Land Register Section II Right of Repurchase Municipality

Hello,

we have been allocated a plot of land by a municipality.

Both the investment bank and the first-ranking financing bank require no value-reducing rights in section II of the land register.

The municipality wants to have a repurchase right through a notation of conveyance in the first 5 years, provided the property is not occupied by the owner or sold during this time. In this case, an appraiser would estimate the value and the municipality would have the right to buy the property and house at that value. This should then appear in section II.

Is something like this considered value-reducing by the banks? I have searched and so far have only found other rights considered value-reducing.

Thank you

No, banks generally do not accept these entries.

However, you will only know for sure if you ask all the involved banks specifically about it.

Thank you very much for the quick response.

I had not anticipated the "problem" because the municipality had written that they prioritize a financing.

The draft purchase agreement is already with the Ing-Diba, the decision is expected next week, let's see what they say. I will write to the investment bank later.

the municipality certainly has no interest in buying a finished house. it is probably about the fact that the plots will also be developed soon and will not remain green forever.

Exactly and must not be resold within 5 years because the demand was very high.