Property

Real property is the term commonly used in real estate and legal contexts to refer to a parcel of land, including all buildings, structures, and rights located on it-essentially a synonym for real estate or land in the broader sense. The term originates from German and Austrian legal terminology and is used particularly in official contexts, appraisal reports, and cadastral systems. It encompasses both developed and undeveloped land, as well as agricultural and commercial properties.

Legal Classification and Delimitation

In German law, the term “Liegenschaft” is not a legally defined term; the German Civil Code (BGB) refers to “Grundstück.” Nevertheless, “real estate” is an integral part of cadastral and surveying systems, valuation under the Real Estate Valuation Ordinance (ImmoWertV), and public real estate law. Real estate is recorded in the land register and is listed by cadastral district and parcel number in the official Real Estate Cadastre Information System (ALKIS). All transactions involving property rights-purchase, encumbrance, division-relate to the parcel of land registered in the land register.

The exact boundaries of a property are determined by the parcel number in the real estate cadastre. Multiple parcels may be combined into a single property (as defined by the land register); conversely, a property may also consist of a single parcel. In transactions, it is important to verify whether the property being traded matches the land register entry and the cadastral record-discrepancies occur with older properties and can be costly.

Types of Real Estate

Depending on the use and development status, different types of real estate are distinguished:

• Residential properties: single-family and multi-family homes, residential complexes, condominium complexes
• Commercial properties: office, retail, and logistics properties, production buildings
• Industrial properties: Factory and warehouse facilities, often with specific contaminated site issues
• Agricultural properties: Farmland, meadows, and forest areas, farmsteads
• Undeveloped building lots: Development potential not yet realized

In public administration, the term public or municipal properties is also used, referring to land owned by the public sector-such as schools, administrative buildings, or green spaces in the city of Nuremberg. The Municipal Property Management (KLM) department of the City of Nuremberg manages the city’s land portfolio, conducts appraisals, and oversees transactions.

Significance in Valuation and Transactions

The term “property” is ubiquitous in market value determinations under the ImmoWertV. Appraisers prepare property valuations that integrate standard land values, development, expected returns, and the property interest rate. The term is also established in the field of commercial real estate financing-project development, land transactions, and estate settlements-and is more precise than the colloquial term “real estate.”

In estate settlements and gift agreements, the term “transfer of a property” is frequently used. From a tax law perspective (inheritance and gift tax), the term is relevant because real estate is valued according to the Valuation Act at the property value (pursuant to § 138 ff. BewG). This value can differ significantly from the market value.

Practical Tip for Property Owners in Nuremberg and Franconia

In the Franconian region, the term “real property” is particularly common in inheritance situations and in transactions involving commercial or agricultural land. If an appraisal, certificate of inheritance, or notarized contract refers to “real property,” this always refers to a specific parcel of land recorded in the land register with an exact parcel number.

We recommend that owners and buyers in the Nuremberg metropolitan region check the current cadastral data before any major real estate transfer. In Franconia, there are numerous properties that have not been re-surveyed for decades and whose boundaries on the ground no longer match the cadastral records. We help you obtain and interpret the relevant documents-land registry extract, property map, parcel certificate-and, upon request, arrange for publicly appointed surveyors to determine the boundaries.

Frequently Asked Questions

What is the difference between a “property” and a “parcel of land”?

Legally, both terms are nearly identical. “Real estate” is the preferred term in cadastral and valuation systems, while the German Civil Code (BGB) and notarial contracts use the term “parcel.” In everyday language, both terms are interchangeable. Technically speaking, “real estate” often also includes the buildings and structures on the land, while “parcel” emphasizes the land area itself.

Where is a property officially registered?

Properties are recorded in the land register (at the local court) and in the official real estate cadastre (ALKIS, maintained by the State Office for Digitalization, Broadband, and Surveying in Bavaria). Both registers complement each other: The land register documents ownership and rights, while the cadastre records the geometric and topographic data. In the event of discrepancies between the land register and the cadastre, the land register generally takes precedence for ownership issues.

Can a property consist of multiple parcels?

Yes. A property in the legal sense can consist of multiple parcels if these have been combined into a single property in the land register. In the event of subdivisions or sales of partial parcels, a survey and new entry in the cadastral register are required. The costs of a property subdivision in Bavaria include surveying fees and land registry fees-typically 1,000 to 5,000 euros, depending on size and location.

How do I identify the current owner of a property?

The current owner is listed in Section I of the land register. Access to the land register is restricted to persons with a legitimate interest (owners, notaries, courts, financial institutions). A current land register extract showing the owner, encumbrances (Section II), and real estate liens (Section III) can be obtained from the land registry office or a notary.

What is the property interest rate, and how is it used?

The property interest rate is a key indicator in real estate valuation using the income approach. It indicates the market rate of return on the land value tied up in a property and is statistically derived by the Appraisal Committee based on actual purchase prices paid. The higher the property interest rate, the lower the capitalized value for the same rent-and vice versa. For residential properties in Nuremberg, the property interest rates published by the Appraisal Committee typically range between 2.5 and 4.5 percent, depending on location and property type. Sellers and buyers should be aware of the current property interest rate, as it directly influences the appraised market value-especially for multi-family homes and mixed-use properties that are valued using the income approach.

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