The hereditary building right is a more or less widespread variant of the purchase of land depending on the region. Specifically, the property is leased over a long period of time – usually 99 years. However, the building that the tenant builds on the estate is owned by the tenant. The lease to be paid for the inheritance building right is referred to as “inheritance building interest” and is usually due once a year.
Both the hereditary property and the hereditary property can be transferred to other persons and inherited. In this case, specific assessment rules shall apply.
1. What is behind the inheritance law?
The edifice law is regulated in the edifice law law, in short, ErbbauRG. It is not comparable to classic leases or leases, since property owners must be able to trust that the landlord does not unilaterally terminate the contract. Nevertheless, the so-called builder has various participation rights, for example in the lending of real estate loans, the concrete use of the property to be built or the construction of extensions.
As a result, the inheritance property is a contractual right to use the inheritance property. The consideration of the cultivator consists in the payment of the cultivating interest, which is usually due once a year. An average hereditary interest rate is around 4% of the property value.
The hereditary right expires in two ways. Decisive is the event that occurs first:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.