Right of first refusal

To safeguard urban development planning, the Building Code provides for a pre-emptive right to purchase land in favour of the municipality.
This pre-emptive right can only be exercised under certain conditions. A compelling reason must be a public interest.
The municipality assumes the legal position of the buyer. If the pre-emptive right is not exercised, the municipality issues a so-called negative certificate. The municipality has a period of two months to exercise its pre-emptive right.
Before the purchase of a property can be finalised in the land register, the negative certificate must be submitted to the local court.

Examples of exercising the right of first refusal

1. A property
is located in an area with a legally binding development plan. The development plan designates a traffic area for part of the property. The traffic area is to be used to widen the road. In this case, the city can exercise its right of first refusal for the aforementioned partial area.

2. in the second example, a
development plan designates an area for the construction of a kindergarten. A parcel of land that is to be sold is located in the future kindergarten area. In order to build the kindergarten, the city needs this area. This is in the public interest and justifies a right of first refusal.

Legal bases in general

Prerequisites, claims, grounds for exclusion and the procedure are regulated in
Sections 24 - 28 of the German Building Code (BauGB). Likewise,
§§ 463ff of the German Civil Code (BGB) deal with the exercise of the right of first refusal.