that after signing the preliminary contract, we will no longer have any room for negotiation on the construction contract. The construction company will have us "in their pocket" by then.

If it is a reputable provider, your "negotiation room" is limited anyway; we are probably talking about a maximum of €3,000-4,000. Everything else is, in my opinion, unreliable.

The safest thing would certainly be if the construction contract is already completed at the time of purchasing the land. Is there a recommended procedure for the case that this is not so, or is everything else "nonsense"?

I see no problem with not having the construction contract worked out as far as possible before the land purchase; there is usually enough time ... unless you need weeks and months fearing to sign.

Don't forget: insist on a free right of withdrawal subject to the purchase of the plot at plot xyz!

Best regards from the Rhineland

The disadvantage with the tax office is known to us, nevertheless thank you for the hint. By room for negotiation I do not mean so much the financial aspect, but rather the scope for contract design. Whether the provider is "serious" I cannot say yet, I have not spoken to any references so far.

... - basically, it is a continuous transaction, so real estate transfer tax should be paid for the land + house construction.

As writes, different conditions apply here, so it is not a developer. It is common for BUs to search for plots from private sellers or municipalities. Once one is found, it is offered to the potential builder. There are then two independent purchases (land from an external party and consequently house from the BU later). That is why the preliminary contract is supposed to be made, so that the builders do not build with someone else. The BU rather acts as an intermediary.

Cautiously and in layman's terms, you are right (independent purchases), but there is a preliminary contract from which a connection between the property and the house can be derived. The brokerage by the BU, which you mentioned, is also fixed in writing. I want to warn that the tax office might adopt such a viewpoint. Here (in Berlin), the questionnaire regarding the determination of real estate transfer tax was very detailed, and if one were to fill out the questionnaire according to your description, the tax office would certainly assume a linked transaction. I only want to warn and suggest having the whole thing reviewed (or have it reviewed) with expertise. It definitely depends on the individual case and the federal state.