Condominium ownership

Condominium Ownership - Condominium ownership is the legal combination of individual ownership of a specific unit with a co-ownership share in the common property of the building and the land. It is established through a declaration of division and registration in the condominium registry. The legal basis is the Condominium Act (WEG), which underwent fundamental reform in 2020.

Individual Ownership and Common Property

The distinction between individual ownership and common property is crucial for every condominium owner. This distinction determines who is liable for damages, who must commission repairs, and who must bear the costs.

Individual ownership includes the rooms of the apartment, including non-load-bearing interior walls, floor coverings (not the subfloor), interior doors, plumbing fixtures from the point where they branch off from the common line, and built-in furniture.

Common property includes load-bearing walls, the roof, facade, stairwell, elevator, heating system, utility lines up to the first shut-off valve inside the unit, windows (exterior), and the land.

The Declaration of Division governs the exact allocation and may deviate from statutory regulations. The co-ownership share (MEA) determines voting rights at the owners’ meeting and the share of common expenses-it is expressed in thousandths (e.g., 85/1000).

Practical borderline cases: Pipes and lines running through multiple apartments are common property up to the point where they branch off into the respective apartment. A leaky pipe connection within the apartment is a matter of individual ownership-if it is located in the common area, the condominium association bears the costs.

Rights and Obligations of the Apartment Owner

Every apartment owner has the right to freely use, rent out, and sell their individual property-since the 2020 WEG reform, restrictions on sale are only permitted in exceptional cases. At the same time, there are obligations:

• Cost sharing: Contribution to the costs of common area management and maintenance in accordance with the MEA
• Consideration: No structural changes to common property without a resolution by the owners’ meeting
• Maintenance of the individual unit at one’s own expense
• Duty to provide information to the WEG regarding reportable changes in use

Since the WEG reform, every owner has the right to reasonable structural modifications (e.g., electric charging station, accessibility, burglary protection)-the costs are generally borne by the owner making the request. The WEG cannot simply reject the measure if it does not impair the exterior appearance.

Condominium Ownership as an Investment

Condominiums are one of the most popular forms of investment in Nuremberg. Key metrics for the purchase decision:

• Purchase Price Factor: Purchase price divided by annual net rent (excluding utilities). Currently approx. 20-28 times in Nuremberg, depending on location
• Gross rental yield: Annual net rent divided by purchase price × 100. Target value: at least 3.5-4.5% in good locations
• Maintenance fees: Monthly advance payment for common expenses, typically 2.50-5.00 euros/m²/month
• Reserve fund balance: the higher, the lower the risk of special assessments

A complete investment calculation also takes into account incidental purchase costs (approx. 9.5% in Bavaria: 3.5% real estate transfer tax, 3.5% broker’s commission per party, 1.5-2% notary/land registry fees), administrative expenses, and the risk of rent loss.

Practical Tip for Owners in Nuremberg

We recommend that buyers of condominiums in Nuremberg carefully review the declaration of division, the community rules, and the minutes of the last three owners’ meetings before purchasing. Pay particular attention to the amount of the maintenance reserve-in many older Nuremberg condominium associations (especially in Gostenhof, St. Johannis, and the Südstadt), the reserve is too low, which will likely lead to special assessments for roof repairs or heating system replacements.

A solid reserve should amount to at least 10-15 euros/m²/year-for older buildings, it should be closer to 15-20 euros/m²/year. Also check whether resolutions regarding energy-efficient renovations are pending-this can increase the value of the apartment but requires short-term investments. We analyze these risks for our buyer clients and can provide a reliable assessment based on the WEG documents before the purchase agreement is signed.

Frequently Asked Questions

What is the difference between condominium ownership and partial ownership?

Condominium ownership refers to units intended for residential purposes. Partial ownership is separate ownership of spaces not used for residential purposes - e.g., commercial units, retail spaces, offices, or underground parking spaces. Legally, the same provisions of the WEG apply to both. The intended use is determined by the declaration of division and can only be changed by agreement of all owners.

Can the owners’ association prohibit me from renting out my unit?

No, a general rental ban is invalid-it violates the fundamental right to property (Art. 14 GG). Even a clause in the community rules permitting rental only with the administrator’s consent has been severely restricted since the WEG reform. However, the owners’ association may take action against disruptive short-term rentals (e.g., Airbnb) if they violate the designated use as a permanent residence.

How is condominium ownership recorded in the land register?

A separate property register page is created for each residential unit. It contains: the co-ownership share of the property, the description of the individual unit (with reference to the division plan), and Land Register Sections I-III (owners, encumbrances and restrictions, mortgages/land charges). The entry is made at the Nuremberg Land Registry Office (Nuremberg Local Court). The cost of the land registry entry upon purchase is approximately 0.5% of the purchase price.

What does the declaration of division mean for me as a buyer?

The declaration of division is the founding document of the WEG. It specifies which areas constitute separate ownership (with a division plan), how the co-ownership shares are distributed, and which exclusive use rights (e.g., parking space, garden area) are assigned to which unit. Older declarations of division sometimes contain outdated or disadvantageous provisions-such as unfavorable cost-sharing formulas. We recommend having the declaration of division reviewed by a specialist attorney for condominium law before purchasing.

Can I rent out my condominium in Nuremberg on Airbnb or other platforms?

Short-term rentals via platforms like Airbnb are a contentious issue in many Nuremberg condominium associations. Legally speaking, short-term rentals are generally permitted, provided the residential unit is not permanently misused as a vacation home. In Nuremberg, the Bavarian Misuse Ordinance applies-permanent use as a vacation rental without permission is prohibited. Additionally, the homeowners’ association may restrict short-term rentals in the community bylaws if such use significantly disrupts the residential community. It is difficult to prevent a single weekend rental, but the homeowners’ association can stop the commercial operation of vacation rentals by filing an injunction. Any owner in Nuremberg wishing to rent out their property on a short-term basis should check the community rules and local legal requirements in advance.

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