Division (Physical Division)

Physical Division (Realteilung) - Physical division is the splitting of a parcel of land into two or more separate parcels, each of which is assigned its own land register page. Unlike legal division (co-ownership shares), physical division results in legally and economically independent parcels of land. Physical division requires approval from the competent building authority and must be carried out by a licensed surveyor.

Legal Requirements

The division of a property is regulated by state building codes. In Bavaria (Art. 7 BayBO), a property division is exempt from approval but must be notified to the building authority at least one month prior to implementation. The authority checks whether the resulting parcels meet the requirements of building regulations-in particular, whether setbacks, parking space requirements, access, and minimum lot size as specified in the zoning plan are complied with. If requirements are not met, the authority may prohibit the subdivision within the one-month period.

In addition, the subdivision must be implemented topographically by the cadastral office: A publicly appointed surveyor conducts the subdivision survey, sets boundary markers, and prepares the proof of continuation. Only after the data has been entered into the real estate cadastre can the land registry create the new land registry pages.

Practical Applications

Physical division is used in various situations:

• Creation of building lots: A large property is divided to create an additional building lot-especially in areas with high demand and scarce building land
• Settlement of an estate: Communities of heirs divide a property to assign each heir an independent parcel
• Sale of portions of land: Owners sell an unused portion of land-such as an oversized garden
• Real estate development projects: Developers divide a property to construct separate residential buildings on independent parcels
• Dissolution of co-ownership: Fractional owners dissolve their community through physical division rather than auction (Section 752 of the German Civil Code (BGB), provided the property is physically divisible)

The Process of Property Division - Step by Step

Step	Action	Responsible	Time Required
1	Preliminary building inquiry / Coordination with the building authority	Owner / Architect	4-8 weeks
2	Notification to the building inspection authority	Owner / Surveyor	Before surveying begins
3	Division survey, setting of boundary markers	Publicly appointed surveyor	1-2 days for survey
4	Approval / tacit consent from the authority	Building Authority	at least 1-month waiting period
5	Entry in the Real Estate Cadastre	Nuremberg Cadastral Office	4-8 weeks
6	Creation of new land register pages	Land Registry Office	4-8 weeks
Total			3-6 months

Tax Implications of Real Division

The real division of a property may have tax consequences that should be reviewed before proceeding:

• Real Estate Transfer Tax: If the divided parcel is sold to a third party, real estate transfer tax is levied in Bavaria at a rate of 3.5% of the purchase price. If the parcel remains in the ownership of the same owner (e.g., division of a property owned by the owner), no real estate transfer tax is incurred.
• Speculation tax: Anyone who sells a portion of the property within ten years of acquiring the entire property may become liable for tax on the proportionate capital gain (§ 23 EStG). Special rules apply if the entire property is used for personal use.
• Development contributions: If development contributions must be paid for the new parcel (e.g., for sewer connection or road construction), these must be capitalized as incidental acquisition costs.

Valuation - Income from Subdivision

In the Nuremberg metropolitan region, a physical subdivision can unlock significant value. A simple example:

Option	Property	Estimated Market Value
Undivided property 1,200 m²	1 parcel	approx. €480,000
After subdivision: Parcel A (600 m²)	1 building lot	approx. €270,000
After subdivision: Parcel B (600 m²)	1 building lot	approx. €270,000
Total after division	2 parcels	approx. €540,000

The added value arises because building lots sold as individual parcels are in higher demand among owner-occupiers and developers at higher prices per square meter than large, undivided properties. A prerequisite is that both parcels meet the requirements of building regulations.

Practical Tip for Property Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region-especially in sought-after locations such as Erlenstegen, Mögeldorf, or Ziegelstein-subdividing a large property can unlock significant increases in value. We recommend submitting a preliminary building application to the City of Nuremberg’s Building Regulations Office (Dept. 603) before the division to definitively clarify whether both parcels are buildable and what types of structures are permitted. In Bavaria, surveying costs range between 2,000 and 5,000 euros, depending on the size of the property-a manageable expense relative to the potential proceeds.

Often underestimated: If there is an existing building on the property, the setback distances must be checked for both resulting parcels in accordance with Art. 6 BayBO-the existing building must not fall below the permissible setback distances of the new neighboring parcel. A planning office or architect can perform this check before the notary appointment.

Frequently Asked Questions

How long does a property division take?

In Bavaria, experience shows that it takes three to six months from the time the surveyor is commissioned until the division is entered in the land register. The actual on-site surveying work takes a few days; the majority of the time is spent on administrative processing by the building authority, the cadastral office, and the land registry office. In the Nuremberg metropolitan area, the authorities are easily accessible, but processing times may vary depending on their workload. In complex cases-such as registered encumbrances in the land register or unclear historical boundary points-it can take significantly longer. Anyone planning to sell a portion of the property should factor the processing time into their sales planning.

What does a physical division cost?

The costs consist of the surveying fee (regulated by the Bavarian Surveying Cost Regulations, approx. 2,000-5,000 euros depending on the size of the property and the amount of work involved), the land registry costs for creating new land registry pages, and, if applicable, notary fees if real estate liens need to be divided among the new parcels. A preliminary building permit application with the building authority costs between 100 and 500 euros, depending on the municipality. Overall, owners should expect total costs of 3,000 to 8,000 euros-plus potential planning costs if an architect or engineer is consulted.

Can the authorities reject a property subdivision?

In Bavaria, the building authority may prohibit the division within one month of notification if the resulting properties do not meet building code or urban planning requirements-for example, if a property would be too small for the intended development, the required setbacks from the existing building cannot be maintained, or the development of one of the new properties is not secured. Violations of an existing zoning plan (minimum lot size, building line) can also lead to a prohibition. A preliminary building inquiry provides planning certainty and is strongly recommended before making major investments in preparation.

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