Negative certificate / certificate of no objection when purchasing real estate

  • Erstellt am 2022-08-05 17:33:21

Yosan

2022-08-08 00:38:03
  • #1
It is quite common for municipalities to require that an obligation to build within 3 years (or similar) is included in the purchase contract.
 

Schwabe23

2022-08-08 03:30:39
  • #2

Yes, but not in a private sale, only when the municipality/city sells the property. Exploiting the right of first refusal to put pressure on builders is really something "special."
 

Yosan

2022-08-08 08:12:09
  • #3
No, it is quite common even in private sales. Municipalities want to prevent properties from being casually passed down among relatives and friends over generations, in case a cousin of the great-grandchild comes along who really wants to develop it, even though it could have been developed multiple times in the meantime.
 

Stainless

2022-08-08 17:22:56
  • #4


If construction is not carried out within the deadline, what would happen then? Can the municipality still step into the original contract afterwards?

In which area was that roughly? Feel free to send a private message.
 

Schwabe23

2022-08-08 17:25:44
  • #5
District Biberach in BW. They could then buy back the property at the original purchase price. However, they would probably have to bear the tax and notary costs.
 

Axolotl-neu

2022-08-08 17:48:53
  • #6

Maybe a little explanation.
1. According to the Land Mobilization Act of 2021, the municipality has improved options to exercise its municipal pre-emptive right.
2. The period is now three months.
2. Even if you buy above the market value (in case of doubt assessed based on the standard land value plus adjustments), the municipality can set a lower purchase price when exercising its pre-emptive right – but not below the market value.
3. Consequences of the pre-emptive right are that a new purchase contract is concluded between the seller and the municipality. There is no entry into the purchase contract concluded with you. This contract is unwound.
==> Thus, regarding your comment on costs: there are no taxes for you since you have not bought any property. Whether you get back the notary costs is not yet finally clarified. However, the Federal Court of Justice has already decided that the municipality must reimburse the broker's fees. So there are at least quite good chances.
4. However, the buyer of a property has the right under certain conditions to avert the pre-emptive right. He must then commit to meet the municipality’s objectives (development within x years, certain ecological requirements, or whatever). In practice, detailed aversion agreements in the form of public-law contracts are actually very often concluded, which (unlike the unilateral declaration of aversion) sometimes go far beyond the legally prescribed purpose of aversion and also include securities for the municipalities in case of performance disruptions.
 

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