Property auction - could there be surprises?

Hello everyone,

what is the worst that can happen with a "blind" land purchase and where can I get information if the owner is not reachable?

A quite interesting piece of land for me will soon be auctioned off and I would like to know if there are any risks in such a case that are not predictable because you are not allowed to enter beforehand.

The land is in the middle of the city in an area with only single-family houses and semi-detached houses. A small, apparently vacant building is on it. The land is not accessible because it is not permitted. It is supposed to be divided and one half will be auctioned. Information from the land registry office is available.

Connection costs should be obtainable from the city and the groundwater level can also be obtained there, just like a development plan, right? Surveying costs probably shouldn’t be too expensive either.

What other surprises could await me that could be avoided by visiting the site?

Thank you very much
insgruene

Hi,

It is very unusual for a property to be divided and then auctioned.

It is legally not possible to conduct proceedings for a property that does not yet exist.

I would first find out the reason why the property is being auctioned. Is a creditor conducting the proceedings or is it about a dispute over an inheritance? Often the minimum bid is not reached at the first appointment. Before the second appointment, it may be possible to acquire the property through negotiation.

Definitely go to the town hall and check if you can build the desired house on the property. There you will also get information about encumbrances. Further restrictions can arise from entries in the land register.

Do not forget that various claims can be public burdens on the property. You may have to pay the city what your predecessor did not pay.

At the city and/or the cadastre office you will also find out the standard land value for the property. This always applies to a specific area, so it does not consider the specific property, but it is a rough benchmark.

Consider possible demolition costs and contaminated sites resulting from previous use.

Inform yourself in advance about how an auction procedure works and remember the 10% security deposit.

Very important: Set yourself a limit beforehand!!!

Regards, Frank

Hi,

public burdens would be, for example, property tax or development charges. These are satisfied first from the auction proceeds and are not visible in the land register. You just have to be careful if you acquire the property, for example, between two dates through negotiation. In an auction, nothing takes precedence.

There is also a register of encumbrances at the district administration (Landratsamt) or in larger cities.

Also clarify whether the property is unoccupied. Lease agreements transfer with ownership, so to speak, you also buy the tenants at auction. In these cases, you would first have to terminate the tenancy. If there is no lease agreement, you can dispose of the property after the ownership transfer. If someone still lives there (previous owner), you still have a problem.

Regarding house connection costs, it depends on whether you can continue to use the connection. This is not a problem, for example, with wastewater. Electricity and water providers connect themselves and will invoice you.

The district court assumes no liability for the accuracy of the exposé.
You cannot always trust the land register either. Last year, I auctioned a traffic area that was actually significantly smaller than recorded in the land register.

lg frank

Hello,

...When it comes to house connection costs, it depends on whether you can continue to use the connection. This is, for example, no problem with wastewater...

That is a bold statement....

Whether the wastewater pipes can be used is only known to the poster "insgruene" once the sewer plans are available to him; in the worst case, only at the moment when the excavation contractor starts his work. It crucially depends on the age of the existing property or the year the connection to the public sewer was made. Only then can it be said for certain whether the already installed pipes and lines can (may) be used or not.

Kind regards

Hello,

That is a bold statement....

Whether the wastewater pipes can be used, the poster "insgruene" will only know once the sewer plans are available to him; in the worst case, only at the moment when the civil engineer begins his work. It depends crucially on the age of the existing property or the year it was connected to the public sewer. Only then can it be said for certain whether the already installed pipes and lines can (are allowed to) be used or not.

Kind regards

Hi,

maybe I was a bit unclear. The construction, maintenance, and upkeep of the wastewater pipe from the collector to the property boundary (house connection pipe on public grounds) is the responsibility of the wastewater authority. Appropriate contributions were calculated for this during the development and fees are charged annually. If you purchase the part of a property division on which a house connection already exists, it can continue to be used.

Whether the wastewater and drainage pipes on the property can continue to be used must be checked by a "specialist." If no house connection exists, usually a flat rate fee is charged for this.

best regards Frank

Hello everyone,

thank you very much. I went to the district court today and looked at the exact expert report.

The half of the plot of land already exists in the land register, two owners are listed with 50% each. A real division could (and would) then be carried out, but I wouldn’t have to. However, it is certainly better.

The expert report says:

Site coverage factor 0.07 and floor space index 0.07 but that can’t be right, can it? Elsewhere it says floor space index 0.5. There is no legally valid development plan. I should probably go to the building authority, do they provide information even if you are not the owner?

And how much can you actually estimate for demolition costs, are there guideline values per sqm or something like that?

Not much could be seen on the property as it is very overgrown. It doesn’t look inhabited, but sometimes it’s hard to tell.

Best regards
insgruene