ABSTRACT
It is an important aspect of the given facts that the building is sold to an investment bank. It has to be pointed out that in German law an isolated sale of a building usually does not exist: the subject matter of those contracts always focuses on the real estate. In this respect only the property right refers to, and is regarded as inseparable from, its essential elements – such as a building. The legal system only provides some exclusions, e.g. the Erbbaurecht, which might be translated as ‘building lease’ or ‘heritable right to a building.’ Accordingly, it is assumed that the vendor sold the real estate and not the building alone. Beyond this, it might be of interest to consider the fact that in the German legal system, property in real estate is transferred by the act of registration in a specific real-estate register, administered in court. In view of the fact that they have already negotiated a contract, the parties may believe that the transfer of ownership takes place at an earlier stage. This point in time is important concerning the field of responsibility.
