Risk glossary for property buyers

Before buying a condominium in Germany, you should know what the Grundbuch, Teilungserklärung and WEG minutes contain. Here we explain the most common risks in plain language.

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• Nießbrauch (Lifelong Usufruct) RegisteredSomeone has a registered legal right to live in or use this property for the rest of their life. The owner can…
• Priority Notice of Ownership (Auflassungsvormerkung) — Another BuyerAnother person has already registered a priority claim on this property. This means a previous sale agreement …
• Large Active Mortgage Relative to Purchase PriceThe registered mortgage amount is significant relative to the property value. This must be cleared before you …
• Amendment Contradicts Original TeilungserklärungA later amendment (Ergänzung) contradicts a rule in the original declaration. The legal situation is unclear a…
• Leasehold, Not Ownership (Erbbaurecht)The units here are a Wohnungs-/Teilerbbaurecht — a LEASEHOLD. You would own the building but NOT the land; the…
• Special Assessment (Sonderumlage) Voted or PlannedThe homeowners have voted for or discussed a one-time special payment that all owners must contribute to. As t…
• Lawsuit or Beschlussanfechtung Involving the WEGThere is an ongoing legal dispute. This creates financial uncertainty (legal costs, potential damages) and may…
• Structural Defect MentionedA significant structural problem (foundation, roof, facade) has been discussed in the meeting minutes. This ma…
• Listing Claims Ownership, but the Declaration Is LeaseholdThe Exposé presents the unit as full ownership (Eigentum), but the Teilungserklärung constitutes it as a lease…
• Listing Says Vacant, but a Lifelong Right Is RegisteredThe Exposé describes the unit as vacant/available, but the Grundbuch records a lifelong right (Nießbrauch or W…
• Listing's Living Area Exceeds the WoFlV Calculation by Over 10%The living area advertised in the Exposé is more than 10% larger than the area the Wohnflächenberechnung actua…
• Management Consent Required for Sale (Zustimmungsvorbehalt)The WEG management company must give written approval before this property can be sold. This is common (appear…
• Right of Way (Wegerecht) Across PropertyOther people have a legal right to walk or drive across part of this property. This is permanent and survives …
• Recurring Obligation (Reallast)This property carries a recurring obligation — typically recurring payments or services owed to a third party.…
• Right of First Refusal (Vorkaufsrecht)Someone has a legal right to buy this property before you can — if the seller accepts your offer, that person …
• Registered Mortgage / Land Charge Not Yet DeletedA mortgage or land charge is still registered against this property. Even if the loan was paid off, the regist…
• Multiple Mortgages RegisteredMore than one mortgage or land charge is registered. Each must be individually verified as either active or pa…
• Short-Term Rental (Airbnb) ProhibitedThe Gemeinschaftsordnung prohibits renting the property for less than a certain period. Using it for Airbnb or…
• Parking Space DiscrepancyA parking space is listed in the Teilungserklärung but does not match the current Grundbuch, or vice versa. Th…
• Renovation Requires WEG ApprovalAny significant renovation or modification to the property requires prior written approval from the WEG. This …
• Special Rights Reserved to One Owner / DeveloperThe declaration grants one specific owner (often the developer) powers the other owners do not have — e.g. a r…
• Right Cancelled by a Later AmendmentA later notarized amendment repealed a right or section of the original Teilungserklärung outright, with no re…
• Units Added After Formation (Aufstockung) — Ownership Shares ShiftedA later amendment added new units to the building (typically a roof addition / Aufstockung) and redistributed …
• Transfer Fee Payable to Manager on Every Resale (Bearbeitungsgebühr)The Teilungserklärung requires the seller to pay a percentage of the sale price to the property manager on eve…
• One-Vote-Per-Owner Voting Model (Kopfprinzip)The community votes by head (one vote per owner) instead of by ownership share. A single owner who holds multi…
• Developer Appointed as First Property Manager (Selbstkontrahierung)The Teilungserklärung appointed the developer (the company that built and sold the units) as the founding Verw…
• Heating Cost Distribution Key Violates HeizkostenverordnungThe Teilungserklärung mandates a heating-cost distribution key (e.g. by Balkonfläche or Wohnfläche only) that …
• Exterior Modifications Tightly RestrictedThe Teilungserklärung restricts changes to the building's exterior — e.g. window subdivision, balcony glazing,…
• Reserve Fund Below Recommended LevelThe building's maintenance reserve fund is lower than the recommended minimum (roughly €0.80/m²/year). This me…
• Heating & GEG (Heizungsgesetz): Future Upgrade Cost LikelyThe minutes suggest the building's heating may not meet the GEG's future requirements. The GEG does not force …
• Property Manager Being ReplacedThe current property management company is being or has been replaced. Management transitions can disrupt buil…
• Currently Rented — No Vacant PossessionThe listing states the unit is rented. You cannot move in immediately; ending the tenancy needs grounds (e.g. …
• Leasehold (Erbbaurecht), Not Full OwnershipThe listing offers an Erbbaurecht — you own the building but not the land, and pay an annual ground rent (Erbb…
• Poor Energy Class (F/G/H)The listing's energy class is low, so heating costs are high now. The GEG does not force you to replace a work…
• High Buyer's Commission (Maklercourtage)The buyer's share of the agent commission is above the typical 3.57 % cap. On the purchase price this is a sub…
• Heritage-Protected (Denkmalschutz)The property is listed (Denkmalschutz). Renovations need approval from the heritage authority, must often use …
• Renovation NeededThe listing describes the unit as in need of renovation or unrenovated. Plan for refurbishment costs on top of…
• Older Building, No Modernization StatedThe building is decades old, yet the listing names no modernization and does not describe its condition. Older…
• Older House, No Modernization StatedThe house is decades old, yet the listing names no modernization and does not describe its condition. Older ho…
• Poor Energy Class (F/G/H)The building sits in a low efficiency class, so heating costs are high now. The GEG does not require you to re…
• Energieausweis ExpiredThis energy certificate's 10-year validity has lapsed. Its figures are out of date, and the seller is legally …
• Thin Maintenance Reserve (Instandhaltungsrücklage)The building's maintenance reserve is low relative to the number of units. A thin reserve is the strongest pre…
• Maintenance Reserve Shrank This YearMore was taken out of the maintenance reserve than was paid in — the fund shrank over the year. That can be no…
• Large Year-End Back-Payment (Nachzahlung)This unit's statement closed with a sizeable Nachzahlung — the advance Hausgeld did not cover the actual costs…
• Sonderumlage Referenced in the StatementThe annual statement references a Sonderumlage (one-off special assessment on top of the regular Hausgeld). It…
• Monthly Hausgeld Set to RiseThe budget raises the monthly Hausgeld this unit pays by a material margin. This is the running cost you inher…
• Thin Planned Reserve ContributionThe budget plans only a small annual contribution to the maintenance reserve per unit. For an older building t…
• Sonderumlage Planned in the BudgetThe budget plans or references a Sonderumlage (one-off special assessment) on top of the regular Hausgeld. It …
• Living Area Inflated by Over-Counting the Balcony/TerraceThe balcony, loggia, roof garden or terrace was counted above the WoFlV default. Under §4 WoFlV these are coun…
• Listing's Living Area Is Larger Than the WoFlV CalculationThe living area advertised in the Exposé is larger than the Wohnflächenberechnung computes under the WoFlV, th…