Congratulations on finding a potential German property! The next crucial step of your buying process is obtaining and sensibly analyzing a set of crucial documents. These documents may give an impression of the legal status, ownership history, financial standing of the property, and much more. Knowing what to look for in these documents will enable you to take an informed decision and ensure you don’t receive any unwanted surprises once you buy.
In this guide, we walk through each key document and explain why it’s relevant to you. That dispels the big mystery that surrounds Germany’s property buying.
- Land Register (Grundbuch)
The Land register (Grundbuch) is one of the crucial documents to check when you are purchasing a property in Germany. It is one summary of a legal document split into various sections of status and claims against a property.
Key Pages:
First Page states: Name of District Court, Land Register District, and Unique Identifier of the property.
Inventory Page or Bestandsverzeichnis states: Information about the property’s location, size, and development type.
Chapter 1 consists of information on ownership details: True full names with dates of birth of owners, their shares in the property.
Chapter 2: Any liens, encumbrances, pre-emptive rights, and usufruct rights that affect your use of the property must be reported.
Chapter 3: All mortgages, land charges, or debts which accrue to the property.
Each chapter of the Grundbuch contains information of importance for the ownership experience and financial liabilities.
2. Declaration of Division (Teilungserklärung)
Declaration of Division is quite important when purchasing an apartment or a unit within a multiple-unit property. The Declaration of Division will clarify how the ownership among several units is divided.
The Declaration of Division gives information about:
The proportion shared by each unit.
The parts that are commons and the parts that are private within the property.
This paper outlines rights and obligations on common property so that you know what is held in common and what falls solely in your responsibility.
3. Collection of Homeowners’ Decisions (Beschlusssammlung)
The Collection of Decisions outline the decisions made by the owners regarding the homeowners association. Reading through decisions from the previous homeowners’ meeting could guide you on how to manage a property, maintenance requirements, and even existing misunderstandings between home owners.
These records will also help to identify possible obligations, for example, in finance and administration, such as repairs that must be ongoing or planned modifications. You then know beforehand of costs and responsibilities which may arise once you become an owner.
4. Business Plan (Wirtschaftsplan)
A business plan is an estimate of the property’s income and expenses looking forward, generally for the coming year. It helps understand the financial situation of the property and prepare to plan for costs that may be incurred.
This document also outlines how likely costs are distributed within the shared ownership. So you know exactly what your share of expected costs will be before the fact.
5. Housing Cost Distribution (Hausgeldabrechnung)
This Operating Costs Overview presents all incomes and expenses incurred by the property. All costs, such as maintenance, repair, utilities, and more, can be divided among each owner according to the share percentage.
Review of this document allows you to estimate your possible cost per month and per year, further giving you an idea of your financial responsibilities as a property owner.
6. Energy Certificate (Energieausweis)
An energy certificate displays how energy efficient a property is or could be and the costs associated with heating and utilities. There are two forms of energy certificates, which include:
Consumption-Based Certificate (Verbrauchsausweis) States actual energy consumption over the past three years, in line with previous tenants or owners.
Requirements-Based Certificate (Bedarfsausweis): Reflects on theoretical energy demand based on the given condition of the property.
You can plan for any energy-related improvements, whether it is insulation or updated heating systems, with a current and correct energy certificate.
7. Rental Agreement (Mietvertrag)
If the property is rented, look closely at the Rental Agreement. This is an important document which will give you all the necessary information on:
The current terms and conditions of the rent.
Rent increases; or other special arrangements made with tenants.
The status of the security deposit and other related obligations.
This document is especially important if you plan to take in the tenants or alter the tenancy conditions in the future.
8. Cadastral Map (Flurkarte)
The Cadastral Map indicates exactly where the property is located and its boundaries. You must ensure that the plot matches up with the map and is accessible.
Look for rights of way or any other restrictions that might affect your use of the property, ensuring these details align with the information in the land register.
9. Calculation of Living Space (Wohnflächenberechnung)
Calculation of living space provides a precise measure of the living area. This information is important to cross-check and validate the listed living space that impacts the value for money of the property.
A precise measure of a living space ensures that the house’s measurement is represented correctly, so you never end up paying too much or getting surprised by an adjustment right after you buy a property.
Action Steps: What’s Next in Your Property Purchase
If you decide to proceed with the purchase of the said property, then begin by requesting the documents from the broker or the seller of that property; go through them or engage an expert who will check over the papers for you to ascertain that you receive everything that ought to be in there.
At Ghar in Germany, our consultancy services entails the examination of these documents for you so that you will be perfectly informed before committing to anything. Reach us for the best support and an easier property purchasing process.
Conclusion
All of these documents are significant to a person who is about to purchase property in Germany. Every one of these documents holds a message, which communicates the legal, financial, and structural status of the property. Combining and analyzing this information that’s being given will equip you with enough knowledge and a successful purchase of property.
If you have questions or if you need more guidance, feel free to comment below or in touch directly. Good luck finding your dream home!
