What is the Engel & Volkers Purchaser entitled to prove to avoid late payment interest charges?

According to Engel & Volkers' 2025 Franchise Disclosure Document, a purchaser who exceeds the payment date may be charged interest at a rate of 5% above the prevailing base lending rate in Germany. However, the purchaser is entitled to prove that the delay in payment resulted in no loss or an extremely small loss to Engel & Volkers. Additionally, the purchaser can avoid liability if they can prove they were not responsible for the payment delay.

This provision offers a limited protection to Engel & Volkers purchasers against late payment interest charges. It allows them to argue that the delay did not cause significant financial harm to the company or that the delay was due to circumstances beyond their control. This shifts some of the risk associated with late payments from the purchaser to Engel & Volkers, as the company may not be able to automatically impose interest charges without considering the specific circumstances of the delay.

It is important to note that the purchaser bears the burden of proof in demonstrating either minimal loss or lack of responsibility for the delay. This means the purchaser must gather and present evidence to support their claim. Engel & Volkers, on the other hand, retains the right to claim a higher loss if they can prove the delay caused them significant financial damage.