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Real estate glossary

Rental law, management and finance – 73 terms every landlord should know

Whether it's a rental agreement, utility bill settlement or owners' meeting – as a landlord you regularly encounter technical terms you should know. Our real estate glossary explains 73 key terms in German tenancy law, property management, home ownership and financing – from transfer tax to security deposits. Each entry includes the relevant legal references and clear practical examples for your everyday landlord operations.

A B C D E F G H IJKL M N O P Q R STU VWXYZ

A

Ancillary Costs (Nebenkosten)

Ancillary purchase costs: A complete overview of all costs beyond the purchase price when acquiring property in Germany.

Ancillary Purchase Costs (Kaufnebenkosten)

Ancillary purchase costs (Kaufnebenkosten) when buying property in Germany: transfer tax, notary fees, land register fees, and broker commission - a complete overview.

Attic Floor (Dachgeschoss)

Attic apartment: What counts as living space? Calculation rules, special features, and typical characteristics of attic dwellings in Germany.

B

Basement (Keller)

Basements (Keller) in German real estate: sole ownership or common property? Usage, living space calculation, and frequently asked questions.

Brokerage Fee (Courtage)

Brokerage fee (Courtage) in real estate: What does the term mean and how does it differ from estate agent commission (Maklerprovision)?

Building Caretaker (Hausmeister)

Building caretaker (Hausmeister) costs as operating expenses in Germany: what can be passed on to tenants and what are the limits?

Building Obligation (Baulast)

What is a Baulast (building obligation)? Definition, registration in the building encumbrance register, and implications for property owners in Bavaria.

C

Cadastral Map (Flurkarte)

Cadastral map (Flurkarte) and land registry map: What they show, where to obtain them, and why they are needed when buying property in Germany.

Certificate of Completion (Abgeschlossenheitsbescheinigung)

What is a Certificate of Completion (Abgeschlossenheitsbescheinigung)? Learn when it is required, who issues it, and what role it plays in establishing condominium ownership in Germany.

Co-Ownership Share (Miteigentumsanteil)

Co-ownership share (Miteigentumsanteil/MEA) in Germany: calculation, significance, and impact on voting rights and cost allocation in condominium associations.

Commissioning Principle (Bestellerprinzip)

Commissioning principle for rentals and purchases: Who pays the estate agent? Current legal situation and cost distribution in Germany explained.

Common Property (Gemeinschaftseigentum)

Common property in German condominium law (WEG): What does it include, who pays for maintenance, and how are decisions made?

Condominium Fee (Hausgeld)

Condominium fee (Hausgeld) for apartment owners in Germany: what it covers, how it is calculated, and how it differs from operating costs.

Condominium Ownership (Wohnungseigentum)

Condominium ownership (Wohnungseigentum) in Germany: how it is established, what it consists of, and how it differs from individual ownership (Sondereigentum).

D

Declaration of Division (Teilungserklärung)

Declaration of division (Teilungserklärung) in Germany: content, significance, and what apartment buyers should pay close attention to.

Depreciation (AfA)

Depreciation (AfA) for real estate explained: How does tax depreciation of buildings work in Germany? Rates, useful life, and special rules for landlords.

Development Costs (Erschließungskosten)

Development costs for building plots: What is included, how much do they amount to, and who has to pay?

Discharge of Encumbrances (Freistellung)

Discharge of encumbrances in property sales: Paying off land charges and mortgages - how the process works.

Duplex Apartment

Duplex and maisonette apartments: What exactly are they? Features, differences, and special considerations for living space calculation.

E

Early Repayment Penalty (Vorfälligkeitsentschädigung)

Early repayment penalty (Vorfälligkeitsentschädigung) in Germany: when does it apply, how is it calculated, and when can it be avoided?

Energy Performance Certificate (Energieausweis)

Energy performance certificate for buildings: Consumption-based vs. demand-based certificate, obligations, and validity under the German Building Energy Act.

Estate Agent Commission (Maklerprovision)

Estate agent commission (Maklerprovision) in Germany: current rates, mandatory cost-sharing since 2020, and when the commission claim arises.

Exclusive Brokerage Agreement (Makleralleinauftrag)

Exclusive brokerage agreement (Makleralleinauftrag) in Germany: what does it mean, what rights and obligations arise, and how does it differ from a simple listing?

F

Facade

Facade in German property law: Responsibilities in homeowner associations (WEG), maintenance obligations, and building code requirements.

Fixed-Interest Period (Zinsbindung)

Fixed-interest period (Zinsbindung) in German mortgage financing: durations, special termination right after 10 years, and strategic considerations.

Foreclosure Auction (Zwangsversteigerung)

Foreclosure auction (Zwangsversteigerung) of real estate in Germany: procedure, risks, and opportunities for bidders - a comprehensive guide.

G

Gross Annual Rent (Jahresrohmiete)

Gross annual rent (Jahresrohmiete): calculation, application, and significance in property valuation and yield calculation in Germany.

H

Handover Protocol (Übergabeprotokoll)

Handover protocol (Übergabeprotokoll) for rental apartments in Germany: why it is important, what it must contain, and tips for tenants and landlords.

Heating Costs (Heizkosten)

Heating cost billing in Germany: consumption metering, allocation keys, and obligations under the Heating Costs Ordinance (Heizkostenverordnung).

Hereditary Building Right (Erbbaurecht)

Hereditary building right (Erbbaurecht/Erbpacht) explained: How does it work, what are its advantages and disadvantages, and what happens when it expires?

Historic Preservation (Denkmalschutz)

Historic preservation for real estate in Bavaria: Obligations, tax benefits, and what property owners need to know about listed buildings.

Homeowners' Association (WEG)

Homeowners' association (WEG) in Germany explained: tasks, rights, and obligations of the condominium owners' community after the 2020 reform.

I

Index-Linked Rent (Indexmiete)

Index-linked rent (Indexmiete) in Germany: how does the linkage to the consumer price index work? Advantages and disadvantages for tenants and landlords.

Individual Ownership (Sondereigentum)

Individual ownership (Sondereigentum) in German condominium law (WEG): what it includes, what it does not, and how it differs from common property.

L

Land Charge (Grundschuld)

Land charge (Grundschuld) explained: difference from a mortgage, registration in the land register, and significance in German property financing.

Land Reallocation (Umlegung)

Land reallocation (Umlegung) under German building law (BauGB): what is land readjustment, how does the procedure work, and who is affected?

Land Register (Grundbuch)

The Grundbuch (land register) explained: structure, sections, and significance - everything property buyers in Germany need to know.

Life Annuity (Leibrente)

Real estate life annuity (Leibrente): how does selling a property in exchange for a lifelong pension work? Model, tax aspects, and risks in Germany.

Loan Discount (Disagio)

Loan discount (Disagio) in property financing: Definition, tax treatment, and impact on the effective interest rate.

Loan Repayment (Tilgung)

Loan repayment (Tilgung) in German property financing: initial repayment rate, unscheduled repayments, and impact on the total loan term.

Local Comparable Rent (Ortsübliche Vergleichsmiete)

Local comparable rent (ortsübliche Vergleichsmiete) in Germany: definition, rent index (Mietspiegel), and significance for rent increases under § 558 BGB.

Loft Apartment (Loft)

Loft apartments in Germany: what defines them? Characteristics, building regulations, and special considerations for commercial-to-residential conversions.

M

Maintenance Reserve Fund (Instandhaltungsruecklage)

Maintenance reserve fund (Instandhaltungsruecklage) for condominiums in Germany: obligation, appropriate amount, and what buyers should consider.

Market Value (Verkehrswert)

Market value (Verkehrswert) of a property in Germany: definition, valuation methods, and the difference from the actual purchase price.

Misuse of Housing (Zweckentfremdung)

Misuse of housing (Zweckentfremdung) in Germany: definition, prohibitions, and fines - particularly in Munich.

Mortgage (Hypothek)

Mortgage (Hypothek) in German real estate: definition, difference from a land charge (Grundschuld), and current practical significance.

Municipal Tax Multiplier (Hebesatz)

Municipal tax multiplier (Hebesatz) for property tax in Germany: what it means, how it affects the tax burden, and current rates in Bavarian municipalities.

N

Notary (Notar)

Notary (Notar) in German property purchases: duties, costs, and why notarial certification of purchase contracts is mandatory.

Notice Periods (Kündigungsfristen)

Notice periods in German tenancy law: Statutory periods for tenants and landlords under § 573c BGB at a glance.

O

Old Building (Altbau)

What qualifies as an Altbau (old building) in Germany? Definition, typical characteristics, and what buyers and tenants should look out for.

Operating Costs (Betriebskosten)

Operating costs and service charges in German tenancy law: Which costs can be passed on to tenants? Everything about § 556 BGB and the Operating Costs Ordinance.

P

Penthouse Apartment

Penthouse apartments in Germany: characteristics, pricing, and what buyers and tenants should know.

Personal Use Eviction (Eigenbedarf)

Personal use eviction (Eigenbedarfskündigung): Requirements, notice periods, and rights of tenants and landlords under § 573 BGB.

Priority Notice of Conveyance (Auflassungsvormerkung)

Priority Notice of Conveyance explained: How does it protect property buyers in Germany? Registration, significance, and legal effects in the land register.

Property Maintenance (Instandhaltung)

Property maintenance (Instandhaltung) obligations for rental apartments and condominiums in Germany: who pays for what and which regulations apply?

Property Tax (Grundsteuer)

Property tax (Grundsteuer) in Bavaria: calculation, municipal multiplier rate, and reform - what property owners in Germany need to know.

Property Tax Declaration (Feststellungserklärung)

Property tax declaration (Feststellungserklärung) for property tax (Grundsteuer): What it contains, who must file it, and applicable deadlines in Germany.

Q

Quality Grades (Qualitätsstufen)

Quality grades of apartments in Germany: from basic to luxury - how is the fit-out quality assessed and what does it mean for rent levels?

R

Real Estate Transfer Tax (Grunderwerbsteuer)

Real estate transfer tax (Grunderwerbsteuer) when buying property in Germany: rates in Bavaria, tax base, and payment deadlines.

Rent Cap (Mietpreisbremse)

Rent cap (Mietpreisbremse) in Germany explained: where does it apply, what exceptions exist, and what must landlords consider?

Rent Reduction (Mietminderung)

Rent reduction (Mietminderung) in Germany: when is it justified, how much can be deducted, and what is the correct procedure?

Rental Yield (Rendite)

Rental yield (Rendite) for real estate in Germany: how to calculate gross and net yield, the formula, and what constitutes a good return on property investment.

Reservation Agreement (Reservierungsvereinbarung)

Reservation agreement (Reservierungsvereinbarung) for property purchases in Germany: validity, Federal Court of Justice rulings, and risks for buyers.

Right of First Refusal (Vorkaufsrecht)

Right of first refusal (Vorkaufsrecht) in German real estate: who holds it, when does it apply, and what deadlines apply for tenants and municipalities?

S

Security Deposit (Kaution)

Security deposit (Mietkaution) in Germany: maximum amount, investment requirements, refund rules, and tenant rights under § 551 BGB.

Setback Areas (Abstandsflächen)

What are setback areas (Abstandsflächen) in German building law? Definition, calculation, and significance under the Bavarian Building Code (BayBO) explained.

Special Assessment (Sonderumlage)

Special assessment (Sonderumlage) in German condominium associations: when it is resolved, how high it can be, and what owners need to know.

Speculation Period (Spekulationsfrist)

Speculation period (Spekulationsfrist) for real estate in Germany: the 10-year rule, exemptions for owner-occupiers, and tax consequences.

Standard Land Value (Bodenrichtwert)

Standard land value (Bodenrichtwert) explained: How is it determined, where can it be accessed, and what is its significance for property purchases in Germany?

U

Usable Area vs. Living Space (Nutzfläche vs. Wohnfläche)

Usable area vs. living space in Germany: differences, calculation methods under WoFlV and DIN 277, and their practical significance for tenants and buyers.

Usufruct (Nießbrauch)

Usufruct (Nießbrauch) on real estate in Germany: how it works, what it entails, and its tax implications for property owners.

V

Vacancy (Leerstand)

Housing vacancy (Leerstand) in Germany: when is it prohibited? Misuse of housing regulations in Munich and legal consequences.

Z

Zoning Plan (Bebauungsplan)

What does a zoning plan (Bebauungsplan) regulate? Content, significance, and public inspection - your guide to urban planning and building law in Germany.