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Source: BUS Sachsen-Anhalt (Linie6PLus)

Exercise the municipality's right of first refusal

Description

The exercise of the right of pre-emption means that, when purchasing a plot of land on its territory, the municipality has a right, under certain conditions, to be able to enter into the contract of sale or a third party and subsequently become the owner of the land. The right of pre-emption may only be exercised if the public interest justifies it.

The exercise of the right of pre-emption may be excluded under certain circumstances or averted by the purchaser.

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 one of the parties involved (so-called negative decision / 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 apply (also with regard to the purchase price) that the seller had agreed with the original buyer. However, the purchase price may be price-limited if the agreed purchase price clearly exceeds the market value in a recognizable manner. In this case, the seller may withdraw from the contract.

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

There is a purchase of land.

The purchase must be reported to the municipality immediately. Without notification, the period of three 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 pre-emption to which it is entitled and if there is no reason for exclusion or if it is not averted, the municipality enters into the purchase contract in place of the buyer; if it exercises the right in favour of a third party, the latter enters 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.

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.

Costs are incurred by the buyer 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 Länder in conjunction with the administrative fee statute of the municipality.

The right of pre-emption can only be exercised within three months of notification of the purchase contract to the seller.

A processing time is not directly regulated. However, the deadline for exercising the right of first refusal (see below) means that the municipality must act immediately.

The right of pre-emption must be exercised by means of an administrative act. It shall be issued regularly in writing.

No specific form is generally prescribed for an application for a negative decision / attestation; this decision shall also regularly be taken 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 developed and used in accordance with the development plan.
  • The right of pre-emption 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 and
  • undertakes to do so within two months of the contract of sale being notified to the municipality.
  • The exercise of a right of pre-emption in favour of a third party presupposes that he:
  • is capable of using the property for its intended purpose within a reasonable period of time, and
  • undertakes to do so.

The text was automatically translated based on the German content.

Ministry of Energy, Infrastructure and Digitalization Mecklenburg-Vorpommern

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