Developer / Masterdeveloper

In plain words

A developer is a company that carries out a construction project: it acquires the land, obtains permits, builds and sells the properties. A master developer is a larger player: it develops an entire district or a large area, creates the infrastructure and sets the standards, while individual projects within it may be run by other developers.

For the buyer of a property under construction, the developer is the main risk of the deal. Even a flawless contract will not help if the company fails to finish the property or misses deadlines by years. That is why it is not the presentation that is checked but the facts: how many projects have been completed, whether on time, to what quality, how the company behaved when problems arose, and what its financial position is.

The second layer of protection is the payment arrangement. Where money goes through escrow or a dedicated account and is released as construction progresses, the buyer’s position is fundamentally better than with direct transfers to the developer. A reliable developer combined with a protected payment arrangement covers most of the risks.

When it matters

What is checked about the developer

How to check a developer

1. 01Study completed projects
2. 02Check the permits and rights to the land
3. 03Assess the financial position
4. 04Review the payment arrangement
5. 05Make a decision on the project

What you need to know

• The track record of completed projects outweighs the presentation
• A master developer develops a district, not a single building
• Delays are the most common risk
• Payment through escrow protects the buyer
• Rights to the land and permits are checked separately

Common mistakes

• ✕Choosing a project on renders and promises
• ✕Not checking the track record of completed properties
• ✕Accepting direct payments without protection
• ✕Ignoring the company’s litigation
• ✕Believing promised deadlines without a margin

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