Service Finder
Exercise the right of first refusal of the municipality
Service Description
Exercise of the right of first refusal means that when a municipality purchases a plot of land in its municipal area, it has a right, subject to certain conditions, for it or a third party to enter into the purchase agreement and subsequently become the owner of the land. This serves to secure and implement the municipality's urban land use planning.
The right of first refusal also includes, for example, land within the scope of a development plan if the land in question is earmarked in the development plan for public use or (in the case of undeveloped land) for housing.
It may only be exercised if the public good justifies it.
The exercise of the right of first refusal may be excluded under certain circumstances or averted by the purchaser.
Process flow
The seller or buyer informs the municipality about the content of a purchase contract.
If there is no pre-emptive right or if the municipality does not exercise it, the municipality has to issue a certificate about it at the request of one of the parties (so-called negative notice / certificate).
If, on the other hand, the municipality exercises the pre-emptive right, an independent purchase agreement between the seller and the municipality is newly established. In principle, the same conditions apply (also with regard to the purchase price) that the seller had agreed upon with the original buyer. However, the purchase price may be limited if the agreed purchase price clearly exceeds the market value. In this case, the seller may withdraw from the contract.
The right of first refusal shall be exercised vis-à-vis the seller; the buyer shall be notified of the decision.
Who should I contact?
Please contact your municipality.
Requirements
A purchase of land takes place.
The purchase must be notified to the municipality without delay. Without such notification, the period of two months granted to the municipality to exercise the right of first refusal shall not begin to run.
If the municipality exercises a right of pre-emption to which it is entitled and if there is also no reason for exclusion or if it is not averted, the municipality enters into the purchase agreement in place of the purchaser; if it exercises the right in favor of a third party, the latter enters into the purchase agreement.
The municipality or the beneficiary third party must then pay the seller a purchase price which, as a rule, corresponds to the agreed purchase price. Under certain conditions, a lower amount may also be paid, for example, if the agreed purchase price clearly exceeds the market value at the time of purchase.
Which documents are required?
The seller or the buyer shall immediately notify the municipality of the contents of the purchase agreement so that it can decide whether to exercise the right of first refusal.
What are the fees?
Costs are incurred by the purchaser and / or the seller if they apply to the municipality for a declaration that they waive their right of first refusal.
The determination of the costs and their amount results from the municipal tax laws of the federal states in conjunction with the administrative fee statutes of the municipality.
What deadlines do I have to pay attention to?
Technically, the realization of the right of first refusal is ensured as follows:
The seller of the land is obliged to immediately notify the municipality of the conclusion of a purchase agreement (usually this is done by the notary). The municipality then has two months to exercise its pre-emptive right (by issuing a corresponding declaration). If it does not exercise its right of first refusal, it issues a so-called negative certificate.
Processing duration
A processing period is not directly regulated. However, it follows from the deadline for exercising the right of first refusal (see below) that the municipality must act without delay.
Legal basis
What else should I know?
- The right of first refusal is excluded in several cases, e.g. in the case of a sale to a spouse / relative / in-law or if the property is built on and used in accordance with the development plan.
- The right of first refusal can also be averted by the purchaser, for example if the purchaser
- is able to use the property within a reasonable period of time in accordance with the intended use, and
- undertakes to do so within two months of the purchase agreement being notified to the municipality.
- The exercise of a right of first refusal in favor of a third party shall require that the third party
- is in a position to use the land for the intended purpose within a reasonable period of time, and
- undertakes to do so.
Author
The text was automatically translated based on the German content per DeepL.
Technically approved by
Thuringian Ministry for Infrastructure and Agriculture
Professionally released on
08.12.2021
Source: Zuständigkeitsfinder Thüringen (Linie6PLus)
Competent Authority
Verwaltungsgemeinschaft Südliches Saaletal - Bauamt
Address
07768 Kahla
Opening times
Personal contact exclusively with prior appointment!
By appointment only
Parking spaces
Fees: yes
