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Real Estate Law

When a two-family house is to become (legally) a single-family house – the Federal Court of Justice draws a clear line on estate agent’s commission

Structurally a two-family house, but intended as a home for a single family – is that enough to trigger the equal-sharing principle under Section 656c BGB? In its judgment of 16 July 2026 (case no. I ZR 111/25), the Federal Court of Justice held: yes, but only if the buyer discloses their intended use no later than upon conclusion of the agency agreement. Anyone who waits until the viewing pays the full commission.

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Real Estate Law

The Forward Deal: Buying Real Estate That Doesn't Even Exist Yet

When someone purchases real estate, they generally buy what they see: a completed building with a known condition, existing lease agreements, and predictable income. In practice, however, another type of transaction has become established in which the closing of the purchase is deliberately postponed to a later date—the so-called forward deal.

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Real Estate Law

Deferred interest-free – and yet taxable interest? The Federal Fiscal Court changes course

Anyone selling real estate within the family often wishes to make the transaction easier to complete. A common solution is for the purchase price not to be paid in one lump sum, but in instalments over several years – without interest.

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Real Estate Law

Brokerage Clauses in Real Estate Purchase Agreements: Berlin Higher Regional Court Protects Tenants with Statutory Pre-Emption Rights

KG Berlin, Judgment of 5 February 2026 – 10 U 52/24

The Berlin Higher Regional Court (Kammergericht) has invalidated a contractual structure that has long been widely used in notarised real estate transactions. Where a tenant exercises a statutory right of first refusal, a so-called constitutive brokerage clause cannot be used to impose the full brokerage commission on the tenant if the broker has agreed to act without remuneration vis-à-vis the seller.

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Real Estate Law

Developer Agreement: Federal Court of Justice Tightens Requirements for Powers of Attorney to Amend the Declaration of Division

BGH, Urteil vom 23. Januar 2026 – V ZR 91/25

The Federal Court of Justice has tightened its stance: Powers of attorney authorizing amendments to the declaration of division will only be considered valid going forward if specific and compelling reasons are expressly stated. General or blanket clauses are no longer sufficient.

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Corporate Law

Current Decision on the Redundancy of “No-Compensation Insurance” in the Transfer of Limited Partnership Interests

The Munich Higher Regional Court (OLG München), in its decision dated 23 February 2026 (31 Wx 294/24), held that, as a general rule, commercial register courts may no longer require “no-compensation insurance” when a change of a limited partner is filed for registration by way of singular succession. The amendment of Section 711 of the German Civil Code (BGB) under the MoPeG, effective as of 1 January 2024, has rendered the previous practice obsolete.

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