German Court Overturns House Demolition Order in Long-Running Property Dispute

The Federal Court of Justice ruled that a family in Brandenburg cannot be forced to demolish their home, while the case is sent back for further deliberation on compensation and ownership claims.

The Federal Court of Justice (BGH) in Karlsruhe overturned a 2023 ruling that required a family in Rangsdorf, Brandenburg, to demolish their home following a disputed property auction.
The court acknowledged the family acted in good faith when they purchased the property in a flawed 2010 forced auction and built a house on it.
The original owner, a US citizen, successfully challenged the auction due to a procedural error, making him the rightful owner of the land.
The BGH ruled the family is entitled to compensation for the increased value of the land resulting from their home construction if the property is reclaimed by the original owner.
The case has been sent back to the Brandenburg Higher Regional Court to determine the amount of compensation owed and to finalize the legal resolution.