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…
• 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): Mandatory Upgrade AheadGermany's Building Energy Act (GEG) requires heating system upgrades by 2045. The minutes indicate the buildin…
• Property Manager Being ReplacedThe current property management company is being or has been replaced. Management transitions can disrupt buil…