Downpayment Newly Constructed Apartment

Question

Hello Lawline

Please allow me to have my question in english.

I booked a new production apartment in 2021, then paid 50k sek and have signed up the preliminary agreement last year.

Yesterday I received the copy of Tenancy agreement to sign where I noticed around 50% increase of avgift(monthly fee).
Like - it was 4500/- montly when I booked and they have now raised it to 6700/- monthly.

I checked with them and they tried explaining me that its because or the ranta guranty and effectively it would be less on my monthly invoice. My point is- if its less then why it is not on papers.

I simply can not buy with such high monthly fee.

What option do I have? Do I have an option to withdraw - and willl it result in loosing my 50k (booking) + 11k (interiors) = total 61k at stake.

Please suggest.

Thanks
Mayank

Answer 1

Hi and thank you for asking us here on Lawline!

It works perfectly fine to ask you question in English. We try to provide a good service to anyone and everyone. 

My answer:

Without reading your particular contract you have I cannot give conclusive advice on this matter, so do take my answer with a grain of salt as it might not apply for your specific situation.

It often depends what the contract stipulates, however, generally, they do allow for fee increases during the construction period and also after and if that is the case they are allowed to increase the fee.

However it could also allow for you to exit your agreement if you chose to do so. However this usually also means losing your down payment of 50k you state that you have paid.

In general the situation with new constructions is that it can be quite risky to build new if they're not sure people will move in, so it is a risk and type of investment both parties agree on. So if you chose to exit, you are most likely to lose the money you paid them in the preliminary agreement. But then again, keep in mind, your specific contract might say otherwise.

My Advice:

All in all my advice to you is that you read your contract carefully and then advice with a lawyer, we here at Lawline have our own firm you can reach out to as well, for more detailed help!

Hopefully this was a satisfactory answer to your question.

//Kind regards