Real property dictionary

The regulation of use is a written agreement between all flat owners on the use of the available general facilities of a property. It can also be determined by the court at the request of a flat owner.

In flat ownership, a resolution denotes a decision made by the owners’ community. A resolution can occur in the owners’ meeting or otherwise, for example, in writing. A resolution is only then effective after all flat owners have had the opportunity to express their opinion and no time-compliant legal objection has been made by an overruled owner. 

Within a month, each flat owner can directly request that the other flat owners have the invalidity of the resolution due to formal defects, unlawfulness, or a lack of the required majority legally determined. Furthermore, with resolutions in matters of extraordinary administration, each overruled flat owner can make a claim to the court to repeal the resolution within three months. If a flat owner is not informed that the resolution has been made, the notice to make a challenge is extended to six months. The court must repeal the resolution if the modification excessively affects the claimant or if the costs of the change cannot be covered by the reserve fund. The notice to make a challenge begins on the day of notification. 

Each flat owner must be notified of resolutions by the owners’ community both through the notice board and through written submission, and through email if demanded by individual co-owners and flat owners. Furthermore, the notification of resolution must include the legally recognised rights on the possibilities of challenging the resolution.

A right in rem is a right that can be effected against any person and ensures the direct control over an object.

A right of use is a personal encumbrance. It deals with the right to use a third-party object solely to satisfy the requirements of the entitled party (e.g. right to use a flat for one’s own use).

Unlike upkeep, restoration refers to first installation or renewal. For example, this covers the exchange of whole facilities such as heating. Through restoration work, the building’s value in use is increased or its useful life is significantly (over 25%) extended. Examples of restoration work include the exchange of windows and doors, exchange of suspended ceilings, partition walls, and subfloors, the exchange of electric, gas, water, sanitary, or heating installations, or the complete renewal of the exterior plaster and the heat insulation.

In a rental contract, the landlord entrusts the tenant with an object for use for a period of time. In return, the tenant owes the landlord a fee. This is called the rental fee. Special forms of the rental fee are the residential rent and leasing.

In a rental contract, the landlord entrusts the tenant with an object (e.g. a flat) for use for a period of time. In return, the tenant owes the landlord a fee in the form of rent.

According to the Act on Tenancy Law (MRG), the rent comprises the following components:

1. Main rental fee
2. Allocated share of the operating costs on the rental object and running public taxes
3. Allocated share of any special expenses on the rental object
4. Appropriate payment for jointly rented furnishings or other services, that the landlord renders in addition to the transfer of the rental object 
5. Additional value added tax (0%, 10%, or 20%)

The ranking of an entry in the land register depends on when the entry arrives at the land register court. Several creditors are paid in this order. The buyer of a property can secure a specific ranking in the land register by way of a ranking ruling and thus protect against interim debits until their right of ownership has been incorporated into the land register.

Flat owners have to form an adequate reserve fund for the provision of future expenses (Section 32 of the WEG 2002). In the regulation of contributions forming the reserve fund, the estimated development of expenses must be taken into account. The reserve fund must be used to cover expenses. This should either be placed in a separate account for the owner’s community that can be viewed by every flat owner or in an equally viewable client account for profit.

The right of pre-emption is often found with properties in the land register. The beneficiary is granted the right to maintain priority in the case of sale to a third party and to personally acquire the property. The right of pre-emption is triggered by a third-party offer. The beneficiary then has 30 days to make use of their right and acquire the property under the same conditions as the third party. If he does not use this, the right of pre-emption expires and the contract with the third party can legally take place. The right of pre-emption is a highly personal right and cannot be inherited or alienated. It expires with the death of the beneficiary.

The right of redemption is granted to the seller to buy back a purchased object. This can only be arranged for immovable objects (properties) and affects the seller for life. As soon as it is entered in the land register, the respective owner is bound by it.

The Residential Property Law of 2002 regulates the legal side of flat ownership, in particular, the conditions, justification, rights and duties of the flat owners, and of the administrator. It was last updated as part of the Right of Residence Amendment in 2015.