Flat price or approximate price?
When it comes to real estate, contracts always pop up which open up the floodgates concerning misunderstandings and disputes about the «correct» interpretation. Example: If, in the purchase contract, a number of items in section dealing with prices have the note «BKP», it remains open as to what the house construction will ultimately cost.
Construction cost schedule
«BKP» (Baukostenplan = construction cost schedule) is an abbreviation widely used in the business to refer to a standard itemised list of construction cost categories. If this is the only point of reference regarding price, important points effectively remain completely open:
- Does the price given in the contract cover only a part of the construction costs?
- What are the costs associated with work for the acquisition of additional property, land preparation and landscaping?
- Is VAT included or not?
After multiple readings you're left in the dark as to whether all services are actually included, or whether you're dealing with a fixed price or an estimated price.
Any buyer who really seeks the highest possible level of security must pay attention to crystal-clear wording: If a fixed all-inclusive price is desired in advance, this wording must also be reflected in the contract.