Buying New Construction (Bauträger): Payment Schedule and Security

Buying a property that hasn't been built yet (off-plan) is popular because you get a modern, energy-efficient home tailored to your taste. However, you don't pay the purchase price all at once. Instead, you pay according to the progress of construction, regulated by the 'Makler- und Bauträgerverordnung' (MaBV).

1. The 7 Payment Installments

Under German law, the developer can only ask for money when specific milestones are reached. For example: 30% after the groundworks began, 28% after the structural shell (Rohbau) is finished, and so on. You retain the final 5% until the property is fully handed over without defects.

2. Insolvency Protection

The biggest risk is the developer going bust. Therefore, the MaBV usually requires the developer to pay effectively for a guarantee or insurance. Never transfer money directly to a developer's private account without a notary's clearance.