CENTRAL GROUP guarantees its clients the high quality of their finished apartments and their delivery within the contractual dates. The same as with the objective wording of the contracts, the price is always guaranteed to be firm and final. In case the completion date is delayed, the company is obliged to pay the client a contractual penalty for each day of delay. The customer, moreover, has the right to withdraw from the contract after a delay of 30 days and the company is obliged to immediately return all funds paid by the client, in addition to the contractual penalty.
On the other hand, the company needs to have an unequivocal guarantee that the client will pay the agreed price within the agreed dates. Only this way can claims be eliminated and the financial stability of the company ensured. CENTRAL GROUP therefore uses form contracts and general terms and conditions that have been tried and tested in thousands of cases. The employees of the sales division and those who oversee the technical preparation and actual implementation are thoroughly trained for standard terms and conditions. It is therefore not possible to make significant changes to the contracts, because that would disrupt the smooth procedure and entire system.
These form contracts make it possible for CENTRAL GROUP to offer the broadest financing options in the housing market. No other company in the market offers the option of taking up to one year after the apartment is completed and handed over to pay 90% of the price of it. It is therefore necessary to have fixed contractual terms, providing assurances to both the client and the company.
Contracts concluded during the course of construction
(Contract for work)
This contract addresses all the circumstances involved in building an apartment building and transferring a unit to the client’s ownership, including the respective co-ownership of the land and common areas of the building. An integral part of this contract includes the general terms and conditions, a description of the apartment, the floor plan, and accessories.
Also important are the provisions for the deadline to complete the apartment and the fixed price. The contract expressly provides that the price is always firm and final and can only be changed by the client; for example, if the client orders above-standard modifications or furnishings from the company for the apartment. Another possible change can occur as the result of legislative amendments, wholly or in part, that change the VAT rate compared to the rate anticipated in the contract. A third reason is the possible modification of the floor area of the apartment, which can occur for structural reasons. If after the final geodetic measurement the actual area of the apartment is smaller than the projected area in tenths of a meter, the entire difference with the projected area will be returned to the client. If the actual area of the apartment is bigger than the projected area in tenths of a meter, the client will pay the entire difference with the projected area.
The issue of handing over the apartment to the client, the transfer of ownership, and the guarantee for quality are further addressed in detail in the contract. The contract also provides contractual penalties for both parties for every day of delay. For the company, this involves a delay in finishing the apartment within the deadline, and for the client, being late with paying the price.
Contracts concluded at the completion of construction
(Contract on the transfer of ownership of the unit)
A contract for the transfer of ownership of the unit (purchase contract) is concluded on the basis of the previous contract, where the apartment building is divided up into units and common areas in the form of a statutory declaration of the owner, and the client will pay the total cost or a loan agreement is signed between the client and the mortgage bank, and drawing the loan is secured. This contract is submitted to the Land Registry after the full price is paid.
If the client purchases a completed apartment, a contract for the transfer of the ownership of the apartment is concluded. In the event of purchasing a completed apartment, the client can use notarial custody by paying the price of the apartment into the account of a notary. The money is then released upon the transfer of ownership to the client in the Land Registry.