Detailed description
A hereditary building right gives you the opportunity to build your own property on someone else's land without having to purchase the land. In return, you pay a regular ground rent, which is stipulated in a contract. This contract is valid for up to 99 years.
The leasehold can be sold, inherited, or used as collateral for loans. The person or institution providing the land is called the leasehold issuer. This can be a municipality, church, foundation, or private individual.
A hereditary building right can also cover several properties or existing hereditary building rights.
In principle, for the registration of these overall hereditary building rights, the properties concerned must
- in the same land registry district and
- are located in the same cadastral district and
- directly adjacent to each other.
This may be deviated from if
- the properties to be encumbered are close to each other and
- The subject of the hereditary building right is a single building or a building with associated ancillary facilities on the land to be encumbered or
- the hereditary building right is to be divided into apartment or partial hereditary building rights.
The land registry office enters the hereditary building right into the land register and creates a separate hereditary building land register for this purpose.