Property in a community of heirs: buy out, sell or auction? – explained

If several people inherit a property, it belongs to them jointly (§ 2032 BGB) – they can only dispose of it jointly (§ 2040 BGB), and every co-heir can demand the partition of the estate at any time (§ 2042 BGB). This video explains in about four minutes the ways out of a community of heirs and why the market value is decisive.

What you will learn in the video

• Four ways: sell jointly, one heir takes over and pays out the others, sell an inheritance share (before a notary, right of first refusal of the co-heirs), partition auction.
• Worked example: Three siblings inherit a house worth 600,000 € – the sister takes it over and pays 200,000 € each; every 30,000 € in the value of the house means 10,000 € per brother.
• Real estate transfer tax: If a co-heir takes over the estate’s property to divide the estate, this is usually tax-exempt (§ 3 no. 3 GrEStG).
• Partition auction: no judgment required, market value set by the court, value thresholds of 50 % and 70 % at the first auction date, suspension for up to six months.
• In practice: a joint appraisal or a binding expert determination as a neutral basis.

Legal basis and sources (as of 8 October 2026)

• §§ 2032–2042 BGB – community of heirs and partition of the estate
• § 753 BGB – partition by sale
• §§ 180, 181 ZVG – partition auction
• §§ 74a, 85a ZVG – value thresholds
• § 3 no. 3 GrEStG – acquisition by co-heirs
• §§ 317, 319 BGB – expert determination
• Section 194 BauGB – market value

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not legal or tax advice and replaces neither advice from a specialist lawyer for inheritance law nor an appraisal of your property. Examples are simplified.