Urban development contracts complement the sovereign spectrum of urban development law. The contractual possibilities of the municipalities extend beyond their sovereign regulatory powers in the form of administrative acts or statutes, in particular, regarding the regulatory possibilities in a development plan. For example, contracts that serve to cover the housing needs of population groups with special housing problems may achieve a social governance that cannot be implemented by designations in the development plan alone. In this context, social housing and affordable housing could be mentioned as keywords. Within the framework of contractual freedom, we help to find balanced and legally viable regulations that serve the mutual interests of municipalities and project sponsors.

Under § 311b Section 1 BGB, an urban development contract requires notarisation whenever a party undertakes to transfer ownership of a property or part thereof. The same applies to the granting and acquisition of heritable building rights.

In many cases, notarisation is necessary because the contract obliges the executing organisation of the project to transfer the land of the public development facilities.