Building Loan Contract for Germany

Building Loan Contract Template for Germany

A German Building Loan Contract (Bausparkassenvertrag) is a specialized financial agreement governed by German law, particularly the Bausparkassengesetz and related regulations. This document establishes a two-phase arrangement: an initial savings phase where the customer accumulates capital, followed by a loan phase for property financing. The contract details savings requirements, interest rates, allocation conditions, loan terms, and security arrangements, all within the specific framework of German banking and construction savings law. It includes mandatory consumer protection provisions and complies with German banking regulations and EU directives.

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What is a Building Loan Contract?

The Building Loan Contract (Bausparkassenvertrag) is a fundamental instrument in German property financing, combining elements of savings and loan agreements. It is used when individuals or entities wish to systematically save for property acquisition or construction while securing future financing rights. This document is essential in the German market, where building societies (Bausparkassen) operate under specific regulatory requirements and offer specialized financial products. The contract typically comes into play for home purchases, construction projects, or property renovations, providing a structured approach to property financing. It must comply with German banking laws, consumer protection regulations, and EU directives, making it a highly regulated document that requires careful drafting and regular updates to reflect legislative changes. The contract's unique two-phase structure (savings followed by loan) distinguishes it from conventional mortgage agreements and requires specific expertise in German banking and property law.

What sections should be included in a Building Loan Contract?

1. Parties: Identification of the building society (Bausparkasse) and the customer (Bausparer), including all required details per GwG requirements

2. Background: Context of the building savings contract, including the purpose of the savings and subsequent loan

3. Definitions: Key terms used in the contract, including technical terms specific to building savings contracts

4. Building Savings Amount: Total contract sum (Bausparsumme) and classification of the chosen tariff

5. Savings Phase Terms: Terms governing the savings phase, including minimum savings amount, interest rates on savings, and bonus arrangements

6. Allocation Terms: Conditions for allocation (Zuteilung) of the building savings contract, including minimum savings requirement and evaluation number

7. Loan Phase Terms: Terms governing the loan phase, including interest rates, repayment terms, and annual percentage rate of charge

8. Security Arrangements: Requirements for collateral and property security

9. Fees and Charges: Detailed breakdown of all fees, charges, and costs

10. Term and Termination: Contract duration, termination rights, and notice periods

11. Data Protection: GDPR-compliant provisions on data processing and privacy

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

What sections are optional to include in a Building Loan Contract?

1. Government Subsidies: Details of any applicable government support programs (e.g., Wohnungsbauprämie), used when the customer is eligible

2. Special Bonus Arrangements: Any special bonus or premium arrangements offered by the building society, included when applicable to the chosen tariff

3. Bridge Financing: Terms for interim financing if offered before allocation, included when bridge financing is requested

4. Insurance Requirements: Specific insurance obligations, included when the building society requires particular insurance coverage

5. Special Repayment Rights: Terms for special repayment options, included when offering flexible repayment arrangements

6. Assignment and Transfer: Terms governing the transfer of the contract to third parties, included when transfers are permitted

What schedules should be included in a Building Loan Contract?

1. Tariff Information Sheet: Detailed breakdown of the chosen tariff including all relevant rates and calculations

2. Fee Schedule: Comprehensive list of all applicable fees and charges

3. Allocation Calculation Example: Illustrative example of the allocation calculation process

4. SEPA Direct Debit Mandate: Authorization for direct debit payments

5. Right of Withdrawal Notice: Mandatory information about the customer's right of withdrawal (Widerrufsbelehrung)

6. Annual Percentage Rate Calculation: Detailed breakdown of the effective annual interest rate calculation

7. General Terms and Conditions: Building society's general terms and conditions (Allgemeine Bausparbedingungen)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate

Construction

Property Development

Mortgage Services

Residential Housing

Commercial Property

Urban Development

Financial Technology

Relevant Teams

Legal

Compliance

Risk Management

Customer Service

Operations

Product Development

Property Finance

Credit Assessment

Documentation

Client Relations

Regulatory Affairs

Relevant Roles

Building Society Manager

Loan Officer

Compliance Officer

Legal Counsel

Property Finance Specialist

Customer Service Representative

Financial Advisor

Contract Manager

Risk Assessment Officer

Banking Operations Manager

Mortgage Specialist

Property Valuation Expert

Consumer Protection Officer

Product Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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