What must be included in the purchase contract with the developer? Redevelopment area, cultural monument?

  • Erstellt am 2021-06-10 06:15:56

holger311085

2021-06-10 06:15:56
  • #1
Hello everyone,

We are both in our mid-30s + 1 child and are about to make our first house purchase through a developer.
We have the purchase contract. The notary appointment is in about 2 weeks.

After our own research, it turned out that our new dream house, which has already been approved by the city through the developer, is located in a designated "Redevelopment Area and in the immediate vicinity of a protected cultural monument".

The redevelopment area would bring disadvantages for us if we were to sell the house, regarding the city’s right of first refusal.
Furthermore, due to the immediate proximity to a protected cultural monument, we must submit applications to the lower monument protection authority (district administration) for any changes, for example if we want to build a terrace roof. The lower monument protection authority must approve all changes, which can of course impose restrictions on us.

Unfortunately, the purchase contract we have does not contain any note/paragraph referring to these restrictions/circumstances. We also did not learn about these two topics directly from the developer, but from a friend who also owns a house nearby.

Now our question: must such topics be mentioned/noted in the purchase contract? Actually, I don’t want any trouble or stress, but I also don’t want to fall into a trap.

Does anyone know more about this? Should we go directly to a specialist lawyer for construction law to review the matter?

Many thanks in advance for your help.
Holger and Jenny and little Sven
 

RomeoZwo

2021-06-10 11:07:33
  • #2
The pre-emption rights of the municipality are quite limited:
The exercise of the pre-emption right constitutes a serious interference with the contractual freedom of decision of the seller and buyer. The municipality may therefore only exercise the pre-emption right if it promotes the welfare of the general public.
And even then, the municipality enters into the contract at the previously determined purchase price (at least for now). I don't see any real disadvantage in that yet. Also, the area will not remain a redevelopment area forever.

As a SELLER, I would have a clause "The property is located in a redevelopment area and in the immediate vicinity of a protected cultural monument; the resulting restrictions are known to the buyer" included in the contract. Mainly to protect myself against later complaints (deception). Nobody involved in the process can create a list of what is allowed and what is not. I have experienced the most amazing things with the monument office. Decisions can vary from day to day with one contact person, and with several (e.g., substitutes), completely different guidelines/freedoms sometimes emerge.

Overall, I would see redevelopment area/proximity to a monument as positive. These are usually up-and-coming neighborhoods where the city is really doing something with support, including investments in green spaces, playgrounds, etc. The listed building as a neighbor also offers a very high probability that the house will remain in its current form. Infill development, demolition, and area-optimized new construction are rather rare there.
 

Myrna_Loy

2021-06-10 11:18:34
  • #3

However, this can also mean significant restrictions on the design of the house.
 

holger311085

2021-06-10 11:22:44
  • #4

Yes, that's correct, however, the building application has already been approved by the city / district through the developer.
Therefore, my question is: do these restrictions have to be communicated to us by the developer in writing? Or mentioned in the purchase contract?

I already see it as somewhat of a breach of trust that the developer did not inform us about this circumstance and that we only found out this important information through contacts / friends who also have a house nearby.
 

User0815

2021-06-10 11:57:33
  • #5
If it is located in a redevelopment area, a redevelopment note must be entered in Section II of the land register, this should also appear in the purchase contract as a continuing right.
 

nordanney

2021-06-10 12:34:52
  • #6
Oh yes, in the redevelopment area, upon completion of the redevelopment measure, (usually) compensation payments will still be due from you. Why? Because after the completion of the measure, the land value has increased.
 

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