Real property dictionary

A power of representation (e.g. power to negotiate, proxy) is conferred by a judicial act. This is conferred through a statement to the party to be represented or to the business partner. A power of representation is a one-sided legal transaction that must be received, which is why receipt, but no acceptance is required. With real estate transactions, evidence of power of representation is required in publicly certified form at the land registry. A power of representation can expire through termination of the underlying legal relationship, or through the withdrawal or death of the representative. It should be noted here that a power conveyed by a declaration against a third party remains in force until its expiration is declared by the principal. If the representative has been issued with a document, their power against a trustful third party exists until the document has been returned or declared invalid.

Personal requirement exists when a landlord requires the rental flat for the living purposes of themselves or a family member.

The land register is a public register, where properties and the private rights and obligations affecting them are entered. As part of this, an entry in the land register is provided for each geographical unit, which is managed as an individual property number (EZ).

The period of notice is the time span between declaration of termination and the contract termination resulting from it. This notice allows the contractual partners to prepare for the contract termination and potentially to look for other contractual partners.

A property denotes a coherent area of land that can consist of several plots and forms an object on the land register.

An object that is owned by a regional authority (country, region, municipality) and is open to general use (roads etc.) is described as a public asset. It is also identified as such in the land register.

Partition refers to the proportionate establishment of home ownership in the land register. Partition has a special meaning, for example, in the subsequent purchase of living areas such as attic conversions, etc.

Parcelling or sub-divisioning denotes any change to the property holding of a land register entry by the write-up or write-down of land or portions of land. This therefore describes each reduction or expansion of the land’s area. Particularly with the creation or change of building sites, permission is required from the construction authority, which is necessary for effecting a change in the land register.

The patronage liability, also known as a letter of responsibility, is a means of security in the granting of credit to group companies. In the letter of responsibility, the holding company makes a commitment to the creditor to place their subsidiary company in a position to fulfil the obligations of the credit agreement. The content and scale of the patronage liability are not standardised and depend on the respective requirements. The letter of responsibility is submitted by the holding company in support of the subsidiary company, primarily to improve their creditworthiness.

The precarium is a special form of loan or a contractual basis to use an object. This requires an indefinite service life, the revocability at any time, and the non-remuneration of the transfer. The Austrian Act on Tenancy Law (MRG) does not apply for a precarium. Above all, this means that no legal protection against eviction applies for the consumer. The condition for the precarium is basically that the transfer is free of charge.

In flat ownership, administrative measures must be distinguished between ordinary and extraordinary. Ordinary administration concerns measures such as preservation of general areas, establishment of reserves, and the adequate insurance of the property. In this field, the majority of flat owners or the administrator respectively made the decision as soon as one is ordered. Structural modifications that transcend preservation, as well as useful improvements, are measures of extraordinary administration. In this case, the administrator may only act on the basis of a majority resolution. All other extraordinary administrative measures are regulated in the General Civil Code (ABGB) and require the agreement of all flat owners.

A power of representation (e.g. power to negotiate, proxy) is conferred by a judicial act. This is conferred through a statement to the party to be represented or to the business partner. A power of representation is a one-sided legal transaction that must be received, which is why receipt, but no acceptance is required. With real estate transactions, evidence of power of representation is required in publicly certified form at the land registry. A power of representation can expire through termination of the underlying legal relationship, or through the withdrawal or death of the representative. It should be noted here that a power conveyed by a declaration against a third party remains in force until its expiration is declared by the principal. If the representative has been issued with a document, their power against a trustful third party exists until the document has been returned or declared invalid.

With a rented home or lease contribution in flat ownership, the prescription is the monthly bill via the rent. The amount is – unless otherwise contractually agreed –, in principle, due in advance on the 5th of the month.

The preliminary contract is the agreement to wish to conclude a contract in the future.  Obligations from the preliminary contract therefore include the conclusion of a main contract. Therefore, the fulfilment of services cannot yet be expected from the preliminary contract. The preliminary contract is usually concluded if the intended main transaction is still impeded by legal and/or actual obstacles.