Inventory

Inventory - In the real estate sector, “inventory” refers to movable items located within a property that can be sold along with the property. Typical examples include built-in kitchens, awnings, saunas, garden sheds, or permanently installed furniture that is not an integral part of the property.

Distinction from Property Accessories and Essential Components

The legal classification of items in and on a property is of crucial importance for the purchase agreement. The German Civil Code distinguishes three categories: Essential components (Sections 93, 94 BGB) are items permanently attached to the building or property that cannot be separated without destruction or a fundamental alteration-such as windows, heating systems, or load-bearing walls. They automatically pass to the buyer along with the property and do not require a separate agreement.

Accessories (Sections 97, 98 BGB) are movable items that serve the economic purpose of the property and are spatially related to it-for example, an oil-fired heating system with its associated tank, a permanently installed elevator, or agricultural equipment on farmsteads. In case of doubt, accessories are included in the sale unless otherwise specified in the purchase agreement.

The actual inventory, on the other hand, comprises movable items that are neither an integral part nor an accessory. These typically include freestanding built-in kitchens, washing machines, garden furniture, awnings (provided they can be dismantled without loss of substance), sauna facilities, garden sheds on point foundations, or built-in closets. These items are only transferred to the buyer if this is expressly agreed upon in the purchase agreement.

For contractual practice, we recommend creating a detailed inventory list as an attachment to the notarized purchase agreement. This list should name each item individually, describe its condition, and state the agreed-upon value. Careful documentation protects both parties from later disputes regarding which items were included in the purchase price.

Real Estate Transfer Tax Savings Through Separate Inventory Valuation

A frequently underestimated advantage of separately listing the inventory lies in the real estate transfer tax. In Bavaria, this tax is currently levied at 3.5 percent of the purchase price-though only on the portion attributable to the land and the building. The value of the inventory sold with the property is exempt from real estate transfer tax, provided it is listed separately in the purchase agreement and valued realistically. For example, a built-in kitchen valued at 15,000 euros results in a savings of 525 euros.

The tax authorities accept the separate listing as long as the valuations are in line with market conditions and transparent. Excessive valuations that are clearly intended to generate tax savings will be corrected by the tax office. As a rule of thumb: Used kitchens are valued at approximately 50 to 70 percent of the original price, while awnings and garden equipment are valued according to their age and condition. Invoices and purchase receipts for the items should be retained as proof.

Practical Tip for Nuremberg and the Metropolitan Region

In the Nuremberg metropolitan region, we regularly see that buyers and sellers don’t address the issue of inventory until late in the sales process. We recommend preparing the inventory list as early as when drafting the property listing and transparently communicating the estimated value of the items included in the sale. Especially with existing properties in popular Nuremberg neighborhoods such as Mögeldorf, Erlenstegen, or Gostenhof, high-quality built-in kitchens, custom-made built-in cabinets, or elaborate garden furnishings are not uncommon. Clarifying these matters early on avoids misunderstandings during the negotiation phase and speeds up the notarization process. For every sale in the region, we ensure that the inventory list is complete, realistically valued, and clearly separated from the property purchase price.

Frequently Asked Questions

Is it mandatory to list the inventory in the purchase agreement?

No, there is no legal obligation to list it. However, we strongly recommend it. Without a clear agreement, disputes may arise after the handover regarding whether certain items were included in the purchase price or may be taken by the seller. An inventory list attached to the notarized purchase agreement provides legal certainty for both parties and simultaneously serves as the basis for tax treatment.

What is the maximum value that can be assigned to the inventory in the purchase agreement?

There is no fixed upper limit, but the valuations must be realistic and verifiable. The tax office checks whether the stated values correspond to the actual current market value of the items. Purchase receipts, depreciation tables, and comparative prices serve as guidelines. A flat-rate valuation of, for example, ten percent of the purchase price without a specific allocation to individual items is generally not recognized.

Is a built-in kitchen considered part of the inventory or part of the building?

That depends on the degree of attachment. A freestanding built-in kitchen that is secured to the wall with just a few screws and can be removed without causing structural damage is considered a movable item and thus part of the inventory. A custom-built kitchen, on the other hand, that is firmly integrated into the room’s architecture and whose removal would cause significant damage, may be considered an integral part of the building. In practice, most modern built-in kitchens are classified as fixtures.

Fixtures in Commercial Lease Law and Business Takeovers

In the commercial sector, the term “fixtures” has a broader meaning: When leasing commercial properties with business equipment-such as restaurants, medical practices, retail stores, or production facilities-the precise specification of the fixtures provided is part of the lease agreement. The tenant is then obligated to treat the fixtures with care and return them in the condition specified in the contract. An inventory list attached to the commercial lease agreement helps prevent disputes at the end of the lease.

In the context of business sales and business takeovers in Nuremberg and the metropolitan region, inventory in the broader sense-that is, the totality of all movable assets of the business-plays a central role in determining the purchase price. Here, a professional inventory list with current market values serves as the basis for negotiations. From a tax perspective, the allocation of the purchase price among land, buildings, and inventory is significant in the context of an asset deal, because movable inventory can often be depreciated more quickly than the building itself.

What role does inventory play in the inheritance of real estate?

When inheriting real estate, the inventory passes to the community of heirs as accessories or movable assets of the decedent. As part of the estate settlement, the inventory must be valued and divided or sold. A professional inventory list prepared by the decedent during their lifetime significantly simplifies the estate settlement process and prevents disputes among the heirs regarding the whereabouts of individual items. We recommend that property owners in Nuremberg and the surrounding region prepare such a list as part of their estate planning.

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