Checklist: What you need to consider in a WEG

Can I sell my condominium to whoever I want? In principle, you can sell your condominium, but there may be certain restrictions within a WEG. The community rules or declaration of division may have requirements for the buyer in order to protect the community’s interests.

10 simple things you should consider when selling.

Inform the community of owners

Before you start the actual sales process, you should inform the other members of the condominium association of your intention to sell your apartment. In many cases, condominium associations have certain established procedures and rules that must be followed when selling condominiums. This procedure serves to ensure transparency, compliance with community regulations and the maintenance of a smooth process.

Provisions of the community of owners

Depending on the rules of the condominium association, it may be necessary to submit certain documents or information to announce and facilitate the sale. These documents could include details of the apartment, the planned time of sale and other relevant information. The purpose of this measure is to ensure that the community is aware of the sale and can act in a timely manner if necessary.

Check the community rules

The community rules of a community of owners set out specific regulations and guidelines that the owners must comply with.

Before you sell your condo, it’s important to review these rules carefully to make sure you’re meeting all the necessary steps and requirements. For example, some communities may stipulate that the sale must be announced in advance or that certain documents must be submitted. There may also be rules about viewings or access to the property. By understanding and following the community rules, you will ensure a smooth sales process and avoid potential conflicts.

Inform the administrator

The administrator of a community of owners is a central point of contact for questions and matters relating to the property. If you are planning to sell your condominium, you should inform the administrator as early as possible.

This can take the form of a written communication or a personal meeting.

The administrator can help you to handle the sales process correctly, as they are often aware of the exact procedures and requirements. They can provide you with information on required documentation, put you in touch with other owners and offer general support. Close communication with the administrator will help to avoid confusion and ensure a smooth sale.

Why does property management have to agree to the sale of an apartment?

The property management often has to agree to the sale of an apartment, as condominiums are part of a community of owners (WEG). This community has common interests, regulations and responsibilities. Consent serves to ensure that the sales process complies with the community rules and interests.

Check any sales restrictions

Some condominium associations may have clauses that restrict sales to certain people or under certain conditions. Make sure you are aware of any such restrictions before you start the sales process.

Documents and records

Prepare all the necessary documents and paperwork required for the sale of your home and the transfer of ownership. This could include:

1. Declaration of division
2. Distribution plan
3. Minutes of the owners’ meetings
4. Business plans
5. Etc.

Inform potential buyers

Make sure that potential buyers are informed of the fact that the apartment is part of a community of owners. Also provide them with all relevant information about the:

1. Community rules
2. Fees
3. Maintenance fund
4. Etc.

Negotiate the housing benefit settlement

When you sell your condominium, one of the important financial aspects is the regulation of housing benefit costs. The housing allowance is the amount that owners in a community of owners regularly pay to cover common expenses such as maintenance, insurance and administration costs.

When selling a condominium, you must discuss with the potential buyer how the settlement of housing benefit costs will be handled.

The following steps are relevant here:

Housing benefit reserve and settlement period

Make sure that the buyer understands that there is usually a housing benefit deposit, which in most cases is settled between the buyer and seller on transfer of ownership. Clarify the settlement period to ensure that both parties know which housing benefit payments are included in the negotiations.

Pro rata payment

As a rule, the buyer assumes the pro rata housing benefit costs from the date of transfer of ownership. This means that the buyer is responsible for the housing benefit payments due from this date.

Calculation of costs

The costs for the housing allowance are normally based on the monthly amount that you last paid as the seller. This amount is calculated pro rata for the remaining days in the settlement period.

Transfer of ownership

Make sure that the transfer of ownership is properly documented. This is usually done by a notary. Make sure that all relevant documents are signed and transferred.

• Condominium handed over

Inform the administrator about the change of ownership

After the sale, you must inform the administrator of the change of ownership so that all relevant documents and information can be updated.

Congratulations, your condominium has been successfuly sold!

Communication and collaboration

Open communication with the community of owners, the property manager and the buyer is crucial to ensure a smooth sales process. Cooperation and compliance with the rules help to ensure that the sale is successful.

Selling from a community of owners: how it works

Make sure that the sale of your condominium in a community of owners goes smoothly: Inform the community at an early stage, check the rules, contact the administrator and observe any sales restrictions.

Prepare all documents, inform potential buyers about the community membership, negotiate the housing benefit statement and secure the transfer of ownership. Inform the property manager about the change of ownership and maintain open communication and cooperation. These steps will ensure a successful sale that complies with the rules and runs smoothly.

Contact us: Questions about the sale

Do you have any questions about the sale? Write to me or simply give me a call:

• Contact us

Why is the purchase contract so important?

When it comes to selling a condominium, a purchase agreement is crucial. The purchase contract formalizes the sale and sets out the terms and obligations for both parties. By signing the purchase agreement, both the buyer and the seller agree to the terms and conditions contained therein and are thus legally bound to abide by them.

Another important aspect of the purchase contract is the protection of the interests of both parties. The contract clearly defines what is expected from each party and ensures that the buyer receives the property in the condition and at the price as agreed in the contract.

• Legally binding
• Protection of interests
• Avoidance of misunderstandings
• Documentation of the sale

A sales contract also helps to avoid misunderstandings and ambiguities between the parties. It gives both parties clear instructions on what they have to do and what they can expect from the other party. In this way, potential problems can be identified and resolved in advance, before they lead to major conflicts.

Content of the purchase contract

The contract of sale of an apartment is an important legal contract that sets the conditions for the purchase and sale of an apartment. The contract regulates the rights and obligations of the buyer and seller and sets the conditions for the transfer of the apartment.

Here are some of the key points that may be included in a typical home purchase agreement:

• Name of seller & buyer
• Purchase price and payment terms
• Location & description of the apartment
• Apartment equipment details
• Loads and defects of the object
• Time of handing over the keys
• Warranty regulations
• Interest on late payments
• Special agreements

When you buy a condominium, you become part of the condominium owners’ association and thus have a say in important decisions affecting the common property.

To ensure that all aspects of the purchase of the apartment and the community of owners are clearly and legally binding, the following points are also included in the purchase agreement:

• Additional special property
• Existing special rights of use
• Common property incl. rights of use
• Community order
• Amount of the house money
• Amount of the maintenance reserve
• Current building plans & building description

Additional documents & papers

As a condo seller, you should be prepared for the fact that potential buyers may request to see certain documents.

These documents include, but are not limited to:

• Declaration of division
• Annual accounts
• Amount of the house money
• Amount of the maintenance reserve
• Resolutions of the homeowners’ association
• Community order

Let’s take a look at the respective documents, their content and task.

Declaration of division: division of ownership shares

The declaration of division is an important document that forms the basis for the purchase contract and sets out the rules and regulations for the community of owners. The exact division of the ownership shares is also regulated in the declaration of division.

Year-end statements: Income & expenses

The year-end statements list the expenses and income of the owners’ association. Here, the buyer can see how high the annual costs for the building are and how they are distributed among the individual residential units.

Amount of the house money: Community finances

The house charge is a monthly contribution that owners pay to finance the common property. The buyer should know the amount of the house charge in order to be able to estimate what financial burden will be placed on him.

Amount of maintenance reserve for repairs

The maintenance reserve is a financial reserve formed by the owners’ association to finance repairs and maintenance measures on the common property. The buyer should know the amount of the maintenance reserve and whether it is sufficient to finance upcoming repairs and maintenance measures.

Previous resolutions of the condominium owners’ association

The buyer should know what resolutions the community of owners has adopted in the past, as they may have an impact on future costs and obligations.

Community Rules: Rights & Duties of the WEG

The community rules set out the rights and obligations of the owners and the regulations governing the management and use of the common property. The buyer should check the community rules carefully to know which regulations apply to him.

That is why a preliminary purchase agreement is important

Under certain circumstances, it may also be worthwhile to agree a preliminary purchase contract. This is particularly worthwhile if you have found a suitable buyer, but the actual sale will still take some time. Through a preliminary purchase agreement, you can already make the sale binding and thus secure a buyer at an early stage without having to pay the purchase price immediately.

Preliminary purchase agreement secures buyer and seller

Notary appointment: This is the task of the notary

The notary plays an important role in both the preliminary purchase agreement and the purchase agreement itself. He is legally obligated to take into account the interests of both parties to the contract and to draft a legally sound contract.

The most important tasks of the notary at a glance:

• Drafting of the preliminary purchase agreement
• Registration in the land register
• Notarization of the final contract

Drafting of the preliminary purchase agreement

In the case of a preliminary purchase agreement, the notary will usually first prepare a draft contract that sets out the arrangements and agreements between the seller and the buyer. Then, all relevant documents are reviewed to ensure that the apartment is properly divided and described.

Registration in the land register

After the preliminary purchase agreement has been signed by both parties, the notary is also responsible for registering the preliminary agreement with the land registry in order to file a priority notice in the land register. This priority notice ensures that the buyer is entered in the land register as soon as the final purchase agreement is signed.

Notarization of the final contract

When drawing up the final purchase agreement, the notary assumes a similar role to that of drawing up the preliminary purchase agreement. He ensures that all legal aspects are taken into account, such as registration in the land register and payment of the purchase price. The notary also certifies the signatures of both contracting parties and ensures that the purchase agreement is entered in the land register.

Conclusion: contract of sale for the sale of apartments

In summary, the purchase contract is one of the most important aspects of the sale of a condominium. It sets out all the conditions and obligations associated with the purchase of the apartment and ensures that the sale is legally sound. In some cases, it is also worthwhile to draw up a preliminary purchase agreement, which will safeguard both you and the buyer. Allow yourself enough time to collect all the important documents and carefully review the purchase contract drawn up by the notary so that nothing stands in the way of the successful sale of your apartment.

Homeowners’ association at a glance

A condominium owners’ association (WEG) is a community of owners who own one or more apartments in a common building. So when you buy an apartment unit in a property, you automatically become a co-owner and a part of the community of owners. Explore Real Estate Germany.

The community of owners can be described like this:

Community of all owners of a property.

The community of owners is responsible for the management, maintenance and modernization of the common property. Decisions are made at the owners’ meeting, where each owner has one vote. An administrator is appointed to represent the interests of the owners and is responsible for the management and maintenance of the common property. The condominium owners’ association is a legal entity and can, for example, conclude contracts or appear in court.

Homeowners’ association at a glance:

• A WEG is the community of all owners of a property
• Each owner can represent his right to vote at the meeting of owners
• Each owner has a certain co-ownership share in the common property
• Each member of a WEG must bear costs for the common property
• Each owner is responsible for his or her own special property
• Each owner has to fulfill certain rights and obligations
• Each COA must have certain documents that set out rules and boundaries

Ownership shares and common property

The distribution of property in a condominium owners’ association is defined in the declaration of division. There, it is described in detail which parts of the building are assigned to separate property and which are considered common property.

Each owner has a co-ownership share in the common property of the building, such as the land, the facade, the staircase or the roof. The size of the share depends on the size of the respective apartment in relation to the total living space of the building.

For this purpose, each owner occupies special ownership of his or her apartment. This means that he has sole ownership of his apartment and can use and manage it freely.

This is the right of each owner:

• Co-owner of the common property
• Special ownership of own apartment

Rights and duties of the WEG

Each owner of a condominium association has certain rights and obligations arising from the Condominium Act and the declaration of division. In this section, we will look at these aspects in more detail and explain what rights and obligations an owner has.

The rights and obligations in a WEG include:

• Management
• Maintenance
• Owners’ meeting
• Resolutions

Management and maintenance

The owners are jointly responsible for the management and maintenance of the common property. This includes, for example, the maintenance of the garden, the cleaning of the staircase or the repair of the roof. The costs are apportioned to the owners in proportion to their ownership shares.

This duty has every owner:

• Responsible for common property
• Responsible for internal or external management

Participation in the owners’ meeting

The owners’ meeting is the central body of the condominium owners’ association and is used to make important decisions for the common property. It is therefore important that the owners attend the meeting and express their opinions. However, there is no obligation to attend.

Minutes of the owners’ meeting must be kept and signed by an owner and the administrator. The minutes must contain all resolutions passed and voting results.

Are you interested in the topic of owners’ meetings? Learn more here!

• Owners’ meeting

Voting procedure and resolution

In the owners’ meeting, decisions are made by voting. There are different voting procedures, e.g. simple majority, qualified majority or unanimous decision. A resolution is only valid if it has been properly passed and does not violate any laws or the declaration of division.

House Rules, Declaration of Partition & Co.

In order to regulate the ownership shares in a house with several parties and to guarantee a harmonious living together, a written order is needed. Therefore, every multi-party house has a declaration of division, community rules and house rules.

The house rules are the most important document and, from the legal point of view, the first place to regulate the operation in a multi-apartment building. They are drawn up by the homeowners’ association or the appointed manager and are an obligation for them.

The community rules regulate all regulations and laws for living together in the residential complex and are legally behind the house rules. Since the community rules can be determined by the owners themselves, changes may be decided unanimously at the owners’ meeting.

The declaration of division of a property exists whenever the overall property is split into individual parts, such as individual residential units. It therefore describes the formal division of the property and thereby defines the rights and obligations of the owners.

Order of the WEG at a glance:

• House rules: regulates operation in multi-apartment building
• Community rules: regulates all the rules and laws for living together in the residential complex.
• Declaration of division: thus describes the formal division of the property

Sell apartment house: complete or each apartment separately?

When it comes to selling an apartment building, there are several ways to do it. One possibility is to sell the entire building as a unit. Another option is to divide the building into individual apartments and then sell them separately. Both options have advantages and disadvantages that must be considered when making a decision.

You have these two options:

1. Sell entire property
2. Sell individual apartments

In most cases, owners decide to sell the entire property.

Advantages & disadvantages of a complete sale of the property

If you decide to sell the entire apartment building, the sales process is much less complicated for a complete sale. After all, it is easier to find a buyer for a complete building than for several separate apartments. At the same time, complete apartment buildings are less in demand than individual apartments or single-family homes, since apartment buildings are usually only of interest to capital investors and investors.

However, selling the entire building can also fetch a lower price because the buyer bears the risk of taking on potential vacancies and rental problems.

Here are the pros and cons:

• Advantages: Easy & fast sale
• Disadvantages: Low retail price

Therefore it is worth dividing the apartment house

In comparison, dividing the building into individual apartments can increase the selling price. Since each apartment can now be sold separately, it may also be easier to find a buyer for it.

However, the disadvantage of this is that the division of the building into separate apartments may involve additional costs, such as the construction of partition walls and the installation of separate utilities. In addition, you should allow enough time in advance, as a division of the apartment building must be carefully prepared and processed.

• Advantages: Increased purchase price & many interested parties
• Disadvantages: Cost and time intensive

Even if a division into several apartments requires a lot of resources, it can be worthwhile to divide the house into several ownership shares. To ensure that this works smoothly, you have a few things to consider.

Divide apartment building into individual apartments

In order to divide the apartment building into individual apartments and sell them separately, you need to take certain steps. We will now take a closer look at how this works.

Certificate of Completeness by Building Inspectorate

If an apartment building is divided into several condominiums, a condominium owners’ association (WEG for short) is created. An important prerequisite for this is the existence of a certificate of self-containedness in accordance with the German Condominium Act (Wohnungseigentumsgesetz). This certificate is issued by the responsible building supervisory authority and confirms that the individual apartments are self-contained. This means that they have a separate, lockable entrance, their own ceilings and walls, and their own WC.

These conditions must be met for an apartment to be considered locked:

• Separate, lockable access
• Own ceilings & walls
• Own WC

Partition plan via architect or engineer

In addition to the certificate of separateness, you also need a partition plan of the entire building. This plan is an important part of the declaration of partition and shows how the building will be divided.

The most important information about the distribution plan at a glance:

• Is additionally required
• Shows division of the building
• Includes location & size
• Creation by architect or engineer

It must be prepared by a competent architect or engineer and indicate the exact size and location of each dwelling.

Notarization of the declaration of division

Once you have received the certificate of seclusion and the partition plan, you can prepare the declaration of division. This states that each owner will convert his or her property into co-ownership shares corresponding to the share in the entire residential complex. The declaration of division must be notarized to be legally effective.

Land register entry of the co-ownership shares

Finally, you must make the entry in the land register to secure the co-ownership shares. This is usually carried out by a notary, who draws up the title transfer deeds and applies for the entry at the relevant land registry office.

Once this step is complete, you can sell the apartment in question. But what happens to the tenants after the sale?

This is what needs to be considered: Right of first refusal for tenants

If you convert an apartment building into individual condominiums and sell them, you must bear in mind that the current tenants have a right of first refusal. This means that the tenants have the opportunity to purchase their current apartment on the same terms as agreed in the purchase contract between you and another buyer. The right of first refusal serves to provide the tenants with a certain degree of security and to ensure that they cannot be kicked out of their apartment without further ado.

However, it is possible that the tenant will not exercise his right of first refusal. In this case, you can sell the apartment to another buyer who is willing to fulfill the conditions of the purchase agreement.

Protection against dismissal when selling a house

In addition, according to the German Civil Code (BGB), the buyer is bound by the existing leases. This means that tenants retain their leases even after the house is sold and do not have to fear that they will be terminated.

So if you intend to sell the individual apartments in the apartment building, you must observe a notice lock-up period of at least three years. During this time, the new buyers cannot simply terminate the rental agreements.

Tip: To avoid potential conflicts between buyers and tenants when selling a house, you should include binding regulations in the purchase agreement. These regulations should refer to outstanding rent claims, operating cost payments and deposit repayments.

In summary:

• Buyer is bound by existing leases
• Termination of tenants after sale not possible
• Termination lock period of 3 years
• Tip: Record all formalities in the purchase contract

Conclusion: multi-family house apartments for sale individually

The decision whether to sell the apartment building as a whole or divided into individual apartments depends on various factors, such as the condition of the building, the location and the demand for housing in the area. If you decide to divide the apartment building into individual apartments and sell them, you can look forward to high sales prices. At the same time, it is important to consider both the tenants’ right of first refusal and the protection against dismissal.

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