ᐅ Supplementary Agreement to the ScanHaus Construction Contract

Hello everyone,

we are planning to build a house with Scanhaus Marlow Marlow. We have now received the draft version of the construction contract.

Everything makes sense to us so far, except for the last page. It is titled: "Pledge Agreement as an Additional Agreement to the Construction Contract."

This concerns pledging our equity as a security to Scanhaus Marlow Marlow.

Does anyone have experience with this and, above all, can explain what this means? Looking forward to your feedback.

Douska2019

In the end, it’s nothing more than an assignment statement that you would normally provide to your bank. The difference is that here it involves your equity, right?

That’s how we understood it as well.
However, we want to use the equity capital for other purposes.

You didn’t declare all of your equity to the bank, did you? What you withhold is your own business.

Then don’t disclose your equity. It’s fine for the bank, but Scanhaus Marlow Marlow doesn’t need to know. They don’t need to care where the money comes from, whether it’s equity or financing.

douska2019 schrieb:

Hello everyone,

we want to build a house with Scanhaus Marlow Marlow. We have now received the draft version of the fixed-price contract.
So far, everything makes sense to us except for the last page. It is called: "Pledge Agreement as an Additional Agreement to the Fixed-Price Contract."
This concerns pledging our equity capital as performance security to Scanhaus Marlow Marlow.
Does anyone know about this and, above all, what this means? Looking forward to your feedback.

Douska2019

We are currently building with Scanhaus Marlow Marlow and I just double-checked our fixed-price contract. Are you sure it concerns the equity capital? In our case, there is no mention of that, and this additional agreement is simply the assignment of the purchase price to Scanhaus Marlow Marlow. It has nothing to do with the equity capital. For us, the bank intervened and required that we first use our equity capital before drawing on the loan.