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Old 03.10.2007, 14:19
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Buying New Apartment / Can seller increase cost?

I'm buying a new apartment (still under construction) and signed the Kaufzusage (reservation contract) and paid my 20.000 CHF to take the place off the market.
I have not yet gone to the notary to transfer ownership and setup a mortgage.
The Kaufzusage lists the price of the apartment, parking space, and details the payment schedule.
After the seller received my payment and form, he contacted me and said there is an additional 8.000 CHF to pay for the new air circulation system that he forgot to add onto the price. Before I signed the Kaufzusage, I had him send me a full list of all the additional costs that were required (such as the Notary fee). Nowhere on this list was this additional cost. Is this legal for him to ask me for this 8.000 CHF? Can I refuse to pay this fee since it basically adds onto the total price? The cost is not an administrative fee, it simply is money that should have been added to the cost of the place. I assume this provides me with a loophole to backout if nothing else?

My main concern isn't the 8.000 CHF, but rather the fact he can arbitrarily increase the cost of the unit.
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Old 04.10.2007, 17:30
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Re: Buying New Apartment / Can seller increase cost?

[QUOTE=mkkangas;111681]I'm buying a new apartment (still under construction) and signed the Kaufzusage (reservation contract) and paid my 20.000 CHF to take the place off the market.
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if you back out, what about this 20,000 CHF ?
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Old 04.10.2007, 17:39
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Re: Buying New Apartment / Can seller increase cost?

Often developers say the 20,000 deposit is non-refundable and I do know of someone who forfeited such a deposit - on two occassions! But my understanding is that when pressed / threatened you can get it back.

As to the extra 8,000. Only you know the people involved and whether this will be the start of a long line of "forgotten" extras. It is certainly very amateurish and one wonders whether the will remember to put he roof on the place and so on.

If you insist in not paying it you are within your rights, but if it is genuine one-off mistake it could cause ill feeling and the seller will be looking for an opportunity to get it back as he builds...
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Old 04.10.2007, 17:57
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Re: Buying New Apartment / Can seller increase cost?

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Often developers say the 20,000 deposit is non-refundable and I do know of someone who forfeited such a deposit - on two occassions! But my understanding is that when pressed / threatened you can get it back.

As to the extra 8,000. Only you know the people involved and whether this will be the start of a long line of "forgotten" extras. It is certainly very amateurish and one wonders whether the will remember to put he roof on the place and so on.

If you insist in not paying it you are within your rights, but if it is genuine one-off mistake it could cause ill feeling and the seller will be looking for an opportunity to get it back as he builds...
The 20000 deposit is not refundable as long as the seller maintains his side of the deal. To the increased price, a seller can always increase the price on any deal as long as they can justify the increase as a genuine mistake. If the mistake happens again you can rightly tell him where to put his increase. Note each time an increase is put forward from the seller you automatically have the right to the return of your money if he insists on the increase and indeed if the increase is out of proportion to the original selling price you can generally tell him you are not paying and he has to bite the bullet. Once you have paid in full then he has to provide the services you have paid for in full and there is no such thing as increases. Furthermore, it is sensible to withhold a small percentage of the total price to ensure work gets completed. If after paying your 90% he comes wanting more money you can again rightly tell him to shove it.
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Old 04.10.2007, 18:00
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Re: Buying New Apartment / Can seller increase cost?

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The 20000 deposit is not refundable as long as the seller maintains his side of the deal. To the increased price, a seller can always increase the price on any deal as long as they can justify the increase as a genuine mistake. If the mistake happens again you can rightly tell him where to put his increase. Note each time an increase is put forward from the seller you automatically have the right to the return of your money if he insists on the increase and indeed if the increase is out of proportion to the original selling price you can generally tell him you are not paying and he has to bite the bullet. Once you have paid in full then he has to provide the services you have paid for in full and there is no such thing as increases. Furthermore, it is sensible to withhold a small percentage of the total price to ensure work gets completed. If after paying your 90% he comes wanting more money you can again rightly tell him to shove it.
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what i do not understand is that one has to pay CH 20,000 as a deposit or downpayment ? In North America I have never heard of a deposit to 'take the place off the market'.
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Old 04.10.2007, 18:09
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Re: Buying New Apartment / Can seller increase cost?

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what i do not understand is that one has to pay CH 20,000 as a deposit or downpayment ? In North America I have never heard of a deposit to 'take the place off the market'.
It's 'common practice' in Switzerland. Essentially the buyer funds the building usually in 4 stages.

My neighbour withheld 20,000 of the final balance before moving in as he said there were many unfinished jobs. The developer refused to hand of the keys on moving day until he had transferred the money to the developer's account. His removal van sat outside for hours while he rushed round to the bank. Sadly that was just the start of our neighhbour's dick-headed tricks...
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Old 04.10.2007, 18:12
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Re: Buying New Apartment / Can seller increase cost?

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It's 'common practice' in Switzerland. Essentially the buyer funds the building usually in 4 stages.

My neighbour withheld 20,000 of the final balance before moving in as he said there were many unfinished jobs. The developer refused to hand of the keys on moving day until he had transferred the money to the developer's account. His removal van sat outside for hours while he rushed round to the bank. Sadly that was just the start of our neighhbour's dick-headed tricks...
------

and the 4 stages are ?
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Old 04.10.2007, 18:17
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Re: Buying New Apartment / Can seller increase cost?

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and the 4 stages are ?
I guess these can vary from developer to v developer:

1) Buy the land (less deposit paid)
2) 'raw' building (no windows) (roof on is a celebration with a small tree on top of the house and meal for the builders and new owes (Aufrichtfest))
3) windows and water and electric and
4) finished. This can take two years here!
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Old 04.10.2007, 18:23
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Re: Buying New Apartment / Can seller increase cost?

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I guess these can vary from developer to v developer:

1) Buy the land (less deposit paid)
2) 'raw' building (no windows) (roof on is a celebration with a small tree on top of the house and meal for the builders and new owes (Aufrichtfest))
3) windows and water and electric and
4) finished. This can take two years here!
------

I guess buying an existing flat/house (not under development) does not require any deposit or stages. Good to know. Very useful info provided, Abfab.
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Old 04.10.2007, 18:31
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Re: Buying New Apartment / Can seller increase cost?

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------

I guess buying an existing flat/house (not under development) does not require any deposit or stages. Good to know. Very useful info provided, Abfab.

Afraid so, recently moved into my 13 yr old flat place where I needed to pay 15k Reservationsvertrag to take the place off the market.
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Old 04.10.2007, 18:42
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Re: Buying New Apartment / Can seller increase cost?

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Afraid so, recently moved into my 13 yr old flat place where I needed to pay 15k Reservationsvertrag to take the place off the market.
--

so the 'reservation vertrag' applies to existing flats as well then. 15k instead of 20K for new places.
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Old 04.10.2007, 19:53
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Re: Buying New Apartment / Can seller increase cost?

Do you have a "Baubeschreib" (Building specification). This should detail pretty much exactly what you will finally get and any variations should be "Mehr- or Minderkosten" that you settle up at some point normally on completion, but are normally dealt with as "change requests" that you should be agreeing in advance. Any cost variances on the structural cost should be borne by them. I would be really careful if this is how they are starting (ie springing surprises like this) you need to get this stuff legally squared off.

Daniel
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Old 04.10.2007, 23:52
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Re: Buying New Apartment / Can seller increase cost?

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Afraid so, recently moved into my 13 yr old flat place where I needed to pay 15k Reservationsvertrag to take the place off the market.
In the UK one pays /used to pay 10% at exchange of contracts, which was usually 6 - 8 weeks before completion (finalization)...
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