Hello everyone,
I would like to tap into the collective knowledge here because I’m currently feeling a bit “lost” or even stressed.
I am part of an inheritance group with a total of 3 parties involved. The issue concerns a plot of land measuring 1000 sqm (approximately 10,764 sq ft) in Baden-Württemberg. The general value for farmland is around €10 per sqm (approximately $11 per 10.76 sq ft), and the official standard value when classified as building land is about €700 per sqm (approximately $755 per 10.76 sq ft).
Anyway, as it often happens, the land is not yet classified as building land, but it borders directly on a residential area. After consulting with the city authorities, it appears that the land will not be reclassified as building land anytime soon, partly because of its small size and the lack of interest to initiate any change.
All of us in the group still want to sell the property and, based on discussions with a real estate agent, we expect a price in the range of about €300–400 per sqm (approximately $323–431 per 10.76 sq ft). (We will not accept less.)
Now the agent has drawn up a contract for us. Unfortunately, I’m starting to have second thoughts. Do you see any potential issues in the contract? Of course, we want to pay the agent only when a contract is signed and the buyers pay more than €300,000 (approximately $323,000). If there are no offers or only lower ones, we don’t want to sell.
What do you think about the agent’s contract? Is it easy to terminate it after one year, and what happens if we reject offers for whatever reason?
Here is an excerpt from the contract:
See attachment
I would like to tap into the collective knowledge here because I’m currently feeling a bit “lost” or even stressed.
I am part of an inheritance group with a total of 3 parties involved. The issue concerns a plot of land measuring 1000 sqm (approximately 10,764 sq ft) in Baden-Württemberg. The general value for farmland is around €10 per sqm (approximately $11 per 10.76 sq ft), and the official standard value when classified as building land is about €700 per sqm (approximately $755 per 10.76 sq ft).
Anyway, as it often happens, the land is not yet classified as building land, but it borders directly on a residential area. After consulting with the city authorities, it appears that the land will not be reclassified as building land anytime soon, partly because of its small size and the lack of interest to initiate any change.
All of us in the group still want to sell the property and, based on discussions with a real estate agent, we expect a price in the range of about €300–400 per sqm (approximately $323–431 per 10.76 sq ft). (We will not accept less.)
Now the agent has drawn up a contract for us. Unfortunately, I’m starting to have second thoughts. Do you see any potential issues in the contract? Of course, we want to pay the agent only when a contract is signed and the buyers pay more than €300,000 (approximately $323,000). If there are no offers or only lower ones, we don’t want to sell.
What do you think about the agent’s contract? Is it easy to terminate it after one year, and what happens if we reject offers for whatever reason?
Here is an excerpt from the contract:
See attachment
The brokerage agreement is standard.
The broker only has a claim to their commission if a notarized purchase contract is concluded.
You, as the community of heirs, must enter into this contract, and only under the conditions you want.
There are no hidden pitfalls or anything like that. If the broker does not find anyone willing to pay your asking price, they will not receive any payment.
The broker only has a claim to their commission if a notarized purchase contract is concluded.
You, as the community of heirs, must enter into this contract, and only under the conditions you want.
There are no hidden pitfalls or anything like that. If the broker does not find anyone willing to pay your asking price, they will not receive any payment.
K
karl.jonas25 Nov 2021 00:37apokolok schrieb:
The broker agreement is quite standard.I would not sign this contract because, in effect, it prohibits you from selling the plot without the broker. The exclusivity clause is common (so you are not allowed to hire several brokers simultaneously). But here, you would even have to pay the broker if you bought the property yourself. Or maybe your friend from the club you tell about it. I would insist that this clause be removed.
Roger12 schrieb:
After consulting with the city, it turns out the land is not currently zoned for building, and due to its small size, there is no interest in initiating any development there... What about the adjacent plots, which are also not yet zoned for building? What kind of land are they, who owns them, and what is on them? Does the total area of these combined plots provide enough space to build 30 single-family homes including roads? Do you know who owns the neighboring properties and what their plans are?
Does the plot have access to a street within the town, including sidewalks and such?
Just list the property privately online for sale and that’s that.
Or buy it from the other heirs at €12/m² (about $13 per sq ft) and wait 30 years to see if anything happens. Until the land potentially becomes very valuable, you’ll be paying the ongoing costs.
karl.jonas schrieb:
I would not sign this contract because it effectively prevents you from selling the property without the realtor. The exclusivity clause is common (meaning you can’t hire multiple realtors at the same time). But here, you would even have to pay the realtor if you bought the property yourself. Or maybe your friend from the club to whom you mention it.
I would insist that this part be removed. This is completely normal as well. If you hire a realtor, they expect to receive their commission. If you handle it yourself, you don’t need a realtor.
apokolok schrieb:
This is completely normal. If you hire an agent, they will want their commission.
If you handle it yourself, you don’t need an agent. Thanks!
My question was whether I have to pay anything if the sale doesn’t go through or if an offer is rejected… why I decide to sell and involve an agent is really my own business…
B
Benutzer20025 Nov 2021 08:42Standard exclusive agency agreement. This is simply a typical contract. Commission is earned upon successful sale, so it is not merely a contract for providing proof of interest.
That said, I wouldn’t sign it because it’s not worth the effort and the property won’t be sold anyway. At least not at the desired price. But I guess you don’t want to hear that.
That said, I wouldn’t sign it because it’s not worth the effort and the property won’t be sold anyway. At least not at the desired price. But I guess you don’t want to hear that.