ᐅ Plot purchase only after signing the contract with the developer
Created on: 6 Mar 2019 13:47
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Andrea85
Hello,
maybe someone here can explain the following to me: When searching for a plot of land, I often come across so-called planned building projects from various providers (Streif House, Best House, Okal House, Sika House, etc.). They offer a plot with a general location and a matching house. When you contact the provider, they say that a contract for a building order must be signed first before you get the exact address of the plot. This happened with Scanhaus Marlow and Streif. Streif assured me that the plots are sold commission-free by the company itself. That’s why I don’t understand their approach. Either way, I wouldn’t be able to take the plot to another company. Can someone explain why this is common practice?
I don’t want to sign a contract with a company without knowing if and which plots they actually have. I mean, I wouldn’t go to a furniture store and sign a purchase contract for a cabinet at the entrance without having seen it in the store first.
I’m curious if someone can shed some light on this.
Regards,
Andrea85
maybe someone here can explain the following to me: When searching for a plot of land, I often come across so-called planned building projects from various providers (Streif House, Best House, Okal House, Sika House, etc.). They offer a plot with a general location and a matching house. When you contact the provider, they say that a contract for a building order must be signed first before you get the exact address of the plot. This happened with Scanhaus Marlow and Streif. Streif assured me that the plots are sold commission-free by the company itself. That’s why I don’t understand their approach. Either way, I wouldn’t be able to take the plot to another company. Can someone explain why this is common practice?
I don’t want to sign a contract with a company without knowing if and which plots they actually have. I mean, I wouldn’t go to a furniture store and sign a purchase contract for a cabinet at the entrance without having seen it in the store first.
I’m curious if someone can shed some light on this.
Regards,
Andrea85
Andrea85 schrieb:
There, a plot of land is offered along with a rough indication of the location, as well as a house suitable for that plot. When you contact the respective provider, they say that a contract for a building project must first be signed before you receive the exact address of the plot.Plots are rarely available with these offers.
The offer usually includes a house on a sample plot nearby.
They want you to sign a building contract first, and then they offer to help find a plot for you.
Also: Often, multiple homebuilders reserve available plots in a new development area. First come, first served.
No, being a property developer does not always mean that. Home providers often attract potential buyers by claiming to offer suitable plots of land. The house types shown are usually generic models from their catalog that could be built on the plot. They make brokerage agreements with the actual owners, in which the price per square meter is fixed. Their business is home sales, not real estate brokering, so this is effectively commission-free. At the closing, the buyer will be sitting opposite the landowner economically—possibly represented by the home provider—at the notary. In this respect, it is not the feared tied sale. However, to avoid deterring potential buyers with the complex procedure, they present themselves simplistically as the seller. The home construction contract does not yet specify the exact plot. If the owner conducts an interim sale—which can happen because home providers are reluctant to pay reservation fees and don’t want to lose serious buyers—an "equivalent" plot is simply secured. This also explains the vague location descriptions.
The home provider wants to sell houses. To do this, they employ scouts who are not meant to work as unpaid agents for the owners. Without a real estate broker’s license, the scouts would not be allowed to bring the owner and the buyer together.
What happens here would be called a "short sale" in securities trading. These "providers" usually have no more than an option. Their agents often carry out such deals independently.
In conclusion: tied sale—probably not, but for those only searching for land, this is unsuitable. Either you like the provider’s house models and can accept an uncertain location radius of about 20 km (12 miles), or this is not for you.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
The home provider wants to sell houses. To do this, they employ scouts who are not meant to work as unpaid agents for the owners. Without a real estate broker’s license, the scouts would not be allowed to bring the owner and the buyer together.
What happens here would be called a "short sale" in securities trading. These "providers" usually have no more than an option. Their agents often carry out such deals independently.
In conclusion: tied sale—probably not, but for those only searching for land, this is unsuitable. Either you like the provider’s house models and can accept an uncertain location radius of about 20 km (12 miles), or this is not for you.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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Caspar20206 Mar 2019 19:15Golfi90 schrieb:
Sketchy property developer deals with outrageous property taxes...
I would stay away from that..Well; this isn’t your typical property development deal. Signing the construction contract provides a sort of security deposit, ensuring you don’t buy the land elsewhere and then build with someone else.
Otherwise, it would be a tied transaction...
@11ant, tax authorities often assume linked transactions and demand property tax. It is then up to the taxpayer to prove that no linked transaction exists. If the construction company essentially acts as an intermediary between the land seller and the builder, this is a very risky situation, as discussed elsewhere before.
Basically, construction companies design model homes as soon as developable land appears on the horizon. On property listing platforms like Immoscout, this is always presented as if they “have a claim on the land,” but this is usually not the case. First come, first served, and once it’s gone, it’s gone. But the main thing is that the construction contract is signed. On our plot, homes designed after the purchase were still being offered.
Basically, construction companies design model homes as soon as developable land appears on the horizon. On property listing platforms like Immoscout, this is always presented as if they “have a claim on the land,” but this is usually not the case. First come, first served, and once it’s gone, it’s gone. But the main thing is that the construction contract is signed. On our plot, homes designed after the purchase were still being offered.
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