Selling a condominium - what owners should know

Anyone who lives in an apartment building for rent or for sale knows that not everything always runs smoothly between the residents. If you are in a community of owners, the community regulations and the Condominium Act apply. This may also apply when selling the apartment.

In most cases, owners of condominiums can decide for themselves who they want to sell their property to. However, if there is a fixed restriction on sale, it can be difficult.

What is a restriction on sale?

The restriction on sale is enshrined in the German Condominium Act (§12 WEG) and applies if it is recorded in the land register. If a seller is affected by this regulation, the apartment may not be sold without the consent of the owners' association or a property manager.

Influencing the sale

Just because a neighbor is not happy with the new occupant does not mean that the sale will fail. In fact, there are three ways in which the sale can be influenced in the event of a restriction on sale. Either the entire community of owners decides on the sale of the apartment or a majority decision is made. The third option is that the property manager alone decides whether the apartment is sold to the new potential buyer.

When may a buyer be rejected?

In principle, however, not every prospective buyer may be rejected. This is because there must be a valid reason for the rejection. Effective reasons for rejection include

• the buyer will not be able to make a sufficient financial contribution to the Community obligations
• the intended use of the apartment violates the declaration of division
• Character of the residential complex is disturbed

In general, a refusal may be based either on the person of the buyer or the use of the apartment.

Inform and avoid conflicts

To avoid conflicts, sellers should always clarify beforehand whether there is a restriction on sale in the land register and, if so, how exactly this is regulated in the community of owners. Should disagreements nevertheless arise, the matter can be resolved through the courts. To avoid such disputes, it is advisable for owners to contact a real estate agent.

Would you like to sell your apartment and need support? Then get in touch! We will be happy to advise you.

Do you need more information?

https://de.wikipedia.org/wiki/Wohnungseigentum_(Deutschland)

https://www.test.de/Eigentumswohnung-Grundregeln-der-Eigentuemergemeinschaft-5332284-0/

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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