Construction encumbrances and contaminated sites: definition and influence on real estate value

It is highly likely that you will stumble across the terms "Baulast" and "Altlast" during your real estate purchase or sale. But what do we mean by this anyway? And to what extent do these affect property values? We'll tell you.

What is a building charge?

Building encumbrances are legal restrictions and obligations to the responsible building authority that apply to the construction or use of a property. They are recorded in the building encumbrance register and specify which structural measures are permitted or prohibited on your property. Among other things, building encumbrances include the distance area building encumbrance, which states that residents may not build on certain areas on their property so that neighbors can comply with the distance areas of their property. Other construction encumbrances include:

  • Development easement
  • Attachment load
  • Parking space construction load
  • Unification construction load

What is meant by a contaminated site?

A contaminated site, on the other hand, describes land that has been altered in an environmentally harmful way by past use. Thus, there are substances on the property that can endanger the health of residents. If a landfill, factory site, or gas station was located on a property, the likelihood of used oil, asbestos, heavy metals, or other chemicals contaminating the soil and air increases.

The effects of construction and contaminated sites on real estate values

Whether construction encumbrances affect property values depends on various factors, such as the type of land that is affected. Furthermore, it is a question of how much the building encumbrance restricts the development or use of the land and who benefits from it. This is different in the case of a contaminated site. For example, contaminated water means a high risk for the residents and thus significantly reduces the property value.

You can find out whether a building or contaminated site will reduce your property value during a professional valuation. We at WEISS IMMOBILIEN are happy to support you in this and advise you individually. Feel free to call us or write us a message. We are looking forward to meeting you!

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