Proof of equity to prefab house company: questions experiences?

Hm, well, we don’t have something like that (but no prefabricated house), but in our contract there are 1-2 places where it’s possible to arrange something via the notary. So in our contract, for example, there is the possibility that under certain circumstances you can move in before completion (from readiness for occupancy). However, there may still be finishing work to be done and also the final payment. In that case, it is described as follows: we transfer the last installment to a notary account, and the notary then confirms to the developer that “money has been received,” so the developer has the assurance that the money actually exists. But the notary can only pay it out to the developer when we instruct him or when the defect-free acceptance by us has taken place (with the corresponding protocol signed by us).

I don’t know what something like that costs (the costs would be borne by our developer), but I can imagine something like that if a simpler proof is not enough for you?

edit: Probably it’s similar to your “account block,” only that in your case the bank would probably handle it instead of the notary? How the conditions look there probably have to be clarified with the bank and the contracting party.

Thank you for the answers. Our bank doesn’t do assignment and blocking anyway.

Now the question is what alternatives are available; according to the contract for work, we have to provide a bank guarantee before construction in the amount of the purchase price.

Can you simply give an amount X to a bank and they issue a guarantee for it?
Otherwise, a notary escrow account would be another option.

Have you already signed with them? Honestly, a contract draft like that would be a reason for me not to build with them. A bank guarantee is more acceptable. Talk to your bank, they will probably charge you for it, but generally that shouldn't be a problem. Also talk to them about how they handle the release. Whether they automatically determine the construction status or simply fulfill the guarantee as is.

Yes, we have already signed and are quite far along; in the contract for work, it just says we have to provide a bank guarantee for the amount that the house costs. So, nothing unusual at first. We also had the contracts reviewed beforehand, but I assumed (maybe naively): The bank confirms the loan to me, I have the equity capital - and that's that.

according to the contract for work, we must provide a bank guarantee equal to the purchase price before construction.

A bank guarantee is more acceptable.

The bank guarantee would be an absolute deal-breaker for me as a banker. There is discussion that the OP should not hand over his money - which he does not do, for example, with the escrow account variant. But the guarantee will be a direct guarantee, payable on first demand. Thus, the contractor can at any time, even maliciously, go to the bank and say, "Here is the guarantee, I want my money. All of it and immediately." The bank will then only say, "Okay, to which account?" At that point, the construction status, a disputed claim, or a legal dispute with the contractor are completely irrelevant. The guarantee is practically cash that the customer gives to the contractor. Absolutely not acceptable!!!

That's why I say, only with [Bautenstandsnachweis].