Purchase contract and special requests

Hello everyone,

we are about to sign a purchase agreement (new build). The purchase agreement includes the costs for the construction and the land, so that the real estate transfer tax applies to the total price. Now we are wondering whether it is advisable to include any special requests in the contract or to bill them separately later (to save tax on them). Are there any other aspects that argue for or against including special requests in the purchase agreement?

Thank you very much in advance.

Hello,

if you want to co-finance the special requests, then include them. Otherwise, banks have difficulty co-financing something like that. We have recorded everything that was possible in advance. On the one hand because of the financing / interest conditions (loan-to-value ratio), on the other hand to have planning security so that the developer does not later call up any "arbitrary" prices.

Depending on how much that becomes, you will later be quite surprised if you then need another €30,000 at 6-8%... in that case, the 5% property tax is rather to be seen as ridiculous... besides, why don't you know yet what extras you are taking with it? That is the first thing I would clarify... it was the same for me... first add up all the prices and then go to the bank.

Hello,

we are about to conclude a purchase contract (new construction). The contract includes the costs for the construction and the land, so that real estate transfer tax is also applied to the total price. Now we are wondering whether it is wise to include any special requests in the contract or to bill them separately later (to save tax on them).

First of all, the question must be whether your contractual partner would agree to this approach? Guarantees for equipment outside the notarial contract, like?

The notary who certifies the construction contract is obliged under § 18 paragraph 1 sentence 1 of the Real Estate Transfer Tax Act to report this to the tax office. I am just imagining that the tax office may initiate an audit of the developer in the near future – what do you think will happen if the tax office finds that tax revenues have been lost?

It would not be worth the effort for me; not to mention that no real estate transfer tax is applied to fitted kitchens, inventory, fireplaces, or garden houses.

Rhenish regards

Hello,

as mentioned above, some developers tend to ask for somewhat higher prices for special requests even after the contract has been signed.

What I find particularly critical, however, is the risk mentioned by the construction expert that the tax office might come after you later on...

Therefore: Include everything in the contract from the beginning.

Regards,

Dirk