Parking space / parking space / garage for sale: Valuation, condition, with or without broker + checklist
Selling a parking lot / parking space / garage 2023 – You want to sell a parking lot / parking space or your garage and are perhaps facing the first sale ever, then this brief introduction to the condominium and special use right, with transition to the guide “Sale in 18 steps” will help you to learn about the entire process of selling.
Sell pitch 2023: Learn about the sale
Have you already checked whether you are allowed to sell your parking space? Here you will learn the difference between special ownership and special right of use.
Should you know the difference, scroll down directly to the sale: procedure
Special ownership and special right of use: Significance
The distinction between special ownership and special right of use has a big effect on sales – learn why here.
Let’s summarize the “special property” and the “special right of use” quite simply. In terms of renting, it makes no difference. But it does make a difference when selling.
Individual car parking spaces are usually common property.
Therefore, before selling, you must check whether you are allowed to rent your parking space as 1) an authorized user or 2) as a special owner, to rent or also to sell (simply, without the consent of the other owners).
Here you will learn when which case (1, 2) occurrence.
Quickly explained! When does what apply?
Legally (according to the Condominium Act [WEG]), the difference lies in the question a) above ground [special right of use] or b) below ground [special property]. There are exceptions to this, in the case of “closed” rooms, so above-ground garages can also be special property.
When is the sale of your pitch allowed and when not?
Special right of use quickly explained
In the case of the special right of use, no separate sale of the parking space is permitted – at least not without the consent of all owners at the owners’ meeting. The rental itself is exclusively at your discretion. For the sale you need, as said, the consent of the others.
Special right of use:
- Renting easily possible
- Sale only with the consent of all owners
Special property quickly explained
In the case of special ownership, a separate land register sheet is created for the parking space. This means that resale to third parties is possible without any problems.
- Rental and sale to third parties easily possible
Regulated in the declaration of partition / partition agreement
When is there a special right of use and when is it special property?
The answer for a specific property can be found in the declaration of partition or partition agreement. Here it has been regulated by the owners’ meeting whether it is 1) special property or whether you “only” have a 2) special right of use to the parking space.
When, which case (in general) is present, regulates the residential property law (WEG). The first, crucial difference arises from the question, is your parking space:
- Built above ground (parking lot)
- Or in an underground car park
Above-ground parking spaces (parking lot):
Parking space underground(underground parking):
Exception above ground, enclosed spaces (garages), more on this in a moment:
Special right of use of the parking space
The special right of use, on the other hand, means that you as the owner may use certain parts of the common property alone. Accordingly, in the case of a special right of use, no separate sale of the parking space is permitted without the consent of all owners in the owners’ meeting.
Special right of use is called:
- Sole right of use
- No sale without the consent of the community of owners
Source: WEG §5
Special property at the parking space
As already learned, in the case of special ownership, a separate land register sheet is created for the parking lot, so that resale is possible.
According to the German Condominium Act (WEG), special ownership is largely equivalent to full ownership. Also important, especially for above-ground parking spaces, according to WEG § 3 para. 2, special ownership is only possible for enclosed spaces. This also makes a big difference to the question: Are you allowed to sell your parking space or not?
Special property is called:
- Closed rooms, according to WEG
- Resale possible without reconciliation
Source: WEG §3 (Law on Condominium Ownership and Permanent Residence Law [Wohnungseigentumsgesetz]).
Special property? Above ground / underground (underground parking)
Accordingly, what type of parking space is eligible for special ownership?
- Parking space in underground garage = Yes
Individual underground parking spaces are eligible for separate ownership. In this regard, WEG §3 states extra “Garage parking spaces are considered to be enclosed spaces if their areas are visible by permanent markings”.
Above-ground parking spaces are not eligible for special ownership.
- Parking above ground = No
Exception: Above ground and closed
Exception are here, according to WEG § 3 para. 2 “closed rooms”, such as garages and garage facilities.
The regulation is determined in the declaration of division, the community rules or agreement. If this is missing, all owners registered in the land register must agree to the special ownership (or special right of use).
Step by step: checklist sale
Should you be selling your very first pitch, you don’t have to stray far from the typical real estate sales procedure. The parameters are fundamentally the same, especially if your buyers are capital investors (rentals). It all starts with timing, which also brings you directly to the second question, sell with or without an agent?
Whether it is a parking lot or condominium, the principle is always the same when selling a property. You need to make the final sale decision, you needed the right documents, you need to have your property (parking lot) evaluated by a professional. And so that you are well prepared for your first parking lot sale, here is a comprehensive guide in 18 steps!
Learn everything important here in 18 steps!
Preparation: prepare property and sale
- Financial planning and timing of sale
- Hire real estate agent
- Records and documents
- Increase real estate value
- Determine offer price
- Create exposé
Sales phase: market property and find buyers
- Market real estate
- Contact with prospective buyers
- Filter and select prospective buyers
- Credit check
- Viewing dates
- Sales talk & purchase price negotiation
Sales processing: purchase contract until handover
- Draw up purchase contract with notary
- Notary appointment
- Land register entry and payment processing
- Handover of the property
- Notary fees & broker commission
- Pay taxes
Especially in Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart and other cities with a stable, rising trend in various areas (population, demographics, economy, etc.), parking spaces are in demand. Did you already know: Despite the “climate debate”, the sale of vehicles in this country is increasing every year.
Last year alone, there were 2.92 million new passenger car registrations (source: KBA). According to the KBA, the vehicle population in Germany increased by a full 1.1 million vehicles compared to the previous year’s reporting date to approximately 66.9 million vehicles registered in Germany, a full +1.6%.
66.9 million registered vehicles in Germany
Don’t worry, you will get your parking space sold! The only question is: How much is your parking space / garage worth?
Here again are figures on the sale of passenger cars: