Spa­tial Plan­ning Agree­ments - What Is And What Is (Not) Al­lowed?

With a decision at the end of last year on regional planning contracts in Tyrol, the Supreme Court strengthened the municipalities' backs when drafting contracts and made very exciting general statements on regional planning contracts and the related design options, particularly in connection with the goal of affordable housing, which extend beyond the borders of Tyrol.

Initial situation

In its decision of 19.11.2024 on 1 Ob 57/24z, the Supreme Court dealt fundamentally with the topic of regional planning agreements and the admissibility of certain contractual clauses. The original dispute concerned a regional planning contract concluded between a Tyrolean municipality (defendant) and a property developer (plaintiff). The parties to the dispute agreed that the defendant would reclassify the plaintiff's property from open land to a residential area for the construction of a residential complex, whereas the sale of all units created could only take place under the