Glossary

German property terms, explained.

“Orderer pays” principle

In residential lettings, the agent is paid by whoever hired them – usually the landlord.

Fee paid to an agent for introducing or brokering a deal. For homes sold to consumers it is usually split between the parties.

Federal law setting energy efficiency requirements for buildings and heating systems, including rules on energy certificates.

Thorough review of a property before purchase: legal, technical, financial and tax aspects.

Document on a building's energy efficiency, as a demand or consumption certificate. Required for sales and lettings, valid ten years.

Sets duties for agents and developers, including payment instalments by construction progress when buying off-plan.

Sales or letting brochure with description, photos, floor plans and the mandatory energy certificate details.

German fee schedule for architects and engineers, dividing planning services into nine work stages.

All owners of a residential complex. It decides on the jointly owned property at the owners' meeting.

Plan prepared by energy consultants for the step-by-step energy renovation of a residential building.

Public register kept by the local court recording ownership and encumbrances of a property, such as land charges or rights of way.

Funds saved by the owners' association for future repairs to the jointly owned property.

The price achievable on the valuation date in ordinary business dealings (§ 194 German Building Code).

Notarises property purchase contracts, verifies the parties' identities and arranges land register entries.

Application for building permission to the local building authority. It must be submitted by an authorised person, usually an architect or engineer.

In tight housing markets, limits rent on re-letting to generally 10% above the local reference rent.

Purchase price divided by annual net cold rent; a simple figure for comparing income properties.

Valuation method deriving value from prices of comparable properties; common for flats.

Monthly advance payment by flat owners to the association for running costs, management and reserves.

Annual statement of recoverable operating costs between landlord and tenant.