GLOSSARY

The acceptance protocol documents the condition of the premises and any damages when returning a property or apartment. It is created between the tenant and the landlord to record whether the property has been properly returned and which repairs may be necessary.

The "Auflassung" is the formal agreement between the contracting parties on the transfer of ownership of a property. It must be declared by both parties at the same time in the presence of a notary. This agreement is required before the new ownership can be registered in the land register.

The "Auflassungsvormerkung" is a provisional entry in the land register that secures the right to transfer ownership of a property. It is entered in favor of the acquiring party after the notarized purchase agreement is signed. This prevents the property from being sold or encumbered to others before the ownership transfer is completed.

The allocation plan is a graphical representation of a building showing how it is divided into individual units such as apartments or commercial spaces. It indicates the separate property (e.g., living spaces) as well as common property (e.g., staircases or roof). The allocation plan is an integral part of the declaration of division and serves as the basis for registering the individual units in the land register. It must be reviewed and officially approved by the competent building authority.

A tenancy agreement that is fixed for a specific period from the outset and ends automatically without the need for termination. The duration is contractually agreed upon and legally permitted only under certain conditions. Both tenant and landlord know at the time of signing the contract when the tenancy will end.

A legally required reason that permits the limitation of a rental agreement to a fixed period. Under § 575 of the German Civil Code (BGB), the landlord must state a valid reason when concluding a fixed-term tenancy. Permissible reasons include personal use (Eigenbedarf), planned major renovations, or intended use as staff or company housing. Without such justification, the fixed term is invalid, and the tenancy is considered indefinite.

Building Costs or Operating Costs are ongoing expenses incurred by the landlord through ownership or the intended use of the rented property. They are comprehensively listed in the Operating Costs Ordinance (Betriebskostenverordnung, BetrKV) and, if agreed upon in the rental contract, can be passed on to the tenants. Examples include water supply and sewage disposal, heating and hot water, waste disposal and street cleaning, cleaning and garden maintenance, caretaker services, building and liability insurance, elevator maintenance, lighting of common areas, community antenna or cable connection, and property tax.

A monthly or periodic prepayment made by the tenant to the landlord to cover anticipated operating costs (such as heating, water, and maintenance). At the end of the billing period, the actual operating costs are calculated and reconciled with the advance payments. Any difference is then either refunded to the tenant or additionally charged.

A legal reason for terminating a rental agreement when the owner or a close family member needs the rental property for their own personal use. This may include moving in themselves or accommodating family members. In many jurisdictions, personal use is a recognized legitimate ground for ending a tenancy.

Termination of a rental agreement by the landlord when the landlord requires the apartment for themselves, close relatives, or family members.

The condominium owners’ meeting is the central decision-making body of a residential property owners’ association (WEG) and makes important decisions regarding the common property.

A document that shows the energy efficiency and expected energy costs of a building. It provides buyers and tenants with information about the building’s overall energy performance and offers practical suggestions for improvement. The certificate is based on EU regulations, which are implemented in Germany through the Building Energy Act (Gebäudeenergiegesetz, GEG).

Common property includes all parts of a building not belonging to separate property and jointly owned by all owners. Examples include the roof, facade, staircases, outdoor areas, and technical installations such as heating or elevator systems. Decisions about common property are made collectively at the owners’ meeting.

The land register is a public legal register that records ownership rights for a particular property and the corresponding real estate. It notes who owns the property and the land.

A tax levied on the acquisition of land or land shares. It is based on the Real Estate Transfer Tax Act and is a state tax that states can allocate to municipalities. Depending on the federal state, the rate ranges between 3.5% and 6.5% (Berlin 6%) of the purchase price. It is considered a part of the additional costs when purchasing property.

An annual tax paid by owners of land and buildings to the municipality. It is a significant source of revenue for municipalities and is calculated based on the assessed value of the property and the municipality’s tax rate. Property tax helps finance public infrastructure and services. It can be passed on to tenants as part of the operating costs, provided this is agreed in the lease contract.

The annual statement showing the actual expenses incurred by a condominium owners’ association compared to the budget plan. It details expenses, their distribution among units, and whether additional payments or credits are due. The statement is usually prepared by the property management and approved by the owners’ meeting.

House rules regulate coexistence and the use of a building, especially multi-family houses. They contain rules on quiet hours, waste disposal, use of common areas, safety, cleaning, and more to ensure harmonious living. House rules are often part of the rental contract or declaration of division.

A monthly advance payment made by owners to the condominium management to cover ongoing communal expenses such as maintenance, cleaning, insurance, or administration. This advance payment is similar to operating cost prepayments in rental agreements and is based on the approved budget plan.

A rental agreement where the rent is linked to a price index, usually the consumer price index. This means the rent automatically adjusts to inflation.

Expenses necessary to maintain the proper condition of a property, including measures for care, servicing, and repairs to prevent or fix damages and preserve functionality and value. Typical maintenance tasks include repairing leaking roofs and servicing heating systems. In condominium communities, maintenance costs are usually financed proportionally via house fees or maintenance reserves.

A financial reserve set aside in condominium associations to cover future maintenance work on common property. Owners regularly contribute to this fund, which is used to finance major repairs or renovations without requiring sudden special payments. The amount depends on the budget plan and the property’s condition.

All costs incurred in addition to the purchase price when buying a property. The most important incidental costs include real estate transfer tax, notary and land register fees, and possibly a broker’s commission.

A security payment that tenants provide to landlords at the start of a tenancy to cover possible damages to the rental property or outstanding payments. The deposit may not exceed three months’ basic rent (§ 551 BGB) and can be paid in a lump sum or in three monthly installments. Landlords are required to keep the deposit separate from their own assets and to invest it with interest. After the tenancy ends, the deposit must be returned along with the accrued interest, provided there are no claims against it.

A mutual agreement between tenant and landlord to terminate the rental relationship early. Both parties waive statutory notice periods and agree on a binding end date.

A legal regulation that limits rent increases in certain areas with tight housing markets for new leases. The rent may not exceed 10% above the local comparative rent, which is determined by rent indexes or other comparison methods. Exceptions apply for new buildings and extensively modernized apartments.

An overview of local customary rents for residential housing in a municipality or city. It serves as guidance for landlords and tenants in setting or reviewing rent levels. Rent indexes are usually updated every two years and consider factors such as location, size, amenities, and year built.

For each separate property, co-ownership shares (MEA) are specified in the declaration of division. Usually expressed as fractions of 1,000, they reflect a fair allocation based on factors such as apartment size. These shares determine voting rights and cost distribution.

A contract between landlords and tenants that sets conditions for the use of a property or apartment. It regulates rental duration, rent amount, maintenance duties, and the rights and obligations of both parties. The contract is governed mainly by §§ 535 ff. of the German Civil Code (BGB).

The furnishing of a room or property with furniture and household items. It can be full, partial, or absent and affects the use and condition of the property. Fully furnished means all necessary furniture and often household appliances are present so the property can be moved into immediately. Partially furnished means some furniture is present, and others must be provided by the occupant. Unfurnished means no furniture is provided.

An annual statement in which the landlord itemizes the recoverable operating costs for tenants. It must be transparent and comprehensible, showing actual costs and their distribution among tenants.

A trust account managed by a notary used in real estate purchase contracts to handle payment. The purchase price is deposited and only released to the seller once all contract conditions, such as property registration in the land register, are met. This protects both parties and ensures secure payment processing.

Separate property refers to sole ownership of specific rooms within a building defined in the declaration of division, usually apartments or commercial spaces. The owner can freely dispose of, rent, sell, or modify this property. It contrasts with common property.

"Teileigentum" refers to the separate ownership of non-residential units—such as offices, shops, or storage rooms—within a building, combined with a proportional co-ownership share of the common property. It is established under the German Condominium Act (Wohnungseigentumsgesetz, WEG) through a legally registered partition of the property. The owner has exclusive rights to the designated unit and shared responsibilities for common areas.

A notarized document that divides ownership of a property and the buildings on it into legally independent units. It defines boundaries between separate and common property, regulates owners’ rights and duties, and serves as the basis for the Condominium Act (WEG).

An annual financial plan of the condominium owners’ association listing expected income and expenses for the coming year. It forms the basis for setting monthly advance payments (house fees) and is approved by the owners’ meeting.

The German Condominium Act regulates the ownership of individual apartments within a building and the rights and obligations of apartment owners in relation to common property. It governs the formation of condominium ownership, management of the building, and the legal framework for shared ownership.

The Misuse Prevention Act aims to protect residential housing in cities and municipalities and prevent misuse of housing. It regulates under which conditions housing may not or only partially be used for purposes other than living, such as commercial use, holiday apartments, or being left vacant. The goal is to ease the housing market and prevent the shortage of affordable housing. Violations can be punished with fines. The concrete implementation and enforcement lie with municipalities and can vary regionally.

A tenancy agreement that is fixed for a specific period from the outset and ends automatically without the need for termination. The duration is contractually agreed upon and legally permitted only under certain conditions. Both tenant and landlord know at the time of signing the contract when the tenancy will end.