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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.
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