Selling a plot of land is more demanding than many owners expect. Unlike a finished house, with land it is above all what is legally possible on the site that matters: is the area ready for development (baureif) or merely expected building land (Bauerwartungsland)? Does it fall within the scope of a development plan (Bebauungsplan), within the built-up area under § 34 BauGB, or in the practically non-developable outlying area (Außenbereich)? Is it serviced with utilities (erschlossen)? These questions often determine the value more than the square metres alone. This guide takes you objectively through valuation, documents, taxes and the notarial process – with an eye to the particularities of the market in Düsseldorf and North Rhine-Westphalia. As real-estate and land transaction experts, we at Richter have been supporting owners discreetly and with sound market knowledge for decades.
What your land is worth: land standard value and market value
Two terms are often confused when it comes to land value. The land standard value (Bodenrichtwert) is an average location value in euros per square metre for an entire standard-value zone, derived from purchase prices actually achieved. The expert committees (Gutachterausschüsse) of the cities and districts determine it and, in North Rhine-Westphalia, publish it free of charge via the official portal BORIS-NRW. It is a valuable guideline figure, but not a binding purchase price: it refers to a notionally average, serviced plot within the zone.
The market value (Verkehrswert) under § 194 BauGB, by contrast, is the price that could be achieved in ordinary business dealings for your specific plot. For undeveloped land it is derived using the comparative value method (Vergleichswertverfahren) in accordance with the ImmoWertV: from the purchase prices of comparable plots, adjusted for size, layout, servicing status, building rights and encumbrances. A well-shaped, development-ready plot in a sought-after Düsseldorf location can lie well above the land standard value, while a corner plot suspected of contamination can lie noticeably below it.
In a market like Düsseldorf, where even small differences in location and building rights decide considerable sums, a professional, market-based valuation pays off. It is the basis for a realistic asking price – and thus for a swift, secure sale.
Building land, expected building land or farmland: the decisive classification
The value of a plot stands or falls with its planning-law classification. The closer an area is to secured buildability, the higher its price per square metre is as a rule.
- Development-ready land (Bauland): buildability is legally secured, for instance through a qualified development plan (Bebauungsplan) or a secured built-up area, and servicing is largely in place. The highest value per square metre.
- Raw building land (Rohbauland): areas that are intended to become building land in future, but for which the development plan and/or servicing are still missing. Value between expected building land and development-ready land.
- Expected building land (Bauerwartungsland): areas for which, based on the municipality's specific planning, there is a serious expectation of future buildability. Speculative in nature, well below building land.
- Farmland and grassland: agriculturally used areas, in planning-law terms mostly outlying area (Außenbereich) and therefore not buildable in principle. Their value is based on agricultural yield capacity and lies clearly below building land.
Anyone selling a plot should know this classification and be able to substantiate it – it is the strongest argument in price negotiations and protects against unrealistic expectations on both sides.
Clarifying buildability: development plan, § 34 BauGB and the preliminary building enquiry
Whether and how building is permitted is governed by the Building Code (Baugesetzbuch). Three constellations are central for sellers:
- Qualified development plan (Bebauungsplan, § 30 BauGB): if the plan contains stipulations on the type and extent of building use, the developable areas and the traffic areas, a project is permissible if it does not contradict those stipulations and servicing is secured. Here buildability is clearest.
- Unplanned built-up area (§ 34 BauGB): if the plot lies within contiguously built-up parts of a locality without a development plan, a project is permissible if it fits into the character of the immediate surroundings and servicing is secured.
- Outlying area (§ 35 BauGB): outside built-up parts of a locality, projects are in principle inadmissible, apart from narrowly defined privileged exceptions. For private residential development this generally means: not buildable.
Anyone wishing to remove uncertainty submits a preliminary building enquiry (Bauvoranfrage) to the building authority (Bauordnungsamt). The preliminary building decision (Bauvorbescheid) granted is a binding administrative act that settles key questions of buildability – such as the admissibility of a detached house, the number of storeys or the degree of utilisation – for several years. A positive preliminary building decision considerably reduces the risk for buyers and can noticeably increase the achievable price.
Servicing and development contributions
A plot is regarded as serviced (erschlossen) when it is connected to the public road and connection options exist for sewerage, drinking water and electricity supply, frequently also for gas and telecommunications. The servicing status is strongly value-forming: a fully serviced plot is calculable for buyers, whereas for unserviced areas they have to budget for considerable additional costs.
For the initial construction of public servicing facilities such as roads, paths and lighting, municipalities may levy development contributions (Erschließungsbeiträge) from the owners of the serviced plots under §§ 127 ff. BauGB. The municipality bears its own share of at least ten percent, and the rest is distributed among the abutting owners. Whether contributions are still outstanding – for instance an outstanding final settlement for the road – is value-relevant and should be clarified before the sale. The purchase contract usually expressly stipulates who bears outstanding or future contributions.
These are the documents you need for the sale
Complete documents build trust, speed up the review by buyers and notary, and prevent delays at notarisation. Obtain these documents early:
- Current land register extract (Grundbuchauszug) – proves ownership, encumbrances, easements and land charges; the notary requests it from the land registry for notarisation.
- Cadastral map / property map (site plan) – official extract from the real-estate cadastre with boundaries, location and neighbouring plots.
- Development plan (Bebauungsplan) or planning-law information – the city's stipulations; within the built-up area, information under § 34 BauGB.
- Contaminated-site information (Altlastenauskunft) – information from the contaminated-sites register of the competent soil protection authority on whether the plot is listed as suspected of contamination.
- Extract from the building encumbrances register (Baulastenverzeichnis) – building encumbrances are not entered in the land register but kept by the building supervisory authority.
- Proof of servicing (Erschließungsnachweis) – information from the city on the servicing status and on outstanding contributions.
Also useful are a land standard value extract from BORIS-NRW, any existing preliminary building decisions, and, for agricultural areas, existing lease or use agreements. We support you in obtaining and properly preparing these documents.
Process, notarial contract and land register
The sale follows a clear path: realistic valuation, preparation of the documents, targeted approach to suitable prospective buyers, viewing and negotiation, and then the legally secure completion.
Every land purchase contract must be notarised under § 311b BGB; a contract concluded without this form is void. The notary drafts the contract, notarises it with both parties and handles the entire processing with the land registry and tax office. The buyer becomes the legal owner only upon entry in the land register (§ 873 BGB).
The typical process: after notarisation, a priority notice of conveyance (Auflassungsvormerkung) is entered in the buyer's favour, securing the buyer's claim to the transfer of ownership. Only then does the purchase price fall due and is paid. After payment of the real-estate transfer tax (Grunderwerbsteuer), the tax office issues the clearance certificate (Unbedenklichkeitsbescheinigung), and with the conveyance (Auflassung) (§ 925 BGB) and the re-registration in the land register, ownership passes definitively. This mechanism protects both sides – the buyer only pays once secured, and the seller only transfers against secured payment.
Taxes, agents and typical mistakes
Speculation tax (§ 23 EStG): if you sell a private, undeveloped plot within ten years of acquisition, the gain is taxable as a private disposal transaction. The capital gain (sale price less acquisition costs and disposal costs) is taxed at your personal income-tax rate. After ten years have elapsed, the gain is tax-free. Whether a sale within the period makes sense is something you should clarify individually with your tax adviser.
Real-estate transfer tax (Grunderwerbsteuer): in North Rhine-Westphalia it amounts to 6,5 % of the purchase price and is usually borne by the buyer under the contract. As a rule, therefore, it does not burden you as the seller.
Agent or private sale: a private sale saves commission, but requires market knowledge, time and legal care. Anyone who misjudges buildability, value or documents here quickly gives away more than professional support costs. Common mistakes: an unrealistic price derived from the land standard value; unclear buildability; missing documents; concealed contamination or outstanding development contributions; as well as an untargeted, highly public marketing approach that does not do justice to the value of a special plot.
