Subdivision of property in a duplex

Good morning everyone,

We intend to purchase a not yet built semi-detached house through a project developer. The entire plot is 567 m2 in size and is being sold separately through a real estate agent. We have decided on the smaller half; the other half is expected to be purchased by an investor who will rent out that half. Now, it is the case that we are supposed to buy our part of the plot first before the house construction begins. It is important to us that the plot is divided in reality, not just ideally. However, the project developer informed me yesterday that a division would only take place after the completion of the house. But we absolutely want the real division to be notarized in the purchase contract already at the time of the land purchase. Unfortunately, we have no experience and do not know anyone who could advise us on the house purchase or construction. Therefore, here is my question: how is this usually handled in such cases, and when is a real division normally carried out?

Thank you in advance.

Hello Düsentrieb,

The plot should (I would even say "must") be divided in reality before your construction, otherwise your mortgage/financing will be on the entire plot. This causes further issues, as the investor presumably needs their share of the plot for financing as well, which would mean that two banks compete for the first charge or that partial ownership has to be created in the land registry first, resulting in additional costs.

Similarly, dividing the plot after the building is completed is significantly (several hundred euros) more expensive than without construction, because an official site plan must be created for the division application and the division permit triggers a fee at the city of Düsseldorf (between a minimum of €50 and a maximum of €250, presumably €50 or €100 here).

I would therefore only agree to the model if the project developer covers all additional costs for division and notary/land registry and ensures (i.e. is legally liable) that you are not liable for any insolvency of the investor and have no losses regarding the loan financing. He will definitely refuse that and you should not bear the risk or the additional costs, because it provides you with no added value but quite the opposite, only disadvantages. There is really not a single reason to postpone the division.

All in all, it is definitely advisable to divide immediately. The division costs less and there are immediately clear ownership structures and thus clear financing situations.

In addition, the division is also processed much faster then – technically, a division of an undeveloped plot in a new development area can be carried out very quickly; this can be completed within a few days and then forwarded to the cadastral office. If the plot is developed, you have to wait for the division permit from the city of D'Dorf; before that, the cadastral office will not proceed.

The problem will rather be the workload of the publicly appointed surveyor, so I would already take care of that.

Best regards Dirk Grafe