Land purchase - converting land into building land

I didn’t think we were talking about one hectare or more here, but rather about a towel of about 1000 sqm. As I said, 1000 is a lot as building land, but it is almost uninteresting for agricultural use. However, if it’s 10,000 or more, then it’s different. How does the pre-emption right work? The sale from farmer Schlitzohr to real estate shark Knalli, when it is agricultural land of one hectare or more, is reported to the land association. They have a pre-emption right, or they waive it. They will only exercise it if they have a farmer who immediately takes over the acquired land. They won’t keep it in stock. The contract between Schlitzohr and Knalli is the one the land association must enter. Although a state institution, they have to pay real estate transfer tax. (That’s why Schäuble is not fond of them)[emoji2] They add this to the resale price, so the acquiring farmer, who also pays real estate transfer tax, buys at a very high cost. If Schlitzohr and Knalli had already set quite high prices in the original deal, the sale would almost certainly go through without exercising the pre-emption right. No farmer is interested in ultimately having to pay arable land prices for meadowland. It never pays off. If we talk, for example, about 10 euros per sqm, that would be 10,000 euros for 1000 sqm. For 10,000 sqm, 100,000. Even for later building land, unsubdivided, a bargain. For cow pasture, a horrendous price no farmer would pay. So the land association will not exercise the pre-emption right, even if we’re talking about 15 hectares. This is thus a blunt sword. Grassland here in SH is at 2-3 per sqm max. Arable land goes up to 8, if wind power is also allowed on it, even 10. Karsten

I have to file a correction. In the original post, which was a long time ago, knalli actually talks about approximately one ha. As said, theoretically this right of first refusal by the Landgesellschaft applies, usually only exercised if.....see above.

Hi Karsten,

It is already clear what options there are. We will stick to 9000m2, or go to Grünland 4 Euro (but no one will want to pay that either).

It is still only about a single house that is to be built there.

However, the seller will also have to pay speculation tax (24%) here if we do not meet the 10-year period.

Maybe a silly question, but what do you do with 9000 sqm?

Maybe a stupid question, but what are you going to do with 9000 sqm?

Riding lawn mower?! [emoji4]

Schlitzohr and Knalli would already set quite high prices in the original trade

We will leave it at 9000m2, or go to 4 euros on grassland (no one will want to pay that either).

It's not that simple. In this case, 1. you can't just set a price; 2. also simply less than a hectare; although the area is larger, it could be difficult.

1.
the sale means an unhealthy distribution of land or
2.
the sale would unprofitably reduce or divide the property or a majority of properties that are spatially or economically connected and belong to the seller or
3.
the consideration is grossly disproportionate to the value of the property.

If I were you, I would get advice; so that in the end you and the other owner are not the “fools.”

In our village, this has also gone wrong a few times.