A beautiful photo, an attractive price and a promise that it will all be ready soon. Then it is time to pay the deposit, and the conversation becomes rather more serious than choosing a wall colour. Some buyers have ended up with an unfinished site and an expensive lesson instead of a home. Before signing, check the people and company behind the promise as carefully as the house itself.
Ösel House: Tens of thousands for a house that never came
An investigation by Estonia's public broadcaster ERR described families who ordered modular homes from Ösel House, made staged payments and expected to move in soon. One family took out a long-term loan. Work started on their plot, but the house remained unfinished; ERR reported that they paid the company EUR 111,000 in total. Another buyer paid EUR 95,000. Foundations and utility work began on that plot, but the house was never built. Both were left with financial commitments and unfinished projects. It is a risk that can feel distant when you are signing a contract and picturing your new home.
What makes this case particularly sobering is that the buyers had done some research and seen completed homes. According to ERR, the company's financial problems and outstanding obligations were not always obvious from public information. One check cannot guarantee a safe purchase. Even with a convincing manufacturer, payments should follow work that can actually be verified.
This does not make every new manufacturer a poor choice. It means that a short track record calls for closer checks on the contract, finances and people responsible for delivering the house.
Black Burner: insolvency here in Latvia
Latvian modular home manufacturer SIA Black Burner began trading in 2022. Insolvency proceedings were declared in January 2026. According to information we checked, more than ten ordered homes were left partly completed or unfinished.
The case shows why the quote alone is not enough when choosing a builder. Check the manufacturer's completed projects, schedule and ability to meet its commitments. The insolvency register entry is a public record; we checked the reported number of unfinished homes separately.
Check the company behind the Instagram photos
Start with the company's legal name and registration number. Check how long it has traded, whether it is active, its public financial records and any insolvency proceedings. Look into the people behind the contract too. A new brand can have an experienced team, or the reverse.
Ask where the factory is and whether you can visit a completed home. Talk to a customer if possible. A review tied to a real person and a specific house says more than five unexplained stars. Professionalism shows in everyday dealings too: clear answers, written commitments and proper documents, rather than endless promises to sort it out later.
Our manufacturer shortlist gives you somewhere to start, with the companies and their offers already compared. It can save time, but you still need a contract and specification for the house you are buying. A shortlist is not an insurance policy.
Pause before paying the deposit
Before paying, check what each instalment buys you. A safer schedule ties payments to verifiable stages: design, completed structure, delivery and handover. Risk grows when payments get ahead of the work. 'That is how we always do it' is not a contract clause.
The contract should clearly set out the specification, dates, responsibility for delays, how changes are agreed and which documents you receive at completion. Ask who owns the materials and modules while they are still at the factory. For a large deposit, an independent legal review before signing may be money very well spent.
Four questions that can save a lot of worry
Ask every candidate the same questions and write the answers side by side. It makes comparing companies much easier than judging whose PDF looks best.
- Which legal entity will I sign with, and how long has it been trading?
- Can I see the production plant and a finished house?
- How are advance payments linked to verifiable stages of work?
- Who is responsible for delivery, assembly, documents and warranty?
Make sure the home gets delivered
A modular home can save time and make construction much more transparent. But a factory-built home is not exempt from common precautions. Take a few days to check the company, contract and payments before committing to paying tens of thousands of euros.
Ask the awkward questions even when you like the manufacturer and the conversation is easy. A good company will understand. Then you can get back to planning the terrace, lighting and coffee in your new kitchen, rather than wondering where the deposit went.
We compare Latvia's leading modular home manufacturers.
