🏗️ Developers, payment schedule and security

Developer contract

§ 650u BGB: a developer contract is a contract that concerns the construction or conversion of a house or comparable structure and at the same time obliges the developer to transfer ownership of the land or to create or transfer a heritable building right. Building contract law applies to the construction, and purchase law to the transfer of the land. Under paragraph 2 (exhaustive), §§ 648, 648a, 650b to 650e, 650k Abs. 1, 650l and 650m Abs. 1 do not apply. Therefore there is no right of withdrawal under § 650l BGB for developers. However, § 650m Abs. 2 applies: with the first partial payment, security of 5 percent of the remuneration must be provided for timely completion without material defects.

Security under the MaBV

§ 3 Abs. 1 MaBV: assets of the client may be accepted only if (1) the contract is legally effective and required permits are available, confirmed by notification from the notary, (2) a priority notice (Vormerkung) is entered in the land register at the agreed rank, (3) release of the contract property from all land charges is secured and (4) the building permit has been granted or it has been confirmed that work on the project may begin.

State building codes BY / NRW / BE

• Responsible: lower building supervision authorities: Bavaria district offices (Landratsämter) and independent cities (Art. 53 BayBO); NRW districts, independent and large cities; Berlin district building supervision offices. The municipality belonging to a district is usually not responsible. Rules: BayBO, BauO NRW 2018, BauO Bln.
• Exemption from permit requirements: Art. 58 BayBO, § 63 BauO NRW 2018, § 62 BauO Bln; the confirmation that work on the project may begin is equivalent to the building permit (§ 3 Abs. 1 Nr. 4 MaBV).
• Period of validity: Bavaria 4 years until work begins, extension up to 4 years (Art. 69 BayBO, since 1 January 2025). NRW 3 years, lapses if work is interrupted for more than 1 year, extension 1 year each (§ 75 BauO NRW 2018). Berlin 2 years until work begins, 6 years until completion, 3 extensions of 1 year each (§ 73 BauO Bln).
• Setback areas: Bavaria Art. 6 BayBO 0.4 H, at least 3 m, commercial/industrial zones 0.2 H, deviating municipal statute possible. NRW § 6 BauO NRW 2018 0.4 H, at least 3 m, core area 0.25 H, commercial/industrial zones 0.2 H, 16 m rule. Berlin § 6 BauO Bln 0.4 H, at least 3 m, commercial/industrial zones 0.2 H.
• Exempt from procedure: Art. 57 BayBO, § 62 BauO NRW 2018, § 61 BauO Bln. Buildings without a habitable room, toilet or fireplace up to 75 m³ (BY/NRW, not in the outlying area); Berlin only 10 m³ (secondary source; Berlin: not checked in full text). Garages and covered parking spaces up to 50 m², average wall height 3 m (BY/NRW). Exempt from procedure does not mean permissible in substance: setback areas, development plan and neighbour law continue to apply.

Payment schedule

§ 3 Abs. 2 MaBV: at most seven partial amounts. No. 1: 30 percent of the contract sum (20 percent for a heritable building right) after excavation work begins. No. 2 a to l: the following percentages refer to the remaining contract sum (70 percent, 80 percent for a heritable building right): 40 percent on completion of the shell, 8 percent for roof surfaces and gutters, 3 percent each for rough installation of heating, plumbing and electrics, 10 percent window installation, 6 percent interior plaster, 3 percent screed, 4 percent tiling, 12 percent on readiness for occupancy, 3 percent façade work and 5 percent on full completion. The final instalment of 5 percent of the remaining sum equals 3.5 percent of the total. If individual services are omitted, their percentages are distributed proportionally across the remaining instalments.