Off‑plan and permit risk: protect your deposit and settlement date when a Baugenehmigung or Nutzungsfreigabe is delayed (Sep 2026)

What the law already protects — the short version

If you buy off‑plan in Germany you are buying into a construction contract that sits between general civil‑law protections and sector rules. For consumer‑style building contracts the Civil Code (Bürgerliches Gesetzbuch, BGB) limits how much a developer can require as advance payments and mandates securities for those payments. The relevant new‑law provisions appear in the BGB under the consumer/construction headings; see in particular § 650m (limits and security for Abschlagszahlungen) and the consumer‑building contract rules. ([gesetze-im-internet.juris.de](https://www.gesetze-im-internet.juris.de/bgb/__650m.html?utm_source=openai))

In addition, the Makler‑ und Bauträgerverordnung (MaBV) and the Verordnung über Abschlagszahlungen bei Bauträgerverträgen (AbschlagsV) set conditions for a commercial “Bauträger” to take instalments at all: a legally binding notarised contract, an Auflassungsvormerkung in the agreed rank of the land register, assurance that encumbrances will be cleared, and — crucially — that the required building permit has been granted before the developer may take purchaser funds in the usual way. These administrative requirements are intended to protect buyers against taking payment risk while statutory approvals are outstanding. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gewo_34cdv/__3.html?utm_source=openai))

Key statutory numbers you must know

Under § 650m BGB the total of contractual advance payments (Abschlagszahlungen) may not exceed 90 % of the agreed total remuneration (including agreed change‑orders). The provision also requires specified securities for the first advance and for increases above 10 % caused by changes, and limits seller demands for excessive security. Those percentage limits are statutory minimum protections you can rely on in contract negotiations. ([gesetze-im-internet.juris.de](https://www.gesetze-im-internet.juris.de/bgb/__650m.html?utm_source=openai))

The MaBV and AbschlagsV add formal conditions for a commercial developer to accept payments at all (notarisation, Land register Vormerkung, clearance‑security, and that the building permit has been issued), and tie the permitted payment schedule to building stages. Read the MaBV rules closely if the developer seeks large upfront sums before permit or before an Auflassungsvormerkung is registered. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gewo_34cdv/__3.html?utm_source=openai))

Practical contract clauses to insist on (what to ask your lawyer/notary to include)

1) Conditional settlement: make the seller’s obligation to enable notarised transfer and the buyer’s obligation to pay the balance explicitly conditional on issuance of the Baugenehmigung and on the formal occupancy or release permit (Nutzungsfreigabe) where local practice requires it. Link the contractually agreed settlement date to those conditions so the date automatically shifts if approvals are late.

2) Deposit security: demand an independent bank guarantee (Anzahlungsgarantie) or an escrow (Treuhand/Notar‑Anderkonto) for any deposit or advance that the developer seeks. Where the buyer is a consumer, § 650m supports limiting advance payments and requiring securities; commercial guaranties are common practice to keep cash protected until the permit and transfer conditions are met. Cite the MaBV conditions that must be met before the developer may receive buyer funds. ([gesetze-im-internet.juris.de](https://www.gesetze-im-internet.juris.de/bgb/__650m.html?utm_source=openai))

3) Milestone and retention: tie each payment to verifiable milestones and keep a retention (Einbehalt) — typically a final small percentage — payable only after handover and final rectification of defects and after written confirmation that the property is lawfully usable. 4) Delay remedies: include explicit delay damages (Verzugs‑/Vertragsstrafe), a right to set a firm cure deadline and, if that is missed, a termination (Rücktritt) and reimbursement mechanism. These are contractual, not automatic, and must be drafted precisely with your lawyer or notary.

How to proceed — a short checklist

• Before you sign: ask the developer for (a) a draft notarised contract that conditions payment on permit and Vormerkung, (b) a copy of the planned Auflassungsvormerkung wording and (c) the form of any bank guarantee. Check whether the MaBV conditions already apply. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gewo_34cdv/__3.html?utm_source=openai))

• If you are asked for any deposit: do not transfer it to a developer operating account unless you have an unconditional bank guarantee or the funds are on a notary escrow account and the contract ties release to permit and handover. § 650m gives you statutory levers on the size of advances and required securities. ([gesetze-im-internet.juris.de](https://www.gesetze-im-internet.juris.de/bgb/__650m.html?utm_source=openai))

• At risk of delay: insist on an expressly shifting settlement date, a contractual penalty for each week/month of delay, and a refund mechanism for your staged payments if the developer becomes insolvent or fails to get the permit. Draft these with a German property lawyer or your notary; local practice and wording vary by Bundesland and municipality. For how the building permit process works in practice, check the federal service guidance on applying for a Baugenehmigung. ([verwaltung.bund.de](https://verwaltung.bund.de/leistungsverzeichnis/de/leistung/99012070006000/herausgeber/BY-1839/region/090000000000?utm_source=openai))

This article does not constitute legal advice. For contract drafting, precise clause wording and case‑specific risks consult a German property lawyer (Fachanwalt für Bau‑ und Architektenrecht) or the notary who will conduct the purchase.