The division of an estate can be difficult. Before the estate can be divided, properties must be sold and all estate liabilities must be paid.
The law stipulates that initially all indivisible estate items, e.g. land, cars or furniture, are converted into cash, Sections 2042 (2), 753 (1) BGB. In principle, this is done in accordance with the statutory rules on the sale of pledges (Section 1233 et seq. BGB), in the case of real estate through the partition auction in accordance with Sections 180 et seq. ZVG.
In the second step, all Settle estate liabilities, Section 2046 para. 1 sentence 1 BGB. Each co-heir can also demand that a procedure for the imposition of a public offer be carried out before the remaining surplus is distributed, Section 2045 BGB. The procedure for imposition of a public charge can limit the liability of the heirs: Creditors must register claims against the estate within a certain period of time.
Only in the third step can the remaining surplus will be distributed, Section 2047 (1) BGB.
There is no entitlement to an early payment of foreseeable surpluses or other partial settlement (BGH, judgement of 14 March 1984, case no. IVa ZR 87/82, NJW 1985, 51). A partial settlement can therefore not be enforced, but can only take place if all heirs agree.
Similarly, the heirs can - if all agree - also deviate from the statutory procedure in other respects. For example, it usually makes more economic sense to endeavour to sell the property together, possibly by commissioning a real estate agent, instead of carrying out a forced sale.
However, if the heirs are unable to reach an agreement, the only option is often a partition auction. Every heir has the right to apply for a property belonging to the estate to be auctioned off.