The remaining amount will not be paid out because the land register has not been released

We took over a newly constructed property on 01.06.2013, which still had some defects at the handover. These have not been remedied to this day. We withheld a sum of money for the defects. Because of the non-payment, the contractor refuses to release the land register even though he gave a written assurance (by email) that the withheld amount only has to be paid after the defects have been remedied. This assurance was given to us in 11.2013... Since then, we have been regularly calling, writing, and faxing the company... unfortunately without success... On the phone, we are only given promises and we receive no response to our letters... Since we still have a sum of money with our lender, which was planned for work on the house (garden etc.), but the lender does not release the amount because the land register has not yet been released, we now do not know what to do anymore... Can someone give us a tip here? We have avoided a lawyer so far because we do not necessarily want to escalate the matter... We would be very happy to receive an answer...

Hello deepstarone,

No legal advice is allowed here in the forum – but legal advice is exactly what you need.

Since you have obviously already tried everything to get the construction company moving, probably nothing will remain for you except a visit to a specialist lawyer.

Regards,

Dirk

Have you already set a deadline for the contractor by when he must have fixed the defects? You must send this deadline to him in writing (preferably by registered mail). After the deadline has passed, send a reminder again and then / at the same time go to a lawyer, otherwise it won't work anymore :(

Building contractor? Release the land register?

I guess property developer with completed new building?

I also tend to recommend legal advice from a specialist lawyer for construction law.

Hello,

Due to non-payment, the contractor does not want to release the land registry

You purchased a developer project - land + house from a single source? Why is the contractor (BU) listed in the land registry and not your financing bank?

Since we still have an amount of money with our lender that was intended for work on the house (garden, etc.), but the lender is not releasing the funds because the land registry has not yet been released, we no longer know what to do...

As long as you don’t apply pressure, nothing will change in my opinion; you’ve already been waiting since June of last year.

First, you need to issue a notice of defects with a deadline; if you don’t know how to do this, send me a PM and I will help you. This deadline should – considering the months that have passed – be set to no longer than 3 weeks; unless there is imminent danger. If this deadline – which you will probably have to assume – passes without result, send another one with a 1-week deadline. Only after this deadline has also passed unused by your contractor, should you consult a lawyer specializing in contract and construction law.

Of course, you can – what I would consider more appropriate – have the notice of defects issued directly by a lawyer you trust. A letterhead like that often works wonders.

Rhenish greetings

Thank you for your answers...

Construction contractor? Release the land register?

I guess a developer with a completed new building?

If I understand correctly, I would agree with you... Our bank was unfortunately also not informed about the completion of the construction contractor...

You bought a developer project - land + house from a single source? Why is the construction contractor (BU) listed in the land register and not your financing bank?

I meant the bank of the BU is listed in the land register... Ours is listed too but not at the very top...

As long as you don't put pressure on, nothing will change in my opinion; you've been waiting since June last year.
Rhenish regards

We also don't really feel taken seriously...

We will probably not be able to avoid getting legal counsel...

What do you think about asking the notary who prepared the contract for advice...? He is also a specialist lawyer for construction and architect law...
What do you think about going to the consumer advice center? Would that be worth a try or are we not as well advised there as if we go directly to a specialist lawyer?