á Signing a construction contract before financing is secured?
Created on: 18 Feb 2016 11:24
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borderpuschl
Hello dear building experts,
After a long decision-making process, we have now chosen a house and a company. Since we would like to start this year, we should sign the construction contract relatively quickly.
Now my question is, how did you handle this?
1.) We cannot finalize the financing yet because we have no confirmation of the KfW efficiency rating we will receive.
2.) The energy consultant only calculates after the contract is signed (which is understandable, as they wonât invest time without security).
How was it for you? I would like to have the assurance that the financing will work before signing. We have roughly calculated everything with very similar figures, but I feel a bit uncertain about taking such a step.
Many thanks in advance for your helpful answers.
After a long decision-making process, we have now chosen a house and a company. Since we would like to start this year, we should sign the construction contract relatively quickly.
Now my question is, how did you handle this?
1.) We cannot finalize the financing yet because we have no confirmation of the KfW efficiency rating we will receive.
2.) The energy consultant only calculates after the contract is signed (which is understandable, as they wonât invest time without security).
How was it for you? I would like to have the assurance that the financing will work before signing. We have roughly calculated everything with very similar figures, but I feel a bit uncertain about taking such a step.
Many thanks in advance for your helpful answers.
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daniels8719 Feb 2016 07:53We included a withdrawal clause in the contract.
If the financing is not secured by the deadline XX, the contract becomes void. In that case, XXXX⏠would have been due for the services provided so far.
My partner was still in the probationary period due to a change of employer. Starting construction before the end of the probation period would have delayed the project too much. We had already finalized and reserved the financing but waited until the probation period was over.
Our contract was based on KfW 70 standards. However, since we wanted an air-to-water heat pump and a controlled residential ventilation system, we increased the external insulation slightly to meet KfW 55 standards.
If the financing is not secured by the deadline XX, the contract becomes void. In that case, XXXX⏠would have been due for the services provided so far.
My partner was still in the probationary period due to a change of employer. Starting construction before the end of the probation period would have delayed the project too much. We had already finalized and reserved the financing but waited until the probation period was over.
Our contract was based on KfW 70 standards. However, since we wanted an air-to-water heat pump and a controlled residential ventilation system, we increased the external insulation slightly to meet KfW 55 standards.
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borderpuschl19 Feb 2016 09:23Thank you very much for your helpful advice.
