Hello Forum,
My new apartment had a few defects that the construction company promised to fix or compensate for. There is agreement on the issues (the underfloor heating was difficult to regulate, the toilet makes creaking noises when sitting down, one door was installed crookedly and only closes with difficulty, and it also swings fully open when left ajar). None of these are major problems.
Unfortunately, the construction company is hesitant to provide financial compensation and keeps delaying with excuses like "we will discuss it with the plumbing company," "it is under review," and "we will get back to you." I had actually requested compensation by October 31. After that, I even received a call from the manager saying the matter was being reviewed and I would be informed soon.
However, I never received any update. Now I have had enough. I waited twice in good faith and trust. Since the formal written reminder was already sent in September, I can now also charge default interest. What is the usual interest rate for this?
My new apartment had a few defects that the construction company promised to fix or compensate for. There is agreement on the issues (the underfloor heating was difficult to regulate, the toilet makes creaking noises when sitting down, one door was installed crookedly and only closes with difficulty, and it also swings fully open when left ajar). None of these are major problems.
Unfortunately, the construction company is hesitant to provide financial compensation and keeps delaying with excuses like "we will discuss it with the plumbing company," "it is under review," and "we will get back to you." I had actually requested compensation by October 31. After that, I even received a call from the manager saying the matter was being reviewed and I would be informed soon.
However, I never received any update. Now I have had enough. I waited twice in good faith and trust. Since the formal written reminder was already sent in September, I can now also charge default interest. What is the usual interest rate for this?
R
RotorMotor22 Dec 2020 19:1311ant schrieb:
Exactly: not 12% per year, but 1% for each started new month.The German tax office charges 0.5% per month. 😉However, I don’t quite understand how this can be applied to construction.
I also seem to recall that the tax office itself is currently reviewing whether the interest rate is justified and up to date.
H
HilfeHilfe23 Dec 2020 05:59Bertram100 schrieb:
I believe the tax office in Germany charges 6% per year, I just saw that on Google. Not bad, Mr. Specht, I would say.
Maybe I’ll try the 6%. I don’t know if that complies with Belgian law. I just assume the differences aren’t that significant. You can write whatever you want on paper; as a contractor, that wouldn’t interest me at all. Rates between 6-12% are not aligned with the market either. The tax office equals the government—they hold the upper hand.
What do you get on the market for a savings account? 0.0%? Or even negative interest? So, I would say you basically have to pay the builder a negative interest rate of -0.3%.
HilfeHilfe schrieb:
What do you get on the market for a savings account? 0.0%? Or even negative interest rates? I would say you actually have to pay the builder -0.3% negative interest. It’s not that bad yet. The base interest rate for 2020 is -0.88%, and Section 288 of the German Civil Code sets the default interest rate at 5 percentage points above that. That comes to 4.12% (calculated exactly by day, including leap years for the actual time, while assuming a non-leap year for calculation, and without compounding interest). This means that when December has passed, November still effectively has 30.000 days and does not suddenly have 31.236 days due to compound interest ;-)
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
I
Isokrates23 Dec 2020 12:17RotorMotor schrieb:
I also seem to recall that the tax office is currently reviewing whether the interest rate is justified/up to date. In fact, this issue has been pending before the Federal Constitutional Court for some time now. However, it has already come out that the court apparently views the state's interest rate as a kind of overdraft interest and therefore considers the 6 % per year to be justified, since this is still fairly reasonable for an overdraft rate.
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nordanney23 Dec 2020 12:59Bertram100 schrieb:
Since the written reminder was already sent in September, I can now charge default interest.Interesting thread. However, the question is on which amount do you want to calculate default interest? And from when? For what reason?H
hampshire23 Dec 2020 16:13Forget it, the defects are not significant enough for late payment interest to have any effect.