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

Don't worry at all. Absolutely nothing will happen - the compensation payment does not affect you and the city will not get involved in the purchase contract. They don’t have any money to tie themselves to a single-family house and then have to sell it again themselves.

Why would you take over the seller’s financing?
From today’s perspective, the conditions must be completely unattractive.
Especially since you probably still need additional capital to complete it, meaning you’ll get that from "his" bank as well? Another one won’t be found if the first rank in the land register is occupied.

In general, I have the impression that you have way too much empathy for your seller’s problems. You just pay the fair market value, the rest is his problem. He will probably become insolvent with the property after two years of use and then have to do a distress sale of a half-finished property. But it’s not your job to share that fate.

Are you somehow personally connected to the seller?

Because the seller has a contract with the bank that he cannot terminate! Or he would have to pay a high penalty. We already financed our first house with the same bank! So we are with the same bank..

Yes, the conditions are worse, but that accordingly affects the purchase price..

We are really getting the house at a very good price (well below market value) That's why I am so nervous that it could go wrong... if he were to go bankrupt, the house would be lost..

Thanks for the advice

Sale establishes a special right of termination. Prepayment penalty is then due, yes, but that’s his problem.
Not selling is obviously also not an option, he simply can’t afford it either.
Whether he gets out of this mess without bankruptcy is none of your business.

Have you really calculated whether your/his bank is a good match for you? Whether the supposed impact on the purchase price is worth it?

Yes, that is really well calculated! My brother, with whom I am buying the house, works at a bank himself and studied mathematics (this is not meant to say anything, but I want to point out that we are informed about financing).

I know taking over the loan doesn’t sound very advantageous, but we weighed it carefully and the advantages outweigh the disadvantages.
Besides, the bank advisor is also an acquaintance...

And just to be clear: If he goes bankrupt, one thing will definitely happen – the bank will gladly sell you the place then.

The problem, however, is that the seller cannot sell if he also has to pay the municipality.

On the other hand, you write about a threat of insolvency, which doesn't exactly sound like the luxury of having free choice of options (?)