Partition auction (Teilungsversteigerung): process, costs and your options
Partition auctions in divorce or inheritance cases: the § 180 ZVG procedure, when it can be stopped and what buyers should look for.
Quick answers
What is a Teilungsversteigerung (partition auction)?
A partition auction is a special form of the German compulsory auction under § 180 ZVG: it dissolves co-ownership of a property – typically a community of heirs or divorcing spouses. Because a house cannot be divided in kind, it is auctioned publicly and the proceeds take the property's place, distributed among the co-owners according to their shares. Unlike a regular foreclosure it is not about debt: any co-owner can apply, no enforceable title required.
Can a partition auction be prevented or stopped?
It can only be prevented outright by agreement – buying out the other co-owner, a joint private sale, or, among heirs, a settlement agreement. It can be delayed: the respondent can apply for a temporary stay of up to six months (§ 180 (2) ZVG), and beyond that if the welfare of a joint child is at risk (§ 180 (3) ZVG). Any co-owner may also simply bid in the auction and keep the property that way.
Is buying from a partition auction worthwhile?
There is no general answer. The reason for the proceeding does not reliably indicate the property's condition or price. Relevant factors include the court appraisal, the minimum bid, any rights that may survive the award, the occupancy situation and your personal budget. Co-owners may bid as well. Review the official announcement, appraisal, land register and the court's auction conditions before you bid.
When co-owners of a property cannot agree – a community of heirs is deadlocked or a marriage ends – German law offers a way out: the partition auction (Teilungsversteigerung) under § 180 ZVG. It is a compulsory auction to dissolve co-ownership: the driver is not debt but every co-owner's right to end the community (§ 749 BGB). Since a house cannot be divided in kind, the auction proceeds take its place (§ 753 BGB).
This guide covers both sides: co-owners considering – or trying to avert – a partition auction, and buyers who need to check the specific conditions of this type of proceeding.
How it differs from a regular compulsory auction
| Compulsory auction (enforcement) | Partition auction | |
|---|---|---|
| Trigger | Creditor enforces a debt | Co-owner wants to end the community |
| Requirement | Enforceable title | Co-ownership per land register – no title needed |
| Applicant | Bank or other creditor | Any co-owner, regardless of share |
| Proceeds | Pay the creditors | Distributed among the co-owners |
| Land charges | Treatment follows the minimum bid | Can survive under § 182 ZVG |
For bidders the hearing itself follows the same rules as any compulsory auction: court appraisal, official announcement, at least 30 minutes of bidding, a security deposit of ten percent of the market value, and the 5/10 and 7/10 value limits.
The two typical constellations
Divorce: the jointly owned home
After separation the home usually belongs to both spouses in equal shares. If one wants to sell and the other does not, either spouse can apply for a partition auction – generally after the year of separation and subject to § 1365 BGB where the property makes up almost the entire marital assets. The proceeding can have substantial financial consequences for both co-owners: court and appraisal costs arise, and the proceeds are not known in advance. Compare a buyout, a joint private sale and a transfer against assumption of the loan before deciding.
Community of heirs: the inherited property
Every co-heir can demand the settlement of the estate (§ 2042 BGB) – and apply for a partition auction of the estate property to get it, even against the will of all others. Alternatives are selling one's inheritance share, exiting against compensation (Abschichtung), or a settlement agreement. Which option makes economic sense depends on factors such as value, encumbrances, use and the parties' willingness to agree. Compare the options for the specific estate.
The process in 6 steps
- Application to the local court (enforcement court) of the district where the property is located. Proof: a land-register excerpt showing co-ownership – no enforceable title required.
- Order of the court; the other co-owners are notified and can appeal or apply for a temporary stay (§ 180 (2), (3) ZVG).
- Market-value appraisal by a court-appointed expert – the same appraisal that ZVG Melder later screens for risks.
- Scheduling and official announcement – from here the case is public and appears on the official portal and on ZVG Melder.
- Auction hearing with minimum bid, bidding time and award – the hearing itself runs like a regular compulsory auction; co-owners may bid.
- Distribution of proceeds: procedural costs and surviving encumbrances are served first; the remainder is distributed by co-ownership shares. If the co-owners cannot agree on the distribution, the court deposits the proceeds – the dispute then moves to separate proceedings.
Duration and costs: There is no generally applicable duration. It depends on factors including the court's workload, the valuation, appeals and any temporary stay. Court costs and the expert's fee come out of the proceeds first – they reduce what is left to distribute.
For buyers: partition auctions as a property source
ZVG Melder bundles the currently announced partition auctions in a dedicated directory; the inventory changes continuously. For buyers, these proceedings differ from other auctions mainly in their purpose and the rights that may survive the award.
For context:
- The proceeding serves to dissolve co-ownership. It does not, by itself, indicate the property's condition or a particular price level.
- The official announcement and, where published, the appraisal provide the basis for your review. The scope and quality of the documents vary by property.
Demanding:
- Surviving encumbrances: In partition auctions, registered land charges can fall into the minimum bid and survive the award (§ 182 ZVG). Whatever you take over, you pay on top of your cash bid – the appraisal and the court's auction conditions tell you what applies. How to check: inspecting a property before the auction.
- Co-owners bidding: Co-owners may bid at the hearing. If they do, they may know the property better than outside bidders. Set your limit beforehand and keep it.
On ZVG Melder the proceeding type is shown on every detail page. All ongoing cases are bundled on the current partition auctions overview; in the auction search you can additionally filter by federal state and get notified about new cases via a saved search.
Note: General orientation, not legal or tax advice. Whether a partition auction is sensible, avoidable or contestable in a specific case is a matter for legal counsel; the official announcement and the auction conditions of the competent local court are authoritative.