Additional construction costs for new build on existing land

Hello everyone,

I must admit that I am unable to differentiate in some cases which costs only arise when purchasing a plot of land. I have tried to inform myself through literature and the internet – unfortunately with only moderate success.

The following situation: I (or rather my parents) own a (semi-detached) plot of land. Now I intend to build another single-family house in the "garden". Regarding the following items, it is not clear to me whether they only occur when purchasing land or also during house construction:

- Notary costs (Yes, for the purchase contract with the general contractor?)
- Taxes (Real estate transfer taxes at least cannot be incurred?)
- Land registry entry (No, since the land is already family-owned? Yes, because it is basically a new "house number"? The plot is not being divided.)
- Surveying costs (No, since an official site plan is already available at the cadastral office?)

An approximate indication of the costs – if roughly assessable on a flat-rate basis – would also be very helpful to me.

Thank you very much in advance.

Best regards, Martin

Notary and [Grundbuchkosten] are incurred when a land charge is registered for a bank loan.

In addition, the costs for connections to the public network (electricity, telephone, gas, water, and sewage) apply.

Surveying must still be done. Possibly the heights where the house will be located. At the latest before the foundation slab is laid. Afterwards, the house must be measured in.

A soil survey might also still come up for you.

Structural engineer, architect possibly as well.

With us, all in all, a rounded 53,000€. Of which 30,000€ are allocated to the architect.

Who wants to build on which property? You? Your parents? Who is supposed to own it? ...and without (ideal) division?

Real estate acquisition is incurred upon purchase (land). For a house construction, nothing on the house.
Connections, of course, always – or are you going to lay an extension cord and a water hose from one house to the other???

The information is definitely missing whether further foundations are allowed on the semi-detached house plot... Floor area ratio, site coverage ratio, building envelope.

In consequence: everything like with common house construction, only the purchase price of the land does not apply??? Question see above!

Hello Martin,

The following starting point: I (or rather my parents) own a (double) plot of land. Now I plan to build another single-family house in the "garden".

Have you clarified whether you are even allowed to build another house on the land? Just because it seems like enough space to you as a layperson, does not necessarily mean that the municipality/local authority/city shares this assessment.

- Notary fees (Yes, for the purchase contract with the general contractor?)

Notary fees normally only arise in the case of developer measures. Since you already own the plot, this point is not applicable and you build – assuming it is even allowed – quite normally with a construction supervisor.

- Taxes (At least real estate transfer tax cannot apply?)
- Land register entry (No, since the plot is already family-owned? Yes, because it is basically a new "house number"? The plot will not be divided.)

I can hardly imagine that a bank would finance a construction project on this plot unless, in the worst case, it has access to the built-up part. Therefore, I think the plot does have to be divided. Real estate transfer tax still does not apply because you already partially own the plot "x". However, costs for the division and subsequently changes to the land register do apply.

- Surveying costs (No, since an official site plan is already available at the cadastral office?)

The cadastral excerpt is not sufficient to submit a building application, and you need this in any case. Ergo, a preliminary site plan must also be created by a surveyor.

A rough estimate of the costs – if broadly to be assessed in a lump sum – would also help me significantly.

Exact cost information is not possible based on your post, as relevant details are missing. However, you can get a first overview nonetheless.

Rhenish greetings

Hello Building Expert,

thank you for your quick and competent answer.

Many thanks, of course, also to the others – I refer to Building Expert because he addressed all the points.

Have you clarified whether you are allowed to build another house on the land at all? Just because it seems like enough space to you as a layperson does not necessarily mean that the municipality/local authority/city has to share that assessment.

Yes, only the boundary of the buildable area was an obstacle, as the (very old) development plan did not provide for building in the rear third of the property. However, no one at the city could name reasons for this situation, and a corresponding formal preliminary building inquiry to move the boundary was answered positively.

Notary costs usually only arise in the case of developer measures. Since you already own the property, this point is omitted and you build – assuming it is allowed at all – quite normally with a construction supervisor.

That sounds good.

I can hardly imagine that a bank would finance a construction project on this property unless, in the worst case, it has access to the built-up part. Therefore, I think the property does have to be divided.

According to my financial advisor, I even get better interest rates if the property is not divided. Of course, the house of my parents is then also considered as collateral. I have left this decision to my parents, and they have no problem with not dividing the property.

Real estate transfer tax still does not apply because you already own part "x" of the property. However, costs for the division and subsequently the change in the land register do.

That is precisely the question. The property currently belongs to my parents. I cannot imagine that the state will turn a blind eye because my parents "gift" me half of the property?!

The cadastral excerpt is not sufficient to submit a building application, and you need one in any case. Ergo, a preliminary site plan must also be created by a surveyor.

That is good to know.

Exact cost information is not possible for your post because relevant details are missing. However, you can still get a first overview.

I was unaware that there were also substantial information hidden in the albums. A good tip.

Many thanks again to everyone!

Hello Martin,

According to my financial advisor, I even get better interest conditions if the property is not divided.

Then the bank is eyeing your parents' assets.

Personally, as a parent, I would not go along with this path and it has little to do with trust in my child. If you stumble - whether due to, for example, divorce, illness or accident, your parents "could" face the ruins of their existence. Since I have personally experienced how quickly something like this can happen, I would refuse to sign.

That is exactly the question. The property currently belongs to my parents. I cannot imagine that the state turns a blind eye because my parents "gift" me half the property?!

There are legally regulated tax exemptions for gifts; these also apply to you.

Rhenish greetings