The development contract
A development contract is used to buy a new house or apartment where the new build has not yet been completed or even started when the contract is signed, and the purchase price has to be paid as construction progresses. This sort of ‘greenfield purchase’ combines a property purchase with a construction contract and requires trust and finesse.
The legal framework for development projects
The legal framework for the development project is defined by a civil law notary before concluding the development contract. The various conditions are made available to the buyer at least two weeks in advance. What is known as a ‘base document’ is drawn up in many cases, containing arrangements governing the property in question, its development (easements and building encumbrances) and rights/duties relating to neighbours. In the case of apartment blocks, a shared ownership deed is also notarised that defines the condominiums on the basis of plans (floor plans, elevations and sectional views). You can find detailed information on this in the section on ‘Condominiums’. Condominiums can be sold even before the building is constructed. The structural requirements of the construction project are set out in the ‘building specifications’.
The buyer only comes into contact with the civil law notary when the development contract is being notarised. In the development contract, the seller agrees to construct the building within a certain period of time. The development contract also contains arrangements governing special requests, payment and safeguards for buyers and sellers.
The role of the civil law notary
As civil law notaries, we hold a pivotal position of trust in development projects. As independent and impartial office holders, we are committed equally to all parties involved. Since buyers generally have no influence on the legal arrangements governing the project, the civil law notary must ensure that the interests of the buyers are safeguarded starting as early as the planning stage. Consumer protection plays a vital role in property development law. In particular, the requirements for the building specifications, the payment process, warranties for defects and many other aspects are laid down by law. As civil law notaries, we must ensure that sellers and buyers reach a legally equitable agreement in every development project, and that all mechanisms required by law to protect buyers are observed.
We structure development projects
Our firm has extensive experience in implementing development projects of all sizes. During the planning phase, our aim is to work closely with the developer through personal support by the civil law notaries to draft a shared ownership deed and a development contract that are tailored to the specific construction project. Property development law is constantly evolving, and we are committed to providing advice that is always aligned with the current legal framework. We are of the firm belief that this is the only way to do justice to the complexity of real estate and residential property law and to prevent subsequent disputes with the buyer and among members of the homeowners’ association as far as possible.
Finally, we attach great importance to service. An experienced specialist is appointed as the point of contact for each development project. They are available to all parties to the contract and prospective buyers for questions regarding the development contract and its execution.