Supreme Court Rules Family Can Keep Their Home in Brandenburg

Rangsdorf, Brandenburg - The long-standing struggle of the W. family to retain their home has reached a favorable conclusion. Despite the property being legally attributed to the original owner due to a judicial error, the family will not be required to demolish their house, as determined by the Supreme Court on Friday.

The Federal Court of Justice (BGH) in Karlsruhe assessed whether the family would have to bear the costs of demolishing their self-built home. The court also addressed the issue of whether the W. family was obligated to pay a usage fee to the property owner and to have the mortgage removed. The court's ruling clarified these matters significantly for the W. family.

While it is established that the land is still owned by the original proprietor, who can demand its return, the family is absolved from the obligation to tear down their house at their own expense (Case No. V ZR 153/23). Furthermore, the mortgage will remain intact, allowing the family to seek reimbursement for the increase in property value resulting from their construction.

The exact amount owed will now be determined by the Higher Regional Court (OLG) in Brandenburg an der Havel, to which the BGH has remitted the case.

The legal entanglements date back to 2010 when the W. couple won a bid at a foreclosure auction for a plot of land in Rangsdorf, situated south of Berlin. They proceeded to build their dream home and move in with their children. However, the original owner later asserted his claim to the property, stating that he only learned of the auction after it had concluded.

The case gained national attention due to its implications for judicial fairness. The local court in Luckenwalde was found to have inadequately searched for the rightful owner prior to the auction, leading to a significant judicial error, as concluded by the Potsdam Regional Court in 2014. Consequently, the court annulled the auction, reinstating the original owner's claim.

In June 2023, the OLG ruled against the W. family, mandating the demolition of their house within a year and the clearing of the property. They were also ordered to cancel a mortgage of 280,000 euros plus interest related to the construction costs and pay the original owner approximately 6,000 euros for the property's use.

In response, the W. family appealed the ruling, which led to the case being brought before the BGH. Despite facing an uphill battle, they maintained hope until the court's recent decision marked a pivotal moment in their fight.

Brandenburg's Justice Minister Benjamin Grimm hailed the BGH's ruling as a significant milestone. He emphasized that the W. family would not be forced to demolish their home and asserted that they would only need to vacate the property if the owner compensates them for their investment in the house. The state still bears responsibility for addressing the material damages incurred by the family, Grimm added.