Buying a New-Build Flat Step by Step: From Choosing to Getting the Keys

Buying a flat in a new build follows a fixed order of steps: clarify your budget, choose a location and project, check the developer, sign a reservation, conclude the contract, make payments as the build progresses, take over the flat and deal with any defects. Most mistakes are made at the start, with a badly set budget, and in contracts that the buyer does not give a lawyer to review. This guide takes you through the whole process in the order in which you will usually experience it.

1. Budget and financing before you look for a flat

Before you start browsing offers, find out how much you can realistically afford. Consider your own savings for the instalments, the size of the mortgage the bank will provide, and the costs added to the price of the flat: fees connected with the loan, insurance, moving, furnishings or a fitted kitchen if it is not included in the price.

You can get an approximate idea of the repayments in our calculator. However, specific terms, interest rates and own-funds requirements change, so always verify them with a mortgage specialist. With a new build, it also matters how the bank pays out the loan: the money is often drawn in stages according to the progress of construction, which should match the payment schedule in the contract.

• Work out how much you have available from your own resources.
• Get the loan pre-approved so that you know the upper limit of your budget.
• Allow a reserve for unexpected expenses.

2. Choosing a location and a project

The location affects everyday life more than the individual parameters of the flat. Consider the commute to work, the availability of schools and shops, noise levels and plans for surrounding development. You will find an overview of areas in the locations section and specific offers in the project catalogue.

When comparing projects, look at more than the price per square metre:

• the layout, the orientation to the points of the compass and the size of the balcony or terrace,
• what is included in the price (floors, tiling, kitchen, cellar, parking space),
• the energy performance of the building and the heating method,
• the expected completion date,
• the expected monthly payments for building management.

If you are not sure what to look for, the buying guide will help. You can also use the housing inquiry form, where you describe your requirements.

3. Checking the developer and the status of the project

The developer is the other party to the contract, so checking them is one of the most important steps. Look at their previous completed projects, try to arrange a visit to a finished building and, if possible, approach existing owners. You will find company profiles in the overview of developers.

For a specific project, verify the following:

• whether the project has a final building permit,
• who owns the land and whether it is encumbered by a lien or another right,
• how your payments are protected (for example, escrow with a lawyer or notary, or a bank guarantee),
• what stage the construction has reached.

You can request an extract from the land registry yourself. Have a lawyer assess the legal side.

4. Reservation and the contract for a future contract

Once you have chosen a specific flat, you will usually sign a reservation agreement and pay a reservation fee. Find out under what conditions it is refunded if the bank does not approve your loan or you withdraw from the purchase. These conditions must be clearly stated in the contract.

The main contract follows. For unfinished buildings it is often concluded as a contract for a future contract, or in another form depending on the developer's practice. Ask a lawyer to explain the exact name and the legal regime. Take the contract home at least a few days in advance and do not let yourself be pressured by the time limit of the offer.

In the contract, check in particular:

• the exact specification of the flat, including accessories and floor area,
• the standard of finish and the list of materials,
• the completion and handover date and the consequences of missing it,
• the payment schedule and the conditions under which you can withdraw from the contract,
• how changes compared with the design are handled.

5. Payments during construction and monitoring the build

Payments are usually divided into several parts according to the progress of construction. Pay only in line with the contract and to the account stated in the contract, or to an escrow account. Keep confirmation of every payment.

It is worth following the progress of the build. Many developers organise site visits or send photo documentation. If you want to purchase changes to the layout or fittings, arrange them in writing and with a clear price so that disputes do not arise later. At the same time, deal with your mortgage: the bank will require documents from you and, after completion, possibly also the registration of a lien.

6. Final approval, handover of the flat and transfer of ownership

After the building is finished, the final approval follows. Your own inspection should precede the actual handover of the flat. If possible, take along a knowledgeable person, for example a building technician who knows the common defects.

When taking over the flat, proceed as follows:

1. Compare the condition of the flat with the contract and the specification.
2. Check the windows, doors, floors, plaster, installations, fixtures and the functioning of the equipment.
3. Record all defects in the handover protocol and demand a deadline for their removal.
4. Record the meter readings and take over the keys and documentation.
5. Sign the protocol only once it is complete and accurate.

Ownership is entered in the land registry on the basis of the relevant contract and an application for registration. The timing in relation to the handover of the flat and the final payments differs according to how the contract is structured, so have it explained in advance.

7. After taking over: complaints and defects

Quality guarantees apply to a new flat. Submit complaints in writing and in a provable way, ideally with photographs and a reference to the handover protocol. Alongside complaints, keep all contracts, protocols, inspection reports and manuals on file. They will be useful in further dealings with the developer and the bank, and in any later sale.

Do not forget to register for utilities and services, report the change of owner and take out insurance for the property and household. If the bank requires insurance of the mortgaged property, arrange it in good time.

Frequently asked questions

When should I start dealing with the mortgage?

Before you sign the reservation. Pre-approval of the loan shows how much you can spend, and you can then set better conditions in the reservation agreement for the case that the bank does not approve the loan.

Do I have to have a lawyer for the contract?

The law does not generally require it, but we recommend it. It is a major commitment, and a lawyer will assess the contract, the protection of your payments and the status of the land and the project.

What should I do if the developer misses the handover date?

Proceed according to the contract. Check whether it contains penalties or a right to withdraw, and communicate everything in writing. Consult a lawyer about further steps before you take any legal action.