In a recent development in the German legal landscape, the Federal Supreme Court (Bundesgerichtshof, or BGH) had to address the legal categorization of an over-arching underground garage (Grundbuchsache V ZB 12/22). Specifically, the question was whether an underground parking garage that spans across property lines, constructed as a legal overbuilding, can be seen as a separate building, even if it is architecturally tied to a residential building, whose foundation it serves.
This issue is of particular significance because, previously, there had been no highest court jurisdiction on this matter. In a 1983 BGH ruling, only a peripheral static connection was subject to discussion, which was not considered crucial at the time as per Hogan Lovells.
For those legal professionals advising large corporations and law firms that engage in extensive real estate deals, it is crucial to understand the potential legal implications of such categorisations, as these can significantly impact property rights, zoning laws, and regulations. Legal professionals should keep an eye on the outcome of this case, as it could potentially affect the structuring of large, cross-property construction projects in the future.
For further details on the matter, you can access the original case commentary here.