Division Auction
 

Is it possible for one of the heirs to have a plot of land foreclosed?

The division of an estate can be difficult. Before the division of an estate, land must be silver-plated and all estate liabilities must be paid.

The law stipulates that first of all all indivisible estate items, e.g. land, cars or furniture, must be turned into money, §§ 2042 Abs. 2, 753 Abs. 1 BGB. Basically this is done according to the legal rules of the pledge sale (§ 1233 ff. BGB), in case of real estate by the division auction according to §§ 180 ff. ZVG.

In the second step all estate liabilities are to be settled, § 2046 para. 1 p. 1 BGB. Each co-heir can also demand that a bidding procedure be carried out before the remaining surplus is distributed, § 2045 BGB. The bankruptcy proceedings may result in a limitation of the heirs' liability: Creditors must file claims against the estate within a certain period of time.

Only in the third step can the remaining surplus be distributed, § 2047 Abs. 1 BGB.

There is no claim to an early payment of foreseeable surpluses or other partial distribution (BGH, judgement of 14.03.1984, Az. IVa ZR 87/82, NJW 1985, 51). A partial distribution can therefore not be enforced, but only if all heirs agree.

Likewise, the heirs - if all agree - can also deviate from the legally prescribed path in other points. For example, it usually makes more economic sense to try to sell real estate together, possibly with the help of an estate agent, instead of carrying out a forced auction.

However, if the heirs cannot reach an agreement, the only remaining option is often a partition auction. Every heir has the right to apply for the auction of a property belonging to the estate.