Anyone who buys a building site and does not build on it, contrary to a corresponding obligation, may have to expect a refund from the municipality for a very long time. This became apparent on Friday in a hearing at the Federal Court of Justice (BGH). In the case from Lower Bavaria, when the property was sold in 1994, the municipality had secured a repurchase right in the event that after eight years there was still no house. In 2014 she informed the owner that she was now making use of it. The question is whether this is still possible after such a long time.

According to the law, a repurchase right for land can extend over a maximum of 30 years. The Munich Higher Regional Court considered this to be inappropriate, but the BGH judges took a different view after initial consultations. The community is pursuing the legitimate purpose of controlling structural development and preventing land speculation, said Chairwoman Bettina Brückner. In addition, a long period can also be advantageous for the property buyer. For example, the municipality can react flexibly if construction comes to a standstill due to financial difficulties. The Senate announced the verdict for December 16th. (Ref. V ZR 144/21)

Announcement of the BGH Judgment of the Munich Higher Regional Court of June 16, 2021 BGH judgment on the repurchase right of July 21, 2006