Glossary

Every property in Germany is registered in the Land Register (Grundbuch), where you can trace the entire history of the apartment and get full information about the owner of the property, the existence of a cellar/garage attached to the property, as well as possible encumbrances and debts by the owners.   A few years ago, Germany switched to an electronic land registry.

The purchase and sale of real estate is done exclusively through a notary public. A notary public is responsible for the purity of the transaction.
Thanks to the transparent scheme of registration of the transaction, which takes place under the strict control of the notary, buyers can be sure that they acquire private ownership of the object free of encumbrances, debts and rights of third parties.

Available financing schemes for non-resident primary and secondary real estate.

Typically 50/50. There are exceptions for legal entities. A great role played by the quality of real estate.

The payment of the real estate under construction is made on the basis of the law of the Federal Republic of Germany – MaBV (Makler und Bauträgerverordnung) according to the following scheme in % of the value of the real estate:

1. Partial payment of 25% upon receipt of the notarial certification and preparation of the excavation (Subject of lien pursuant to § 632 a paragraph 3 of the German Civil Code) 

2. 28% partial payment after completion of the frame including work on the rooms.

The 18% partial payment after the roof, downspouts, completion of the initial installation of heating, plumbing and electrical installations as well as the installation of windows, including window panes 

4. Partial payment of 20.5%. Step by step when transferring property. 

5. Partial payment of 5%. Immediately after completion of construction work in due time and without major deficiencies. 

6. Last installment payment of 3.5%. Immediately after full completion of the residential construction, also including the underground garage and infrastructure.

The date of repayment of the first instalment shall be notified to the Buyer by the notary and the Seller, and the dates of subsequent repayments shall be notified by the Seller.

– Private property. According to the German Law on Ownership of Residential Property (WEG), the ownership of private property is the ownership of an apartment (private apartment) which is equivalent to direct ownership. Ownership of private property can also be extended to premises not intended for residential use (e.g. business premises, workshops, warehouses, private doctors’ surgeries etc.).

– A special right of use in German housing law is the power to use certain parts of the common property alone. In this case, the other homeowners do not have a (joint) right of use. The person with the Special Right of Use is entitled to the income associated with the object of the Special Right of Use.

 – The description of the construction object is a detailed description of the building to be erected. In addition to the type of construction work, the materials used are described and listed.

Common Property according to the German Residential Property Ownership Act is the land as well as parts, equipment and systems of the building that are not privately owned or owned by a third party (§1 part 5 of the German Residential Property Ownership Act).

With regard to a building (or buildings), the common property includes all items necessary for the functioning and safety of the building, such as: outer walls, roof, foundation, stairwell, windows and entrance doors, in addition – facilities and equipment serving for the common use of the homeowners, such as: central heating, electrical wiring, water, gas piping. Such parts of the building also belong to the common property if they are in the private property area (§ 5 (2) of the German Residential Property Ownership Act). For example, sections of electrical wiring running through an apartment (private property) and supplying electricity to several apartments are common property. Utilities serving only one apartment may also be part of the common property and as a rule are considered private property in the division application. The maintenance and upkeep of common property is done jointly by all homeowners. A Property Manager is usually appointed to manage the common property.

– “Declaration of Partition” is a legal concept in German housing law and is governed by the provisions of Section 8 of the Residential Property Ownership Act. It is a declaration by the landowner to the land registry that the land title is divided into shares associated with the private ownership of individual apartments and/or premises not intended for residential use (home ownership, shared ownership, Section 1, Paragraph 2 and 3 of the Residential Property Act).

“Statement of Partition” thus substantiates the ownership of the apartment and/or shared ownership in terms of substantive law (Section 2 of the German Residential Property Act). Within the limits of the restrictions of the Residential Property Ownership Act (cf. § 5 (1 – 3) of the Act), a partition application may determine which parts of the buildings are privately owned and which parts are jointly owned. In addition, special rights of use (e.g. use of parking spaces) are generally established. A “Declaration of Partition” is a condition for registration in the Land Registry.

The “application for division” must be notarized. The application must be accompanied by a division plan, which is certified by the responsible licensing authority (Section 7 of the German Residential Property Ownership Act). In doing so, the office verifies the separateness of the units and the consistency of the contents of the subdivision plan with the building permit for the land in question. The application for subdivision and the relevant documents are kept in the land registry.

– Certificate of Tax Arrears According to Section 18 of the Real Estate Purchase Tax Act, notaries are required to submit a notice of legal acts according to the officially prescribed model (notice of alienation) to the relevant real estate tax office (along with the certified sales contract). The deadline for submitting the notice is two weeks (continuously) from the date of certification of the legal action. The notice is issued by the tax office and confirms that there are no obstacles to the registration of the purchaser of the real estate in the land register from a tax point of view. Although the payment of the purchase tax is not a prerequisite for the reregistration of ownership, the land registry offices are legally obligated under Section 22 of the Purchase Tax Act not to register unless a certificate of tax debt is presented. As a result, it is not possible to register in the land registry without first having paid property purchase tax.

– An apartment fee is a payment made by the members of a homeowners’ association for the operational costs associated with the common property. These fees are set individually for each homeowner on the basis of a management plan, usually in the form of monthly advance payments. They cover, for example, the running costs of the building manager, cleaning of stairwells, gardening, electricity, telecommunications (e.g. cable connections), heating, garbage collection, common property management, residential building insurance, bank account maintenance, property maintenance and a cash reserve for current repairs.

 – The rules of residence are a collection of private law regulations that may be issued for the use of any building. The rules of residence must not contain provisions that are contrary to generally accepted laws.

 – is the person who keeps the house in order. He is usually appointed by the homeowners or the housing management company and, as the customer’s agent, performs the tasks of house management, maintenance, cleaning and supervision of the house. He also notifies you of special incidents.

 – The homeowners’ meeting is, according to the German Residential Property Ownership Act, the highest governing body of the will and the self-governing body of the homeowners’ association. The meeting is held at least once a year. 

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