Real estate lexicon
# Completion certificate
The certificate of completion is a certificate of the public building authority that after WEG condominium (or part ownership) according to the Housing Act (WEG) is structurally completely completed by other apartments and rooms. The apartment must have its own lockable access and the partitions, ceiling and floor of the apartment must ensure sound and heat protection. Furthermore, a kitchen, (kitchenette) and a bathroom and toilet must be present. To the completed apartments may e.g. Also include premises such as cellars, storage or permanently marked parking spaces. Without the certificate of secrecy it is not possible to divide it into a condominium and to create your own land registry.
# Distance surfaces
Open spaces are defined as open spaces between the outer wall of the building and the property boundary, which are prescribed by the building regulations of the federal states in the state building regulations. Thus, e.g. ensure adequate lighting of neighboring buildings or a social distance between neighbors or fire protection.
# Contaminated property on the property
Contaminated sites are existing, discovered or undetected contaminants of a property such as Contamination of the soil by a closed waste disposal plant, asbestos etc.
# Release land registry
The abandonment is required for every real estate sale. It is the real agreement between the seller and the buyer about the description of ownership of a property. This must be done in front of a notary and usually the disclosure is part of the purchase contract. The notice must be displayed to the Land Registry before the transfer of ownership so that the new owner can be entered in the land register.
# Sentence flag
The preclusion is a security for the buyer of a property. It serves to secure the transfer of title in the land register and is entered in Division II of the land register in favor of the buyer. Thus, the seller can no longer dispose of the property. The potential buyer is e.g. protected against intermediate sale or further charges.
# Distribution plan
The apportionment plan is an officially certified construction drawing on a scale (at least) 1: 100, in which the private property and the community property are shown. It is determined which rooms belong to which special property, where the boundaries in the separate property and the common property. Special property is color coded and provided with a number, all areas belonging to the special property, basement / garage, etc. are also marked with this number. Floor plans, floors, sectional and view drawings and a map. The distribution plan is the essential basis of the certificate of completion in order to justify the declaration of division of residential property
# Alone order
sole contract is an order form between the owner / seller of a property
and the offering broker for the marketing of this property. The broker
hereby undertakes to intensively work for the seller, in contrast, the
seller ensures and insures no further brokers to assign. However, he is
free to work privately himself. See also "3 different brokerage
# Resident certificate
certificate gives information about already paid development and cost
contributions and canal connection contributions of a property, which
public loads with respect to a property are still open. Frequently,
financing credit institutions require this submission of the residency
certificate. Apply at the responsible local office.
# Asset Deal
is an asset deal? An asset deal is made by a partnership, a purchase of
an investment property. The property will be purchased with all debts
that may still be on the investment property, eg through old financing =
loan / installment financing or similar. If it is a company, individual
assets have to be contractually transferred
# Building Office
At the building office, no builder comes to it. Building authorities are municipal, state or federal offices or offices of another public-law body that deal with construction matters. Fiscal-active building authorities. These special building authorities take on the building activity of the respective corporation to which they are subordinate. This includes e.g. the construction of schools and administrative buildings, as well as streets or canals of a community. Fiscal construction offices also include other public building authorities, such as roadworks, water departments, state building authorities or motorway directorates, overseeing construction activity in their respective sectors. Building authorities with sovereign tasks. The tasks and powers of these building authorities or building supervisory authorities, as they are also called, are regulated in the building code of the respective federal state. Building authorities acting under their sovereignty issue building permits and, upon application, check the compatibility of building structures with the provisions of public law. Building authorities can also intervene in so-called black buildings and take measures for the general defense against dangers, for example. in dilapidated buildings.
# Building application
a building application, the client initiates the building permit
procedure. From the individual state building regulations results, which
documents are to be attached to the building application. In a
simplified approval procedure partially different building regulations
A detailed description of the building will determine the performance obligation of the contractor in detail. In particular, in the turnkey purchase of a house from the developer plays the building description an important role. On the basis of the building description, a specialist immediately recognizes whether the equipment of the developer can be classified as average or even above-average performance. If the standard of equipment moves at the lower end, deviating designs deviate considerably
# Building window
A building window is the planned representation of the surface part of a building plot in a development plan within which the building may be erected ("buildable property area"). Building windows are limited by construction limits, construction lines and construction depths. A distinction must be made between the area of land that can be built over and the permissible base area, which results from the "base area number". Outside the building window garages (border garages), carports or garden sheds can be built. The bungalow can restrict the development possibilities resulting from the base area number (GRZ). Baufster is not a construction law defined term, but a term from the construction practice
# Building permit
planning permission is a permission of the construction supervision
authority that the real estate may actually be built as requested. The
architect described the construction project. An application is always
necessary. For which construction project exactly, is in the respective
state building regulations (deviations are different in each federal
state.) The planning permission is unfortunately only temporary, with
conditions attached and must be visibly available on the construction
The client is the person who executes or carries out construction projects in his own name or for a foreign account. It can be a natural person or even a legal entity.# Property developerProperty developers carry out construction work in their own name and for their own account. Only after or during the construction of the building does the sale of the building, e.g. through the sale of individual apartments. In the case of residential investments, the sale can be sold off as a forward deal, with individual apartments / ETWs (private persons) the sale can be sold off and paid for in construction phases.# Building loadA building load is a voluntary public-law obligation of the property owner to the building supervisory authority. The subject of such an obligation is a behavior that does not already result from public law regulations. For example, a property owner grants his neighbors a WAY law so that he can enter his own property via his path. In this way, the neighbor is allowed to prove the proper development of his property (access) to the building authority in order to obtain a building permit
# Site directory
list of occupancy rates is kept by the competent building supervisory
authority and can be viewed there. It should be emphasized that the
building charges entered in the composting register are - unlike, for
example, a private legal easement - not entered in the land register.
The acquirer of a building plot should therefore never be content with
just looking into the land register, but also consult the
# Zoning plan
According to the Building Code (BauGB), the municipalities are entitled and obliged to draw up construction plans.There are two types of construction plans:The land use plan, which covers the entire municipal area, but for the citizens still no binding stipulations - keyword "land use plan". The development plan, which is developed from the land use plan and is limited to parts of the municipality. It contains binding regulations for the citizens and the building authorities and regulates how the land can be developed. Residential area or commercial area. Development plans must in principle be developed from the land use plan; This means that there can be no material contentual contradiction between the development plan and the land-use plan. Often one can orient oneself well in the neighborhood development, unless the property is a mixed development, e.g. Residential and commercial buildings. Designations may be made in the development plan, e.g. on the nature and extent of intended use, floors, underground parking, balconies, etc. in addition, e.g. Also arrangements are made about planting trees, shrubs and other plantings.
# Mortgage lending banks
mortgage lending limit is expressed as a percentage and indicates up to
what limit credit institutions finance real estate. The mortgage
lending limit for senior mortgages is usually 60 - 80% of the mortgage
# Grandfathering of a property
Legal protection of building structures against subsequent state requirements.It results from the property guarantee of the art. 14 paragraph 1 of the Basic Law (GG). It includes the construction freedom for land. Existing buildings, which were legally built according to earlier valid law, may be preserved and used further even if they no longer comply with the currently valid building law.Requirements are:* The building complied with the substantive law at the time of its construction or later.* The existing buildings can be used further in terms of function and thus as such worthy of protection.The only thing protected is the completed structure, not a new construction project. In addition, the grandfathering covers only the building in its present form, but not quantitatively significant changes.In the grandfathering fall:* Entertainment activities,* Repairs* Modernization measuresConsequences of the grandfathering:* An issued decree is unlawful.* Property owners are entitled to approval of conservation measures, even if they are inadmissible under simple construction law (active grandfathering), as far as the changes are of a limited and minor nature and do not result in any material change to the original inventory - the identity of the restored or improved with the original Construction remains intact. Within narrow limits even a structural extension is permissible (overarching grandfathering protection), namely, if at the same time: - an inseparable connection of the functions of existing and new construction exists - the new construction does not lead to a substantial capacity extension of the existence.- the protection of the * Subsequent demands on the structure may only be made if it is to ward off dangers to life or health or unreasonable nuisance from the general public or the neighborhood required are. The grandfathering ends: * by loss of function of the plant. * If the original substance is no longer present. * If the stock is changed beyond the necessary maintenance and repair measures * with the recognizable final use.
# Operating cost
Operating costs are costs incurred by the owner as the burden of the property. They are to be borne by the owner. This also applies if a property is rented to third parties. However, it is usually agreed in the lease that the tenant has to reimburse the landlord for the additional costs. The Civil Code provides for the possibility of either agreeing prepayments with later settlements or providing a reasonable lump sum so that the operating costs are covered.
means the embodiment of a human explanation of thought intended and
valid in the legal relations to the proof. Land purchase agreements,
building contract, the order of a leasehold as well as the granting of
residential property require the notarial certification. The notary is
obliged to inform those involved in the contract about the legal
notarial implications of the transaction and to clearly and clearly
present their declarations in the deed. By a notarization, the property
changes the owner / owner.
# Ground reference
Land values are used in the valuation of real estate to determine the land value. The basis for this are the official purchase price collections which the expert committees have to manage. Since the land value is only an average of a large number of transactions, the value must be adjusted based on the characteristics of the valuation object.
# Courtage / agency commission
The brokerage fee is the fee charged by a broker for real estate brokerage or proof of opportunity to conclude a purchase or lease agreement for a property. See also brokerage commission.
# Club Deal
What is a club deal and how do you implement it successfully? If you want to take an example of a new construction project = mezzanine club deal. You as Club Dealer + Builder + Investor of Mezzanine Capital. The important thing is that the property should already have a building permit or at least a positive preliminary construction permit. Otherwise the costs alone from the time window can not be calculated correctly. A statement of the total construction cost of the project should be available, all funding must be planned and should not deviate from the budgeted figures.Reduce all risks as far as possible so that your project can be successfully implemented. With the support of investors = mezzanine investors, the project can be implemented well. (For information on mezzanine capital see M.)
# Due Diligence
term comes from the English vocabulary. When will a (abbreviated) DD be
made? If an investment is considered to buy. The real estate investment
is subject to internal audits that are decisive for the purchase.
Efficiency, redevelopment / congestion, object location, value-added
revenue, profitable rental income, tax benefits, etc.
# Historic monuments
The aim of the monument protection is to ensure that cultural monuments are permanently preserved and not falsified, damaged, impaired or destroyed. Only to be restored and restored to its original state.
# Owner meeting
The owners' meeting is the supreme decision-making, will-building and self-governing body of the condominium community. The legal basis is the Housing Property Act (WEG).
The meeting takes place at least once a year and is convened by the administrator / property manager. It is decided, e.g. about renovation measures, balconies, roof, heating system, garden and u.v.m. at the building. See also apartment owner meeting.
# Granny flat
As a granny flat is called an additional apartment in a family home. It is much smaller than the main apartment and completed by her. The apartment has its own separate access, a cooking facilities, bath / shower and toilet. It should, so to speak, be rented out independently - and accessible.
# Energy pass / energy pass
energy passport is a proof of the energy efficiency of a building. He
gives information about e.g. the fuel demand for heating and hot water
treatment / consumption of ongoing fixed costs and considers the thermal
insulation of the building and the heating system. If the consumption
value is kept too high, it should be thought about a refurbishment /
modernization of the property, which saves the running costs in the long term.
# Heritable building right
The leaseholder remains the owner of the property and leases his property to a tenant - the property itself remains the property of the Erbbaugebers. The owner of the leasehold receives a certain amount, the hereditary rent. The term of a leasehold can be freely agreed, but is usually between 25, 50 and 99 years. The ground lease is heritable and disposable.The home builder remains only owner of the house, not the property and must after the term either demolish the house or renegotiate the contract again.
# Incidental costs
acquisition-related costs or ancillary purchase costs are the costs
incurred in addition to the purchase price for a property purchase.
These include the land transfer tax at 3.5% (state-owned), the notary
and court costs of about 1.5% on the purchase price to be paid and
possibly the brokerage commission in the agreed amount plus the purchase
The Exposé is the representation of a property in writing and pictorial form. Usually you will find the rough data such as the living space or the number of rooms, year of construction, state object representation: house, ETW, plot, etc. and the details of the location, the equipment, the building and photos and floor plans. The synopsis is also called a sales task or offer, colloquially knows it almost everyone under the term Expose.
# Hall map
The floor map contains the parcel-sharp depiction of the properties, ie all parcels and buildings. In addition, usage-type boundaries (for example, between forest and meadow) and important topographic objects such as pylons are displayed.
The parcel is the smallest surveying unit of the cadastral guide. Each parcel is assigned a parcel number. A parcel may not cover areas of different plots, but a parcel may consist of one or more parcels.
# Forward Deal
What is a forward deal and when is it closed? For example, if you are planning a purchase of a new construction project which should be handed over turnkey. A housing estate as an example. The developer of the property and the prospective buyer (investor) conclude this contract together. The contract, the building description, the purchase price, compliance with the time window, construction risks, development process of the construction, project development, possibly renting of the individual housing units, etc. are recorded together in the contract. Deviations may occur only minimally and must always be agreed together between both parties and may only be changed with the consent of the prospective buyer. The payment plan is made by the investor according to construction phases (and performance performed by the developer).
# Land Registry excerpt
the land register is a public register, anyone who has a legitimate
interest can inspect the land register and the documents to which the
land register entries refer, and can make a certified copy of all the
land register entries for a single plot.
# Land register sheet
each property, a separate land register sheet is created, which is
provided with a serial number. Each land register sheet is divided into
three sections:* the inscription* the inventory* the three departments
(Dept. I, II, III)
# Floor space
The basic area of a building in construction is divided according to its use into gross and net floor area (GFA and NGF). That means, on the one hand, the total floor area with the masonry in the WHP. In the NGF, masonry of 15-20% must be deducted from the gross floor area.
The plan is a graphically illustrated and simplified illustration of the spatial structure of a property
The land charge (real estate lien) is a charge on a piece of land in such a way that a certain sum of money is to be paid from the land to the mortgagee. The mortgage does not depend on the existence of a claim in comparison to the mortgage, but constitutes an unconditional payment obligation on the land. The mortgage is recorded in the land register and used by credit institutions to secure the loan.
Letter of intent comes from the English vocabulary. Abbreviated LOI. Translated into German one also says expressions of interest. Who issues an LOI? A prospective buyer who expresses a serious buying interest in an investment property. Here are two variants: A = the investor issues an LOI to make a DD without a proof of capital and would like to reserve the object exclusively exclusively for 2 - 4 weeks or B = He issues an LOI with a proof of capital, as he very strong interest expressed in chewing to buy the investment object swiftly.M # mezzanine capitalWhat is actually meant by mezzanine capital? When is it used and why? Mezzanine capital is a "between equity and debt" by a private investor / lender / club dealer. It is a capital which is used at short notice. Project developers use this with an investment share of 10% equity, banks finance a maximum of 70% of the construction project. Usually this is used for a time window of 18 - 24 months and is at a yield of 8 - 15% (this return gets the Club Dealer / Private Investor for this short period (18 -24 months) on his lent money.) This is about the time window needed to implement a turnkey construction project. This option should only be used if you have a secure business partner / developer who is reliable and able to meet his time window, otherwise there are too many risks and costs associated with each other and these are expensive to carry them.
# Escrow account
A notary account is a trust account set up in the name of a notary for temporary custody of foreign funds. It allows an early loan payment for the purchase price, as long as the mortgage has not yet been entered in the land register see Certification Act (= BeurkG), § 54 b
# Special property
In the case of residential property, a distinction is made between private property and common property. The separation and delineation of private property and community property is important for e.g. Maintenance and repair, structural changes, load and cost distribution, usage and use regulations, traffic safety duties, insurance and so on.
# Special Use Rights
The special usufruct is an exclusive right of use and use of common areas, facilities and facilities granted to one or more or several homeowners. Example: The attic belongs to the community property, the use (special use right) is incumbent exclusively on the owners of the apartments directly under the attic. By granting a special usufruct, the other owners are excluded from the right of co-ownership of the common property.
# Special charge
The collection of a special contribution may be required to eliminate liquidity difficulties. Example: It is absolutely necessary to carry out a repair measure on community property. If the necessary funds are not available in the maintenance reserve, a co-ownership fee will be charged proportionately by each co-owner.
# Speculation period
from private sales transactions are subject to income tax in Germany
under certain conditions. Although colloquially a speculative tax is
used, it is not an independent tax type but the income tax payable on
profits from private sales transactions. The private speculative gains
are calculated on the other income within the meaning of § 22 No. 2 in
conjunction with § 23 income tax law and thus also refer to profits made
abroad. The purpose of § 23 EStG is to subject the realized gains from
relatively short-term increases in the value of private assets to income
tax within the sale period (early speculation period).
# Share deal
In contrast to the asset deal, it is also possible to acquire an investment property as a share deal. Where is the difference? Asset Deal .. see point A = Asset Deal Description. Share Deal = A share deal can be bought for different shares, ie not necessarily 100% of the company shares, it can also be purchased only a small proportion of the company shares. Share comes from the English vocabulary and means share. What are the benefits of having a share deal? On the seller side, the capital gain is subject to different taxation. If the seller is a corporation, the capital gain is in principle tax-free. Here, however, decide details and terms of contract.
# Part ownership
Partial ownership refers to the special property of rooms of a building which are not used for residential purposes. It is always associated with co-ownership of the community property to which it belongs (such as stores, practice or basement rooms and often garages). For part ownership, the rules on home ownership apply accordingly. Or several WE / ETW s from a residential complex.
The housing complex is divided.
# Division statement
The declaration of division is governed by § 8 of the Housing Property Act (WEG). According to this, the landowner's declaration to the land registry office that the ownership of the property is divided into co-ownership shares that are associated with separate ownership (= homeownership rights). The divisional declaration is the basis for property and part ownership. (§ 2 WAY). The divisional declaration indicates which parts of the building are in separate ownership and which are jointly owned. Furthermore, special special use rights (eg parking spaces) are recorded. The declaration of division is a prerequisite for the investment of the housing dictionaries
means the borrower's payments to repay the loan. This can be done in
equal installments (annuity), different installments (repayment
mortgage) or in a single amount. The repayment is used for loans, loans -
financing or bonds.
The enclosed space describes the volume of a building. The volume calculation is based on the space enclosed by the outer walls, the roof and the basement floor (in the case of buildings without basements, from the top of the ground floor). The details of the enclosed space belong to the object documents, which are absolutely necessary in the loan application and in the presentation of the building application.
# Clearance certificate
to the Land Purchase Tax Act, a real estate transfer tax is payable
once upon the acquisition of a developed or undeveloped property.
Pursuant to Section 22 of the German Real Estate Transfer Tax Act
(Grundtauferbsteuergesetz - = GrEStG), purchasers of land or hereditary
building rights may only be entered in the land register as owners or
leasehold holders if a so-called clearance certificate from the tax
office responsible for taxation is submitted. With this certificate the
tax office confirms that the registration of the land register does not
conflict with any tax concerns. However, the clearance certificate is
usually issued only after full payment of the land transfer tax.
# Administration / Property Management
administrator is usually assigned when multiple units form a community.
The management of a property includes the maintenance, preservation
and, where appropriate, the improvement of the value of the common
property, the prevention of disruption and damage, the organization and
execution of agreements, decisions and accounting. Often, the billing of
operating and consumption-dependent costs are taken over by the
# Right of first refusal
A right of first refusal may be legal or contractual. The legal pre-emption rights are entered in the land register and allow, for example, Under certain circumstances, municipalities or tenants have access to certain plots. The contractual right of first refusal regarding a plot of land is defined in the BGB. This real right of first refusal is entered in the land register in Dept. II and allows the beneficiary, in the case of a sale by the owner, to enter into the contract of sale with a third party on the agreed terms. The real right of first refusal can e.g. in favor of one or more persons and is created by agreement and entry in the land register.
# Right of way
use the valuation criteria of the Valuation Ordinance (WertV) in
determining the market value. This Ordinance on Principles for
Determining the Market Value of Lands is based on the Building Code. The
Value Determination Ordinance is a uniformly recognized criterion in
the federal territory for the valuation of real estate. The Valuation
Regulation distinguishes three methods: comparison value method,
material value method, income method.
# Economic plan
The economic plan is the budget of a Community for a calendar year, with the aim of determining the advance on the daily allowance as a contribution, usually monthly, to the detriment and cost of the common property of the individual dwelling owner and to enforce this advance by decision of the general economic plan and the individual economic plans d , H. for its release to the Community a basis of entitlement. New members in the Community will generally pay the contribution advances from the month following the transfer of ownership. The business plan is a liquidity calculation.
# Living space
The living space is the exact size of a property, which can be determined by the Wohnflächenverordnung.
# Living area calculation
This is the detailed list of all rooms belonging to a property, which are calculated and calculated according to the Wohnflächenverordnung and summarized in the form of a list with the result of the total living space.
# Housing allowance