The term “junk property” was coined in connection with the acquisition of real estate and/or investments in real estate funds as part of the tax-subsidized construction boom in East and West Germany after reunification.
Junk property
Schrottimmobilien, was ist das?
Behind the scam with junk real estate is the targeted marketing of inferior properties at inflated prices as a tax-saving model to inexperienced investors. When selling junk real estate, fraudulent sellers and brokers and even notaries and employees of well-known major banks usually work together to the detriment of the investors who are harmed. Unfortunately, junk properties have been and continue to be marketed with great success.
Schrottimmobilien, was kann man tun?
However, in the course of recent case law on the subject of junk property, the rights of defrauded investors have been constantly strengthened. It is becoming more and more common to achieve the reversal of the underlying contracts for the purchasers of so-called scrap properties and to force the opponents of the purchasers of scrap properties to compensate for the damage, ultimately making the investors as if they had their “investment” in the scrap property never acquired.