ᐅ Certificate of Non-Encumbrance / Negative Certificate in Land Purchase
Created on: 5 Aug 2022 17:33
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meingrundstück
What has been your experience with the negative certificate / negative clearance when purchasing a plot of land?
This type of certificate confirms that a municipality does not intend to exercise its pre-emptive right to purchase the property. The application for the negative certificate is usually handled by the appointed notary. The municipality charges a fee for issuing the certificate, which varies from one municipality to another. Attached is a sample.
This type of certificate confirms that a municipality does not intend to exercise its pre-emptive right to purchase the property. The application for the negative certificate is usually handled by the appointed notary. The municipality charges a fee for issuing the certificate, which varies from one municipality to another. Attached is a sample.
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Schwabe238 Aug 2022 17:58We will finish on time, so there will be no cancellations or anything like that. I just wanted to point out that the city’s approval is not just a formality.
Could it be that two different issues are being confused here? The original poster refers to the negative certificate according to § 24 of the Building Code, which must be presented for the land register to be updated to the new owner. The municipality is only allowed to exercise this right of first refusal under very strict conditions and to step into the already concluded purchase contract between the seller and the actual buyer. Schwabe23’s post sounds like the commonly agreed claim secured with a right of re-entry noted in the land register, granting the municipality as the seller of the property a right to reclaim ownership, for example, if the property is not developed within a certain period.
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Schwabe2323 Aug 2022 22:02Yes, that’s how I know it too. However, the municipality actually intervened between a private purchase agreement without a building obligation and only waived the right of first refusal if, in return, we signed a building obligation.
The right of first refusal existed because the building plot is located within a valid zoning plan.
The right of first refusal existed because the building plot is located within a valid zoning plan.
Schwabe23 schrieb:
Yes, that’s how I know it too. In my case, the municipality actually stepped in between a private purchase agreement without a building obligation and only waived their pre-emption right if we agreed to a building obligation in return.
The pre-emption right existed because the building plot is located within a valid development plan.That’s exactly how I have experienced it with various municipalities here as well.X
xMisterDx24 Aug 2022 23:33Wow, you got off cheap there. I was charged 50 EUR for giving up the right of first refusal...