Teilungsversteigerung of the Erbengemeinschaft 2026: When a Co-Heir Blocks

What is the Teilungsversteigerung?

The Teilungsversteigerung under § 180 ZVG is a special form of forced sale — different from a normal Zwangsversteigerung in that it pursues a different goal: the dissolution of a community, not the satisfaction of creditors. Every co-owner (co-heir, fractional owner) can apply for it.

Legally it steps in for the consensual Auseinandersetzung under § 2042 BGB where the co-heirs do not agree. The auction proceeds are then, in a second step, distributed by inheritance quota.

Course of the Teilungsversteigerung in 6 phases

Phase 1: application

A co-heir files the application with the competent Amtsgericht. Required: Erbschein (German certificate of inheritance), Grundbuch (German land register) extract, evidence of co-heir status. Costs on application: EUR 500-1,500 (depending on market value).

Phase 2: order

The court checks the formal requirements and orders the auction. A date is set — usually 6-12 months after the application.

Phase 3: valuation

A court-appointed expert determines the market value (costs EUR 500-2,000 out of the estate). The other co-heirs can challenge the value — a second expert report is possible.

Phase 4: auction date

Public auction at the Amtsgericht. Minimum bid 50 per cent of market value; in the first round usually 70 per cent (minimum price under § 85a ZVG). The highest bidder receives the award.

Phase 5: award

Where there is a bid and the minimum is reached: award within 2 weeks. Where not: a second round without a minimum — there a bid under 50 per cent can also win the award.

Phase 6: distribution of proceeds

The auction proceeds are distributed by inheritance quota. Costs (court, expert, lawyers) come off first. Payout to the co-heirs follows within a few weeks of the award.

Who can bid?

In Teilungsversteigerung proceedings everyone may bid — including the co-heirs themselves. That is important: where a sibling wants to keep the property, they can bid at the auction and thus become owner after all.

Advantages: they only add their own share of the bid (the other co-heirs receive their share out of the auction proceeds). Effectively they pay only the value share of the other co-heirs.

Example: three siblings, property with EUR 600,000 market value, minimum bid EUR 420,000 (70 per cent). Where one sibling bids EUR 420,000 and wins, EUR 280,000 of the auction proceeds go to the two other siblings (EUR 140,000 each); the remaining EUR 140,000 is their own share.

Effective effort: EUR 280,000 instead of the EUR 600,000 they would pay for a private acquisition. But: significantly below market value for the other siblings.

Step by step: when to use the Teilungsversteigerung in 6 stages

1. Try mediation. Before the legal step: notary, mediator, arbiter.
2. Consider sale of the inheritance share. Where ONE co-heir blocks, the own share of the estate can be sold — buyers step in as new co-heirs.
3. Consider a partition action. Before the auction, you can sue for Auseinandersetzung — usually only useful with small Erbengemeinschaften.
4. Run the cost analysis. Procedure costs plus expected auction discount versus value under a consensual solution.
5. File the application. Once all alternatives are exhausted: apply for the Teilungsversteigerung at the Amtsgericht.
6. Plan auction tactics. Bid yourself? Inform known buyers? Marketing of the auction?

Comparison: Teilungsversteigerung versus alternatives

Starting position: three siblings, house with EUR 600,000 market value. One sibling has been blocking for 2 years.

The Teilungsversteigerung is rarely the economically best option — it is the legally enforceable one. Anyone who uses it accepts a loss of value for the security of dissolution.

Why auction proceeds are so low

Four structural reasons depress the proceeds:

1. Viewings restricted. In the auction process only limited viewing is possible — bidders price in the risk.
2. Eviction risk. Where the existing occupant does not move out voluntarily, the new owner has to evict — cost and delay.
3. Financing hurdles. Banks finance auction objects more reluctantly than private purchases — bidders are often equity investors with higher yield expectations.
4. Market-information asymmetry. Bidders know that the seller (= the Erbengemeinschaft) has no choice — pricing pressure.

In Germany auction proceeds typically come in at 65-85 per cent of market value, in crisis times or with difficult objects even significantly below.

Frequently asked questions

Can every co-heir apply for the Teilungsversteigerung?

Yes. § 180 ZVG gives every co-owner the right of application — consent from the others is not required. The application is also possible if the others are expressly against it.

What does the Teilungsversteigerung cost?

EUR 15,000-25,000 in total for a property worth EUR 500,000-800,000. Composition: court fees (around 1 per cent), expert (EUR 500-2,000), publication, lawyer's fees optional.

How long does the Teilungsversteigerung take?

From application to award typically 12-24 months. With complex objects or challenges it can also be 2-3 years. Distribution of the proceeds follows a few weeks after the award.

Can the co-heirs stop the application?

Only by consensual solution. Once the auction has been ordered, the application can only be withdrawn by the applicant. The other co-heirs have no veto.

What if no one bids?

First round: minimum bid 70 per cent of value. Where nothing is bid, a second round without a minimum — bids below 50 per cent can then in theory be awarded. In practice a bidder is usually found in the first round in large cities.

Can I bid at the auction myself?

Yes. As a co-heir you can bid at the auction you yourself applied for. You only pay the share of the other co-heirs instead of the full proceeds — very attractive for strategic bidders.

What happens to the decedent's debts?

Debts come off the auction proceeds — before distribution to the co-heirs. Where the debts exceed the proceeds, an estate insolvency follows. The heirs do not liable from their private wealth (unless they failed to disclaim the inheritance).

Can I still sell before the auction?

Yes, as long as the Erbengemeinschaft agrees. Even after the order has been made, a consensual sale can make the auction date moot — the applicant has to consent and the application has to be withdrawn.

Further detail answers

• Dissolving the Erbengemeinschaft 2026: 4 strategies compared — Main guide
• Erbengemeinschaft among siblings — Sources of conflict
• Erbengemeinschaft with a property — Strategies before the auction
• Selling the inheritance share — Dissolving your own position instead of the auction
• Topic hub Erbengemeinschaft

Lead magnet: planning the auction strategy

• Erbschaftsteuer calculator — Calculating the tax burden on the auction proceeds.
• Notfallkoffer — Documentation of all assets and procedures.
• Arrange a first meeting — Strategy before and during the Teilungsversteigerung.

Authority sources

• § 180 ZVG (Teilungsversteigerung)
• § 85a ZVG (minimum bid)
• § 2042 BGB (Auseinandersetzung of the Erbengemeinschaft)
• § 2033 BGB (disposition over the inheritance share)
• § 1967 BGB (liability of the heirs)
• BGH judgment of 28 October 2015 — V ZR 16/15 (auction proceeds and distribution)
• BGH judgment of 25 September 2014 — V ZR 305/13 (Teilungsversteigerung as Auseinandersetzung)