Austrian developer contract: Are taxes and contract costs covered by the BTVG?

Section 1(1) BTVG covers certain developer contracts where the buyer must pay the developer or third parties more than 150 euros per square metre of usable floor area before completion. Payments for special or additional services may also fall within that scope when the developer offers or specifies them. Whether the statutory conditions are met depends on the contract, the service and the payment arrangement.

The question of which payments must be secured under section 7 arises within that statutory scope. The rules on taxes and contract costs concern the security duty and do not replace a review of the rest of the agreement. The BTVG topic page explains the general security framework. For agreed special or additional services, see the article on special requests under a developer contract.

Section 7(1) BTVG generally requires the developer to secure the buyer against losing payments made under the developer contract. It excludes payments for public charges and taxes, as well as costs of preparing and processing the contract. The statutory security therefore does not automatically extend to those cost categories.

The legal category matters more than a heading such as ancillary costs, lump sum or expense. A separate contractual security or protection under another legal basis may exist and should be checked on its own terms. To classify an item under the BTVG, identify what the amount is for and the legal basis on which it is claimed.

The exception removes an item from the statutory duty to secure against loss. It does not cancel a contractual payment obligation or a tax imposed by law. Whether and when an amount is payable depends on the basis of the claim, the agreement and the applicable due-date rules.

Section 7(2) BTVG provides for several statutory security forms. The relevant document shows which payments the particular security covers. The statutory instalment plan has its own payment stages, which should be compared with the schedule in the contract. For an excluded cost, the scope of security remains separate from whether the invoice is justified.

Section 4(1)(3) BTVG requires details of the price and amounts for special or additional services, as well as information about related public charges, taxes and contract preparation and processing costs. Under section 4(1)(7), the contract must also identify the type of security. These details help the buyer compare the agreed services, cost items and security documents.

Put the developer contract, cost statement, invoice or fee note and security documents side by side. Check whether the recipient, service, amount and contractual basis fit together. The statute requires information about related costs. Mentioning an item in the contract does not by itself establish that it is payable in the amount claimed. The role of a trustee in administering security is a separate question from whether the cost itself is payable.

Section 1(1) BTVG can cover payments to third parties. Section 2(4) also treats an arrangement as a developer contract where the buyer acquires the right in the property from a third party and that agreement forms an economic unit with the contract to construct or substantially renovate the building.

Section 7(4) BTVG sets a separate due-date rule for claims by the developer and a third party under section 2(4). Those claims become due only when and to the extent the statutory security is in place. This is not a blanket rule for every invoice issued by a third party. The basis of the claim, the contracting parties and the economic link between agreements must be checked.

For each item, record the amount, claimant, legal basis, service and contractual due date. Then classify it as a public charge, tax, contract preparation or processing cost, or another service. Compare that classification with the security document and the payment schedule.

For an unclear lump sum, request a written explanation of the service, recipient and calculation. Before withholding payment or accepting an invoice, review the agreement and statement as a whole. The exception in section 7(1) BTVG alone does not resolve whether a particular claim is justified or due. For more about when instalments fall due, see the article on BTVG payment plans. If a building stands on someone else's land, the article about building on another person's land explains the property-right issue.