What does a property developer do? The definition
A property developer is a specialized company focused on the development and construction of real estate projects. The developer buys land, plans new construction projects and coordinates the entire construction process, including cooperation with architects, construction companies and other service providers. The developer provides full financing and carries out the construction project on its own. After completion of construction, he sells the property, often ready for occupancy, to buyers.
How does the construction process work with a property developer?
The construction process with a property developer consists of several steps, each of which comprises important phases up to the handover of the property:
- Offer from the developer: The property developer starts marketing the project as early as the planning phase, so that interested parties receive information about the construction project at an early stage and can register if interested.
- funding: After the initial expression of interest, potential buyers should clarify financing options, preferably with their bank. A solid financing base provides security for both sides.
- Property developer contract: As soon as the financing has been clarified, the property developer contract is signed by a notary. This special contract combines elements of a sales contract (land) and a work contract (construction services).
- Individual adjustments: Many property developers make individual adjustments to the construction project possible. For example, customers can have the room layout or interior design modified at an additional cost. These details should be specified in detail in the developer contract.
- Construction phase: After the planning has been completed and the building permit has been received, the actual construction phase begins. The contractually agreed payments are made gradually and are linked to the progress of construction.
- Handing over the property: After completion and acceptance, the handover takes place. The buyer checks the building for defects and confirms proper execution. After successful verification, ownership is officially transferred to the buyer.
How do I find the right property developer?
Selecting a suitable developer is a crucial step for successfully building your own home. Here are the key criteria that you should consider when choosing a property developer:
- Research and reviews: Look for experiences from other customers. Online platforms, recommendations from acquaintances and information at real estate trade fairs can provide valuable information.
- View reference objects: Many property developers present their projects in model houses. These provide a comprehensive insight into the construction quality and style of the property developer.
- Compare offers: Request detailed offers and compare them in terms of services, prices and payment methods. A thorough comparison helps to make the right choice.
- Advice from experts: An independent consultant or lawyer in the area of real estate law can help you review the contract and ensure that all relevant aspects are covered.
What is a property development contract?
A Property developer contract is a combined contract that comprises a purchase contract (for the land) and a work contract (for building a house). The developer undertakes to construct the property in accordance with the contractually agreed building description and to hand it over to the buyer.
The property developer contracts can be divided into two variants:
- Storratsbau: Here, the contract is concluded while the property is still in the construction phase. The buyer pays in installments that are linked to the progress of construction.
- Order construction: When building orders, the property developer only starts construction after the contract has been concluded. The partial payments are also linked to the progress of construction.
It is important that the buyer only pays after the construction work has been completed, so that he does not bear any advance payment risk. A property developer contract gives the buyer security, as all services and deadlines are contractually defined.
What should you pay attention to before the notary appointment?
Before the notary appointment to sign the developer contract, buyers should carefully review the contract. The following aspects are particularly important:
- Review of the building specification: All services, materials and equipment components should be described in detail.
- Guarantees and liability: The warranty and liability regulations for possible construction defects are essential. Clear regulations protect the buyer against subsequent defects.
- Acceptance report: Before final payment, it is advisable to record all work and any defects in writing in an acceptance report.
.png)