GLOSSAR
ACCEPTANCE PROTOCOL
Document stating the condition of a property at the time of handover, that has been signed by both parties
ANNUAL STATEMENT
Statutory detailed account of revenue and expenditure of an owners’ community for the previous calendar year.
ATTIC
An attic room or apartment
CADASTRAL MAPS
The cartographic depiction of all land plots on a cadastral map, including plot details, e.g. plot registration number and property borders. These cadastral or plot maps are managed by the relevant land registry or land surveying office.
CAPITALISED VALUE OF POTENTIAL EARNINGS
Value of a property, which is calculated by the potential rental income or leasing and the expenditure of the operation costs as well as the other parameters such as remaining useful life or the property rate.
COMMISSION
Fee for the property agent, that is due for the conclusion of a purchase or a rental contract. When purchasing an apartment from HBH Immobilien no commission is due, as this is considered a direct acquisition.
CO-OWNERSHIP SHARE
Part of an ownership community (see also ownership community, owners’ meeting)
DECLARATION OF DIVISION
Declaration of a property owner regulating the separation of the co-ownership share (living space and useable floor space) on the basis of a separation plan
DEPOSIT
Provision of security for the landlord / owner – often as a savings account – due at the point of conclusion of the rental agreement
EASEMENT
The right in rem relating to an immovable property for limited use, e.g. the right of way
EFFECTIVE DATE OF VALUATION
See market value
ENTRY IN THE LAND REGISTER
Entry at the land register, which is kept by the relevant local court (Amtsgericht) of a land register district. Details in the land register include the owner (section I), encumbrances and restrictions (section II), mortgages and land charges (section III). In case of legitimate interest, the land register
ESCROW ACCOUNT
A separate bank account for handling the sale of the property
Management and settlement of the total sum to guarantee the purchase and to ensure notarial security
EXPOSÉ
Portfolio or brochure with a description of the property which is offered for sale or for rent
FLOOR SPACE INDEX
The rate to regulate the admissible floor space in relation to the size of the plot of land
For example: The size of the plot is 500 m2 and the floor space index is 0.5. The maximum total floor space of the building shall not exceed 250 m2, e.g. 2 full floors, each 125m2
FREEHOLD APARTMENT
Acquired property of a single freehold apartment in a residential building, which is treated as any other property by registration into the land register, i.e. it can be sold, given, rented or charged.
GERMAN CONSTRUCTION CONTRACT PROCEDURES
Regulations issued by the German Contruction Contract Committee including awarding works contract by a contracting authority (part A), details regarding the building agreement (part B) and technical terms of contract (part C)
This regulation is equivalent to the terms and conditions and can be agreed as a part of a contract
GROSS CUBIC VOLUME
The total volume of a property, calculated by the outer surfaces and the base of the complete structure
IMMOVABLE PROPERTY
Latin im-mobilis meaning immovable, an object that can’t be moved, generally a description for a plot of land, a building or an apartment
INDIVIDUAL BILLING
Individual breakdown of the annual charges for every member of the ownership community, see also annual statement
INDIVIDUAL OWNERSHIP
The right of ownership according to the residential property law for the exclusive use of the owner, e.g. for a freehold apartment, but also for business premises, medical practices or the like
The individual ownership right is to a large extend legally equivalent to the full ownership
INFRASTRUCTURAL DEVELOPMENT
Connection of the plot of land to the local public infrastructure, e.g. electricity, gas, water and sewage connection, access to the public road network and telecommunications system. Charges for the local public infrastructure are raised. Based on this infrastructural development, the construction on the property can be carried out.
LAND CHARGE
Security for real estate loans which are registered in the land register
LAND TRANSFER TAX
A transfer tax based on a purchase contract, calculated by the value of the purchased property
LIVING FLOOR SPACE
Areas of rooms of an apartment that can be used for residential purposes and can be calculated according to a relevant calculation regulation or DIN 282/277
Areas that are not considered living floor space are for example cellars, attics and business or utility rooms
LOAN
Capital or an amount of money which is lent by a bank to the borrower for the purpose of purchasing property. The loan is for an agreed period of time and with a fixed interest rate
LOFT
Open plan apartment which is often a result of a refurbishment of former industrial buildings, warehouses or factories.
LOGGIA
It is similar to a recessed balcony, i.e. a room that has a roof and is open to one side
MAINTENANCE PROVISION
The community of owners establishes a reserve for the purpose of maintenance or repair of the property. Decisions regarding the maintenance provision are made by the majority at the owners’ meeting.
MARKET VALUE
Possible price of a property at a certain time- the effective date of valuation- that can be obtained for general business dealings
NOTARY
A public official who certifies and notarises legal transactions
OWNERSHIP COMMUNITY
A community of owners or part-owners with partial legal capacity of a property on the basis of the Residential Property Act, based on contractually regulated individual property or on partition of the property
OWNERS’ MEETING
Based on the Residential Property Act, this is the highest authority of self-administration of the ownership community for finding a consensus and passing resolutions
PARTITION PLAN
See DECLARATION OF DIVISION
PART-OWNERSHIP
The share of rooms or areas which are part of the communal property of an owners’ community
PERSONAL CONTRIBUTION
Building, renovation or other services which are not provided by the property developer and therefore are excluded from warranty claims
PLOT COVERAGE INDEX
Rate to calculate the maximum construction area of a plot of land – this is determined by multiplying the plot coverage index and the plot size
PRIORITY NOTICE OF CONVEYANCE
This is a notice of transfer of ownership of a plot of land, recorded in the land register. The property is secured for the owner until the entry in the land register has been completed.
PROPERTY DEVELOPER
A company that buys land, constructs or refurbishes buildings and sells this property, e.g. as apartments
PROPERTY RATE
The property rate is the interest rate which is applied for the average market value of the property based on the property market.
PROPERTY TAX
Property tax is a charge calculated on the basis of the municipal assessment rate and to be paid annually for the relevant plot. This tax is levied by the tax office
REAL VALUE
Parameter to determine the value of a property, based on the land value, construction value, age and market adjustment factor
RECONSTRUCTION LOAN BANK KfW
The KfW is a German promotional bank, that acts a as public law institution. Services include offering loans at particularly favourable terms.
REFURBISHMENT
Restoration of a building to a state which ensures a safe, healthy and/or modern use by carrying out renovation and maintenance works or modernisation measures
REMAINING USEFUL LIFE
The period during which the property is expected to be useable, based on the total period of use, assuming proper use and maintenance
RESIDENTIAL PROPERTY LAW
A law to regulate the partition of a property, according to the declaration of division to create apartments or buildings as property (freehold apartments)
This law also includes rooms or areas that are not used for residential purposes of the common property (part-ownership
SEPARATENESS CERTIFICATE
Separate home ownership or part-ownership, for residential property with a separate access and sanitary facilities
SHELL DIMENSIONS
Space measurements according to the architectural drawing which may differ from the actual measurements after the completion of the construction, e.g. the plaster is not considered yet
SPECIAL PAYMENTS
Financial obligation for all members of the owners’ community for the purpose of maintenance or repair of the property
Decisions are made by the majority at the owners’ meeting.
SPECIAL RIGHTS OF USE
Permission to exclusively use certain parts of the common property
TRUST ACCOUNT
See ESCROW ACCOUNT
VALUATION
Procedure to determine the long term value of the property, e.g. the lending value or market value
WARRANTY
Liability of the property developer or builder for defects of the construction. The warranty period is 5 years and it is regulated in the German Civil Code (BGB).
