Land Purchase Agreement: Area, Boundaries, and Hidden Defects
One of my clients once showed me a land purchase agreement where a single square meter was missing – the registered area in the Land Register didn’t match reality. The result? A price hundreds of thousands lower than expected, and years of disputes with the seller.
Buying land may seem straightforward: parcel number, price, signature. But land transactions are where errors occur most often – mismatched area, unclear boundaries, or hidden defects that surface only during construction.
This article is part of the Main Purchase Agreement Hub, where you’ll find all core articles on this topic.
You Might Be Thinking…
“If the land is registered in the Land Register, everything must be clear, right?”
Not necessarily. The Land Register shows only the recorded area, which may not reflect reality. That’s why § 2129 of the Civil Code gives the buyer the right to a price reduction if the area does not match the contract.
Clients Often Ask Me…
How can I verify the area and boundaries of a plot?
What rights do I have if there’s a discrepancy?
What if the land has hidden defects (e.g., waterlogging, underground utilities)?
What must the contract include to be valid?
How can I avoid disputes when buying land?
What a Land Purchase Agreement Must Contain
1. Land Identification
Exact description according to the Land Register (§ 2128 Civil Code).
Parcel number, title deed, cadastral area.
Even small typos can cause the Land Register to reject the filing.
2. Area and Price
If no area is specified, the Land Register record applies.
If the actual area is smaller, the buyer has a right to a price reduction (§ 2129 Civil Code).
If it’s larger, the price generally doesn’t change unless agreed otherwise.
3. Boundaries and Layout
Always have boundaries marked by a surveyor.
Discrepancies are a common source of neighbor disputes.
4. Land Defects
Hidden defects: waterlogging, contamination, underground utilities.
The seller must disclose known defects (§ 2095 Civil Code).
Buyers can claim defects later if they weren’t obvious at purchase.
Risks and Common Mistakes
Incorrect identification → Land Register rejects the filing.
Area discrepancies → buyer has the right to a discount, but disputes may follow.
Unverified boundaries → conflicts with neighbors.
Hidden defects → costly remediation (e.g., drainage).
Lawyer’s Recommendation
✔ Always compare the Land Register area with the actual state.
✔ Have boundaries verified by a surveyor.
✔ Request information on underground networks and burdens.
✔ Have the contract reviewed by a lawyer – even a minor error can cost hundreds of thousands.
FAQ
Can I claim a discount if the land is smaller?
Yes, § 2129 Civil Code entitles the buyer to a reasonable discount.
What if I find hidden defects?
You can exercise rights from defective performance – a price reduction or even contract withdrawal.
Does the land purchase agreement have to be in writing?
Yes, otherwise it is invalid (§ 2128 Civil Code).
How can I prevent boundary disputes?
Have the boundaries surveyed and included in the contract.
How I Can Help
Draft or review your land purchase agreement.
Ensure you have legal and factual certainty about area and boundaries.
Protect you from hidden defect risks and neighbor disputes.
- Publikováno:
- Naposledy aktualizováno: 06/09/2025
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Land Purchase Agreement: Area, Boundaries, and Hidden Defects
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