Condominium

ETW (condominium) refers to a residential unit in a multi-family building that is owned by an individual or a company. The owner holds a proportional share of co-ownership in the common property and the common areas (stairwell, roof, facade). The legal basis for this is the Condominium Act (WEG).

Individual Ownership and Common Ownership

In the case of a condominium, the law distinguishes between two forms of ownership:

Individual ownership includes:

• The enclosed apartment itself (walls, floors, ceilings-provided they are not load-bearing components)
• Non-load-bearing interior walls, windows (in many declarations of division)
• Basement storage unit and, if applicable, underground parking space (as individual ownership or exclusive right of use)

Common property includes:

• Load-bearing walls, roof, facade, stairwell
• Heating system and common utility lines
• Property with outdoor facilities

The exact demarcation is governed by the declaration of division, which is filed with the land registry office. Prospective buyers should always review this before purchasing.

Condominium Owners’ Association (WEG) and Management

All owners of a complex automatically form a Condominium Owners’ Association (WEG). This association makes joint decisions regarding maintenance, modernization, and management. Key components:

Element	Meaning
Condominium fees	Monthly advance payment for operating costs and reserves
Maintenance reserve	Accumulated funds for future repairs (roof, heating, etc.)
Property manager	Appointed professional manager or self-management
Owners’ meeting	Annual decision-making body of all WEG members

Since the 2020 WEG reform, resolutions can also be passed in purely online meetings; owners also have an individual right to request structural modifications (e.g., charging station for electric cars, accessibility).

Condominiums as an Investment in Nuremberg

Condominiums are one of the most popular investment options in the Nuremberg metropolitan region. Existing condominiums are particularly in demand in neighborhoods such as Gostenhof, St. Johannis, Maxfeld, and the Südstadt, where stable rental yields between 3.5% and 5% are achieved. New construction projects in Lichtenreuth (Südstadtquartier) or Am Wegfeld tend to appeal more to owner-occupiers.

When purchasing as an investment, prospective buyers should always check the amount of the maintenance reserve and any outstanding special assessments-both of which can significantly impact returns. A well-funded maintenance reserve (guideline: at least 1% of the building’s value per year) protects against unexpected cost contributions. A low or non-existent reserve, on the other hand, can lead to significant special assessments shortly after purchase.

Important Documents Before Buying a Condominium

Before the notary appointment, the following documents should be obtained and reviewed:

• The minutes of the last three owners’ meetings: Show planned renovations and approved measures
• The current annual statement: Provides information on actual costs and the payment history of all owners
• The budget plan: Shows the planned financial situation of the condominium association
• A request for maintenance fee information from the property manager: Confirms whether the previous owner has any outstanding balances
• The declaration of division and, if applicable, the community rules: Defines the rights and obligations of the owners

Practical tip for owners in Nuremberg and Franconia

We recommend that every condominium buyer request the last three minutes of the owners’ meetings as well as the current annual statement before the notary appointment. These documents reveal whether major renovations (roof, elevator, heating) have been approved or are pending. The Nuremberg Land Registry Office (Nuremberg Local Court, Fürther Straße) makes the declaration of division available for inspection upon request. We help you expertly evaluate these documents and identify hidden risks.

Frequently Asked Questions

What is the difference between ETW and Eigentumswohnung?

ETW is simply the common abbreviation for Eigentumswohnung-both terms refer to exactly the same legal construct under the WEG.

As an ETW owner, do I have to pay maintenance fees even if I rent out the unit?

Yes. The maintenance fees are borne by the owner, regardless of whether the apartment is owner-occupied or rented out. Parts of these fees (operating costs) can be passed on to the tenant as part of the utility bill.

How is a condominium in Nuremberg valued?

The key factors are location, living space (according to the German Living Space Regulation), year of construction, amenities, and the condition of the common property. We will prepare a comprehensive market value analysis for you based on current comparable prices from the Nuremberg purchase price database.

What is the difference between a right of exclusive use and separate ownership?

Separate ownership encompasses areas that belong solely to an owner and are registered as such in the land registry-e.g., the apartment itself or an underground parking space. An exclusive right of use, on the other hand, is the sole right to use common property-e.g., a portion of a garden or an outdoor parking space. The exclusive right of use is not ownership, but it can be secured in the land register or regulated in the community bylaws. When making a purchase, it is important to understand this difference, as an exclusive right of use can be modified more easily than registered exclusive ownership.

Rights and Obligations as a Condominium Owner

As the owner of a condominium, you have extensive rights: You are free to use, rent out, or sell your unit. On the other hand, there are obligations arising from the community. These include, in particular, the obligation to pay the monthly maintenance fee, regardless of whether the unit is vacant or rented out. Resolutions passed by the owners’ meeting are binding on all members, even if you voted against them-provided the resolution was passed in accordance with the law.

It is also important to note: Structural changes within your apartment that affect the common property (e.g., breaking through a load-bearing wall or altering heating pipes) require approval from the owners’ association. Renovation measures such as the installation of an air conditioning system or a charging station for electric vehicles have also been made easier since the 2020 WEG reform: Individual requests for privileged structural changes can no longer be rejected outright under certain conditions.

Purchasing a Condominium: Financing Considerations

When purchasing a condominium as an investment, banks review not only the buyer’s creditworthiness but also the condition of the condominium association. A well-funded maintenance reserve and a low vacancy rate in the building have a positive impact on creditworthiness. When financing the purchase of a condominium as an investment, many banks require an equity share of at least 20 to 30%, as the risk of rent loss and special assessments is factored into the creditworthiness assessment.

In Nuremberg, buyers of condominiums can, depending on their income and family situation, take advantage of subsidies from the LfA Förderbank Bayern or KfW loans. We recommend clarifying these options early in the financing discussion-ideally before the notary appointment, as some programs require an application to be submitted before the purchase contract is signed.

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