Implementing the Obligation to Build in the Case of Developers’ Properties

Implementing the Obligation to Build in the Case of Developers’ Properties

Implementing the developer’s obligation to build, which follows the conclusion of the contract of purchase or the building developer’s contract, presupposes no little legal knowledge on the part of the purchaser and the vendor. Accordingly, the following areas are particularly important or find themselves the subject of disputes:

  • The scope and contents of the obligation to build in the case of new builds and older buildings; the extent to which the contents of the sales brochure are binding.
  • Deficient building work prior to completion of the build
  • Obligation to pay instalments and the due date for payment
  • Delays to the building work during the building phase
  • The extent to which compensation for delay can be deducted from individual instalments
  • The entitlement to having special wishes fulfilled
  • Acceptance of the work done
  • Claims of building contractors against the developer
  • Obligations to remove defects or rights to have defects removed following acceptance

The Regulations for estate agents and developers [Makler- und Bauträgerverordnung – MaBV], which generally apply to contracts of this sort, are often of little help in practice when difficulties occur. In the absence of special provisions in these regulations and given the fact that supreme court judgements in this area continue to be rare, such difficulties can only be resolved on the basis of comprehensive specialist knowledge of building law, the law relating to the purchase of land and property, and the law relating to apartment ownership. With the combined, cross-sectoral know-how of our teams for apartment ownership law and building and developer’s law, we can provide you efficiently with sound advice regarding all the areas mentioned above.