What is a state payment plan

Buy real estate as a complete package: Build and buy through a property developer.

Before the property developer starts work, the payment modalities must be clarified and noted in the contract. It is written in what percentage of the purchase price is that the property buyer has to pay to the property developer and at what times this should happen.

It is very important to determine these advance payments, which only relate to the progress of construction. Especially in the event of damage or defects, the buyer can withhold money until the property developer has fulfilled his contractual obligation and has remedied the defect or damage.

The maximum amount of these advance payments is regulated by the Broker and Property Developer Ordinance (MaBV) in contracts and divided into 13 levels:

  1. after the start of the earthworks (30% of the contract amount)
  2. after completion of the shell, including carpentry work (40% of the remaining contract amount)
  3. after production of roof surfaces and gutters (8% of the remaining contract sum)
  4. after installation of the heating systems (3% of the remaining contract amount)
  5. after the initial installation of the sanitary facilities (3% of the remaining contract sum)
  6. after installation of the electrical systems (3% of the remaining contract amount)
  7. Installation of windows, including glazing (10% of the remaining contract sum)
  8. Interior plastering without additional plastering work (6% of the remaining contract sum)
  9. Screed work (3% of the remaining contract sum)
  10. Tile work in the sanitary area (4% of the remaining contract sum)
  11. after availability and step by step against handover (12% of the remaining contract amount)
  12. Work on the facade (3% of the remaining contract amount)
  13. after complete completion (5% of the remaining contract amount)

It is important to note that the payments are always made according to the progress of construction and are not agreed depending on the time. In addition, the property developer may accept the assets in up to seven installments according to the construction process.

It is essential that the property developer strictly adheres to the requirements of the MaBV, otherwise the payment plan can be declared invalid (according to BGH VII ZR 311/99). This regulation is intended to protect the buyer from overpaying too early and from losing too much capital in the event of the property developer becoming insolvent.