Protecting Your Money – Financial Guarantees
The law stipulates that a contractor may not collect more than 7% without a guarantee.
Five types of guarantees: bank guarantee, insurance, mortgage, caveat, ownership transfer.
- Bank guarantee is most common and secure
- Must be issued within 14 business days
- VAT deposited in government fund since 2017
- File complaint if no guarantee provided
Payment Schedule – Maximum Amounts
Law sets maximum payment rates by construction progress.
New construction: 40%, 20%, 20%, 5%.
- TAMA 38: 13%, 13%, 20%, 5%
- Exceeding maximums is criminal offense
Inspection and Warranty Periods
Inspection 1-7 years, warranty 3 additional years.
Foundation and safety defects: unlimited liability.
- Plumbing: 2 years
- Waterproofing: 4 years
- Cracks: 5 years
- External cladding: 7 years
Late Delivery Compensation – 2026
Amendment 9 shortened grace period to 30 days.
War not automatic force majeure per Supreme Court.
- 30-day grace
- Months 2-4: 100% rent
- Months 5-10: 125%
- Month 11+: 150%