ᐅ The developer has let us down – what should we do now?

Created on: 18 Feb 2018 18:24
C
Chriscross
Hello everyone,

Since we have tried everything imaginable and don’t know what else to do, I hope to get some advice here that might help us out of this predicament.

Brief introduction:

At the end of 2016, we signed the contract for our own home with Deutsche Fertighaus Holding Group (Allkauf Haus). At the beginning of 2017, the foundation slab was finally laid and our house was erected. We also purchased the finishing work, including electrical and plumbing services, through Deutsche Fertighaus Holding. The subcontractors for these services were provided by Deutsche Fertighaus Holding.

During the construction of our house, issues kept arising that should not have happened.

- Roof not sealed properly

- Wet insulation installed

- Doorways and openings built too small at the factory

- Electrical wiring forgotten during pre-assembly

- Cigarette butts pushed into the holes for power outlets

- Front door scratched

- Several electrical cables accidentally drilled into

- and so on, and so on, and so on.

But what homeowner hasn’t faced problems like these? Some more, some less.

I don’t want to burden you with the long version of the story, so – to cut a long story short:

We have been living in our house since mid-2017, and there are still unresolved defects that have not been fixed.

- Window sills not installed according to standards, causing loud echoing when it rains

- Skim coat work at level Q2 throughout the house (walls, ceilings) / construction manager of Deutsche Fertighaus Holding claims “this is more like Q0”

- Underfloor heating circuit for the living area partly installed in the ground floor hallway

- Hot water takes over 50 seconds to reach the standard 60 degrees Celsius (140°F), sometimes well over one minute, and uses over 5 liters of water (energy-saving house?)

- Scratched window frames from sanding work

- Scratches on the front door

We have been trying to reach an agreement with the developer for half a year now. We have sent more than 30 emails in an attempt to find a mutually satisfactory solution. The only response we ever receive is always the same: “Your complaint has been forwarded to the responsible department,” but apparently the processing stops right there.

Currently, we have withheld a portion of the purchase price guarantee, which is now held in a bank account.

Deutsche Fertighaus Holding has not contacted us for 3 months and no longer responds to emails. Since most legal expenses insurance policies, including ours, have a new build clause that excludes legal coverage, we are unable to take legal action against the company without risking significant financial loss. However, our insurer provided us with a lawyer as a mediator, who has tried to mediate between us and Deutsche Fertighaus Holding. Unfortunately, there was no response to her either.

Now we don’t know what to do anymore. We have given Deutsche Fertighaus Holding a deadline by which the defects must be remedied. Should Deutsche Fertighaus Holding fail to properly, professionally, permanently, and according to recognized standards fix the defects or find a mutually satisfactory and final solution, we will use the withheld remaining amount to cover the costs of repairs ourselves or hire a company of our choice.

Since the company no longer communicates, we also cannot access the money withheld in the bank. The only way would be a waiver letter from Deutsche Fertighaus Holding. But this is exactly where the problem lies.

Maybe you have some advice for us.

Thank you in advance.
77.willo28 Mar 2018 23:15
Chriscross schrieb:
Okay, then please give me the contact information of the person who will cover my legal fees. Unfortunately, I can’t afford them.

I find that hard to imagine right now. You can afford a house worth several hundred thousand euros, but not 1000 euros (about $1100) for a lawyer? Or is this more about the common reluctance among Germans to ever consult a lawyer? That seems to be exactly what the other party is taking advantage of...
B
Baumfachmann
29 Mar 2018 00:11
Bear with it, consult a lawyer, and invest a few euros. It’s about your house—don’t worry about a few euros and either see it through or accept it and be glad you didn’t have to spend any money. Decide clearly whether you want to regret it for the next few years or go all in. Your house, your decision.
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Benutzer 1003
30 Mar 2018 10:43
The general recommendation from many previous contributors to consult a specialist construction law attorney is the only sensible approach.

If the contractual partner (developer) significantly fails to fulfill their contractual obligations, the other party usually has the right to terminate the contract for cause. This would release the bank from its obligation to secure the purchase price, meaning the funds would need to be returned.

Alternatively, you can have the defects legally established through a preliminary evidence preservation procedure. However, I doubt that you would want the developer to work for you again.

Both options, however, can only be assessed and pursued by a qualified attorney.

In addition, lawyers possess the legal and rhetorical skills to create a strong threat strategy. The developer will only respond when under pressure.

Although this approach is the only way to protect your interests, there is always a risk of legal proceedings in such disputes. In case of an unfavorable outcome, you could be responsible for all costs.

This point, too, can only be reviewed by a lawyer.
F
Fuchur
30 Mar 2018 12:18
Are you sure that the security deposit is automatically waived upon termination? Even after termination, there is still a proportional payment obligation for the overall service, and the bank cannot know how much that is. My approach would have been to file a lawsuit to obtain approval.

In any case, there is no chance without a lawyer, and the cost risk also needs to be carefully considered. Some damage will remain in any case. Now the question is how to minimize that damage as much as possible.
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Benutzer 1003
30 Mar 2018 13:53
Whether and to what extent the bank’s security obligation ends due to the termination of the contract depends on the construction or loan agreement.

That is why you need a lawyer.

Perhaps the trained legal professional will have additional approaches after reviewing the contracts.

Of course, within the scope of the settlement, services already provided without defects must be compensated.
M
Meicel
17 Apr 2018 21:45
Take out legal expense insurance and hire a lawyer.