Critical clauses, guarantees, and protections in pre-construction sales contracts.
Building Completion Requirement
The delivery date must be clearly stated in the contract. The compensation payable in case of delay (for example a fixed monthly amount or an equivalent rent) should be written explicitly in the contract.
Timing of the Title Deed Transfer
It must be made clear when the title deed of the unit will pass to the buyer. Before or after key handover? In off-plan sales, the promise-to-sell contract must be concluded before a notary; a promise to sell not made before a notary is not valid.
Construction Standards
The brands of doors, windows, parquet flooring and kitchen cabinets, as well as plumbing materials, should be specified in an annex to the contract. Avoid vague expressions such as "quality brand".
Payment Plan
Which payment will be made at which stage — 20% when the foundation is laid, 30% when the shell construction is completed, etc. Is there a discount for early payment?
Warranty Periods
Under building inspection legislation, the liability period is 15 years for the load-bearing system and 2 years for non-load-bearing parts. Under the Code of Obligations, the period for defects in buildings is 5 years, or 20 years if the contractor is guilty of gross fault. These periods should also be stated explicitly in the contract.
Refund Conditions
What happens if the contractor goes bankrupt or leaves the project unfinished? The Regulation on Pre-Paid Housing Sales gives the consumer a completion guarantee for the home and a right to withdraw from the contract. Ask how this guarantee is provided in the contract.
Professional Legal Support
Before signing the contract, always have it reviewed by a lawyer specialising in real estate law. This cost is small compared with the losses that could arise later.
