Real property dictionary
Real property know how from A to Z – our dictionary provides all the answers you need.
A client account is an escrow account for a third party held in one’s own name.
For any changes to the interior of a building or loggia glazing, which are not subject to any reclassification or require any parking obligation, it is principally sufficient to notify the construction authority of the work. Within the framework of a construction notification, no building negotiations or approval are needed. The work can be commenced immediately.
Under the Austrian Construction Work Coordination Act, the client is obligated to put measures into effect for the protection of workers during the planning and implementation stages of construction schemes. This applies to all construction sites and is aimed at ensuring the safety and health protection of workers on construction sites.
An order to construct a property is performed on behalf of, and on account of, the client.
A construction site must be approved as such in accordance with the regional building code. No building may be constructed on this site until after appropriate classification. Permission is bound to different conditions depending upon the region.
According to Section 8 of the Vienna Building Code, a construction freeze is imposed if the City of Vienna plans to modify zoning and development plans. Until the municipal council makes a ruling on the redefinition, no construction scheme may be carried out. A construction freeze is also imposed on areas that have not yet been registered within the zoning and development plans. If a construction freeze is established, no construction scheme may be carried out. In doing so, various legal regulations concerning construction freezes must be observed, as under certain requirements, site management is still possible.
Construction negotiations usually take place after submitted documents have been examined. The submission of documents is determined by the relevant authority. Normally, clients, the foreman, planner, the road administration, and the residents affected are invited to take part in construction negotiations. In the course of this, a visit is made to the property, which is checked for compliance with the applicable building provisions. Residents also have the chance to put forward any objections at this time.
The completion of a construction scheme must be reported to the responsible construction authority through a notice of completion. This notice should include existing plans, confirmation of proper execution, sewer, pipeline, and chimney findings, as well as results from the gas and electricity installation.
Communal facilities are parts of the building that can be used by every tenant, as long as they are prepared to contribute to the proportional operating costs. These may include passenger lifts, laundry rooms, heaters, or children’s playgrounds. The costs are divided according to the relation of the objects’ usable areas or by agreement of all users respectively. If the energy costs can, however, be assigned to individual users, it is possible to input these at a flat rate, for example, through pay stations.
Written agreement of all flat owners on the performance of certain functions within the owners’ community.
The court of jurisdiction regulates which court must exercise its jurisdiction in individual cases, and therefore, who is locally, competently, and functionally responsible. This is normally stipulated in rental contracts and other contractual agreements.
Cadastral areas are parts of the earth’s surface that are described as such in the cadastre (boundary and tax cadastre). These consist of an arbitrarily large number of single plots of land, which, for their part, are the smallest spatial objects in the land register. Political municipalities usually comprise one or several cadastral areas. Every cadastral area also has a name and a number for clear identification.
The contractual penalty is a remuneration amount that can be agreed in the case where a contract or individual points of the contract are not adhered to.
- Flat ownership: According to the Residential Property Law (WEG), property expenses are borne by the flat owners based on the agreement of their share of co-ownership. Under the agreement of all homeowners or in the ownership contract, a different basis of allocation can be agreed. There is an exception if so-called existing agreements are present in the statement of flat ownership. The operating costs are then divided according to the agreement that existed before the statement of flat ownership. In most cases, this is according to usable area. The remaining expenses are accordingly allocated according to shares in the land register. As soon as the final existing agreement has ended, all property expenses are distributed in accordance with stipulated shares in the land register.
- Rented house: Within the scope of the Act on Tenancy Law (MRG), the operating costs are basically borne by tenants according to usable area. In the sections on partial and full exceptions, cost allocation can be freely agreed between the tenant and landlord.
Co-ownership refers to the ownership of a communal object by several persons. With simple or non-material co-ownership of a property, shares of co-ownership exist according to fractions, however, not according to parts of the property determined by area or space. With simple co-ownership, the use must be agreed by all co-owners. In contrast, every co-owner can have ownership of their own non-material share and, for example, sell this or debit it through a mortgage. Flat ownership is a special form of co-ownership.
The clearance certificate represents the confirmation of the payment of taxes to the tax authority. This primarily affects the land transfer tax.
The consumer price index (CPI) is a scale for the development of consumer price levels and inflation in Austria respectively. This means that it shows the extent of the loss in monetary value that hits the final consumer. In the real estate industry, the CPI is used to ensure the value stability of money sums (rent). The basis for the CPI is a shopping basket, that is, a representative selection of goods and services bought by the average household in Austria.
Consumption costs are consumption-dependent costs such as heating, electricity, and hot water costs and are also a component of the allocable operating costs. In buildings, the proportional consumption costs are ostensibly determined with gauged counters such as heat meters, electricity meters, and hot water meters.
The classification is the use of the object of flat ownership, e.g. as a home, garage, office, or business premises. The classification is determined under private law by the agreement of the flat owners, usually in the ownership contract, and does not compulsorily have to relate to the legal constructional classification. The classification can only be changed with the permission of all other flat owners. If this is not granted, they can be replaced by a non-contradictory judge.
The current value describes the value of an object at a pre-determined point in time.