The enforcement of building obligation in development properties

After the purchase agreement or property development contracts have been signed, the property developer is under an obligation to build. This requires some legal knowledge on the part of both the buyer and the seller.

Complex issues often arise in overlapping areas of law. The property developer must, on one hand, observe classic construction law which binds  him with his construction contractors.

At the same time, basic knowledge of residential property law is essential, and ultimately the developer  must know the legal aspects of his own property development contract in such a way that he can bring about a conclusion of contract favorable for him.

Especially in the  complex legal area of building development law, in which by far not all legal issues have been resolved, , let alone decided by the courts, we have acquired a high level of professional expertise over the past ten years through  comprehensive management of various property development projects.

These issues are usually a  focus of attention and often result in conflicts:

  • The scope and content of the building obligation in the case of new buildings or older buildings, the binding force of the contents of  brochures
  • Inadequate building work prior to completion
  • Building work delay during the construction phase
  • Due date and obligation to pay the installments and securities
  • Deductibility of damages caused by delay in the individual installments
  • Claim for the provision of special requests
  • Acceptance of individual and collective property
  • Obligations or rights to remedy defects after acceptance
  • Rights of the purchasers in the event of insolvency of the property developer
  • (premature) right of the purchaser to the transfer of ownership

The broker and property developer regulation that usually applies to these contracts is of little help in the event of the problems that arise in practice. Due to the lack of specific regulations and the continued scarcity  of case law from  the highest courts, these can only be solved properly on the basis of a comprehensive legal knowledge ofm real estate purchase law, construction law and residential property law.

With the comprehensive expertise of our specialist teams for construction law and building development law as well as residential property law we provide you with sound and efficient advice on all these topics.

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WIR-Network – Real estate law know-how for nationwide mandates

The WIR-Network is an association of legally independent law firms specializing in real estate law. Three law firms, one focus: specializations in landlord and tenant law, condominium law, and construction and property development law.