LEXIKON

The decision of the Austrian Supreme Court (OGH) of October 21, 2025, 8 Ob 101/25y, (www.ris.bka.gv.at/jus) dealt with the question of whether a right of repurchase can be effectively agreed upon in favor of both the seller and her husband when selling a property.

The right of repurchase pursuant to Section 1068, first sentence, of the Austrian Civil Code (ABGB) is a unilateral right of disposition subject to the condition that it is exercised by the person entitled to repurchase, which is exercised by means of a unilateral, irrevocable declaration. As soon as the person entitled to repurchase makes this declaration, the second purchase agreement, which was already conditionally concluded with the first purchase agreement, comes into effect with the parties’ roles reversed.

Pursuant to Section 1070 ABGB, this right is limited to the lifetime of the entitled person and is non-transferable and non-heritable (mandatory law).

It is also permissible to agree on a third party as the repurchase beneficiary. In the present case, however, competing repurchase rights were agreed upon, namely those of the seller and her spouse, which is inadmissible as a violation of Section 1070 ABGB.

The invalidity of the repurchase right does not affect the validity of the first purchase agreement.