House purchase: Sale before the expiry of 10 years - Right of first refusal

Hello everyone,

we are planning to buy a house this year and so far everything has gone well, everything between the seller and us has gone smoothly and the bank is cooperating as well.

First, a few pieces of information:
The seller bought a plot of land in 2015 and completed the shell of the building in 2017. Since then, he has lived in the house with his wife. Due to a marital dispute, the couple separated and the house (habitable but not 100% finished) was transferred to the man.

Now we plan to buy the house, we have agreed with the bank to take over the loan and thus he does not have to pay any penalty.

We had the first appointment with the notary and he found out that the municipality has a pre-emption right. He immediately reassured us and said that this happens quite often but usually does not cause any problems. However, the deed also states the following:

" If a sale takes place before the expiration of 10 years, the difference between the purchase price and the land value must be paid to the municipality.
Exceptions are possible upon request for compelling reasons, provided that the intention of the contractual conditions is not permanently or continuously changed by this. The decision for this is up to the municipal board or a committee to which these tasks have been delegated."

Now this application has been submitted, but no further information has been given (understandable, since no one can decide alone). We were told that there will be a municipal meeting in March where a vote on this will take place.

Has anyone had such experiences before and what do you think are our chances?
The seller is no longer able to pay the loan alone after the divorce and his job is also not secure. In addition, we are taking over the loan and therefore he has no profit from the sale.

I know I have to wait anyway, but according to the bank it was already planned that we would move in in April and everything is currently up in the air (cancelling the old apartment etc.).
In addition, the notary is only allowed to certify until mid-March and therefore would like to have his fees paid by then.

If anyone has had a similar case or is well versed in this, I would be very grateful for all experiences!!!

Thank you very much

This is money that the seller may have to pay to the municipality. Not you.

What is the current land value or what is the maximum amount we are talking about? If it is urgent and a manageable sum, then I would have a clause written into the contract stating that if this clause becomes effective, you will participate with x%. x equals the bargaining margin.

Otherwise, that sounds like a small municipality. Then I would find out who is the alpha figure in the building committee or the municipal council and call them informally to ask for their personal initial assessment.

Normally I know it like this that this only applies to undeveloped land in order to prevent land speculation

We had the first appointment with the notary and he found out that the municipality has a right of first refusal.

The municipality always has [Grundstück]. (simplified).

If a sale takes place before the expiration of 10 years, the difference between the purchase price and the land value must be paid to the municipality.
Exceptions for compelling reasons are possible upon application, provided that the intent of the contract conditions is not permanently or durably changed. The decision lies with the municipal board or a committee assigned these tasks.

Problem of the seller, not yours.

The seller is no longer able to pay the loan alone after the divorce and additionally his job is not secure. Furthermore, we are taking over the loan and thus he has no profit from the sale.

The takeover of financing has nothing to do with the seller’s profit, though? Maybe he bought the land for €50,000 and built the house for €250,000 and now sells it to you for €800,000. The profit in the land is shown by the land value (or if in doubt by an appraisal).

In addition, the notary is only allowed to certify until mid-March and therefore wants to have his fees paid by then.

Why can't it be at the end of March?

presumably because he will then have reached the age limit (70 years) or otherwise relinquish his office