Entire ensemble: Luxurious townhouse and apartment building with 22 residential units

Land and rights equivalent to land (e.g. heritable building rights) are a delimited part of the earth's surface (§ 905 BGB) and are registered in the land register.

The declaration of division is regulated in § 8 of the Condominium Act (WEG). The declaration of division can be described as the "statutes" or "basic law" of a divided property, as all the essential rights and obligations of the co-owners are established here.

The risk profile of the property should be comprehensively assessed as part of a "due diligence", i.e. a simple consideration of the gross yield (annual rent : sales price x 100) is certainly not sufficient. This involves a large number of assessment steps, which are only presented as examples in the context of this blog.

When buying a property, you must expect the following ancillary acquisition costs: Land transfer tax, notary and land registry fees, brokerage fees and bank charges.

The "hereditary lease" is prohibited by law in Germany today. Colloquially, however, the "Erbbaurecht" is often referred to as "Erbpacht". A "hereditary building right" is a right equivalent to real property which is formed in a separate "hereditary building right land register".