Why should a real estate civil law partnership be entered in the register of companies?
The civil law partnership (GbR) is and has always been a popular legal form for groups of individuals to jointly acquire and manage real estate. In connection with real estate, such a GbR is also regularly referred to as a real estate GbR. On January 1, 2024, a comprehensive reform of partnership law came into force – with far-reaching consequences for future, but also existing, real estate GbRs.
Why registering makes sense
In order to be able to carry out legal transactions such as
• the purchase or sale of real estate,
• the encumbrance of the property with real estate liens (such as a land charge or a mortgage) or other changes that must be entered in the land register,
all GbRs must be entered in the newly introduced company register (similar to the commercial register) and the land register must then be corrected with regard to the owner.
Important: There is no general obligation to enter the GbR in the company register. However, registration is a mandatory requirement for the legal transactions mentioned above.
Regarding the correction of the land register: Prior to the reform of partnerships, the individual partners of the GbR were entered in the land register with the addition “in Gesellschaft bürgerlichen Rechts” (in a civil law partnership). Now, only the GbR entered in the register of companies is listed as the legal entity.
But there is also good news!
Entry in the commercial register and correction of the land register can be carried out at any time and without cause. And correction of the land register is currently even favored by the legislature with exemption from court costs.
We would be happy to assist you with this!