Pre-emptive right of the municipality Exercise

The seller or buyer shall inform the municipality of the content of a purchase agreement.

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

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

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

A plot of land is purchased.

The municipality must be notified of the purchase without delay. 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 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 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.

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

• § Section 24 of the German Building Code (BauGB)
• § Section 25 of the German Building Code (BauGB)
• § Section 26 of the German Building Code (BauGB)
• § Section 27 of the German Building Code (BauGB)
• § Section 28 of the German Building Code (BauGB)

The right of first refusal must be exercised by means of an administrative act. It is usually issued in writing.

No specific form is generally prescribed for an application for a negative decision/testate; this decision is also usually issued in writing.

• The right of first refusal is excluded in several cases, e.g. in the case of a sale to spouses / relatives / in-laws 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 buyer, for example if he

• is in a position to utilise the property within a reasonable period of time in accordance with the intended use and
• The purchaser 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 favour of a third party requires that he

• is able to make the intended use of the property within a reasonable period of time and
• committed to this.

When purchasing a property, the municipality of the respective federal state or a favoured third party can enter into the purchase contract under certain conditions.

The municipality is entitled to pre-emption rights by law (general pre-emption rights) and pre-emption rights based on statutes (special pre-emption rights). Both types are on an equal footing.

The statutory pre-emption rights serve as instruments under urban development law to secure urban land-use planning.

• Pre-emptive right of the municipality Exercise

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