You receive an extract from the land register for the offered property. Besides a right important for the purchase there is a registered objection. The seller describes it as an unfounded old dispute. For your purchase decision, however, it must first be established which entry is affected and what significance the objection has for the planned acquisition.
Do not read the objection as an arbitrary marginal note
§899 BGB regulates the registration of an objection against the correctness of the land register. §892 deals with the public faith in the land register and names, among other things, the registered objection as an exception to the effect of correctness described there. [WIDERSPRUCH] [GRUNDBUCHVERTRAUEN]
This does not entail a conclusive determination here of a party's entitlement. But it explains why you should not rely solely on the statement that the registered owner will in any case be correctly registered. The specific entry together with its context requires notarial and, if necessary, further legal review.
Determine the affected right and the disputed content
Our editorial recommendation: Have the full extract shown to you to identify which legal position is being challenged. Request identification of the documents that are decisive for that. An objection to ownership and an objection to another right important for your plan must not be lost in a nonspecific statement during the discussion.
Collect existing decisions, consents and documents that explain the status. Ask about the current proceedings and any subsequent changes. The recollection that a dispute was “resolved back then” does not answer the register and procedural status now evidenced.
Move from review to the intended transaction
Ask the advice which acquisition position you would obtain under the intended procedure and which conditions for that are still outstanding. A promise that the objection will disappear at some point is not a documented resolution. Which arrangement or which further decision is required for the specific purchase depends on the case.
Include a financing bank with the actually required current documents. A financing status without the disputed legal situation must not be treated unchecked as confirmation of the overall transaction now at hand. The article does not assert either a secure acquisition or an inevitable unsellability.
Fictitious case: The agreement is only reported orally
An interested party is to give a quick commitment. He hears that the other party to the dispute has long since abandoned its position. In the current extract the objection, however, still appears; a suitable document for the claimed agreement is not available.
He records this discrepancy and requests professional clarification of the actual status. He does not decide himself whether a claimed agreement is sufficient or what evidence is required for an amendment of the register. The example does not assume dishonesty. It shows that an oral report of resolution and the proven acquisition status can be different.
Decide explicitly on the essential uncertainty
Document what is clarified and what remains open for your purchase. If the legal position is a basis of your project, the uncertainty must be assessed before you become bound. A price reduction does not explain its legal significance. What is needed is a concrete answer for the planned acquisition, including its limits.