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Separate ownership

Term from the field of Rental & Management

Individual Ownership - Individual ownership refers to the sole ownership of specific rooms within a condominium association (WEG), which is recorded in the land register and grants the respective owner sole authority over their residential unit.

What constitutes individual ownership?

The term “separate ownership” is defined in Section 5 of the Condominium Act (WEG) and forms one of the central pillars of condominium ownership. Separate ownership arises from the declaration of division, which precisely specifies which rooms and building components are assigned to which owner. The accompanying floor plan visualizes this assignment by numbering each individual unit.

Individual ownership generally includes all rooms within the apartment-that is, the living room, bedrooms, kitchen, bathroom, hallway, and storage rooms. It also includes non-load-bearing interior walls, floor coverings (above the subfloor), interior doors, plumbing fixtures from the point where they branch off from the common line, as well as built-in kitchens and other permanently installed fixtures.

The key distinction lies in the boundary with common property: load-bearing walls, floor slabs, the roof, the facade, windows (including frames), utility lines up to the point where they branch off into the apartment, as well as stairwells, elevators, and common areas always belong jointly to all owners. This distinction has far-reaching practical consequences-because each owner may only make structural changes to their own separate property without the community’s consent. For example, someone who wishes to remove a non-load-bearing wall can generally do so freely. Replacing windows or painting the facade, on the other hand, requires a resolution by the owners’ meeting, as these are considered common property.

The exact classification of individual components varies depending on the declaration of division and case law. Balconies, for example, are often classified as common property, while the flooring on the balcony may, in turn, be separate property. We therefore recommend carefully reviewing the declaration of division before any purchase or planned construction project.

Significance When Purchasing a Condominium

When purchasing a condominium, the buyer always acquires two inseparable components: the individual ownership of the specific unit and a co-ownership share in the common property of the entire building (including the land). The size of the co-ownership share is specified as a fraction in the declaration of division and determines, among other things, voting rights at the owners’ meeting as well as the distribution of management costs.

For investors, it is important to note that the tax depreciation (AfA) applies only to the building portion, not to the land portion. The scope of the individual ownership also influences the calculation of living space and thus the achievable rent. Rooms that are not designated as individual ownership-such as a basement storage unit for which there is only a right of exclusive use-are not included in the living space calculation.

Practical Tip for Owners in Nuremberg and Franconia

The Nuremberg metropolitan region features a wide range of apartment buildings from various eras-from Wilhelminian-style buildings in St. Johannis to post-war structures in Langwasser and modern new-construction projects in the Südstadt. The declarations of division for older buildings are often less detailed than those for new constructions, leaving room for disputes regarding the allocation of individual components.

We strongly advise prospective buyers in Nuremberg and the surrounding region to have the declaration of division and the division plan reviewed by a specialist before purchasing a condominium. Our team is happy to assist you in accurately assessing the scope of the individual ownership and avoiding unpleasant surprises after the purchase.

Frequently Asked Questions

What is the difference between individual ownership and common ownership?

Individual ownership encompasses the rooms and components that belong solely to a single owner-typically the apartment itself, including interior walls, flooring, and plumbing fixtures. Common ownership, on the other hand, belongs to all owners collectively and includes load-bearing structures, the facade, roof, windows, stairwells, and utility lines up to the branch point. The exact demarcation is determined by the declaration of division and the floor plan.

Am I allowed to make changes to my individual property as I see fit?

Within their individual property, owners may generally make changes as long as these do not affect load-bearing components or common property and do not infringe upon the rights of other owners. Removing a non-load-bearing interior wall is generally possible without requiring approval. However, as soon as load-bearing walls, utility lines, or the exterior appearance are affected, a resolution by the owners’ meeting is required. If you are unsure, we recommend consulting with the property management company.

Can individual ownership be modified or expanded retroactively?

Yes, a retroactive change in the allocation of individual and common property is possible-but only through an amendment to the declaration of division, which requires the consent of all owners and notarization. In practice, this occurs, for example, when an attic is to be converted and established as new individual ownership. Since such changes are complex and costly, they should be coordinated with all parties involved at an early stage.

What is a right of exclusive use, and how does it differ from individual ownership?

The right of exclusive use is not ownership, but merely a right of use secured by contract or in rem to a common property area. Typical examples include assigned parking spaces in the underground garage, garden areas, or basement storage units that could not be established as separate ownership. The right of exclusive use can be entered in the land register as part of the separate ownership; in that case, it automatically follows the condominium ownership upon sale or inheritance. A right of exclusive use agreed upon solely under contract law, on the other hand, initially binds only the contracting parties and must be expressly transferred upon a change of ownership. We recommend carefully checking when purchasing a condominium whether a parking space or garden area is structured as separate ownership or only as a right of exclusive use-this affects the value and marketability of the unit.

Exclusive Ownership in Condominium Practice: Management and Resolutions

In the day-to-day operations of a condominium owners’ association, the distinction between exclusive ownership and common property is the most common source of disputes. Who decides on renovations in the stairwell? Who has to pay if a gutter is leaking? Clear rule: Common property is managed by the association of condominium owners; resolutions are passed at the owners’ meeting. Each owner is personally responsible for the maintenance and upkeep of their separate property-and must not interfere with other owners in doing so.

One important practical point concerns the allocation of costs for damage in the boundary zone: If water from a common utility line flows into a unit of individual ownership, the community must repair the line, while the affected owner must repair their own damaged flooring at their own expense. This basic rule regularly leads to discussions in practice, but can be adapted through individual provisions in the community bylaws.

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Important Disclaimer

The information, assessments, and legal notes in this real estate glossary serve solely as general orientation. Despite careful preparation, we assume no liability for the accuracy, completeness, or timeliness of the content. These contents do not replace individual legal or tax advice. We strongly recommend consulting a qualified attorney or tax advisor for specific matters.

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