Real estate

What must be taken into consideration when acquiring a condominium?

1^st step Examining the question of the seller’s legal status

Who is the seller? Owner in the land register / owner outside the land register / future owner / other authorised agent / authorised organ of a juristic person?

2^nd step: Examination of the status in the land register

2.1. Ownership

Who is the owner of the condominium in the land register?

2.2. Encumbrances in the land register

Are encumbrances, easements, or other rights (in rem) in favour of third parties entered in the land register?

2.3 Restraints on disposal, encumbrances, notes

2.3 1. Are there any entries in the land register that indicate a restraint on the disposal of the real estate (the condominium), e.g. protection of monuments, tenancy agreement, pre-emptive rights, etc.?

2.3.2. Are there other notes in the land register (e.g. ranking for alienation / intended mortgaging etc.)?

2.3.3. Is there any indication that there might be an owner outside the land register (probate proceedings, foreclosure sale, etc.)?

3^rd step: Examination of the condominium from the legal point of view

3.1 Permissions

Do the necessary building permissions and rights of use for the condominium and the general parts of the building exist (in particular lift, attic construction etc. – possible liability of all co-owners!)?

3.2 Current expenses

Clarify amount of the running costs and of the repair reserve of the last calendar year and amount of the maintenance fund.

3.3. Warranty

Examination of the condominium and of the general parts of the building with an expert (civil engineer, master builder, etc.) for structural damage to the building and the condominium. Clarify the question which repairs were made to the general parts of the building during the last two to three calendar years (possibly allows conclusions as to the repairs to the general parts of the building that are to be expected). Check the useful area using the natural measurements (to avoid paying for more than is actually there).
If buying from ownership organizer, demand an expert opinion on the maintenance work to the general parts of the building that is to be expected during the next 10 years from the date of the signing of the purchase agreement. The expert opinion must not be older than one year.

3.4 Condominium ownership agreement

Examine the condominium ownership agreement.

4^th step: Transfer of ownership

Are official permissions / confirmations required to carry out transfer of ownership to the acquirer in the land register (e.g. real-estate transactions by foreigners, real-estate transaction / building land confirmation, etc.)

A precise examination can help you avoid unpleasant surprises; this is even more true if only co-ownership (e.g. apartment house) is acquired.

Our law firm will be happy to help you safeguard your interests when buying a condominium.