Delayed start of construction due to development and demolition

Hello,

we have purchased a plot of land in a small new development area, on which a building still stands (in total, three plots are affected). We had to apply to the city for the plot and after approval in September 13, had three weeks to decide whether we wanted to buy. At that time, it was communicated online that construction could start between Apr and Aug 14. We decided to buy and arranged a notary appointment. At the notary appointment, we were verbally informed that the development would be delayed because the house on our plot could not yet be demolished. It was said that construction could start between Sep and Oct 14 and that this would be okay with us.

Since nothing has happened and we were never informed in writing about progress or anything similar, I called the city today and found out that the new development area is now being further developed but the three affected plots are not, because the building still stands there, and that we can begin building at the earliest in one year, maybe only in summer 15. This means that there is now a delay of one year compared to the information on which we decided to buy.

Now it is such that we will accordingly have to pay rent for at least one year longer, interest rates may possibly rise, or we would have to deal with commitment interest.

Unfortunately, I have no idea how to proceed now or whether we "can do anything". Has anyone ever experienced something similar or generally knows what the legal framework is regarding this? I would be very grateful for some advice, as I think we should not simply accept this, as it harms us financially.

Many thanks in advance!

Hello,

We have decided to purchase and have scheduled a notary appointment.

What does the notary contract say about demolition/development and possibilities of withdrawal? In this context also regarding the reimbursement of possible expenses?

Unfortunately, I have no idea how we should proceed now, whether we "can do something".

Keep knocking on the seller's door repeatedly, otherwise not much. Unless the notary contract provides something for this.

Rhenish greetings

Thank you for the quick response!

Hello Gini,

I would show the purchase contract to a specialist lawyer for banking and construction law and then explore what options you have. It is unclear to me why the building cannot be demolished. The municipality/city as the seller of the property must have clarified with the original owner when the house is to be demolished and can, if necessary, enforce this by force. The owner is now the city.

I would therefore be interested to know the reason for the demolition not taking place!?

Best regards
Dirk Grafe

The owner is now the city.

The purchase has already been notarized. Therefore, Gini should now be the owner?! This would allow her to drive the demolition forward herself. After all, it’s your property. Have the municipality remove the contaminants – preferably send a reminder to the city with a deadline and all the formalities. If they refuse, then go to a lawyer. Some administrative mills grind too slowly,…

The purchase has already been notarized. Therefore, Gini should now be the owner?!
That would also allow her to push forward the demolition herself. After all, it’s your property. Have the environmental hazards removed by the municipality – preferably send a reminder to the city with a deadline and all the formalities. If they refuse, then go to a lawyer. Some administrative mills grind too slowly,…

That will precisely be the problem, because usually you buy a property free of encumbrances. Ergo, the purchase contract was presumably concluded so that Gini secures the property, but the purchase price or the transfer of ownership only occurs once the property is free of encumbrances and thus buildable – otherwise it would be pointless for Gini to inquire with the city about the demolition, because if the property including the house (excepted is not possible) belongs to her, she should know why the demolition is delayed.

So I assume that the purchase contract has been concluded but no money has yet changed hands, ergo Gini is not yet registered in the land register and that will only happen once the house has been demolished. Otherwise, one should have a serious talk with the notary and the city, which I consider appropriate here anyway.

Demolition on your own initiative will also not really work, because three property owners are affected by the old building here, so there can only be a comprehensive solution for the debris.

Best regards
Dirk Grafe