Ersteigerung

Ersteigerung is a concept in German real estate law that refers to the initial sale or transfer of a newly constructed property. This process is distinct from the outright sale of an existing property. In Germany, property developers often build properties and sell them without having worked out the final details, such as the installation of fixtures and fittings. This is because the German property law allows for the transfer of ownership before the property is fully built. However, the buyer of the property is only entitled to possesion of the plot of land and the building envelope. Any finishes and fixtures installed by the developer remain the personal property of the developer and are only transferred to the buyer upon completion of the property.

Ersteigerung is often seen as a way to sell properties at a lower price, as the buyer is not required to pay for the final finishing touches. However, this can leave the buyer taking on the costs of completion or repair if the developer fails to deliver the finished property. This can be a significant financial risk for the buyer, and it is essential for them to negotiate with the seller to clarify the details of the transaction. The advantage of Ersteigerung is that it allows property owners to sell their newly constructed properties before all the work is completed, typically at a faster rate than if they were to wait for a finished product. This can help developers speed up the sales process and lead to quicker returns on investment. However, it requires a certain level of trust between the property developer and the buyer.