Now, I see that the topic has sparked interest ??
Some new property owners have already envisioned themselves being registered in the land registry when suddenly the property purchase failed due to the right of first refusal. How can it happen that the owner cannot sell their property to the desired buyer? Who has the right to exercise the right of first refusal? We have prepared the key points for you!
In Germany, the document known as the "Negativbescheinigung" or, in the context of real estate purchase, the waiver declaration (waiver of the right of first refusal) is an important part of acquiring a real estate object. This document confirms that the municipality (city or community) will not exercise its right of first refusal.
What is the right of first refusal?
The right of first refusal is a legal right granted to the municipality or other governmental bodies under certain circumstances to acquire real estate. This right is often exercised in the following cases:
• The property or object is located in an urban development area (redevelopment area).
• The property or building is situated in an area of special public interest (e.g., social housing or infrastructure projects).
• If the property is marked in the development plan and intended for governmental or social purposes.
What is the purpose of the Negativbescheinigung?
The Negativbescheinigung confirms that:
• The municipality has been informed of the purchase agreement.
• It does not intend to exercise its right of first refusal.
• The contract can be concluded without restrictions.
Without this document, the contract cannot be finalized, as the notary cannot submit the application (Auflassung) for the new owner to the land registry.
How to obtain the Negativbescheinigung?
- The notary immediately submits a request to the local municipality or the relevant authority after signing the purchase agreement.
- The municipality reviews the request and makes a decision.
- If the right is not exercised, the Negativbescheinigung is issued.
- The document is handed over to the notary, who completes the registration process.
Deadlines and costs:
• The review usually takes 2 to 4 weeks, but it can be faster or slower depending on the region.
• The costs vary by region, typically ranging between 20 and 200 euros.
Special features:
• If the municipality decides to exercise its right, it must acquire the property under the same conditions offered by the buyer.
• This is a rare but possible occurrence, especially in large cities with a housing shortage.
This process protects public interests and allows the state to utilize properties for important projects when necessary.
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