Anyone selling a condominium is not only transferring four walls, but also a share in a condominium owners’ association (WEG). This makes the sale more demanding than that of a detached house: the declaration of division, service charges, meeting minutes and maintenance reserve come into focus. We show you step by step what matters when selling a condominium, which documents buyers expect and which special features you should plan for.
What Makes Selling a Condominium Special
Legally, a condominium consists of two parts: separate ownership of the apartment itself and a co-ownership share in the common property – namely the roof, façade, stairwell, heating system and land. Anyone who buys acquires both and automatically becomes a member of the WEG. The buyer therefore also assumes its rights and obligations: the ongoing service charges, the resolutions adopted and the share in the maintenance reserve.
This is precisely the difference from selling a single-family home. With a house, you decide alone; with an apartment, the community is always involved. Buyers, banks and notaries therefore examine not only the apartment, but also the condition and finances of the entire community. Since the WEG reform (Condominium Ownership Modernization Act, WEMoG) of 1 December 2020, the former maintenance reserve has officially been called the maintenance reserve – in substance, it remains the WEG’s financial buffer for repairs.
Selling a Condominium in Seven Steps
Step 1: Value the Apartment Realistically
The asking price determines success or failure. Use comparable apartments in a similar location, as well as living area, year of construction, floor and features as a guide. A well-funded maintenance reserve and a well-maintained community tend to increase the price, while a high backlog of renovations tends to reduce it.
Step 2: Obtain the WEG Documents
Request the declaration of division, the most recent financial plans, the service charge statements and the minutes of the condominium owners’ meetings from your property management company at an early stage. You need these documents for the brochure, buyers and the bank.
Step 3: Exposé with the Right Key Figures
In addition to photos and a floor plan, a good exposé lists the key figures typical for apartments: living area, floor, co-ownership share, monthly service charges and the energy figures from the Energy performance certificate. Do not conceal any known defects.
Step 4: List the apartment
Advertise your property where buyers search – on real estate portals and metasearch engines such as TraumImmo. The mandatory information from the energy performance certificate must already appear in the listing.
Step 5: Conduct viewings
Prepare the apartment and have the condominium association documents ready. Experience shows that prospective buyers specifically ask about monthly service charges, planned renovations and the amount of the reserve fund.
Step 6: Check the buyer and clarify consent
Before giving your approval, ask to see proof of financing. If the declaration of division requires the property manager’s consent, obtain it in good time (see below).
Step 7: Notary appointment and handover
The purchase agreement must be notarized (§ 311b BGB). The notary arranges registration in the land register. At the handover, a record including meter readings and the transfer of all condominium association documents to the buyer are helpful.
Declaration of division, monthly service charges and minutes: special features of condominium ownership
These four topics most clearly distinguish the sale of an apartment from the sale of a house – and are examined particularly closely by buyers.
- Declaration of division with division plan: It is the “constitution” of the community and governs what constitutes separate ownership and what constitutes common property, the amount of your co-ownership share, whether exclusive-use rights (for example, to a parking space or garden) exist, and according to which key the costs are distributed.
- Monthly service charges and budget plan: The monthly service charge is the advance monthly payment for operating costs, administration and contributions to the maintenance reserve. Buyers want to know how high it is and what it covers. Outstanding service charge arrears should be settled before the sale.
- Maintenance reserve: It is provided for by law as part of proper administration (§ 19 para. 2 no. 4 WEG). Upon sale, your share passes to the buyer – you cannot demand that the community pay it out to you. A well-funded reserve is therefore a value argument that you can factor into the price.
- Minutes and collection of resolutions: From the minutes of owners’ meetings and the collection of resolutions (§ 24 WEG), buyers can determine whether renovations, special assessments orDisputes are pending. It is customary to provide the minutes from the last three years.
If the declaration of division provides for it, you will additionally need the administrator’s consent to the sale (Section 12 WEG). This may only be refused for an important reason, such as buyers who are demonstrably insolvent; the administrator usually charges a fee for issuing the certificate.
What documents do I need for the sale?
As a rule, you need the following to sell a condominium:
- current land register extract
- declaration of division with allocation plan
- energy performance certificate (mandatory under the Building Energy Act)
- floor plan and living area calculation
- the minutes of the last three owners’ meetings
- current budget plan and the latest service charge statements
- proof of the amount of the maintenance reserve
- if applicable, administrator’s contract and administrator’s consent
- documentation of modernizations and renovations
Taxes and costs when selling a condominium
Selling a condominium also incurs costs. As the seller, you bear the cost of the energy performance certificate, as well as, often, the fee for the administrator’s consent. If a real estate loan is still outstanding, the bank may demand an early repayment penalty. The notary and land register costs are usually paid by the buyer, as is the real estate transfer tax.
The ten-year speculation period (Section 23 EStG) is decisive for tax purposes: If you sell within ten years of the purchase and have not occupied the condominium yourself, income tax may be payable on the profit. The sale remains tax-free if you occupied the condominium yourself in the year of the sale and the two preceding years – or if more than ten years have passed between the purchase and sale.
Advantages and disadvantages for condominium sellers
- Advantage – stable demand: Condominiums are equally attractive to investors and first-time buyers, and the pool of buyers is often larger than for large houses.
- Advantage – manageable effort: The owners’ association takes care of maintaining and managing the building; much is documented and transparent.
- Advantage – reserve as a value factor: A well-funded maintenance reserve and clear minutes create confidence and support the price.
- Disadvantage – dependence on the owners’ association: The condition, finances and resolutions of the association influence the sale without you being able to control them alone.
- Disadvantage – more documents: The declaration of division, minutes and financial plans must be obtained in full, which takes time.
- Disadvantage – possible obstacles: The property manager’s consent, outstanding special assessments or a backlog of renovations can delay the sale or reduce the price.
FAQ on Selling a Condominium
Do I need the property manager’s consent?
Only if the declaration of division provides for such a restriction on disposal (Section 12 WEG). If so, the sale without consent is provisionally invalid and cannot be completed in the land register. The property manager may refuse consent only for good cause.
What happens to the maintenance reserve?
Your share remains the property of the owners’ association and passes to the buyer with the apartment. You will not receive a payout. State the amount of the reserve – it is a plus point in price negotiations.
Can I sell a rented condominium?
Yes. An existing tenancy is transferred to the buyer because “sale does not break the lease” (Section 566 BGB). The tenant keeps the apartment; the buyer becomes the new landlord. Rented apartments primarily appeal to property investors.
How do I sell an inherited condominium?
First, the heir must be registered in the land register – usually, a certificate of inheritance or a notarized will with an opening record is sufficient. Only then can the property be sold. In the case of a community of heirs, all co-heirs must consent to the sale.
How does selling an apartment differ from selling a house?
When selling a house, you sell an independent property; when selling an apartment, you additionally sell a share in the owners’ association. Therefore, the declaration of division, service charges, minutes, maintenance reserve and, where applicable, the property manager’s consent are also relevant.
Do I have to present an energy performance certificate?
Yes. Under the Building Energy Act, you must present the energy performance certificate no later than during the viewing and hand it over to the buyer. Certain energy figures must already be included in the listing.
Conclusion
Selling a condominium is successful when you consider the special features of the owners’ association from the outset. Obtain the declaration of division, minutes, financial plan and proof of thePlan for the maintenance reserve early, clarify whether administrator approval is required, and set a realistic price. Anyone who prepares these points properly sells faster, more securely, and at a better price.