Disclaimer

The financial retention , even adhesion return passage (in German law withholding ) is an Austrian legal institution . This concerns a right of retention in the wages in the event that the contractor does not fulfill the obligations incumbent on him from the warranty or from the title of compensation.

Developer Contract Act

To secure any warranty and compensation claims due to defective performance, the purchaser (of the property, condominium or building rights) is entitled to a liability retention of at least 2% of the agreed purchase price for a period of 3 years from the handover of the actual subject of the contract (§ 4 para. 4 BTVG). This amount can be withheld by the purchaser or provided by the developer in the form of a guarantee ( warranty ) or insurance from an authorized credit institution or insurance company or a local authority in Germany.

In the case of prefabricated house plumber, a share of 3–5% is retained from the final invoice for the prefabricated house until a construction defect has been remedied or the statutory warranty (2–3 years) has expired. After this period, the remaining amount will be transferred to the contractor.

literature

Gert Iro, Olaf Riss: The left behind in the developer contract. Comments on the appraisal draft of an amendment to the Developer Contract Act. Housing law sheets 2007, pp. 266–276