The Hanseatic Higher Regional Court in Hamburg has ruled in favour of Engel & Völkers LiquidHome (EVLH) in a landmark decision. The proceedings, in which EVLH was represented by the law firm Noerr under the leadership of Dr. Karl-Alexander Neumann, Dr. Tom Billing and Dr. Tobias Lühmann, dealt with a class action brought by the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband e.V. - vzbv). The vzbv had fundamentally challenged the real estate partial sale business model.
The model in question allows property owners to liquidate part of their capital tied up in the property for an immediate payment, without having to give up their residence. This procedure is of significant importance for the entire partial sale industry, which records acquisition volumes in the triple-digit millions annually.
With its judgment of 20 August 2026 (Az. 5 UKI 2/25), the court determined that partial sale contracts constitute an independent category of contract and are therefore not subject to the provisions of consumer loan law. This decision is of central importance as it makes the benefits of real estate partial sales accessible to owners who would otherwise be denied this option due to strict creditworthiness requirements.
Furthermore, the court clarified that EVLH is entitled to a fee for the use of its property shares, based on a usufruct right. It was explicitly stated that this agreement is not subject to tenancy law provisions. Moreover, the Hanseatic Higher Regional Court confirmed that EVLH is entitled to the contractually agreed processing fee for the sale of the entire property to a third party.
Noerr is a law firm specialising in defending against complex model cases, banking law, and financial regulation. As early as 2023, Noerr, led by Dr. Karl-Alexander Neumann, had advised EVLH on the financial regulatory structuring of partial sales. Engel & Völkers LiquidHome is one of the leading providers in the real estate partial sale segment.
The judicial confirmation of the business model creates legal certainty for providers and customers alike and underscores the role of real estate partial sales as an established financing alternative in the German market. This continues to ensure access to this liquidity model for property owners.
