Instalment plan
A security model under the BTVG in which the purchaser makes payments only according to construction progress, in instalments fixed by law (section 10 BTVG).
Under the instalment plan model the purchaser pays the price not in advance but in instalments tied to the actual construction progress. Section 10 BTVG sets the percentages that may at most fall due once specific construction stages have been reached.
This limits the risk that the purchaser pays for performance not yet rendered. The instalment plan is a form of security in the property developer contract and is monitored by the trustee; it can be combined with an additional security for the warranty retention.
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Legal basis
Statutory texts for orientation; the version in force at the relevant time prevails.
This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your construction project are always decisive.
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Property developer contract
A contract for the acquisition of property still to be built or substantially renovated, involving advance payments; governed by the Developer Contract Act (BTVG).
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Trustee
In the property developer contract the independent person who supervises compliance with the security obligations and releases the purchaser's payments only when due (BTVG).
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