Real estate development

A developer is a company which has the construction of residential and commercial properties for sale or marketing the subject. An important aspect of property development (as opposed to contractors ) is that the developer gives the purchaser the ownership of the land and the buildings on it started. The "normal " Contractors on the other hand, can also act as a general contractor or general contractor, built on a plot, which already belongs to the client. Since no real property is transferred, these contracts - as opposed to the developer contract - not a notary notarization fee, but will be closed private usually in writing.

The developer is building with private or finanziertem money at your own risk. After selling one unit receives discounts from the buyer to services already rendered ( land purchase, construct the building shell, etc.) according to strict regulations of the legislature and the broker and building regulation. Here lies a major difference from the contractors, which provides a set of works on foreign land, and for progress payments by the customer receives, which are based on construction progress.

4.1 job description of the developer's 4.1.1 Client Function
4.1.2 third bond
4.1.3 trusteeship
4.1.4 Overall responsibility
4.1.5 Concentration principle

4.3.1 Minimum contents of the developer contract pursuant to § 4 BTVG

Organization and economic factor

Developers are often conducted in Germany in the form of a limited liability company, but also sole traders, limited partnerships or limited liability companies are found. The majority of property developers moving in a segment to EUR 20.0 million in annual sales and is operated with a small staff ceiling. Few companies achieve much higher sales, but are mostly to a Group ( Construction ) tethered or kommunalnah (eg in urban "hand" ).

Construction management

The construction process is usually carried out by purchase and development of land. As part of the development of all construction work of the architects planning the administrative authorizations are given to execution in order. My works are not usually provided. The developed residential units are fully sold. Developed in Vorratsbau and builds the developer to sell the units before or during construction. In Bestellbau the developer is active only upon signature of the contract of sale. The gain of the promoter is derived from the difference of the total cost to create the living space and the sales prices achieved.

The promoter's contract

The turnkey contract is legally considered a mixture of the purchase agreement and contract and subject to the strict rules of the broker and contractor Regulation ( MaBV ). In particular, if the contract is concluded at a time when the works have not been completed, the contract contains a contract for work items. The MaBV regulates the payments to be made according to the actual construction stage (see Bautenstandsbericht ). The developer agrees to build the object in accordance with an agreed specifications and then to pass to the customer / purchaser and to give him the ownership of the object.

The turnkey contract is because real estate is sold, a notary to record that.

As the sole contractor of the client, the developer, a direct consultation with craftsmen and companies is not necessary and on the other hand possible only with the approval and involvement of the developer.

The developer is responsible for proper execution contractually assumed obligations to the transferee and must ensure that all defects are eliminated, which occur during the construction period or within the following warranty period.

In addition to the turnkey contract / construction contract buyers can however also use a regular contract to purchase already finished (eg old buildings) or semi-finished objects ( Development house ) purchase of the developer, by the buyer assume the completion at his own expense and risk.

Rights situation in Germany

The activity of the promoter is subject to the restrictions of § 34c Trade Regulation and thereafter requires a permit. Compliance with the provisions of the broker and building regulation is monitored by the annual, subsequent creation of a MaBV Report. In this particular, the mandatory use of the capital provided individual buyer is demonstrated. The buyer funds are generally hedged by an exemption certificate by a bank. This includes a clear provision for dealing with pre- paid payments in case of insolvency of the builder (repayment according to the actual construction progress, completion of the project ... ).

Completion hedges

Reliability, quality and solvency of a property developer can be checked before signing a contract according to the following criteria:

Obtaining a credit report
History of the company
Are problem projects by the developer known
Collection of references, for example, by contact with previous buyers
Tour of reference objects
General reputation of the company
During construction quality assurance ( eg TÜV or DEKRA )

Developers in Austria

Real estate agents, property managers and property developers are under the umbrella term Immobilientreuhänder summarized ( common provision for the commencement conditions, common interest representation ). The term of the developer is in Austrian law different applications:

Within the meaning of the Commercial Code ( § 117 para 4 Industrial Code )
Within the meaning of the developer contract law ( § 1 para 1 BTVG ) 1
Within the meaning of the Salzburg housing subsidies ( = subject support ) § 6 (1): Non-profit Building after the WGG, construction trader, real estate brokers and builders in the sense of § § 99, 117 and 149 Industrial Code 1994

Pursuant to § 117 Industrial Code (1994 as amended 2002 amendment, as amended Gazette 2008), the activity of the promoter is described in Section 4: The organizational and commercial management of construction projects

New buildings and sweeping renovations
On his own account or
Recycling of building

Developers within the meaning of the Industrial Code is so anyone who has a business license as real estate developers, construction handles and not builders, carpenters etc.. According to the Industrial Code an appropriate qualification for the exercise of the trade of developers is required.

Job description of the developer's

The job description of the developer has the following in the practice and teaching undisputed basic structure ( five-pillar principle):

Client function

The developer is the awarding authority or direct representative of the owner. Client 's who prepared for his responsibility and risk a building or structure and the necessary measures sets or can be set.

Bauwille is formed
Project their own ideas
Bauwille created originally

For construction projects on their own land and their own account, the developer is self- builder. For buildings on land owned by or for the account and at risk of foreign developers is as Baubetreuer not even builder, but represents the interests of the client as its direct representative and full project responsibility.

Third binding

The developer acts in its own name, but is committed to third parties, for which he builds. He continues his construction work in terms of an existing or prospective contractual relationship with the users of the building project. He also has projects for the purpose of exploitation to the users of the project and enter into direct relationship with the users.

Trusteeship

The developer is similar to a trustee. For the developers so there is no more freedom in the use of construction funds. If he works for a majority of purchasers, is committed to the optimization of the construction project in technical, economic and legal terms - Optimization obligation.

Overall responsibility

The developer bears the comprehensive indivisible responsibility for the overall construction project. The activity of the promoter as well as its responsibility for the implementation of the project in all aspects should be considered as comprehensive.

He arranges the necessary planning work appropriate and timely
It instructs the execution services
He makes the financing, legal and economic custody
He worried the legal guarantee for future users
He controls all Baubelange in legal, economic, excessive cost and qualitative terms
He ultimately liable to their clients about as a direct contractor fully for all aspects of construction, including errors in the area of his clients (possibility of recourse).

Concentration principle

The developer should concentrate on his own sphere of activity. The function of the developer does not end with the completion and handover of the building to the he assisted his clients, but goes beyond: He has to ensure that the legal order is restored and its customer the agreed position shall be procured and, in particular, that the warranty will be properly handled. There is potential for conflict with simultaneous status as Bauausführender and / or building manager. The recycling and marketing of the construction project itself brings no significant collision problems.

Services of the developer

The developer initiated the following activities or performs this by itself:

Land procurement, including examination of the project requirements
Project development and development of the construction and use concept
Planning phase of the project development
Project management
Site preparation
Construction Management

The services of the developer can be summarized quite well as construction management - organizational, commercial and macroeconomic aspects.

The developer contract law ( BTVG )

In a comprehensive amendment to the BTVG came into force on 1 July 2008. The aim of the BTVG is the protection of consumers who purchase their property from a developer before completion and pay substantial funds in advance. At the same time BTVG but also in the interest of the developer into account by the pre-financing by the purchaser is generally authorized. The BTVG is then necessarily apply if the purchaser ( consumer) is contractually obligated to pay on the building completion and handing over the property to secure the procuring of the agreed legal status of more than EUR 150.00 per m² living space to the developer or to a third party.

The BTVG shall also be applied when only the payments for land transfer tax, sales contract costs, municipal taxes for digestion, reach to utilities for the preparation of the corresponding input and output lines, and especially direct payments to predetermined by the developer professionals in sum the above out amount or exceed. Under turnkey contract (§ 2 (1)) is defined as a contract for the acquisition of property, housing ownership, construction law, stock right or other right of use, including leasing to to be built or drastic renewal buildings, homes or business premises.

Minimum contents of the developers contract pursuant to § 4 BTVG

The building, the apartment or commercial space including accessories ( = the actual contract) as well as the commonly usable by the acquirer parts of the entire system - the extent, location and dedication are to be presented by plans and construction and equipment description
Indication of danger zones: eg wildbach or avalanche -related risk zones, flood drainage area of suspected contaminated sites, contaminated sites
The price and the buyer to be paid in each case for special and additional services amounts that are offered by the developer or paid by the developer to mandatory pre - handed professionals must
Due date of payment of the buyer
Latest date of handing over of the actual subject of the contract and the completion of the entire system
Rem or a mandatory expense that needs to take over the acquirer
Collateralization of the purchaser (§ 7)
The account of the developer to which the purchaser has to pay the payments on a security by warranty or insurance, information about the legal consequences
Trustee, if one must be ordered

Bauherrengemeinschaft

An alternative to buying a property developers is a private Bauherrengemeinschaft that as opposed to a property developer has other organizational goals as the financial profit.

Sole proprietorship Statement of work

109942