ᐅ Semi-detached house: two contracts (landowner and construction company)
Created on: 17 Jun 2021 18:55
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HubiTrubi40
Hello everyone,
it’s me again... but you advised me so well last time that I backed out of my last house purchase attempt (rightly so!). Now I have something new, and here too there seem to be one or two potential pitfalls. It is a semi-detached house (a total of 12 are being built). The seller is a real estate agency. The land belongs to an investor and is being legally divided. There will be two contracts: one with the landowner for the purchase of the land and one with the construction company (contract for work). The notarized purchase contract covers the total price package (just over 600,000 plus additional costs). Since this is a so-called initiator model (never heard of it before, but according to the marketer it is common), extras can be added afterwards—for example, an additional bathroom. These costs are then charged separately and added on, with so-called layout variants offered. The advantage is that property transfer tax and notary fees are only calculated on the base package. The savings are limited. Depending on the chosen variants, the price increases by another 15,000-20,000, depending on what you want.
I spoke with a lawyer who advised me to stay away. Why? Because you sign two contracts and could face difficulties deciding from whom to claim warranty if something goes wrong. What do you think? The company seems reputable, and my impression is that this is a common approach, but apparently it is not a developer in the usual sense. Anyway, I’m uncertain whether this is a good idea. I could reserve now. For that, I would have to pay 1,000 euros, which I would get back if I withdraw from the reservation within four weeks. These four weeks are intended for clarifying financing, further consultations and planning discussions, and the notarization appointment. Is this reasonable? Otherwise, everything looks okay so far; the house and land are fine (260 sqm (2800 sq ft)). I think building myself (I am still on the waiting list for a building plot) wouldn’t be cheaper, and existing properties are usually just as expensive if not more so. I have an appointment this Saturday to look at a smaller terraced house (125 sqm (1350 sq ft) versus 140 sqm (1500 sq ft) like in this offer). First, it is considerably older and the price is also around 600k. Oh, one thing that surprised me about this offer: the construction period from the start of building (planned from September—planning permission should already be granted) is 20 months. That seems quite long to me. So moving in would only be possible in about two years.
Best regards, Hubi
it’s me again... but you advised me so well last time that I backed out of my last house purchase attempt (rightly so!). Now I have something new, and here too there seem to be one or two potential pitfalls. It is a semi-detached house (a total of 12 are being built). The seller is a real estate agency. The land belongs to an investor and is being legally divided. There will be two contracts: one with the landowner for the purchase of the land and one with the construction company (contract for work). The notarized purchase contract covers the total price package (just over 600,000 plus additional costs). Since this is a so-called initiator model (never heard of it before, but according to the marketer it is common), extras can be added afterwards—for example, an additional bathroom. These costs are then charged separately and added on, with so-called layout variants offered. The advantage is that property transfer tax and notary fees are only calculated on the base package. The savings are limited. Depending on the chosen variants, the price increases by another 15,000-20,000, depending on what you want.
I spoke with a lawyer who advised me to stay away. Why? Because you sign two contracts and could face difficulties deciding from whom to claim warranty if something goes wrong. What do you think? The company seems reputable, and my impression is that this is a common approach, but apparently it is not a developer in the usual sense. Anyway, I’m uncertain whether this is a good idea. I could reserve now. For that, I would have to pay 1,000 euros, which I would get back if I withdraw from the reservation within four weeks. These four weeks are intended for clarifying financing, further consultations and planning discussions, and the notarization appointment. Is this reasonable? Otherwise, everything looks okay so far; the house and land are fine (260 sqm (2800 sq ft)). I think building myself (I am still on the waiting list for a building plot) wouldn’t be cheaper, and existing properties are usually just as expensive if not more so. I have an appointment this Saturday to look at a smaller terraced house (125 sqm (1350 sq ft) versus 140 sqm (1500 sq ft) like in this offer). First, it is considerably older and the price is also around 600k. Oh, one thing that surprised me about this offer: the construction period from the start of building (planned from September—planning permission should already be granted) is 20 months. That seems quite long to me. So moving in would only be possible in about two years.
Best regards, Hubi
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HubiTrubi4028 Jun 2021 06:5911ant schrieb:
Well, keeping a distance might be safer, but whether it’s the best choice here—who knows...
You can (and should) be helped. Do you mean in the case of insolvency? I’m not an expert, but usually there is a blocking period in such cases. At least, with this setup, you already own the land including everything built on it, as long as it has been paid for.
HubiTrubi40 schrieb:
Do you mean in the case of insolvency?No, I simply meant that you can be helped during the search.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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HubiTrubi4028 Jun 2021 22:05@11ant If you have any tips on how to do this? I check real estate portals every day, and I have found that some agents only list their offers on their own websites. Unfortunately, this is sometimes overlooked or noticed too late. Many properties still seem to be sold informally. Unfortunately, either you don’t find out about these at all or only quite late.
HubiTrubi40 schrieb:
@11ant if you have a tip on how? Buy actively. If you buy passively, the seller decides which properties come on the market, when, and how.
HubiTrubi40 schrieb:
I check real estate portals daily, and I’ve discovered that some agents only list their offers on their own websites. Unfortunately, this is sometimes overlooked or noticed too late. Many deals still apparently happen privately. I don’t want to say that only the “leftovers” end up on the portals, but rather the “second choice” in the sense that “none of the agent’s close contacts or top clients made a spontaneous purchase.” What you’re looking for are quick turnovers in the owner-occupier segment. Agents usually include such properties in their visible portfolio just so no one gets the wrong impression that they have a gap in supply in this segment. In terms of demand, this type of property is usually heavily oversubscribed and hardly needs any sales effort at all.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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HubiTrubi403 Jul 2021 22:38@11ant But what do you mean by actively buying? Placing an advertisement? That’s something I had considered at least once.
I also believe that real estate agents only publish what they otherwise can’t sell. However, the question remains how to become part of the select group that hears about these offers earlier.
I also believe that real estate agents only publish what they otherwise can’t sell. However, the question remains how to become part of the select group that hears about these offers earlier.
HubiTrubi40 schrieb:
@11ant but what do you mean by actively buying? Placing an ad?*LOL* *SCNR* – that's like placing a personal ad saying "looking for crazy people" 🙂 No, "actively buying" means reaching out to those who own what you want, not what they want to get rid of.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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