BauGB‑Upgrade 2026: share‑deal pre‑emption; what changes from 1 Jan 2027

What law is this, and from when?

The federal government is reforming the Federal Building Code (Baugesetzbuch, BauGB) and related ordinances through the “Act to Modernise Planning and Spatial Planning Law”—internally branded as the “BauGB‑Upgrade”. The cabinet adopted the bill on 27 May 2026; it entered the Bundestag as BT‑Drucksache 21/6588 on 22 June 2026. The government’s explainer states the core BauGB parts are intended to apply from 1 January 2027. The cabinet text sets entry into force for most parts on the first day of the quarter following promulgation, so the final date depends on publication in the Federal Law Gazette (BGBl). As of 20 September 2026 the bill is in the parliamentary process; check the BGBl notice for the definitive dates before closing. ([bundestag.de](https://www.bundestag.de/presse/hib/kurzmeldungen-1191668?utm_source=openai))

The reform has three buyer‑relevant pillars: new municipal acquisition tools around share deals (new §§ 28a–28b BauGB), targeted measures against derelict or neglected buildings (“Schrottimmobilien”), and a fully digital, online‑first plan‑making and publication regime. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Share‑deal cases: a new municipal acquisition right (§ 28a BauGB‑E)

Until now, municipal pre‑emption under §§ 24–28 BauGB was tied to an asset sale (a land sale contract). The bill inserts § 28a (“Erwerbsrecht”) so a municipality, by local statute, can require a sale to itself at market value when the land is being contributed into a company in lieu of an asset sale—i.e., typical share‑deal avoidance patterns. The tool is opt‑in: it only applies where the municipality adopts a statute; without such a statute, § 28a does not bite. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Exemptions: § 28a(2) excludes reorganisations privileged under the Umwandlungssteuergesetz or under § 6(3),(5) and § 16(3) EStG. However, if the acquiring company’s main activity is property development, letting, or trading, the exemption does not apply; the bill uses bright‑line indicators such as more than 50% of turnover from those activities in the last five fiscal years or the property being the company’s most valuable asset at signing. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Timelines and process: if a § 28a transaction is notified, the municipality has three months to exercise the acquisition right by making a notarised purchase offer; the owner then has one month to accept if the offer price is at least fair market value (§ 194 BauGB). There is also an optional “early check”: if the owner informs the municipality of a planned § 28a deal, the municipality must, within ten working days, either confirm it will review or issue a non‑exercise notice. Grundbuch registration is blocked in § 28a areas unless a non‑exercise certificate is produced. For buyers, this means an extra three‑month uncertainty window for in‑kind contributions in municipalities that enact § 28a statutes. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Specialist commentary emphasises that § 28a targets share‑deal structures designed to bypass pre‑emption. Expect municipalities in big cities with active milieu or development policy to consider § 28a zones. ([taylorwessing.com](https://www.taylorwessing.com/de/insights-and-events/insights/2026/07/ausweitung-des-gemeindlichen-vorkaufsrechts-bei-share-deals?utm_source=openai))

Share‑deal reporting duties by property companies (§ 28b BauGB‑E)

A new § 28b allows municipalities, again by local statute, to require notification of reorganisations and share transfers that are taxable under § 1(3) and (3a) GrEStG where the company owns land in the zone. The duty falls on the acquirer (or, in some § 1(3) cases, on the transferor). A copy of the grunderwerb tax notification under § 19(1) GrEStG can satisfy the municipal duty; missing a statutory municipal notice can be fined under § 213 BauGB once enacted. Buyers using SPVs should build this into their signing‑to‑closing checklist in affected municipalities. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Notaries and law firms expect § 28b to give cities early sight of share‑deals and to prevent “silent” control changes in sensitive zones. The Bundesnotarkammer and others have flagged open follow‑up questions on legal effects and coordination with pre‑emption certificates. Expect further guidance after entry into force. ([bnotk.de](https://www.bnotk.de/stellungnahmen/details/referentenentwurf-eines-gesetzes-zur-modernisierung-des-staedtebau-und-raumordnungsrechts?utm_source=openai))

Action against derelict stock (“Schrottimmobilien”)

The bill creates a dedicated pre‑emption trigger for derelict or seriously neglected buildings. New § 24(1) no. 8 targets properties with defects under § 177(2),(3) BauGB whose condition has material negative effects on the neighbourhood. In such cases, the municipality may pre‑empt a sale in the public interest, including to repair or demolish. To close a known loophole, § 24(2) second sentence lets municipalities extend pre‑emption to the purchase of individual condominium units (WEG) in designated areas where derelict buildings are a problem—something general BauGB pre‑emption could not reach before. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Enforcement is tightened: new § 212a(3) removes suspensive effect of appeals against repair or demolition orders in such derelict‑property zones, and § 209(3) allows officials to enter buildings (daytime) to prepare measures. These steps respond to parliamentary calls to equip cities against hazardous “junk” properties. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

The draft also recalibrates § 26 (exclusions) and § 27 (abandonment). It clarifies that in social‑preservation areas (§ 172(1) no. 2), pre‑emption is not excluded merely because the building currently conforms to plan—addressing the 9 November 2021 BVerwG decision that had curtailed practice. Buyers of run‑down houses or units in such designated zones should factor genuine pre‑emption risk into timing and pricing. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

Plan‑making goes fully digital: what that means for due diligence

The reform makes online publication the legally decisive step for both the municipal structure plan (Flächennutzungsplan) and the binding local plan (Bebauungsplan): § 6a and § 10a require publication on the internet in the XPlanung standard and access via the state’s central portal; the previous paper “substitute announcement” is deleted. Public and authority participation moves to an online‑first model, with standard 30‑day periods and a possible extension up to 45 days. The law sets target durations: municipalities “should” complete procedures within two years; no more than 12 months “should” elapse between the end of consultation and final online publication. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

For buyers this raises the bar for desktop checks: plans and participation records will be online by design, including the final “consolidated statement”. You should review the municipal portal and the state central portal for the project area before signing. Government briefings emphasise the goal of faster, simpler, digital plan‑making; the Bundestag’s committee notes link this with new municipal tools, including in derelict‑property cases. ([bundesregierung.de](https://www.bundesregierung.de/breg-de/aktuelles/staedtebau-reform-wohnungsbau-2433256?utm_source=openai))

Caution: the two‑year and 12‑month periods are targets, not hard deadlines. Existing procedures started before the entry‑into‑force date will generally continue under old rules unless the statute says otherwise; check the transitional clause once promulgated. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

What changes for buyers from 1 January 2027 (practical points)

- Asset deals in designated zones remain subject to municipal pre‑emption and to the familiar negative certificate. In social‑preservation areas the exclusion based on current conformity is narrowed—pre‑emption risk increases compared with the post‑2021 status quo. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

- Share‑deal structures will no longer reliably avoid municipal intervention. In § 28a zones, an in‑kind contribution can trigger a municipal acquisition right; build a three‑month contingency into SPA long‑stop dates and financing conditions if a § 28a statute applies. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

- Property companies in § 28b zones will have to notify control‑changing or reorganisational steps that are reportable for real‑estate transfer tax. Align your tax, notarial and municipal notifications to avoid fines under § 213 once the statute is live. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

- Derelict‑property areas: buying a run‑down rental house or a unit in a building flagged under § 24(1) no. 8 carries genuine pre‑emption and enforcement risk, including non‑suspensive repair or demolition orders. Price and timing should reflect that. This is a high‑risk profile: get local legal advice. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

- Due diligence must include the municipal website and the state central portal for online plan publications. Record the 30‑ or 45‑day participation windows and the date of final online publication for long‑stop covenants. ([dserver.bundestag.de](https://dserver.bundestag.de/btd/21/065/2106588.pdf))

This article is general information, not legal advice. For transactions, ask a German notary (Notar) and a real‑estate lawyer about § 28a/§ 28b statutes at the property’s location and the exact entry‑into‑force date from the BGBl notice. ([bmwsb.bund.de](https://www.bmwsb.bund.de/SharedDocs/gesetzgebungsverfahren/DE/Downloads/stellungnahmen/baugb-upgrade/DNotV.pdf?__blob=publicationFile&v=2&utm_source=openai))