ᐅ Plot purchase only after signing the contract with the developer
Created on: 6 Mar 2019 13:47
A
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
montessalet12 Mar 2019 06:39Nordlys schrieb:
The fact is, notaries do not handle new construction contracts. They either handle pure land purchase agreements or contracts for land with an existing house on it.
As long as only land is being bought and nothing else happens, it is not considered a tied transaction. kYou are only partially correct for once: there are far more tied contracts than you seem to realize. Of course, the notary handles the land purchase agreement—and usually, in parallel, there is a house construction contract (in tied transactions).
Simply looking at the land contract alone does not provide a definitive answer about whether it is a tied transaction. In this case, the situation is more complex…