Time of contract signing for house construction

Hello everyone,

I have a quick question regarding our construction project. In our town, about 150 building plots are being developed. We have already reserved a plot, received an offer for a turnkey house from a general contractor, and obtained approval from several financiers that financing is possible for us.

Now my questions: The construction area is currently being developed, and the land registers are being created. Work is to begin in January. The start of construction for the houses,... is supposed to be next August.

We have an offer from a general contractor which we would accept as is. The contractor wants us to sign the contract this year, so he can plan better and lock in prices with the companies he uses. According to him, prices may change starting in January. He offers us a free right of withdrawal and says the contract is only valid subject to the purchase of the plot.

Can we already sign this contract this year even though we have neither fixed financing nor completed the purchase of the plot?

Thanks for your help

Regards Lat

I would say it always depends on how exactly the right of withdrawal is worded. The best thing is to simply go to a construction law lawyer and have the contract reviewed. It doesn't cost a fortune but can save a lot of trouble and worries.

yes, I would see it the same way. Insert a clause that the contract can be reversed without costs if 1. financing falls through 2. land purchase falls through

just a stupid question, what do you do if you don’t get the premium plot but instead the last scrap where you have to do embankment and/or build with a basement, and therefore the house construction contract becomes more expensive?

without land and financing, I wouldn’t sign anything. Especially since the builder will still want to build with you next year

We have reserved this plot and must decide by the end of the month whether we actually want to buy it. I grew up right next to this new construction section. The plot is located on a flat area, building without a basement is easily possible.

Of course, he also wants to build with us, but according to his own statement, he can no longer offer the fixed price because he expects price increases from his contractors.

Have the contract reviewed. (approx. 250€)

we have reserved this plot and must decide by the end of the month whether we actually want to buy it. I grew up right next to this new construction phase. The plot is located on a level section, building without a basement is easily possible.

Of course, he also wants to build with us, but according to his own statement, he can no longer offer the fixed price as he expects price increases from his contractors

oh, always the dreaded price increase. How much is it, 20% or just 1%?

DON'T LET YOURSELF BE PUT UNDER PRESSURE

aren't there any other builders?