New construction

As a buyer you first have to be sure that you will be able to get a bank loan. When you cannot pay the purchase price without the availability to funding included as a resolutive clause in the purchase agreement, you will have to pay a hefty fine (usually 10% of the purchase price) to annul the purchase.

The standard formats for the purchase contract and agreement for services contains rules on the following aspects:

• Time of transfer of title of the land and house
• Settlement of difference between reported and actual sizes
• Amount of the security deposit
• Manner of payment
• Time of completion

General terms and conditions also form part of the purchase contract and agreement for services. These regulate several aspects with regard to the purchase and construction of houses that apply to every new construction project.

Examples are:

• Consequences of changes in the construction
• Installation of pipes and mains
• Checking the execution
• Maintenance term
• Liability of the contractor
• Guarantees and warranties

The notary can inform the buyer and the seller about the specifics of the agreement and the (financial) security if the general terms and conditions are applied. He shall also address the less advantageous and complex issues. The notary is legally obliged to do so, due to his position of standing between the parties; he is impartial.

A private buyer has a 3-day cooling-off period for a purchase contract and agreement for services during which time he can dissolve the agreement. The buyer cannot be obliged to pay more than a 10% deposit into the notary’s clients account to guarantee compliance with his obligations. The buyer is also entitled to retain 5% of the contract price from the final instalment and deposit this into the notary’s client account in case of certain defects.

As a project developer it is useful to know that you can deal with just one point of contact. Marks Wachters would be able to advise you in all stages of the process. In consultation with you we shall list the required transactions, draw up a timeline, prepare the required documents and supervise both the developer and the buyers in the process. Marks Wachters could provide services to a multitude of parties in professional real estate.