Glossary of German real estate law.

Buying and selling property

Notar – notary

A public official who must certify every property purchase contract in Germany. The notary is neutral and does not represent either buyer or seller. He or she drafts the contract, reads it out at the appointment and arranges the entries in the land register.

Kaufvertrag – purchase agreement

A property purchase agreement is only valid if it is certified by a notary. Once signed, it is binding for both sides. Have it reviewed before the notary appointment, not afterwards.

Auflassung – conveyance

The declaration by seller and buyer that ownership is to pass to the buyer. It is usually part of the purchase agreement. The buyer becomes owner only when the change is entered in the land register.

Auflassungsvormerkung – priority notice of conveyance

An entry in the land register made shortly after signing. It protects the buyer if the seller tries to sell or encumber the property again, or if the seller’s creditors try to seize it. Payment of the purchase price usually depends on this entry.

Grundbuch – land register

The official register of all properties, kept at the local court. Section I shows the owner, Section II encumbrances such as rights of way, usufruct or rights of pre-emption, and Section III land charges and mortgages. You are only the owner once you are registered.

Grundschuld – land charge

The most common security for a mortgage loan, registered in Section III of the land register. Legally it is independent of the loan, so it remains in the register after repayment until it is deleted.

Grunderwerbsteuer – real estate transfer tax

In Baden-Württemberg the tax is 5 percent of the purchase price, usually paid by the buyer. The land register changes ownership only after the tax office has confirmed payment.

Maklerprovision – estate agent’s commission

If you buy a house or flat as a private buyer and the agent acts for both sides, the commission is generally split equally between buyer and seller. The commission agreement must be made at least in text form, for example by e-mail.

Vorkaufsrecht – right of pre-emption

The right to step into a purchase on the terms agreed with the buyer. It can arise by law, for example for the municipality, or for a tenant when a rented flat is sold for the first time after conversion into a condominium. It can also be agreed by contract.

Gewährleistungsausschluss – exclusion of warranty

Used properties are usually sold “as seen”, without liability for defects. The exclusion does not protect a seller who fraudulently conceals a defect or who guaranteed a particular feature.

Owning a flat

Teilungserklärung – declaration of division

The document that divides a building into individual flats and defines what is separate and what is common property. It comes with the community rules (Gemeinschaftsordnung), which govern life in the building.

Sondereigentum / Gemeinschaftseigentum – separate property / common property

Separate property is essentially the interior of your own flat. Common property includes the land, facade, roof, load-bearing structure, staircase and shared installations, and belongs to all owners together.

Hausgeld – owners’ monthly contribution

The monthly payment to the owners’ association. It covers operating costs, administration and the maintenance reserve. If you let the flat, part of it can be passed on to the tenant.

Erhaltungsrücklage – maintenance reserve

Savings of the owners’ association for future repairs, formerly called Instandhaltungsrücklage. Before buying a flat, check the amount and any major works that are already planned.

Eigentümerversammlung – owners’ meeting

The owners decide on the management of the building by resolution. An owner who wants to challenge a resolution must file a court action within one month.

WEG-Verwalter – property manager

The manager appointed by the owners’ association. He or she implements the resolutions, manages the finances and prepares the annual statement.

Renting and letting

Mietspiegel – local rent index

An overview of usual rents by type, size, location and condition of a flat. Freiburg has a qualified rent index. It is the basis for rent increases and the rent cap.

Mietpreisbremse – rent cap

In designated areas, which currently include Freiburg, the rent for a new lease may generally not exceed the local comparative rent by more than 10 percent. There are exceptions, for example for new buildings and after comprehensive modernisation.

Kaution – rental deposit

The deposit may not exceed three months’ basic rent. The tenant may pay it in three monthly instalments. The landlord must keep it separate from his or her own assets.

Betriebskosten / Nebenkostenabrechnung – service charges / annual statement

The landlord must send the annual statement within twelve months after the end of the billing period. The tenant can raise objections within twelve months after receiving it.

Eigenbedarf – owner’s own use

A landlord may terminate a residential lease if he or she needs the flat for himself or herself, family members or members of the household. The notice period is three to nine months, depending on how long the tenancy has lasted, and the reasons must be stated in the notice.

Inheritance and transfer of property

Erbschein – certificate of inheritance

Issued by the probate court as proof of who the heirs are. It is often needed to register the heirs in the land register, but not if there is a notarial will or a notarial contract of inheritance.

Europäisches Nachlasszeugnis – European Certificate of Succession

Proves your status as heir in other EU member states, except Denmark and Ireland. It is useful if heirs or assets are located in different countries.

Pflichtteil – compulsory share

Children and spouses, and in some cases parents, who are excluded by will can claim half of their statutory share in money. Gifts made in the last ten years before death may increase the claim.

Nießbrauch – usufruct

The right to use a property and keep its income, for example rent. It is often reserved when parents transfer property to their children during their lifetime, and is registered in Section II of the land register.

Wohnrecht – right of residence

The right to live in all or part of a building. It is personal, cannot be transferred and is registered in Section II of the land register.

Erbbaurecht / Erbbauzins – heritable building right / ground rent

The right to own a building on land that belongs to someone else, usually for 60 to 99 years. The owner of the building pays an annual ground rent to the landowner, often linked to an index. Common in and around Freiburg.