Sale of arable land / land with development potential to private individuals instead of the municipality

  • Erstellt am 2019-11-05 21:16:04

Escroda

2019-11-10 09:26:22
  • #1

It's a pity that you neither answered my question nor took my advice.

It's called reallocation. It is described in the first section of the fourth part of the Building Code (Baugesetzbuch).

Whether there is a right of first refusal or not is probably irrelevant here, and thus also the GmbH constructions – Ernie just simply wants a building plot.

If a land reallocation is planned, the municipality doesn’t care at all. The determination of land values is based on the data from previous years. Therefore, your paid purchase price does not have any effect. No matter what you pay, your plot will be included in the reallocation procedure using the current standard land value for raw building land. From this, your entitlement to building-ready allocation volume results. If you buy now, you’re not making a lucrative deal; you are merely securing a legal claim to a building plot. Whether that is worth 5€/m², I cannot judge.

Of course not. They save themselves several negotiations if they already own the land themselves. It's easier to negotiate with a reallocation participant without binding interests than with a prospective builder with location and size claims who also paid above the standard land value.

Yes, as a reallocation participant, that has nothing to do with you.

Where exactly the field area lies is irrelevant in the reallocation.
Building Code, § 59 Allocation and compensation
(1) From the distribution mass, the owners shall be allocated plots corresponding to the purpose of the reallocation, including areas for compensation according to § 1a para. 3, in the same or equivalent location as the contributed plots and according to the shares calculated pursuant to §§ 57 and 58.

The development plan determines in which area your future building plot will be located. They will offer you several parcels from which you can choose. If you take too long, the other participants will snatch the best parts away from you.

There will be no hole in the development plan; the negotiators would have to be very desperate for that. It’s more likely that the municipality would forgo the entire building area.
 

ernie250

2019-11-12 23:22:41
  • #2

The development plan is not public yet. I have been shown the draft by the municipality, which will soon go to the city council....



My amateur calculation was as follows:
- Purchase of the field for 35€, reversal if it does not become a building area by date X (risk of incidental purchase costs)
- Total cost 115,500 + 5% incidental purchase costs = 121,275€

- Sale of 2,300 m² to the municipality for the current bid of 30€ = proceeds 69,000€ (incidental purchase costs not considered)

- Remaining area 1,000 m² goes into the land readjustment, I get approx. 700 m² back (30% public areas according to the municipality)[QUESTION: Are the 30% of the readjustment lost so neutrally?]

- Development costs of 120€ for 700 m² = 84,000 €

Conclusion:
Purchase price field: 121,275€
Sale of part of field: -69,000€
Development: 84,000€
Total costs: 136,275€ / 700 m² = 194.7 €/m²

No bargain, but this is within the average of the given €/m² range, although 200€ will very likely be exceeded. An advantage might possibly be no construction obligation and some leverage against the municipality in selecting the plot....
Any comments?

I will probably have to take another look at the topic of land readjustment....

Thanks in advance!
 

Escroda

2019-11-13 20:44:52
  • #3
Without knowing the details, I will make a few remarks that you should check for accuracy by comparing with reality.

If the seller agrees to that, he must be well-disposed toward you and could then also endure the land consolidation himself and ultimately sell you a finished building plot.

Only in a distribution according to area (§58 Baugesetzbuch). Also, the last sentence of the first paragraph must be taken into account:
Insofar as the benefit from the consolidation exceeds the area contribution according to sentence 1, the benefit shall be compensated in money.
That means: you will probably have to pay a compensation.
With consolidation based on values (IMHO more common), according to your model you would just invest 1000*30€=30,000€, thus you would only be entitled to about 200 m² at 150€/m² for ready-to-build land.

With the consolidation, you have nothing to do with the development costs. The municipality takes care of that. Therefore, it also collects the consolidation benefit (value increase from raw land to building land). If it was well tendered, usually a good sum remains; with poor planning it pays “on top.” Your influence on this is zero; for those involved in the consolidation it is only about input value (raw land) and allocation value (ready-to-build land, free of development contributions).
I do not know the municipality’s calculation nor your prices for arable, anticipated development, raw, and developed building land. At the moment, your acquaintance’s arable land is probably merely anticipated development land, since the development plan is not yet legally binding. Thus, the municipality probably plans also to capture the value increase from anticipated development land to raw land (hence the displeasure over your purchase intentions), which normally benefits the farmer. You should then enter the consolidation with the entire arable land, otherwise you would start with too little mass and additionally have to bear the surveying costs for the subdivision, unless a preservation order has already been decided. In return, you bear the risk that the consolidation procedure and/or development will be prolonged (a consolidation participant turns out to be a troublemaker, no affordable capacities at civil engineering firms, planning defects, beetle, field hamster, sand lizard, bat, ...) and you cannot build for years.
Interfering in the planning process is a bit like speculating on the stock market. The longer the stamina, the more secure the profit prospects.
 

11ant

2019-11-13 21:13:52
  • #4

To what extent does the land readjustment "automatically" involve carrying out the development in the meantime before the redistribution of the dice cup? – I recently experienced a case in my circle of friends where the readjustment took place, but after that no development had yet been carried out or even commissioned.


The old Kostolany once said in essence that a good speculator must be able to afford to hold a stock over the time between two wars.
 

Escroda

2019-11-14 08:35:01
  • #5
Not at all. There is no automatism and no uniform procedure. Each municipality can do it differently. The guideline is the Building Code, which nevertheless leaves enough leeway to let the number of execution variants run to infinity. Yes, possible, since the allocation depends on the land value in the municipality and not on the actual costs. So in Posemuckel, for example, agricultural land costs €3/m², land expected to be built on €30/m², raw building land €60/m² and developed building land €180/m². Then normally these values are also used as the basis for the redistribution area, unless there are very obvious influencing factors that suggest other values. Valuation is a science in itself; the origin of the numbers should be questioned in the concrete individual case. While the farmer cultivates his field, value 3300m²*€3/m²=€9,900, a member of the municipal council publicly announces the necessity of designating building land at the council meeting and proposes the area around the field. The majority agrees and suddenly the field is worth ten times as much (€99,000). Now the development plan is drawn up, discussed, publicly announced, discussed, adopted, and suddenly the field value doubles (€198,000). And then the redistribution resolution follows. The values are checked again, corrected if necessary, and the farmer enters the process with €198,000. The redistribution office makes parcel proposals based on the development plan and those involved choose pieces according to their claims. So our farmer can choose 198,000€/180€/m²=1100m², depending on demand also more or less against value compensation. But when the municipality begins development is completely independent of this. If the responsible employee is sleeping, long-term sick, or has quit because of a lottery win, it can take years.
 

11ant

2019-11-14 20:31:56
  • #6
Then I understand ... ... not. Because it sounded as if land automatically developed came out of the redistribution magic hat (?)
 

Similar topics
19.02.2015Development costs §127 Building Code12
02.07.2015Development costs for gas and sewer pipelines11
23.11.2015Land value too low - therefore no approval for construction financing79
11.03.2018Backend development connection costs?30
21.11.2016Buy land as land with development potential15
30.12.2016Boundary distance building plot / forest31
27.02.2017Determination of land value of property with existing old structure25
23.01.2017Questions about the calculation of equity / assessment of incidental purchase costs11
22.05.2017Development costs are rising and rising13
30.01.2017Development costs and information before property viewing10
13.05.2018Development costs for subsequent construction10
08.06.2018Development costs - How are they calculated?10
21.09.2018Municipality development costs are too high - Should we commission it ourselves?16
15.10.2019Questions on the interpretation of § 34 Building Code59
06.11.2019Is the standard land value for a building plot in a private sale binding?14
06.05.2020Liberation § 31 Building Code: Roof pitch, roof shape, roof structures15
22.08.2020Development in the second row without a development plan? What can we do?22
21.08.2021§34 Building Code: Building Window and Garage21
01.07.2022Building maintenance land in Hochwald/Hunsrück - Current development costs?10
20.12.2024Preliminary Draft of a Development Plan Experiences29

Oben