Pre-emptive right of the municipality according to the German Building Code (BauGB)

Exercising the right of first refusal means that the municipality has the right, subject to certain conditions, to enter into the purchase agreement and subsequently become the owner of the property when purchasing a plot of land in its municipal area. The right of first refusal may only be exercised if this is justified in the public interest.

Under certain circumstances, the exercise of the right of first refusal may be excluded or averted by the purchaser.

Requirements

• A plot of land is purchased.
• The municipality must be notified of the purchase immediately. Without notification, the three-month period granted to the municipality to exercise the right of first refusal does not begin to run.
• If the municipality exercises a right of first refusal to which it is entitled and there is no reason for exclusion or if it is not averted, the municipality shall enter into the purchase agreement in place of the purchaser
• if it exercises the right in favor of a third party, the latter shall enter into the purchase agreement.
• The municipality or the beneficiary third party must then pay the seller a purchase price that generally corresponds to the agreed purchase price. Under certain conditions, a lower amount can also be paid, for example if the agreed purchase price clearly exceeds the market value at the time of purchase.

What documents do I need?

• The notary must immediately inform the municipality of the content of the purchase agreement so that it can decide whether to exercise the right of first refusal.