Contract for land purchase - obligation to build within 2.5 years

P. S.: The development is supposed to start in about 3 weeks.

In any case, I would negotiate that the deadline (whether it is 2.5 or 3 or however many years) only begins to run once the development is completed. In our neighboring town, the development of a new building area just took 6 months longer than the municipality communicated to the buyers...

I used to think that a building obligation was an infringement on my rights, but when I see the current land prices and drive through older building areas and see what great plots of land have remained undeveloped for years and what infrastructure has been created there, I am happy about every building obligation, by the way, we also had one. Even if 2.5 years sounds like little time, usually the start of construction is enough.

There is also a great documentary about [Enkelgrundstücke] from Tübingen by Mayor Boris Palmer.

In any case, I would still negotiate that the deadline (whether it is now 2.5 or 3 or however many years) only starts to run once the development is completed. In our neighboring town, the development of a new residential area simply took 6 months longer than the municipality had communicated to the buyers...

That is an important note that I will still negotiate. Thank you very much. The developer will apparently accommodate the interested parties and limit the construction period of 2.5 years to the erection of the shell, the roof, and the facade.

I used to think such a building obligation was an infringement on my rights, but when I see the current land prices and drive through older development areas and see what great plots have remained undeveloped for years and then what infrastructure has been created, I am glad for every building obligation; by the way, we also had one. Even if 2.5 years sounds short, usually the start of construction is sufficient. There is also a great documentary about inherited plots from Tübingen by Mayor Boris Palmer.

There are certainly arguments in favor. We also think the time is sufficient. But let’s say, as described by , the development takes significantly longer or something else happens. It is contractually stipulated. And relying on the developer to then show leniency after 2.5 years would not be something I would do nowadays.

Exactly, the deadline only starts with the development, so when you are actually allowed to start. And – we had something similar, our notary contract still referred to an older one, and there was a completion deadline in it that seemed very tight to us. I then called the municipality, and they said: yes, that's supposed to deter speculators, and if we as private individuals had a 3/4 finished house there at the deadline, surely no one would take the house back from us. But if I wanted to be sure (it only takes one person on the municipal council to have an interest or something) then I should have the deadline extended with a three-liner. We then did that and it was included in the notary contract. We didn’t need the extension, but it let us sleep much more peacefully.

The wording in our purchase contract was: "The buyer commits to developing the property with a residential building within 3 years of acquisition." In hindsight, this period was more than sufficient. The plots are intended for those with current needs, not in 10 years. I can only agree; it also makes my blood boil when I see all the building gaps in the most beautiful locations being kept for children and grandchildren who turned their backs on the region 20 years ago... Two and a half years seems a bit stricter to me, but still sufficient. If any construction delays can be convincingly justified, hardly anyone will tear down your head or the shell of the building.

Depending on the municipality, they simply won't have the money lying around to buy back the property. And depending on the case, it is not seen as strictly. The sellers of our property (friends of ours) had also bought the property with a building obligation (they just wanted to relieve the previous owner because he preferred to have the money rather than the property tied up (older man), they had no intention to build, and their two sons didn't want to build either) and after about 3 years they received a letter from the municipality that they should start building soon. However, the municipality was completely satisfied when they shortly afterwards said that they would sell it to us and that we definitely wanted to build on it within 3 years. Accordingly, they did not make use of the pre-emption right or anything like that.