Real Estate Glossary
A-Z

All you need to know about real estate, from A like “acquisition” to Z like “zoning.”

As owner of a condominium, you are in possession of a crisis-resistant investment that will deliver financial security in your retirement. However, buying a flat involves all sorts of decisions and duties. Sound and reliable information is of the essence, which is why our Real Estate Encyclopaedia brings you all sorts of details on homeownership. Regardless of whether you are a first-time owner or have owned condos for years – you are bound to find useful tips on a variety of topics along with recent information updates.

A third party that plays a role in freehold ownership, in addition to the home owner association (HOA) and the manager, is the administrativ...

If a condominium is rented, the operation cost can be partially passed on to the tenant. The criteria for redistribution as the apartment size or the consumption for example water or heating oil de...

The budget of a home owner association (HOA) is known as business plan. The manager compiles it by listing all anticipated revenues and expenditures for the year to come, including a breakdown of th...

The commonhold property comprises the plot and all those parts of the building not held in individual freehold ownership. This means specifically all building elements that are necessary to ensure t...

The German Condominium Act (German acronym: WEG) constitutes the basis for all legal regulations involving individual freehold ownership. Among other things, it governs the principles of freehold ow...

Prior to the acquisition of a condominium, a host of questions present themselves to future homeowners, including the following: Which parts of my property of choice do I own ...

Among your most important obligations as a condominium owner is the payment of the condominium fee. The proceeds of this fee are used to cover the costs accruing for the management, maintenance, and...

Any sort of community is governed by by-laws that ensure a regulated and harmonious coexistence. In the case of home owner associations, this purpose is served by the provisions of the condominium r...

The so-called conveyance marks an important step toward your own condominium during the acquisition process. In the conveyance...

Current rents represent rent payments on unexpired lease contracts. Conversely, rents on new leases represent rent payments agreed upon whenever a new lease co...

The commission is a premium, which is usually paid for a conclusion of a sale or the mediation of business opportunities. In the real estate business context, the commission is a premium for t...

Financial security in old age, a home of one's own, and an inflation-resistant investment – a condominium delivers a variety of benefits. Then again, homeownership entails a number of duties as we...

The German energy performance certificate (“Energieausweis”) provides details on a building's conditions in terms of energy consumption. This is a four-page document. The first page lists genera...

The “fair market value” or just “market value” is calculated as the average selling price currently achievable. It represents that price for which a plot or a property would sell on the ope...

Acquiring an occupied freehold property (condominium) as private investment will make you a landlord for all practical purposes. Naturally, this involves duties that require a certain time effort and ...

The HOA fee settlement, also called annual maintenance assessment, is compiled by the manager once a year, and must be approved by the home owner association (HOA) at the meeting of owners. The HOA ...

As a group, the owners of a given housing estate form the home owner association (HOA). One of the key responsibilities of this collective is to jointly caretake the property. The m...

The German Condominium Act (WEG) refers to all those parts of a property belonging to a single owners outright as individual freehold property. So it represents the opposite to commo...

Whenever a freehold or condominium owner develops a personal need for the apartment acquired as private investment, he or she may claim his or her right to owner occupation. Under German law, howeve...

The land register is a public record for evidence of title or other rights of use to properties. The German name is “Grundbuch.” In Germany, the land register provides the following data on each p...

Land valuation committees represent panels of property experts. In Germany, these include representatives of competent authorities and pro-bono members, such as architects or civil engineers, for ins...

If you acquire a let apartment as private investment, the existing tenancy will survive the change in ownership. Prior to the sales transaction, you will be given all relevant lease contract...

A key component of the budget is the maintenance reserve (also called maintenance provision or simply reserve) paid monthly by every owner. Pursuant to the German Condominium Act (W...

If a home owner association (HOA) decides to appoint a manager, it is of the essence to sign a management contract with a manager rather than just appointing one. Otherwise, the appointment will be ...

Operating costs include all those current costs that arise from property ownership and the way you use your property. They do not, however, include one-off cost items. Accordingly, ...

Minutes should be kept during every important meeting in order to note decisions and responsibilities, and a meeting of owners is no exception. According to the German Condominium Act (WEG), owners'...

Pursuant to the German Condominium Act (WEG), part ownership refers to those areas of a housing estate defined in the condominium declaration as individual freehold ownership of roo...

Taking out a private investment is a sound long-term approach to safeguarding and augmenting your personal wealth formation. There are various investment options to choose from: Yo...

The proof of insurance is meant to assure you that the required insurance policies were taken out for the property in which your condominium is located. Pursua...

Homeownership involves any number of administrative chores. In a housing estate with several owners, the property management is the responsibility of the home owner association (HOA). Its body, mean...

As condominium owner, your freehold ownership also makes you pro-rata owner of the plot on which your freehold property is situated. As a result, you become subject to property taxation

Anyone buying real property in Germany becomes subject to real estate transfer tax. The tax also becomes due when you acquire a freehold or condominium because the acquisition makes ...

If you are the owner of a let apartment you may raise the rent to offset the effects of inflation, for instance. There are strings attached to rent hikes, though, and they may be more numerous in Ge...

“Local reference rent” is a term used by the German Civil Code (BGB). It marks the ceiling up to which rent increases are lawful pursuant to Article 558, G...

If you decide to buy an apartment that is already occupied by a tenant, the vendor will hand you over all lease related contracts and papers

The “Mietspiegel“, German for rent index, provides an overview of the local reference rent

The term „return on investment “refers to the ratio between of income and expenditure for a capital investment. The return on investment is usually expressed per year and as a percentage. In the...

Parts of a property or of a building that are jointly held by all of its owners are called commonhold property. If one of the owners has sole use rights to such commonhold are...

The running cost settlement is compiled once a year by the lessor for the lessee. It covers the overhead of running costs that accrue as a result of a building's use. Important to note for condomini...

If you maintain a second home in addition to your first place of residence, and if you register this second home as such with the registration office, many German municipalities will charge a so-call...

Smoke detectors are battery-operated devices that are installed in buildings and that trigger fire alarm to warn the people in the building. In some the states, the installation of smoke detectors i...

As a condominium owner, you may become due for a special assessment whenever the home owner association's existing maintenance reserve falls short of covering the management and mai...

A clearance certificate proves that a person has no outstanding liabilities fiscal nature. This certificate is issued by finance office and is limited. You need a tax clearance certificate for examp...

The home owner association (HOA) of a housing estate regularly pays condominium fees into a bank account set up by the estate manager for the purpose. One of the eligible account types is the trust ...

Whether Prior to an Acquisition...

Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.

... or after – Our Real Estate Encyclopaedia Provides the Answers You Need

Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”

We hope you enjoy our encyclopaedia!