Second, under the Development Act, a development contract is signed with the developer if the buyer buys an apartment or house before the developer gets permission to use the building. In other words, if you want to buy a home from a real estate developer and you want to sign the first contract with the developer after the construction of a building (or subdivision of detached houses), such an agreement is not covered by the development law and is therefore not a typical development contract. In addition, formally, the contractor to whom you purchase the apartment will not meet the criteria for defining “developer” (at least according to the development law). Therefore, if you buy an apartment or house from a “developer” (and even in a “development state”) at the end of construction formalities, the “developer” can sign a notary or non-contract agreement with you. In this sense, signing a contract with a “developer” after obtaining permission to use it is not fundamentally different from the typical situation of buying an apartment on the secondary market. In such a market, parties can immediately or first sign a notarized sales contract (but not a “development contract”) and only then a sales/transfer contract. In addition, if the buyer and the “developer” decide to sign a preliminary contract (z.B. so that the buyer can find funds for the purchase of the property), such a contract can be signed in the form of a notarized deed, but not at all. When ordering our service, we advise you to contact us and send us a plan with apartment selection and “finishing standard” – both documents must be attached to the development contract or prospectus (you can always ask the developer – he is required to make them available at any time). During the technical examination, our trained technician (civil engineer or construction inspector) will provide the developer with all comments on the condition of the apartment and any defects (scratches, irregular walls, windows or leaked installations). You will also receive your own report, in which you will be able to mark all defects and defects reported by the Sure Place technician. During the review, you can call our telephone advisors at any time if a legal or technical issue arises during a review. In practice, the notary in whose firm the development contract is signed is usually chosen by the developer.
As a general rule, a real estate transfer contract is signed later in the same notary. If the buyer terminates the contract, the developer can ask the buyer to pay an amount related to the damages suffered by the developer. In practice, for example, if we have already paid a 5% rate to the developer if we terminate the contract (for example, we have no money for subsequent payments), the developer will probably not give us the rate already paid and will maintain that rate “against” the damage it has suffered. However, more often than not, the contract with the promoter will determine the penalties for terminating the buyer`s contract. The development contract will also likely indicate that the developer can terminate the contract in the event of a late payment and impose a penalty on the buyer.