Right of first refusal of the municipality Exercise

The municipal right of first refusal enables the municipality to acquire land for urban development purposes in order to influence its future structural and other use.

The exercise of the right of first refusal means that, when purchasing land on its municipal territory, the municipality has a right, under certain conditions, to the fact that it or a third party can enter into the purchase contract and subsequently become the owner of the property. The right of first refusal may only be exercised if the public interest justifies it.

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

The seller or the buyer must immediately inform the municipality of the content of the purchase contract so that it can decide whether to exercise the right of first refusal.

The exercise of the right of first refusal must be effected by means of an administrative act. It is regularly issued in writing.

For an application for a negative decision / attestation, no specific form is generally prescribed; this decision is also regularly taken in writing.

Preconditions

There is a land purchase.

The purchase must be reported to the municipality immediately. Without a notification, the period of two months granted to the municipality to exercise the right of first refusal does not begin to run.

If the municipality makes use of 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 contract in place of the buyer; if it exercises the right in favour of a third party, the latter shall enter into the purchase contract.

The municipality or the beneficiary third party must then pay the seller a purchase price that usually corresponds to .dem 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.

Hints

  • The right of first refusal is excluded in several cases, e.B. in the case of a sale to spouses / relatives / in-laws or if the property is developed and used in accordance with the development plan.
  • The right of first refusal can also be averted by the buyer, for example if he
  • is able to use the property within a reasonable period of time in accordance with the intended use envisaged in the planning and
  • undertakes to do so within two months of the notification of the purchase contract to the municipality.
  • The exercise of a right of first refusal in favour of a third party presupposes that he:
  • is able to use the land for its intended purpose within a reasonable period of time, and
  • undertakes to do so.

Related Links

  • § 24 Building Code (BauGB)
  • § 25 Building Code (BauGB)
  • § 26 Building Code (BauGB)
  • § 27 Building Code (BauGB)
  • § 28 Building Code (BauGB)

The seller or buyer informs the municipality of the content of a purchase contract.

If there is no right of first refusal or if the municipality does not exercise it, the municipality must issue a certificate at the request of a party (so-called negative notice / attestation).

If, on the other hand, the municipality exercises the right of first refusal, an independent purchase contract between the seller and the municipality is newly established. In principle, the same conditions (also with regard to the purchase price) that the seller had agreed with the original buyer apply. However, the purchase price may be price-limited if the agreed purchase price significantly exceeds the market value in a recognizable manner. In this case, the seller may withdraw from the contract.

The right of first refusal is exercised vis-à-vis the seller; the buyer must be informed of the decision.

Responsible for the content
No information available

Last update or date of publication
No information available