Key Facts at a Glance
- Land subdivision refers to the division of a single property into several separate plots of land.
- In principle, the subdivision of land does not require official approval, although permits may be necessary in certain exceptional cases.
- The most complex and time-consuming step in the subdivision process is the surveying of the newly created plots.
What is a legal subdivision of land?
Land subdivision refers to the division of a single property into several separate plots. Under section 903 of the German Civil Code (BGB), the owner may deal with the property as he or she wishes. This includes the right to subdivide the property. The reasons for subdivision vary:
- Inheritance: If an estate is to be divided without selling the property, subdivision allows each heir to receive a portion of the land.
- Sale: Smaller plots often achieve significantly higher prices per square metre than larger plots. Subdividing a large plot and selling the new plots separately can therefore be financially attractive.
- Encumbrance: If only part of a property is to be encumbered (for example with a land charge), it may be sensible to subdivide the property and encumber only that portion.
What requirements must be met for land subdivision?
Overall, the following requirements must be met for land to be subdivided:
- Surveying: To ensure the new plots can be legally identified, they must first be officially surveyed by the land survey office (official continuation certificate, “amtlicher Fortführungsnachweis”).
- Application: The subdivision is carried out on application by the owner to the land registry. If the property is owned by several co-owners, all co-owners must file the application. If the application is filed by another person, that person must be authorised.
- Consent: The owner must consent to the subdivision. This consent must be notarised (notarial certification) as a minimum.
- Approval: In most German federal states, legal subdivision does not require state approval. However, there are exceptions. For example, approval is required in North Rhine-Westphalia and Hesse, and certain areas (e.g. redevelopment areas) may also require approval.
- Planning law: Where a development plan exists, the subdivision must not create conditions that are contrary to planning law. Such issues can arise, for example, if setback distances are no longer observed or too much of the plot is built over.
When does a conflict with the development plan arise?
If a development plan has been adopted with binding effect, the subdivision of a plot must not result in any conflict with the determinations of that development plan. Whether there is a conflict depends on what determinations the plan contains. Particularly relevant to subdivision are the following:
- Size of building plots: Some development plans prescribe minimum and/or maximum plot sizes. For example, certain areas require plots of several thousand square metres to preserve the character of the area. Where such rules exist, subdividing a plot into many small parcels is not an option.
- Setback areas: Setback rules govern how far construction must be set back from neighbouring plots. They therefore reduce the buildable portion of a plot. If a plot is subdivided into very small parcels, the new plot may become only marginally buildable.
If subdivision creates circumstances that breach building law, the building authority can only intervene after the subdivision has been entered in the land register. The building authority therefore has no veto right.
How does the legal land subdivision process work?
The subdivision of land generally takes place in three steps. Provided no legal or practical issues arise, the process can be completed quickly:
- Approval: If approvals are required, they should be obtained after planning the subdivision. Which approvals are needed depends on the location and region of the property.
- Cadastral survey: The second step is the cadastral survey. Both the existing plot and the new plot(s) are surveyed. In exceptional cases, a survey may not be required (for example if the property already consists of several surveyed parcels).
- Legal subdivision: The subdivision becomes legally effective once the land registry records the new plots (parcels) under their own number in the land register.
How long does land subdivision take?
Subdividing a plot of land generally takes several weeks. The specific timeframe primarily depends on the cadastral survey and—where required—how quickly the necessary approval is granted. If an official survey is not required in a particular case, subdivision can often be completed much more quickly.
How much does land subdivision cost?
The costs for subdividing land are typically several thousand euros. They include the costs for the cadastral survey, notarial fees, land registry fees and any approval fees.
- Surveying: Survey costs usually range between EUR 1,000 and EUR 5,000; in individual cases they may be higher or lower.
- Notary & land registry: Notarial and land registry fees depend on the value of the property and are generally in the three- to four-digit range.
