Problems with construction company. Need urgent help!!!

Hello Andy 1983,

are you completely sure about the land register? You can answer your question mark in the post yourself if you get an extract from the land register! If you go to a lawyer, you will need this anyway - or you can just have the lawyer take care of it.

We can only advise you to go to a lawyer as soon as possible.
They can help you keep your building and possibly continue it at some point. If you are really building with a developer who goes bankrupt, then you risk losing EVERYTHING you have "paid" so far.

When an insolvency administrator gets involved, things usually look extremely unpleasant. Their task is to serve all creditors, with all legal means. They will, of course, try to squeeze the last cent out of your construction project. No insolvency administrator will let you get away with the trick "EG shell construction is already standing and not yet paid = your profit." At the very least, they will try to invoice you for the entire shell construction or other "planning work." You will need a lawyer just to fend off unjustified/too high claims. In our neighborhood, the insolvency administrator of a developer even came up with the idea of questioning the validity of a contract long since concluded and demanding the surrender of the house and land long since occupied and paid for... What I want to say is: without legal support, you are in extreme danger of having to bury your house building project. Just like your deposits paid so far. So off to the lawyer! It’s still five to twelve.

A lawyer may also be able to prevent a prematurely filed insolvency application from costing you a lot of money and check all contracts for insolvency security in time (before the insolvency).

Best regards

So, here’s the deal. We met with the developer. The insolvency administrator is supposed to come next week. Hopefully. The waiting is the worst!!!!!

We haven’t been to the lawyer yet. For the following reason.
My wife works at the bank where we completed the financing. They have all the documents we also possess. Several colleagues took the time to look over the papers again and went through the contract.

The thing is that although we are listed in the land register (for the property), the developer is ahead of us. He will be deleted as soon as the key handover is completed.

I have no idea about all this paperwork, but the colleagues of my wife told us the following about what could be coming our way.
The developer’s bank could demand the costs of the additional work that has arisen on the property and that we have not yet paid. Then everything would belong to us and in that sense, we would not have lost.

The opposing bank must reimburse us for the costs we have already paid and would then be the sole owner. In this case we would lose the money we paid for the property transfer tax.

I have now spoken to a few people and some told me something about the insolvency administrator. He is now, so to speak, the boss of the construction company. He doesn’t want to destroy the company but tries to somehow get it out of the mess.
Since the money needs to be raised, they are looking into how.

I still have 2 questions for you.

Won’t the insolvency administrator first try to get the money from the people who still owe the developer money and already live in their houses?! That’s how this whole thing started!!!!!!

Do we have to be worried alone or do all the other builders as well, who are currently building with the developer and are not yet finished? The developer is still the owner until the key handover there as well.

Hello andy1983,

hopefully it is not a serious mistake that you have not yet been to a lawyer... What you write unfortunately suggests that you don’t have much knowledge of the matter – unfortunately, you are deep in it! So buy yourself a pilot and a lighthouse (in the form of a lawyer) for your ship on the high stormy sea!

What now happens with the construction company:
- The insolvency administrator’s FIRST task is to satisfy the creditors
- The insolvency administrator’s SECOND task is to look for possibilities to keep the company alive, if possible

The insolvency administrator is definitely not your friend!

§ 1 Ziele des Insolvenzverfahrens

Das Insolvenzverfahren dient dazu, die Gläubiger eines Schuldners gemeinschaftlich zu befriedigen, indem das Vermögen des Schuldners verwertet und der Erlös verteilt oder in einem Insolvenzplan eine abweichende Regelung insbesondere zum Erhalt des Unternehmens getroffen wird. Dem redlichen Schuldner wird Gelegenheit gegeben, sich von seinen restlichen Verbindlichkeiten zu befreien.

The following questions now arise for you, for example:

1. How do you behave formally correctly if the insolvency administrator sends you an unjustified invoice?

2. How do you secure your claim to ownership transfer?

3. Is the possible residual settlement agreement acceptable to you?

4. Is it possible for you to terminate the construction contract if the construction does not progress for months?

5. Whom do you contact regarding defects in the construction so far?

6. From when can/may I tender and commission my own follow-up work on the house?

7. How can the insolvency administrator’s right of choice affect my construction project?

8. Do I have claims for compensation if my contract is not fulfilled?

This list can be extended indefinitely! Many of these points can be thoroughly disputed and litigated.

An insolvency procedure can have hundreds of different forms, which can never be conclusively addressed here in the forum.

Consider this: you would buy a €50k car... you would surely have the contract & the car checked thoroughly, especially if you know your counterpart is financially troubled and certainly has an interest in selling you a lemon... Now compare the costs of your house and ask yourself what a lawyer costs in relation to that... It will be very well invested!

Best regards

Hello Andy,

We haven't been to a lawyer yet. For the following reason. My wife works at the bank where we completed the financing. They have all the documents that we also have. Several colleagues took the time to look at the papers again and went through the contract.... Do we have to worry alone?

It is astonishing with what lack of prudence you treat the sensitive topic of insolvency – and big compliments to “Lynx1984” for the patience with which he tries to steer you in the right direction!

Andy – for me this is definitely the last answer on this topic, as I increasingly get the impression that Lynx’s comparison with buying a car could not better describe your naivety with which you approach the topic of insolvency.

It is great that your wife works at the bank, also great that her colleagues have read through your house documents. What do you think will happen in a serious case (which is probably imminent) – will their assessment help you if the insolvency administrator has different ideas, which he surely will? His task is to satisfy the creditors with all the measures at his disposal; as I suspected, you do not really own the property – not even on paper. What do you think the insolvency administrator will think about that?

I am repeatedly irritated how – to stay with the example – when buying a car the smallest detail is paid attention to, but when building a house – of course only a slightly bigger investment – necessary spending is repeatedly postponed with far-fetched statements until it is ultimately too late. Again: in Germany, legal advice is exclusively reserved for the consulting professions; I am almost certain that Lynx’s and my contributions on your topic are on the borderline of what is still tolerable.

Quickly find a lawyer and let him handle your affairs, as far as this is at all possible in view of an impending insolvency.

Kind regards

Hello,

I would be interested to know how the case ended or at least how it has progressed.

Best regards

Hello,

I am interested in how the case ended or at least how it has progressed.

Best regards

I agree with that!

I only hope very much that I myself will never, never, never neglect such urgent warnings, hints, and assistance like Lynx and Bauexperte to such an extent as the unfortunate builder in this case, who placed much greater trust in the colleagues of the lady than, sorry, is justifiable.
I am keeping my fingers strongly crossed for the builder and his family.
Hopefully, they still followed the advice!