Noerr successfully defends Engel & Völkers LiquidHome’s partial property sale model

A Noerr team led by Karl-Alexander Neumann, Tom Billing and Tobias Lühmann has successfully defended Engel & Völkers LiquidHome (EVLH) against an action brought by the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband e.V., vzbv). 

In the proceedings, the Federation of German Consumer Organisations challenged the business model of selling a share in residential property. The model enables property owners to unlock part of the capital tied up in their property in return for an immediate payment, without having to move out of their home. The proceedings before the Hamburg Higher Regional Court (Hanseatisches Oberlandesgericht) (case no. 5 UKI 2/25) are of test-case significance for the entire partial property sale sector, which acquires properties worth hundreds of millions of euros each year. 

In its judgment of 20 August 2026, the court confirmed that partial property sale agreements constitute a distinct category of contract and are not subject to consumer credit law. This means that the benefits of a partial property sale also remain available to homeowners who might otherwise be unable to enter into such an arrangement because they do not meet the stringent creditworthiness assessment requirements. The court further decided that EVLH was therefore entitled to charge a fee for the homeowners’ use of its share in consideration for the life estate (usufructuary right) granted by EVLH. The court held that this arrangement was not governed by residential tenancy law. Finally, it also confirmed that EVLH was entitled to the agreed transaction fee for handling the sale of the entire property to a third party. 

Noerr is recognised as a leading law firm for defending complex test cases and advising on banking law and financial regulation. In 2023, a Noerr team led by Karl-Alexander Neumann advised EVLH on structuring its partial sale model to comply with financial-services regulations. EVLH is one of the largest providers in the German partial property sale market. 

Advisors to EV LiquidHome Beteiligungen GmbH & Co. KG: Noerr Partnerschaftsgesellschaft mbB 

Lead: Karl-Alexander Neumann (Financial Services Regulation, partner, Hamburg), Tom Billing (Banking & Finance, partner), Tobias Lühmann (Class Action & Mass Claims Defence, associated partner, both Berlin) 

Class Action & Mass Claims Defence: Julian Taufmann (senior associate, Berlin) 

Digital Business: Fernanda Bremenkamp (senior associate, Berlin)