Frequently asked questions

A guide to successful real estate purchases

The purchase of a property is a significant long-term investment and requires careful preparation. However, technical terms such as "exemption obligation", "priority notice of conveyance" or "declaration of partition" are often not familiar to everyone. The VENTIS team has extensive expertise in this area and benefits from an extensive network of notaries, experts, lawyers and financial institutions. As your reliable partner, we navigate you through the complex purchase process and help to ensure that your investment bears fruit. Our glossary offers helpful support and serves as a guide to the key terms used in the real estate sector.

What is a property developer?

A property developer, such as VENTIS, undertakes the development of real estate projects by acquiring land, developing development plans for new buildings and/or creating renovation concepts, obtaining official approvals, awarding the construction work to subcontractors, supervising the construction work and selling the turnkey properties to end consumers. Among other things, the MaBV regulates the contractual terms and payment modalities when purchasing a property from a property development company

What securities does the MaBV offer when buying from a property developer?

When purchasing a new property from a developer, the purchase contracts must strictly comply with the requirements of the MaBV. This includes a detailed description of what you are buying, including size details, description of fixtures and fittings and materials, when completion is due and when payments are to be made. In the case of a property that is still under construction, the developer may only request the purchase price in installments after he has already provided a service. As a buyer, you are a consumer and should be protected by the MaBV. In addition to the notary, who is responsible for the contract, independent auditors regularly check whether the property developer is complying with the MaBV. Violations of the MaBV are punishable by high fines

How does the purchase process work with a property developer?

After selecting your dream property, you sign a purchase and work contract that regulates all the details of the purchase and the construction services to be provided by the seller. VENTIS ensures transparency and compliance by setting out clearly defined payment schedules and construction progress in accordance with MaBV.

What are payment plans and how are they regulated by the MaBV?

The MaBV stipulates that payments are made in installments according to the progress of construction. This protects buyers by ensuring that payments are not due until certain stages of construction have been completed. VENTIS creates a detailed payment plan that meets these requirements.

How are claims for defects in new buildings handled by property developers?

The MaBV and the German Civil Code (BGB) grant buyers extensive warranty rights in the event of defects. If defects occur after moving in, VENTIS will take care of rectifying them quickly and effectively to ensure your satisfaction and security.

Can I make change requests after the contract has been signed?

Changes after conclusion of the contract are possible, but depend on the construction phase and must be agreed with VENTIS . The MaBV stipulates that changes that cause additional costs must be clearly communicated and recorded in the contract or in writing.

What happens if construction is delayed?

The MaBV and the BGB protect buyers from unreasonable delays. VENTIS undertakes to inform you of any delays and explains the reasons for them. In addition, depending on the contract and situation, compensation or contract adjustments may be made.

How is the protection of my payments guaranteed?

In accordance with MaBV, your payments must be secured, for example by a bank guarantee or a special construction account if the construction is being built using loan funds. The notary will check which requirements apply to the individual contract and inform you accordingly. This ensures that your invested capital is protected if the developer is unable to meet his obligations.

What documents should I receive from the developer?

You will receive all relevant documents, including building specifications, plans, permits, the purchase contract and proof of compliance with MaBV securities. VENTIS ensures that you are fully informed and protected.

Is there a handover inspection and how is this regulated?

Before the final handover, a detailed inspection of the property takes place, during which any defects are recorded. This inspection is an important part of the purchase process and VENTIS ensures that all defects are rectified in accordance with legal requirements and your rights as a buyer

What additional costs are incurred when buying real estate?

In addition to the purchase price, you should factor in notary fees, land transfer tax (each federal state has different tax rates), estate agent fees/commission (if applicable) and any additional finishing costs. VENTIS provides a detailed breakdown of all costs to give you full transparency

How important is location when buying real estate?

The location is a decisive factor for the value of a property and your well-being. Consider which aspects are important to you, such as proximity to work, schools, shopping facilities or nature. VENTIS always develops in very good locations and helps you to find a property that best supports your lifestyle or to rent out your investment lucratively.

Index

The process of buying a home can sometimes seem quite opaque. There is a lot to consider and of course not everyone takes this step with absolute routine. To give you a little help, we have briefly explained the most common everyday terms for you. Of course, we are always at your side as a competent and reliable advisor and will support you throughout the entire purchase process, from the first contact to your move-in and beyond

Seclusion

A certificate of completion stamped and signed by the building authorities is required for the division of a property into condominiums. This contains the plans of the future apartments, which must be shown as self-contained. The original of the certificate of completion is submitted to the relevant land registry office together with a declaration of division. On this basis, residential and partial ownership is formed and a separate land register is created for each self-contained unit. All parts of the building that are not self-contained (e.g. the stairwell) form common property.

Acceptance

Joint inspection of the object of purchase by the seller and buyer to determine the contractually agreed quality. The buyer has an obligation to accept the object of purchase after completion by the seller. A distinction is made between the acceptance of the separate property - e.g. the apartment and/or the parking space - and the common property. The warranty period (5 years) begins with the acceptance.

Conveyance

The regulation or declaration of the transfer of ownership from the seller to the buyer in accordance with the German Civil Code (BGB). The conveyance is usually included in the purchase contract, whereby copies of the contract with the conveyance are only issued by the notary once the purchase price has been paid. The term originates from Germanic law: in the past, the gate and door were left open when a property was sold so that everyone could see that a new owner was moving in.

Conditions for payment

This term is used in various cases. On the one hand, this can be a regulation in a purchase agreement as to when the notary may pay the purchase price to the seller, provided that the buyer has deposited/paid the purchase price into a notary's escrow account. On the other hand, these are prerequisites for the payment of a loan amount. If a purchase price is financed by a bank, the bank will only pay out the purchase price if certain conditions stipulated in the loan agreement are met

Prior notice of conveyance

To secure the claim to transfer of ownership, a priority notice of ownership is entered in the land register for the buyer. The entry of the priority notice is one of the requirements that must be met before payment is due to the seller. Among other things, it protects the buyer against the seller selling the object of purchase more than once.

Accessibility

In Germany, a certain number of apartments in new builds must be barrier-free by law. Features include wider doors, sufficient maneuvering space in corridors and living rooms/bedrooms, non-slip floor coverings and level access to showers, barrier-free access to balconies, etc.. DIN 18040-2 specifies the criteria that a barrier-free apartment must meet. Accessibility is not the same as wheelchair accessibility. Further criteria and features apply here.

Building description

The building description should fully describe the object of purchase so that the buyer is aware of the building materials and materials used in the construction and in the home. In the case of purchase contracts in accordance with the MaBV (Real Estate Agent and Property Developer Ordinance), the building description, including the description of the fittings and furnishings, is part of the purchase contract. This is notarized in a separate reference deed, which is then referred to in a purchase contract and thus becomes part of the purchase contract.

Power of attorney to debit

All purchase contracts contain a power of attorney to encumber for the buyer. This gives the buyer the option of financing the purchase price via a third party (bank), mortgaging the object of purchase (the apartment) and encumbering it in the land register, even though he is not yet the owner. To ensure that the encumbrance is first used for the purchase price, the power of attorney contains the usual security provisions, which are also known to the banks.

Ready for occupancy

When buying a property in a new building or an old building to be renovated, it is important to agree a date for the completion of the object of purchase. This is usually based on the date on which the property is ready for occupation, i.e. the date on which the property is habitable. This also means that the entire house must be in a habitable condition, even if it is not yet fully completed. The readiness for occupancy is determined in writing by the seller together with the buyer at the time of acceptance. Only when the buyer declares acceptance and thus confirms readiness for occupancy can the seller request the purchase price installment due. After payment of the purchase price installment due, the keys are handed over to the buyer. This means that readiness for occupancy is not simultaneously the transfer of ownership.

Standard land value

The standard land value provides information on the value of a plot of land (without development) and is determined on average using official purchase price collections. All purchase contracts are forwarded by notaries nationwide to the expert committees for land values, which then determine the standard land value using a comparison procedure.

Guarantee

A surety is a unilateral binding declaration by a guarantor to vouch for the fulfillment of an obligation by a third party. In the case of purchase contracts that are subject to the MaBV (Real Estate Agent and Property Developer Ordinance), this can be a guarantee from the property developer's financing bank, in which the bank undertakes to repay the purchase price payments made to the buyer if the construction project is not completed.

Easement

An easement is a right of a third party entered in the land register. This can be, for example, a right of way of a neighbor who can only access his property via the property in question. In the case of building plots, these are often pipeline rights for district heating, water, electricity, etc., which serve to supply the property.

Community of owners

In Germany, the condominium owners' association is the entirety of the partial and apartment owners of a condominium complex in accordance with the German Condominium Act. The owner of a condominium (special property) is always also the owner of a common part (common property) of a residential complex or apartment building.

Development

Development is the connection of a property to the public facilities, i.e. to public roads and to the public supply and disposal network (water, sewage, electricity, etc.). The seller is responsible for the initial development of a property until the completion of a new building and must also bear the costs for this. In large cities such as Berlin , plots are usually already developed, but buyers should always make sure that the seller is responsible for development when building in the surrounding area.

Maturity

The time at which a service is due, i.e. must be rendered. This is the completion date for a construction project on the one hand and the date on which payments are to be made on the other.

Vacation apartment

Vacation homes/apartments offer the possibility of short-term rentals to vacation guests and primarily serve as a capital investment. An operator of a hotel-like vacation complex is often commissioned and enables the apartments to be let efficiently and successfully to changing vacation guests. Another good prerequisite is uniform furnishing and equipment of the apartments. Whether vacation rentals are permitted is specified in the building permit and varies from region to region. Self-use of a vacation apartment is generally not excluded, but is limited in time. The purchase of a vacation apartment offers tax advantages. In any case, a tax advisor should be consulted before the purchase.

Completion

The completion of a new building or the renovation of an old building must be contractually agreed. The seller thus undertakes to complete the object of purchase by a certain date. There may be a time lag between the date on which the property is ready for occupancy and the date on which it is fully completed if, for example, there is still some work to be done in the communal areas (the last coat of paint in the stairwell, a piece of lawn in the garden, etc.). If the seller fails to meet the agreed deadline, he may be liable to pay compensation to the buyer. This does not apply if the seller has no influence on the delay (e.g. long and very cold winter, the materials ordered for the buyer as a special request cannot be delivered on time) and he cannot prevent the delay.

Financing

This includes all measures for the provision of financial resources required for an acquisition. Financing can consist of own funds (equity) or borrowed funds (loan). As a rule, financing consists of a mixture of debt and equity.

Indemnification obligation

The obligation of a creditor (e.g. financing bank) to release a pledged property (e.g. the apartment) from financial liability. If the object of purchase is encumbered in the land register (land charge, mortgage), the creditor must provide a declaration of indemnity obligation before the purchase price is due and paid by the buyer. This indemnification obligation is based on the provisions of the MaBV (Real Estate Agent and Property Developer Ordinance). This does not apply to encumbrances in the land register that are expressly assumed by the buyer.

Liability for building defects

In the case of construction work, whether new construction or renovation/modernization, the developer assumes liability (warranty) for the contractually agreed construction work performed by him in accordance with the German Civil Code (BGB) for a period of 5 years from acceptance of the work.

Common property

The common property of a plot of land and a building includes all parts that are not assigned to one owner alone. These are the generally accessible areas of the property (garden, playground) and parts of the building, such as the stairwell, the general building services rooms, load-bearing walls, etc. The parts of a plot of land and a building that belong to the common property are specified in the declaration of division.

Community regulations

The community rules, which are part of a declaration of division, regulate the rights and obligations of the individual owners within a community of owners (WEG). As an agreement, they become part of the special/apartment ownership and apply to all legal successors.

Creditor

The term is based on the translation of the Italian term creditore, which goes back to credere (faith). The creditor believes that the debtor will pay the debt or provide the service owed. In the case of real estate, this is usually in connection with financing. The credit institution that provides the purchase price is the creditor and the borrower (property developer or buyer) is the debtor.

Land register extract

An extract from the land register contains all the information on the property entered in the land register and can be viewed by anyone who has a legitimate interest in it. An extract from the land register is usually provided by the notary who carries out the notarization. The notary is obliged to inspect the land register before notarization.

Land registry

The land register is maintained by the local court responsible for the district or municipality in which the property is located. The land registry monitors compliance with the requirements for all entries and deletions in order to ensure the accuracy of the land register.

Real estate transfer tax

Real estate transfer tax is levied by the respective federal states and is payable on every purchase of a plot of land or condominium, with the tax rate currently ranging between 3.5% and 6.5%. In Berlin , a tax rate of 6% on the purchase price has applied since 01.01.2015. Every purchase contract is sent by the notary to the relevant tax office, which then issues the tax assessment notice to the purchaser. After payment of the land transfer tax, the notary receives a clearance certificate from the tax office, which must be submitted to the land registry office with the application for transfer of ownership.

Land charge

A land charge is a mortgage that is entered in section III of the land register and secures the creditor of a loan. If a bank grants a loan to finance the purchase price, a land charge must be notarized and entered in the land register. In the land charge, the debtor (borrower) usually submits to compulsory enforcement against the creditor (lender). In the event that a loan is terminated due to non-payment, the creditor can pursue immediate enforcement from this land charge.

Property tax

Property tax is a public charge on a property that taxes the ownership of a property. The amount depends on the value of the property and is levied annually. Property tax is one of the ancillary costs of a property and can be passed on to the tenant as an operating cost when renting.

Liability for property defects

The seller cannot assume any liability for the land of a property and an area entered in the land register. In the case of a new development, a survey of the land is usually carried out, which is also submitted to the building authority. Furthermore, soil samples are usually taken and examined for contamination, and if necessary, contaminated soil must be disposed of professionally. However, the seller must assume liability for ensuring that the planned construction work can be carried out and that the new building can be erected on the land.

Maintenance

Each owner is responsible for the maintenance of their property. In the case of condominiums, this means that each condominium owner must maintain their individual property (the apartment) themselves. The community of owners (WEG) is jointly responsible for the maintenance of the common property. Each community of owners therefore saves an annual maintenance reserve, which can then be used for major repairs. The amount of this reserve is determined jointly by the owners and paid to the administrator as part of the housing allowance, who has to manage the amounts in a separate account.

Object of purchase

A purchase contract describes the object of purchase and sets out what is included in the object of purchase. When purchasing an apartment with a terrace and garden, a cellar storage room and an underground parking space, these components are listed in the contract. All listed components as well as the share of the common property (co-ownership share) make up the object of purchase.

Purchase contract

A purchase agreement for a property must be notarized in accordance with the statutory regulations in Germany. It contains all regulations and declarations of intent by which the seller undertakes to transfer ownership by agreeing to the transfer of title and the buyer undertakes to pay the purchase price and to accept the object of purchase. All agreements between the seller and buyer must be recorded in the purchase contract. Any side agreements can lead to the invalidity of a purchase contract.

Load/benefit change

In a purchase contract, the seller and buyer specify the date from which the buyer may dispose of and use the object of purchase and from which he assumes the burdens and costs. As a rule, this is the day on which possession is transferred, i.e. the day on which the keys are handed over.

Purchase price

The due date of a purchase price payment is regulated in the purchase contract. The following requirements must be met before the buyer must make a payment on the purchase price, particularly in the case of purchase contracts in accordance with the MaBV (Real Estate Agent and Property Developer Ordinance):

The purchase agreement must be legally valid, i.e. all the necessary approvals must have been obtained.
The priority notice of conveyance for the buyer must be entered in the land register.
If the seller has encumbered the object of purchase and land charges for the financing have been entered in section III of the land register, it must be ensured that these encumbrances are deleted before ownership is transferred to the buyer. This is done, for example, by submitting a declaration of indemnity from the creditor of the land charge.
A building permit must be available.

As long as these requirements are not met, the seller can also secure the buyer with a guarantee. The notary shall inform the buyer when the due date requirements have been met. The due date requirements also apply in the event that a deposit of the purchase price in a notary escrow account has been agreed. In this case, payment to the buyer is usually linked to the conditions.

Deletion

All encumbrances entered in the land register (easements, land charges) can be deleted if the entitled party approves and applies for this. If a loan for financing has been fully repaid and paid off, the lender must issue a deletion authorization for the deletion of the land charge. This can be used to apply for deletion at the land registry.

Broker

The estate agent is the intermediary between the seller and buyer for the conclusion of a purchase contract and usually works on a commission basis. If the estate agent acts as an agent for the seller, the purchase is free of commission for the buyer.

Co-ownership share

According to German condominium law, the co-ownership share (MEA) is an arithmetical fraction of the common property of a homeowners' association. The co-ownership share determines how many shares (MEA) represent a special property (e.g. apartment). As a rule, the fractions are specified in 1,000 or 10,000. In the case of fair distribution, the calculation is based on the ratio of the respective living areas, although the method of calculation is not mandatory.
The purpose of the MEA is to provide a basis for the distribution of costs and also the voting rights of a condominium complex.

Modernization

Modernization involves structural measures aimed at increasing the value of a property, increasing its utility value and/or improving it in the long term or achieving sustainable energy savings. This can be, for example, the installation of an elevator or the conversion to central heating in an old building. A repair is only maintenance. If, for example, a window is replaced with a new one, this is a repair. If the window is replaced by a better insulated window, this is a modernization.

Model apartment

Many buyers find it difficult to imagine a home that is still under construction. In particular, the quality of the materials and the workmanship can be better assessed in a finished property. With a model apartment that is available to future purchasers for viewings, the property developer can present his construction skills and the furnishing details in a more exemplary manner. the purpose of the MEA is to have a basis for the distribution of the costs and also the voting rights of a condominium complex.

New building

A new building is a building that is newly erected on a plot of land. The term "new build" refers to a residential building that is assigned to a specific time period due to its nature and customary construction method. This essentially refers to the use of concrete walls and double-glazed windows, which mark the end of the era of old buildings.

Notary

In Germany, the notary is the holder of a public office and is obliged to be independent and impartial. This distinguishes the notary from a lawyer who represents the interests of one party. The notary is responsible for notarizing legal transactions and certifying signatures. In Berlin , all notaries are also lawyers and must ensure that no legal advice has been given prior to notarization.

Notary escrow account

A notary escrow account is an escrow account that is set up by the certifying notary, e.g. for the payment of the purchase price. In this case, the buyer deposits the purchase price in this account at an agreed/specified time. The notary holds the purchase price until certain conditions for payment have been met, such as the entry of a priority notice of conveyance and the deletion of encumbrances in the land register. Depositing the purchase price in a notary escrow account offers the seller the security that the buyer will pay the purchase price. For the buyer, this ensures that the seller only receives the purchase price once all contractual and legal requirements have been met.

A notary escrow account is not permitted for purchase contracts that are governed by the MaBV (Real Estate Agent and Property Developer Ordinance).

Notarization

Notarization is required for the purchase of real estate under German law. This means that the contract concluded between the seller and the buyer must be notarized and read out by a notary.

Commission

The commission is the fee paid to the estate agent who has brokered the sale of a property. At least half of the commission must be paid by the developer or seller, the other half by the buyer.

Payment by installments

For purchase contracts concluded in accordance with the MaBV (Real Estate Agent and Property Developer Ordinance), the agreement of an installment payment for the purchase price is specified. The MaBV specifies 13 possible installments according to construction progress, of which the seller can combine up to seven installments. As soon as certain conditions are met, the seller may request the designated installment from the buyer after construction work has been completed. The seller (property developer) must always make advance payments and provide the buyer with proof of construction progress. Deviations from the installment payment are only permitted in exceptional cases and only if they are advantageous for the buyer.

References

When purchasing a property that is still under construction, the buyer should inquire about the seller's (developer's) references. On the basis of reference properties that have been completed and sold, a buyer can get an idea of the quality and scope of the seller's services. You can find our reference properties at References.

A notary escrow account is not permitted for purchase contracts that are governed by the MaBV (Real Estate Agent and Property Developer Ordinance).

Reservation

In most cases, buying a property is a decision for life and needs to be carefully considered. Once you have found the right apartment, you should agree a reservation with the seller. In a written reservation agreement, the seller undertakes not to sell the apartment to anyone else until an agreed date. This gives the buyer the opportunity to familiarize himself with the contractual documents, check them and seek advice if necessary, and above all to clarify the financing of the purchase price. To underline the seriousness of the reservation, this is often linked to the payment of a fee, which - unless otherwise agreed - is repaid after the notarial purchase contract has been concluded.

Wheelchair accessible

In Germany, the law stipulates that a certain number of apartments in new builds must be barrier-free. In addition to the characteristics of a barrier-free home, the requirements for a wheelchair-accessible home include the ability to drive under washbasins and kitchen furniture, to install window and door handles at a certain height or to make them automatically openable. DIN 18040-2 specifies the criteria that a wheelchair-accessible home must meet.

Refurbishment

A refurbishment is carried out on an old building and involves the complete repair and modernization of an existing building or apartment. In a core renovation, the existing building is completely gutted, often only the building shell and the staircase remain, and the floor plans of the apartments are often extensively changed. A notary escrow account is not permitted for purchase contracts that are governed by the MaBV (Real Estate Agent and Property Developer Ordinance).

Security

Especially in the case of properties that are not yet completed, the legislator is very keen to ensure that the buyer as a consumer is protected as much as possible when purchasing. The German Civil Code (BGB) therefore stipulates that the buyer may retain a security of 5% of the purchase price until the property is completed. This retention is intended to give the buyer the certainty that the seller (property developer) will actually build. And in the event that the buyer suffers damage due to late completion (e.g. additional rental charges), the security amount should also be used to cover the damage. As soon as completion has taken place and no damage is to be compensated, the buyer must pay the remaining retention to the seller.

Special property

Condominium law distinguishes between special and common property. Special property is everything that belongs to one owner alone and is self-contained. This is usually the apartment (condominium ownership), a business or a parking space (partial ownership). Each separate property can be resold as an individual unit.

Special right of use (SNR)

A special right of use is an area of common property that is allocated to one owner for their sole use. These are often terraces and/or garden areas that are assigned to an apartment. Special usage rights are always linked to a condominium/partial ownership and can only be sold with it. As soon as completion has taken place and no damage is to be compensated, the buyer must pay the remaining retention to the seller.

Special requests

The fixtures and fittings of an apartment are always very individual and are often selected by the purchasers. All features that deviate from the building description and the contractual agreement are special requests and are usually agreed after the contract has been signed. Until the completion of an apartment, special requests can only be made by the seller, as the seller must assume the warranty. The buyer's own work is only possible after the object of purchase has been handed over. A notary escrow account is not permitted for purchase contracts that are governed by the MaBV (Real Estate Agent and Property Developer Ordinance).

Partial ownership

Partial ownership is a special property that is not used for residential purposes. This is, for example, a business, a parking space or a storage room. Like an apartment (residential property), it is separate property.

Declaration of division

The declaration of division is a document in which a property is divided into condominiums. It is the landowner's declaration to the land registry to divide the property into co-ownership shares that are linked to special ownership of apartments (condominium ownership) or rooms that are not used for residential purposes (partial ownership). Within the framework of the legal requirements (WEG - Wohnungseigentumsgesetz), the declaration of division contains the determination of which parts of the building are separate property and which are common property. Furthermore, special rights of use (e.g. to garden areas) can be assigned to the individual property units for their sole use. The declaration of division also contains the community rules, i.e. the rules governing the interests of the individual co-owners among themselves. A declaration of partition must be declared in notarized form. Together with the official certificate of completion, the declaration of division is submitted to the land registry and kept there. The land register for the parent property is closed on the basis of the declaration of partition and a separate land register sheet is created for each separate property. A notary escrow account is not permitted for purchase contracts that are governed by the MaBV (Real Estate Agent and Property Developer Ordinance).

Clearance certificate

The purchase of real estate is always associated with the payment of real estate transfer tax to the relevant tax office. Notaries are obliged to send the notarized purchase contracts to the relevant tax office, which then sends the buyer the real estate transfer tax assessment based on the notarized purchase price. Once the tax payment has been received, the tax office issues the tax clearance certificate and sends it to the notary who notarized the deed. The tax clearance certificate must be submitted to the land registry office with the application for transfer of ownership. Otherwise, ownership of the property cannot be transferred to the purchaser. As soon as completion has taken place and no damage is to be compensated, the buyer must pay the remaining retention to the seller.

Market value

The market value of a plot of land or a property is determined by the price that could be achieved in the ordinary course of business at the time of determination. The market value refers to the legal circumstances and actual characteristics, other features (e.g. equipment) and location of the property. Unusual or personal circumstances that could influence the price are not taken into account.

WEG (homeowners' association)

The term WEG stands for the German Condominium Act and is often also used for the homeowners' association (see community of owners). The Condominium Act regulates in particular:

- the establishment of condominium ownership (Sections 2 to 9 WEG),
- the community of condominium owners (Sections 10 to 19 WEG),
- the administration of condominium ownership (Sections 20 to 29 WEG),
- the heritable building right (Section 30) and the permanent residential right (Sections 31 to 42 WEG),
- and procedural provisions in connection with condominium ownership (Sections 43 to 50 WEG)

Administrator

Properties with rental apartments or condominiums are usually managed, i.e. administered, by property management companies. The manager represents a community of owners externally, for example, and is responsible for the management of the property. He manages the income from the housing funds, is responsible for paying the management costs to the utilities and must keep records of these. The manager of a WEG prepares the annual accounts and draws up a business plan from which the amount of the housing allowance for each owner is derived. At least once a year, he or she must convene an owners' meeting to decide on the community's concerns.

Work wages

The part of the purchase price that is necessary for the construction of a property is referred to as the work fee. A purchase contract for the acquisition of an apartment in accordance with the MaBV (Real Estate Agent and Property Developer Ordinance) always contains a work service (construction work) for which a work fee is included in the purchase price. The purchase price also includes a share of the property, which is referred to as the land

Calculation of living space

During the planning phase of a new build or renovation of an old building, the architect will draw up a floor area calculation. This shows how large the respective apartments and/or commercial units are. An area calculation can be prepared according to DIN 283/277, whereby the DIN does not recognize the term living space, but only refers to usable space. The DIN specifies the actual areas in square meters. In tenancy law, the calculation of floor space is prescribed by the Living Space Ordinance (WoFlV). According to this, certain areas may only be partially included in the calculation of living space (e.g. balconies, terraces up to 50 %). In the case of attics, areas may only be taken into account above a certain height. The Living Space Ordinance is also often used to specify the sales area of an apartment. However, unlike in tenancy law, this is not mandatory for residential property. It is important to state which calculation method has been used.

Housing benefit

Housing benefit is the term used to describe the monthly ancillary costs that are also incurred for owner-occupied apartments. On the one hand, the housing allowance includes the cold and warm operating costs that are also incurred for rented apartments. The housing allowance also includes a share for maintenance and for a maintenance reserve and the administrator's fee. The housing allowance is calculated by the administrator and set out in an economic plan. As a rule, the housing allowance must be paid to the manager on a monthly basis to ensure the management of the property. At the end of a financial year, the manager prepares a housing benefit statement, which is similar to an operating cost statement. The community of owners is responsible for monitoring the economic plan and the statement of account and decides on both at the annual owners' meeting.

Residential property

Condominium ownership is the ownership of an apartment in an apartment building. In legal terms, condominium ownership comprises three inseparable components:

the special ownership of the rooms in the apartment
the co-ownership share in the common property (primarily the land and administrative assets) and
the right of membership in the homeowners' association.

Property that is not used for residential purposes is referred to as partial ownership, but falls under the same definition as condominium ownership or special ownership.

Note

All information, formulations and designations in our keyword directory are provided voluntarily, without guarantee and free of any liability. They are merely intended to provide orientation and help you understand industry-specific terminology.

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