Checklist: What you need to pay attention to in a WEG

Can I sell my condominium to anyone I want? In principle, yes — the freedom to sell is enshrined in the Basic Law. However: If the division declaration contains a restriction on sale under § 12 of the Condominium Act, you need the approval of the manager (or the community). This approval may only be denied for a valid reason — for example, if the buyer’s inability to pay can be proven.

The following overview summarizes the ten most important steps — from the initial intention to sell up to the handover:

Management approval under § 12 of the Condominium Act

The central special case when selling a condominium: If a restriction on disposal is recorded in the division declaration, the sale without the approval of the manager is voidable. The notary will only apply for the transfer of ownership at the land registry office once the approval is available.

When is approval required?

Only if the restriction is explicitly entered in the land register (section II). A look at the current land register extract — which you will need anyway for the sale — provides clarity. This clause is present in about 70–80 % of all German condominiums and is almost standard in Berlin and Munich.

When can the manager refuse?

Only for a significant reason — and this must be interpreted narrowly. Recognized reasons include:

• Proven financial inability of the buyer (e.g. ongoing insolvency)
• Planned improper use (commercial use in a purely residential building)
• Concrete danger to the residents’ association

On the other hand, insufficient are: sympathy questions, nationality, number of children, occupation. A groundless refusal can be legally reviewed by the seller.

Costs of the administrator’s approval

Common are 100–300 € — regulated in the administrator’s contract. Who bears them? Usually the seller, but can be transferred to the buyer in the purchase contract. More details: Administrator’s contract.

Service charges, reserve fund & special levies — the financial pitfalls

Here, most sales fail due to lack of detailed knowledge. The rule of thumb: whoever is the owner at the time the decision is made is liable for the payment — regardless of when the money is actually due.

The reserve fund goes with the apartment

A common misconception: the reserve fund is settled between buyer and seller. Wrong. The reserve fund is community property and automatically follows the apartment — the seller does not receive it. What you should do, however: disclose the share of the reserve fund in the listing, as it affects the purchase price.

Example: In an 80-m² apartment with a total reserve fund of 50,000 € and a 1/20 ownership share, 2,500 € fall to your apartment. A well-funded reserve justifies a price increase of 1,500–3,000 €.

Special levies — who pays?

If the owners’ meeting decides on a special levy (e.g., 8,000 € per apartment for a new heating system), the rule applies: the debtor is whoever is registered in the land register on the day of the decision. If the decision was made before the sale, the seller pays — even if the installment is only due after the transfer of ownership. Solution: Explicitly regulate this in the purchase contract.

Annual settlement — arrears & credit balance

When selling in the middle of the financial year, the question arises: Who receives the credit balance, who has to pay arrears? According to the Federal Court of Justice’s case law, the owner who is registered in the land register at the time the decision on the annual settlement is made is liable — which is usually the buyer. However, buyer and seller can agree on a different distribution in their internal relationship (common practice: pro rata temporis).

Example calculation of service charges

An 80-m² apartment in an average large city development:

• Total service charges: 350–500 €/Month
• Of which maintenance reserve: 80–120 €/Month
• Heating & hot water costs: 100–160 €/Month
• Management & insurance: 60–100 €/Month

If the sale takes place on the 15th of a month: the seller pays the housing costs up to the handover date — after that, the buyer takes over. Important: The cut-off date is not the notary appointment, but the economic transfer (usually after the purchase price is paid).

Mandatory documents: What the buyer wants to see

A well-prepared buyer (or their lawyer) today demands more than just the floor plan. The following documents should be requested from the property manager before the first viewing:

Tip from practice: Explicitly ask the property manager about open renovation issues — roof, facade, elevator, pipes. Hiding these topics risks a challenge due to fraudulent misrepresentation after the sale.

Tax trap: Speculation period

Who sells a rented condominium within ten years of purchase pays speculation tax on the sales profit — with the personal income tax rate (up to 45% + solidarity surcharge). For owner-occupied apartments, the tax is waived if the apartment was occupied in the year of sale and in the two previous years.

Investor example calculation: Purchase price 350,000 €, sale after 7 years for 480,000 €. Profit 130,000 € → at a 42% tax rate approximately 54,600 € speculation tax. Whoever waits one year longer (fulfilling the 10-year period) saves the entire amount.

Transfer of ownership & handover

The formal transfer of ownership takes place in three steps: notarial certification of the purchase contract, notation of the transfer in the land register, and registration of ownership after payment of the purchase price. The economic transfer (benefits, burdens, risk) must be distinguished from this — it typically occurs with payment of the purchase price and handover.

• Handover protocol for condominium — meter readings, keys, list of defects
• Owners’ association — rights and obligations

After the registration of ownership, you should inform the property manager with a copy of the notary confirmation — this person will register the new owner, adjust the service charges, and send future statements to the buyer.

FAQ: Sell a condominium in the WEG

Do I have to introduce the buyer to the owners’ association?

No, a formal introduction is not required. The property manager checks the approval under § 12 of the Condominium Act based on the buyer’s data — a personal interview does not take place in practice.

• No obligation to introduce oneself
• Property manager checks creditworthiness / usage intention
• Owners’ meeting has no right to vote

Can the property manager block the sale?

Only if there is a legally defined or specified important reason in the division declaration. Sympathy, nationality or profession of the buyer are not acceptable reasons for rejection. An arbitrary refusal can be overturned in court.

• Important reason required (e.g. inability to pay)
• Legal review possible
• Delay of 1–3 months

Who pays for the property manager’s approval?

Usually the seller. The costs are between 100–300 € and are regulated in the property manager’s contract. A different arrangement can be agreed in the purchase contract.

• Standard: seller pays
• Cost: 100–300 €
• Deviation possible in purchase contract

Do I get the reserve fund back when selling?

No. The reserve fund is community property and remains with the apartment. However, it is factored into the purchase price as value-adding — a well-funded reserve fund justifies a premium.

• No payout to the seller
• Transfers with the apartment to the buyer
• Value-adding in the purchase price

Who pays a special levy decided shortly before the sale?

The debtor is the owner on the day of the decision. If the decision was made before the transfer of ownership, the seller pays — even if the payment is due at a later date. Deviating regulations can be agreed upon in the purchase contract.</p>

Why the purchase agreement is so central when selling a condominium

When it comes to selling a condominium, the purchase agreement is more than just a formality. It is the only basis on which ownership of the plot or apartment ownership can be effectively transferred. A verbal agreement — no matter how detailed — is legally invalid. Only the notarial certification creates an effective obligation for both parties.

Legal binding under § 311b BGB

Any agreement that is not included in the notarized contract is not enforceable. A seller who gives a verbal assurance (“The built-in kitchen stays”) but does not include it in the contract cannot later insist on it — and vice versa. Everything essential must be included in the document.

Protecting both parties through a pre-emption notice

Typically, between signing the contract and the property being registered in the land register, 4–8 weeks pass. During this time, the pre-emption notice protects the buyer from the seller selling or encumbering the apartment a second time.

Avoiding hidden points of contention

A precisely worded contract eliminates room for interpretation: When does the handover take place? Which defects are known? Who is liable for damages between the notarization and handover? Each of these questions can cause five-figure costs in the event of a dispute.

Content of the purchase contract: These clauses belong in it

The purchase contract for a condominium follows a clear structure. The notary provides a standard draft — but you should not sign it without review, instead understanding each clause.

Mandatory information in every apartment purchase contract

• Complete data of seller and buyer (including date of birth)
• Exact description of the property ownership (land register page, co-ownership share, exclusive ownership)
• Purchase price and payment terms (notary escrow account or direct payment)
• Conditions for readiness for handover (see below)
• Handover date and transfer of burdens (benefits, burdens, risk)
• Declaration of release
• Approval of the preliminary notice of release
• Exclusion of warranty and liability for defects
• Cost distribution (notary, land register, land transfer tax)

WEG-specific content for condominiums

If you buy a condominium, you will automatically become part of the condominium owners’ association. This must be reflected in the contract:

• Reference to the division declaration
• Description of the exclusive ownership (apartment, possibly basement, parking space)
• Existing special usage rights (garden, terrace, parking space)
• Transition from housing fees and maintenance reserve fund
• Access to the last WEG protocols
• Taking over decided but not yet implemented renovation measures

Special case: rented condominium

When purchasing a rented apartment, the buyer automatically enters into the existing lease agreement under the law (“purchase does not terminate rent”, § 566 BGB). Therefore, the contract must additionally regulate:

• Handover of all rental agreements including appendices
• Transfer of the security deposit (with bank statement)
• Pro-rata rent in the handover month
• Outstanding additional costs statements
• Confirmation that no termination has been issued

Maturity and payment of the purchase price: How it works correctly

One of the biggest points of contention in practice: When must the buyer pay? Answer: Only when the notary sends the “maturity notice” — and for this several conditions must be met.

These conditions must be present

• Notice of preliminary registration in the land register entered
• All liabilities in Section III are deleted or deletable (security releases from the seller’s financing bank are available)
• Possible required approval from the property manager (often required in WEG)
• Negative certificate from the municipality regarding the right of first refusal

Notary escrow account vs. Direct payment

In most cases, the buyer pays directly into the seller’s account — faster, cheaper and standard practice. An escrow account with a notary (trust management by the notary) is only sensible in complex situations, such as in the case of interim financing or if liabilities can only be deleted after payment. It costs an additional approximately 1‰ of the purchase price.

Sample purchase agreement for House & Apartment

What does a purchase contract look like? What is included? Free template (from immobilien-erfahrung.de, where topics such as real estate entry, capital investments, and more are thoroughly covered):

• Purchase Contract Template & Sample — external

Additional Documents & Papers for the Sale

As a seller of a condominium, you should have all relevant documents completely ready before the notary appointment. Missing documents can delay the sale by weeks — and in the worst case, the buyer may back out.

Declaration of Shares: Division of Ownership Rights

The declaration of shares is the legal DNA of every condominium. It defines what is exclusive ownership (your apartment) and what is common ownership. Pay special attention to special usage rights for parking spaces, garden areas, or basement rooms — if an entry is missing, the area belongs to everyone.

Annual accounts of the last three years

Buyers want to see how the housing fees and special levies have developed. Rising trends or frequent special levies are warning signs of maintenance backlog.

Housing fees: ongoing monthly costs

The housing fee is the monthly prepayment to the homeowners’ association for management, administration, and maintenance reserve. Typical amount: 3–4.50 €/m² living space. For an 80 m² apartment, this is approximately 240–360 € monthly.

Maintenance reserve: the homeowners’ association’s renovation reserve

Die Instandhaltungsrücklage sollte als Faustregel mindestens 7–15 €/m² Wohnfläche pro Jahr betragen. Eine ältere Anlage mit 0,50 €/m² Rücklage signalisiert: Hier kommen Sonderumlagen. Käufer prüfen das genau — Verkäufer sollten ehrlich antworten.

Decisions of the condominium meetings

Übergeben Sie sämtliche Versammlungsprotokolle der letzten 3–5 Jahre. Bereits gefasste, aber noch nicht umgesetzte Beschlüsse (z. B. Dachsanierung, Aufzugsmodernisierung) gehen auf den Käufer über und müssen offengelegt werden.

Community rules: Rules of the WEG

Hier stehen Detailregelungen: Stimmrecht, Kostenverteilung, Vermietungsbeschränkungen (zunehmend Verbote für Kurzzeitvermietung wie Airbnb), Tierhaltung, Umbaubeschränkungen.

Further required documents for the notary appointment

• Current land register extract (not older than 3 months)
• Energieausweis (Pflicht seit 2014)
• Current construction plans and building description
• Calculation of living space
• When renting: all rental agreements
• Brandschutznachweise (falls modernisiert)

Notary fees and purchase additional costs: Example calculation

The purchase additional costs when selling an apartment quickly add up to 10–15% of the purchase price. The notary himself is the smallest item — the land transfer tax has the biggest impact.

How the additional costs add up

• Notary fees: approx. 1.2–1.5% of the purchase price
• Land register fees: approx. 0.3–0.5% of the purchase price
• Land transfer tax: 3.5–6.5% (depending on federal state)
• Real estate agent commission: since the reform split between buyer and seller

Example calculation: Condominium 500,000 €

The land transfer tax varies significantly: Bavaria and Saxony are at 3.5%, while NRW, Brandenburg, and Schleswig-Holstein are at 6.5%. For a 500,000 € apartment, this is a difference of 15,000 €.

Warranty in apartment sales: “As seen, so bought”

The standard clause “Sale is made without any warranty” appears in almost every purchase contract — and protects the seller from claims due to defects. However: The exclusion does not apply to deliberately concealed defects.

What sellers must disclose

• Known moisture damage, mold, water damage
• Structural issues, cracks in the masonry
• Planned renovation decisions by the WEG
• Disputes with neighbors or the WEG
• Distressing legacy issues or suspected asbestos
• Pending court proceedings

Anyone who conceals a known defect is personally liable, even if the warranty exclusion applies — often years later. In doubt: disclose in writing.

Process from draft contract to handover of keys

Anyone who knows the timeline can avoid stress and realistically plan for connection financing, moving, or follow-up investments.

Typical timeline at a glance