Which documents are relevant for a real estate sale?

The basis for starting a real estate sale is the complete sales documentation. They contain all the important information that we as real estate agents need in order to successfully broker a property to buyers. Buyers need the documents to know which property they are buying, what renovations may need to be planned and to be able to make calculations.
In a previous blog post, we wrote about possible errors that can occur when selling a property. One source of error was missing and/or inadequate sales documentation.

In this blog post, we would like to introduce you to all the sales documents that are relevant for selling/buying real estate. It is important to note that different documents are required for each type of property. For example, there are different documents for a detached house than for an apartment that is part of a condominium owners’ association (WEG).

Basic sales documents

1. the land register extract

The land register acts as an official register that records all notarizations of rights to real estate in detail. This includes, for example, ownership, land charges and mortgages. The land register offices are responsible for keeping the land registers. The legally binding entry of the owners in the land register is carried out by the notary, who takes on this task as part of the purchase process.

2. floor plans and sections

A floor plan of a property visualizes the layout of the rooms to scale from a bird’s eye view. Floor plans also convey details such as proportions, spatial relationships and the positions of doors, windows and fixed fixtures such as kitchen and sanitary facilities.
In addition, sections play an important role by providing a three-dimensional view of the architecture and illustrating the vertical room design. These drawings are used in architecture, construction and real estate to plan and communicate interior design.

Floor plans and sections play a crucial role, particularly when selling properties, as they give potential buyers a clear insight into the room layout and architectural dimensions, thereby facilitating the decision-making process.

3. calculation of living space

The living space calculation is an essential document in the context of real estate, which serves to show the exact area of a residential unit or a house. This document is created during the construction process and is also used for building applications. The living space calculation is of great importance in order to document the exact size of the property. This is not only important during the construction process, but also during the sales process.
The living space calculation plays a particularly important role when selling a property. Potential buyers or tenants need clear information about the size of the premises in order to make informed decisions. In addition, the living space calculation is also required by banks when applying for a real estate loan. The document serves as proof of the size of the property in question and helps banks to assess and approve loan applications.
There are two different methods for calculating living space. One is the Living Space Ordinance (WoFIV) and the other is DIN 277, both of which serve to standardize the area of the property and create clear guidelines for the calculation.

Area calculation according to WoFIV:The area calculation according to the Living Space Ordinance (WoFIV) is used to determine the areas of residential buildings and takes into account the distinction between living space and floor area. It is important to note that the floor area does not automatically correspond to the living space, as the room height is included in the calculation. Rooms outside the actual apartment, such as the cellar, boiler room or laundry room, are excluded from the living space, as these usually do not have the room height to be considered living space, and terraces, loggias and balconies are only counted as 25 or 50 percent of the total area. The area of swimming pools and conservatories is taken into account at 50%. However, if they are heated, the full 100% is taken into account.

Area calculation according to DIN 277:The area calculation according to DIN 277 is used to determine the floor area of your property, for example in the context of determining purchase and rental prices for both residential and commercial properties. DIN 277 does not differentiate between residential and usable floor space and is preferably used for commercial properties and mixed-use buildings. Here, the proportion of the gross floor area is determined and divided into usable area, technical area and circulation area according to the purpose of the building. The floor area corresponds to the living space. In contrast to the calculation according to WoFIV, the room height has no influence on the area calculation. Terraces, loggias and balconies are included in the overall calculation without deductions. Furthermore, rooms outside an apartment, such as the cellar, laundry room or boiler room, are included in the total floor area. Winter gardens and swimming pools are included in full, regardless of whether they are heated or not.

4. site plan

An official site plan is a document with a schematic representation of the land on which the property is located and the surrounding neighborhood. It visualizes the exact location of the property within the city or municipality and shows important features such as streets, buildings, parks and other landscape features. This site plan, drawn up by a surveying authority, serves to safeguard public interests and provides information on the legal use of the property.
The site plan is based on the current extract from the cadastral or real estate map, a comprehensive list of all parcels of land in a country, which also contains a precise description of the parcels. The site plan is of crucial importance when selling real estate, as it provides a clear orientation of the spatial position and surroundings of the property.

5. energy certificate

The energy performance certificate serves as a source of information for potential buyers, tenants or leaseholders. Its task is to provide information about the energy performance and the associated greenhouse gas emissions of a building. This enables interested parties to assess the energy efficiency of a property and, if necessary, plan measures to improve the energy balance. There are two main types of energy performance certificate: the consumption certificate and the demand certificate.
We have already written a blog post on the subject of energy performance certificates. If you would like to find out more, you are welcome to read our blog post on this topic, where we explain the whole subject and the two different types in more detail.
https://www.immobilien-stuttgart.com/aktuelles/der-energieausweis/

6. proof of building insurance

The protection provided by buildings insurance is essential for every homeowner, as it protects against the financial burden of repairs following an insured event. When property is transferred as part of a property purchase or sale, not only is the ownership of the building transferred from the seller to the buyer, but also the associated home insurance, if any.
The transfer includes all rights and obligations of the existing insurance. As real estate agents, it is our responsibility to provide interested parties and buyers with the relevant insurance documents. The responsibility for notifying the insurance company of the change of ownership lies with the seller. Although buyers initially take over the building insurance on change of ownership, they are not obliged to continue it. However, after the change of ownership, there is the possibility of a special right of termination, which allows the buyer to switch to another provider.

7. list of building encumbrances

A list of building encumbrances provides a comprehensive compilation of all building encumbrances that rest on specific plots of land. Building encumbrances are required if a building project cannot be implemented in accordance with the legal requirements. These building encumbrances stipulate certain restrictions or obligations for the use of the property. When selling property, the register of building encumbrances is of crucial importance as it provides potential buyers with clear information about what encumbrances or restrictions may be placed on the property. This enables buyers to make informed decisions and be aware of any structural or legal particularities. Overall, the register of encumbrances is an important part of ensuring transparency and legal certainty in the sales process.

8. register of contaminated sites

Contaminated sites represent the unresolved remnants of industrial development and unregulated waste disposal, leading to soil and groundwater contamination. Numerous pollutants remain underground for decades. When selling real estate, estate agents must obtain information on contaminated sites, in particular the existence of a register of contaminated sites for the property in question. If available, we are obliged to make this register available to potential buyers, as it contains relevant information.
However, it should be noted that there are more properties in Stuttgart without a register of contaminated sites than those with. The city has 760 old landfills and 4780 old sites where environmentally hazardous substances were potentially used in the past. However, it is important to emphasize that not all of these sites should necessarily be considered as contaminated sites. Instead, this feature serves as a reason to first gather further information and, if necessary, initiate additional investigations and remediation.

9. rental agreements

When selling a rented property, the tenancy agreements must be handed over to interested parties. Tenancy agreements contain essential information about current tenancies, such as the duration of the tenancy, rental conditions and any special agreements. By inspecting the existing tenancy agreements, potential buyers receive a comprehensive overview of the property’s current income as well as the rights and obligations of the existing tenants. They are also informed about existing obligations and possible restrictions.
In general, the rule should always be observed: Buying does not mean renting.
This means that the tenants must be taken over when buying a property.

Documents that are only relevant for WEG properties

10. declaration of division

The declaration of partition plays a decisive role in the sale of individual residential units in communities of owners, for example apartments in apartment buildings. It is an indispensable legal document without which the sale of a property is not possible. The declaration of division serves to clearly define the ownership relationships between the co-owners. It specifies restrictions on use and occupancy, regulates the distribution of costs between the co-owners, defines the voting rights and organizes the property management. These legal provisions create transparency and legal certainty for all those involved in the community of owners. Without a valid declaration of division, the sale of individual residential units in a community of owners would not be possible.

11. minutes of the UTP

Important decisions and resolutions of the owners’ association are documented in the minutes of the owners’ meetings. These meetings take place once a year and are used to discuss joint matters relating to the property and find solutions. The minutes record which topics were discussed, which resolutions were passed and how they came about.
Access to these minutes is extremely important for potential buyers, as it gives them an insight into the current situation of the owners’ association. They can understand what decisions have been made and what challenges the community has had to overcome or is still facing. This enables potential buyers to get a comprehensive picture of the management and condition of the property. Ultimately, the minutes of the owners’ meetings provide potential buyers with important information to make informed decisions about buying a property.

12. housekeeping account

Monthly house allowance payments by owners are used to cover expenses such as cleaning, insurance and other communal costs. At the end of each year, owners receive a detailed statement of property charges, which provides a transparent overview of the actual costs. This statement compares the advance payments previously made with the actual expenses. The house fees paid by owners flow into a common “pot” from which all expenses for the community are paid, including insurance, administration and cleaning. In the context of selling a property, property maintenance statements are crucial as they show potential buyers how much they are obliged to pay in monthly maintenance payments.

13. amount of the maintenance reserve

The maintenance reserve is a financial reserve that condominium owners can draw on if necessary to carry out repairs and maintenance work on their properties. This reserve helps to cover unforeseen costs and ensure that the property retains its value in the long term. In the context of a sale, the maintenance reserve plays an important role as it increases the value of the house or condominium. Potential buyers see it as financial security for future maintenance measures, which strengthens confidence in the value of the property and can therefore have a positive influence on the purchase decision.

14. business plan

Economic plans for homeowners’ associations are of crucial importance for real estate sales, especially for properties that are part of such an association. These plans provide a detailed overview of the community’s financial situation, including projected income and expenses. By disclosing economic plans, potential buyers can assess the long-term financial stability and performance of the community of owners. This helps to minimize uncertainty and build trust. Information on upcoming investments, maintenance measures and reserves enables buyers to make informed decisions and better understand potential financial obligations.

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Summary

In summary, it can be said that a large number of documents and information play a decisive role in the sale of a property. The extract from the land register provides a detailed overview of the ownership structure and land charges. Floor plans and sections visualize the spatial layout and architectural details, while the living space calculation provides clear information about the size of the property. The energy performance certificate provides information on the energy parameters, and the site plan offers orientation on the spatial position and surroundings.

Tenancy agreements provide insight into current tenancies, and proof of building insurance protects against financial burdens due to repairs. The declaration of division is essential for the sale of residential units in communities of owners, while the statement of charges provides transparent insights into common expenses. Business plans provide information on the financial stability of the community of owners.

Minutes of owners’ meetings provide an overview of resolutions passed, and the maintenance reserve increases the value of the property. The register of building encumbrances and the register of contaminated sites provide important information about possible encumbrances or restrictions on the property.

Overall, these documents and information help to create transparency, legal certainty and trust in the real estate sales process to enable potential buyers to make informed decisions.

Sources:

• https://www.allianz.de/recht-undeigentum/wohngebaeudeversicherung/eigentuemerwechsel/
• https://www.drklein.de/teilungserklaerung.html
• https://www.immoverkauf24.de/immobilienverkauf/immobilienverkauf-a-z/protokoll-eigentuemerversammlung/
• https://www.stuttgart.de/leben/umwelt/altlasten/