The developer has let us down - what to do now?

Okay, then please give me a contact of the person who will pay my lawyer's fees. Unfortunately, I can't afford that.

I find that hard to imagine right now. You can afford a house worth a few hundred thousand euros, but not 1000 euros for a lawyer? Or is it rather this widespread aversion of Germans to ever consult a lawyer? That seems to be exactly what your counterpart is taking advantage of...

Clench your teeth, go to the lawyer and invest a few euros. It's about your house sh..... on those few euros and go through with it or accept it and be glad you didn't have to spend any money Decide if you want to be annoyed for the next few years or go all in Your house your decision

The general recommendation of many predecessors to consult a specialist lawyer for construction law is the only sensible approach.

After the contractual partner (developer) has not fulfilled their contractual obligations to a significant extent, the other party usually has the right to extraordinary termination. This would relieve the bank's obligation to secure the purchase price, so the capital would have to be repaid.

Alternatively, you can have the defects established in court as part of a preservation of evidence procedure. However, I doubt that you would want to have the developer work for you again.

Both can only be determined and litigated by a suitable lawyer.

In addition, lawyers have the legal and rhetorical skills to build an extensive threat scenario. The developer will only react when under pressure.

Even though this approach is the only way to protect your interests, there is always a litigation risk in such disputes. You could end up bearing all the costs in the event of an adverse outcome.

Only a lawyer can also review this point.

Are you sure that the security is automatically terminated with the cancellation? Even with cancellation, there is still a proportional payment obligation for the overall service, and the bank cannot know how much that is. My approach would rather have been a lawsuit for approval.

Either way, no chance without a lawyer, and the cost risk must also be weighed. Damage will remain in any case. Now it is a matter of finding out how this can be kept as minimal as possible.

Whether and to what extent the bank's obligation to provide security ends through termination of the contract depends on the construction or credit agreement.

That's why the lawyer.

Maybe the trained lawyer has completely different approaches after reading the contracts.

Of course, within the scope of the settlement, the already defect-free services rendered are to be compensated.

Take out legal expenses insurance and hire a lawyer.