Real estate: The right of first refusal has become a political issue

The current legislative initiatives are only superficially about the municipal right of first refusal. Instead, politicians want to put pressure on prospective buyers. A guest post explains the background.

MWith a bang, on November 9, 2021, the Federal Administrative Court overturned the practice of pre-emption law, especially in the cities of Berlin, Munich and Hamburg. The outcry was great, and the call for a correction by the legislature quickly followed. He was heard, the traffic light coalition in the federal government agreed on an inspection order in the coalition agreement, and the Federal Council decided to strengthen the municipal right of first refusal.

Now the left have presented a draft law to amend the right of first refusal. After that, it should no longer just depend on how the property is currently being built on and used, but also on future usage intentions. The draft law is silent on how these intentions are to be determined, but information can be found in the explanatory memorandum: not only the right of first refusal itself is to be revived, but also the previous practice of avoidance agreements.