Condominium ownership

Floor Ownership - Floor ownership is a historical form of ownership of individual floors or parts of a building, which was superseded in Germany by the Condominium Act (WEG) of 1951. Unlike modern condominium ownership (separate ownership of a unit plus a co-ownership share in the common property), floor ownership grants isolated ownership of a single floor without a mandatory co-ownership share in the land. Today, it exists only as legacy property in a few regions-including parts of Franconia.

Historical Development and Current Status

Floor ownership was widespread in Germany until the Civil Code (BGB) came into effect in 1900 and continued to be recognized in some state laws. With the WEG of 1951, the creation of new floor ownership was prohibited-however, existing floor ownership enjoys grandfathering and continues to exist to this day. In Bavaria, floor ownership is found particularly in rural areas of Franconia and Upper Bavaria, where historic residential and commercial buildings were divided by floor among multiple owners.

The legal relationships are often unclear, as they are based on centuries-old agreements-sometimes passed down orally, sometimes documented in historical deeds that are difficult to read. The land register contains only limited information, as the registration requirements for floor ownership do not correspond to those of the modern WEG. Anyone wishing to buy or sell such a property is entering legally complicated territory.

Historically, condominium ownership served a practical function: In rural communities and small-town settings, it was common for different family members or neighboring households to occupy and hold ownership rights to different floors of a building. The allocation to a specific floor did not follow a uniform pattern-sometimes the ground floor was used for agriculture, while the upper floors were used for residential purposes. There was no binding legal regulation, which today makes it difficult to clarify the legal relationships.

Problems and Conversion

Condominium ownership causes significant problems in practice: There is no co-ownership share in the land-the land often belongs to the municipality, a third party, or is ownerless. There is no community bylaws in accordance with WEG standards, which complicates administration, maintenance, and decision-making. Banks often do not accept condominium ownership as collateral because the legal relationships are unclear.

Conversion to modern condominium ownership requires the cooperation of all condominium owners and the landowner-an often lengthy process that must be notarized and entered in the land registry. Disputes between condominium owners are resolved under general civil law, as the WEG does not apply. This means: no decision-making process, no WEG administration, no statutory cost allocation for common facilities.

Another practical problem arises in cases of inheritance: When a condominium owner dies, their unit passes to the heirs. If there are multiple heirs and they cannot agree on a solution, the community of heirs can further complicate the already complex legal relationship. Contractors who are to be hired for the common roof or the shared heating system are then faced with the question of with whom they can even enter into a contract. Without clear decision-making, necessary maintenance is often neglected-with direct consequences for the building’s structure.

Practical Tip for Owners in Nuremberg

We recommend that owners of condominium units in the Nuremberg metropolitan area (still found sporadically in Nuremberg’s Old Town, in Fürth, and in the Knoblauchsland region) aim for conversion to modern condominium ownership. This conversion significantly improves marketability and mortgage eligibility and establishes clear legal relationships. To do this, a declaration of division must be drawn up, the property must be allocated, and the division into individual and common property must be notarized.

The costs amount to approximately 3,000-8,000 euros (notary, land registry, and surveying if necessary), but are almost always economically sensible given the significantly improved marketability. Before beginning a conversion, we recommend consulting a notary specializing in real estate law and, if necessary, a lawyer specializing in real estate law to clearly clarify the historical legal relationships. The Surveying Office and the Nuremberg Land Registry should be involved at an early stage.

Especially in the case of planned sales or financing inquiries, it is advisable to begin the conversion well in advance of the actual transaction date. Experience shows that the entire process-from notarization to land registry entry to the issuance of the certificate of separate ownership-takes six months to over a year. If you start too late, you risk a potential buyer backing out or a financing commitment expiring.

Frequently Asked Questions

Can I still buy condominium ownership today?

Yes, existing condominium ownership can be traded-it enjoys grandfathering. A new registration, however, has not been possible since 1951. When purchasing condominium ownership, you should exercise particular caution: Carefully review the land registry entry, clarify the ownership structure of the property, and have the legal situation reviewed by a specialized notary. Financing is difficult, as many banks do not provide loans for condominium ownership.

Who owns the land in the case of condominium ownership?

This is one of the biggest issues: The land may belong to the landowner (who need not be the same as the condominium owners), it may be held in joint ownership by the condominium owners, or it may historically be ownerless. The ownership status is determined by the land registry and historical documents. If the situation is unclear, the ownership issue must be resolved before converting to WEG ownership-a process that may also require legal proceedings in some cases.

What rights and obligations do I have as a condominium owner?

The rights and obligations are governed by historical agreements (often passed down orally or documented in old deeds) and, supplementarily, by the German Civil Code (BGB). The WEG does not apply automatically. In practice, this means: no right to management by a WEG administrator, no statutory regulation for the sharing of maintenance costs, and no decision-making in accordance with WEG rules. Disputes between condominium owners are decided under general civil law-another reason for conversion to modern WEG ownership.

Is condominium ownership still financeable?

Financeability is the most critical issue: Most financial institutions refuse to provide loans for condominium ownership, as the lack of land allocation and unclear legal relationships make it difficult or impossible to establish a proper land charge. Individual specialized banks or regional savings banks may be willing to offer financing in specific cases-but under less favorable terms and with higher equity ratio requirements. Buyers who rely on bank financing should definitely secure a financing commitment before signing the purchase agreement.

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