Land acquisition from the municipality with building obligation

Hello everyone,

we are considering purchasing a plot of land from the municipality. However, it is associated with the following conditions: Construction must begin no later than 2 years after the contract is signed and must be completed no later than 4 years after that. If these conditions are not met, the municipality can secure the property through a legal charge. What does this mean? What happens if the deadline is missed by only a few months and we are not yet finished with our own work? Will the entire house then be demolished?? The problem for us is that we can only sell our condominium after exactly 4 years without incurring speculation tax, and our equity is tied up in it. What can be done about this?

These are common requirements from municipalities to prevent land speculation. Surely, nothing will happen with a 2-month delay! Especially if only the last wallpaper is missing as a self-done task. And "dinglich sicher" means that the municipality has the right to buy back the property. It certainly does not mean demolition!!!! Presumably, the municipality will not buy it. They sell land to get money, not the other way around. So take it easy, start building in 2 years (even just a foundation slab is enough) and everything will be fine.

The problem for us is that we can only sell our condominium after exactly 4 years without speculation tax, and our equity is tied up in it.

Do you want to sell a rented apartment? Why is that? Why not simply pre-finance the sales proceeds like everyone else?

What does that mean? What if the deadline is exceeded by just a few months and we are not finished with the work ourselves? Will the whole house then be demolished??

Usually, the municipality handles it leniently. They neither want to nor have the money to buy back the property.

Our plan was actually to borrow the money for the plot from the family, then complete the house after 4 years, in the meantime sell the apartment and pay the money back to the family, and also use that to pay for the interior finishing as well as the exterior facilities. Of course, it may happen that depending on whether we sell the apartment quickly or not, the interior finishing might be delayed by a few months. It might also be possible to acquire the materials with 0 percent financing and pay for everything after selling the apartment. Is that possible? That we include the plot and personal contributions as equity with the bank? Would that be enough? Best regards

So you want to finance without a bank. Not bad either.

That we include the land and own work as equity at the bank? Would that be enough?

How should we know that? How much does the house cost? What is the land worth? What own work?

Once again the question: Why do you have to wait four years until the sale of the condominium? Is it rented out?

Just write a coherent text with all necessary information (what, when, how much, how, why...).

Yes, the apartment is rented and will still be financed by the bank for 4 more years. That means if we sell it now, we have to pay taxes, repay the remaining debt, and additionally pay the compensation for early loan repayment.