Subtitle 3. Combination, intermixture, processing (Section 946 – 952)

Last Updated on June 28, 2021 by LawEuro

German Civil Code (BGB) German law

Subtitle 3
Combination, intermixture, processing

Section 946
Combination with a plot of land

If a movable thing is combined with a plot of land in such a way that it becomes an essential part of the plot of land, the ownership of the plot of land extends to this movable thing.

Section 947
Combination with movable things

(1) If movable things are combined with each other in such a way that they become essential parts of a uniform thing, the previous owners become co-owners of this thing; the shares are determined by the relationship of the value that the things have at the time of combination.

(2) If one of the things is to be seen as the main thing, its owner acquires sole ownership.

Section 948
Intermixture

(1) If movable things are inseparably intermixed or mingled with each other, the provisions of section 947 apply with the necessary modifications.

(2) The situation is equivalent to inseparability if the separation of the intermixed or mingled things would entail disproportionately high costs.

Section 949
Extinction of third party rights

If, under sections 946 to 948, the ownership of a thing is extinguished, the other rights in the thing are also extinguished. If the owner of the encumbered thing acquires co-ownership, the rights in the share that takes the place of the thing continue in existence. If the owner of the encumbered thing becomes the sole owner, the rights extend to the joined thing.

Section 950
Processing

(1) A person who, by processing or transformation of one or more substances, creates a new movable thing acquires the ownership of the new thing, except where the value of the processing or the transformation is substantially less than the value of the substance. Processing also includes writing, drawing, painting, printing, engraving or a similar processing of the surface.

(2) On the acquisition of ownership of the new thing, the existing rights in the substance are extinguished.

Section 951
Compensation for loss of rights

(1) A person who, as a result of the provisions of sections 946 to 950, suffers a loss of rights may require from the person to whose benefit the change of rights occurs payment in money under the provisions on the return of unjust enrichment. The restoration of the former state cannot be required.

(2) The provisions on the obligation to pay damages for torts and the provisions on the reimbursement of outlays made and on the right of removal of an installation are unaffected. In the cases of sections 946 and 947, the removal under the provisions applying to the right of removal of the possessor in relation to the owner is admissible even if the combination was not made by the possessor of the main thing.

Section 952
Ownership of documents of debt

(1) The creditor shall be entitled to the ownership of a certificate of indebtedness issued with regard to a claim. The right of a third party to the claim extends to the certificate of indebtedness.

(2) The same applies to documents on other rights under which performance may be requested, in particular for mortgage, land charge and annuity land charge certificates.

(German Civil Code)

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