Heritable building right

The right to own a building on someone else's land in return for ground rent.

With a heritable building right (Erbbaurecht), the land remains owned by, for example, a municipality, church or foundation, while the holder builds and uses the building. Terms are often 50 to 99 years. At the end, the building usually reverts to the landowner against compensation. For investors, remaining term, ground rent reviews and consent requirements are essential.

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