If you're considering buying a condominium or selling an apartment building, you'll inevitably come across the term "declaration of division." The declaration of division plays a key role in dividing a property into individual residential units and is important for both the purchase and sale of an apartment. This article provides key information about the declaration of division for condominiums. We'll explain the content of a declaration of division, the rights and obligations for residential units in a building, and the associated costs.
What is meant by a declaration of division?Link to this section
The declaration of division is an important document for Homeowners associations (WEGs) and is legally anchored in the Condominium ActinSection 8 of the German Condominium Act (WEG). This defines and specifies the exact division of the property and the ownership structure within the condominium. The declaration of division is binding for all owners and members of the condominium building.
Anyone with a legitimate interest in a property can inspect the declaration of division, particularly by potential buyers of an apartment in the condominium association and if they wish to obtain information about the ownership structure.
An overview: The functions of the declaration of division as part of the condominium association:
1. Legal basis for property demarcation
The declaration of division precisely defines the division of a property into different units in order to clearly demarcate the ownership.One distinguishes between private property and common property
2. Orientation aid on the building
The declaration of division provides a detailed overview of the buildingIt clarifies the location and allocation of apartments, units, basements, parking spaces, etc.
3. Clarification of land use
The declaration of division specifies how certain areas may be usedIt defines special usage rights for terraces, gardens or roof areasIt helps with the planning of conversion or renovation measures
4. Legal certainty in disputes
The declaration of division serves as a binding reference in the event of conflicts over land use and thus minimizes misunderstandings regarding the ownership of the property
5. Land Registry Office
The declaration of division is entered in the land register and kept by the land registry office.The declaration of division officially declares the division of the property into co-ownership shares to the land registry office.A notarized declaration of division is mandatory for the individual units to be registered in the land register. Only then does the declaration of division serve as the basis for the division of the condominium property.
The contents: What does a declaration of division contain?Link to this section
The declaration of division contains information about the co-ownership shares, separate property and common property, details about the property and ownership structure, and other information:
Floor plans of the property:Drawings of the apartments, floors, common areas, gardens and parking spaces on the property.Apartment details: Location, size and total number of all units in the apartment buildingProperty information: Description of the associated propertyCo-ownership shares: Precise breakdown in hundredths, thousandths or ten thousandthsDeclaration of special property: Marking of condominiums, cellars or parking spaces with numbers or letters.Declaration of common property: The common property (e.g. corridors, roof, stairwell) is marked as such. Further information about the joint property can be found in this detailed article.Special use rights, special property and common property, Demarcation and description of special and common property as well as part ownership, residential property and special usage rightsDistribution of voting rights: Regulations on the voting rights of property ownersAdministration: Provisions for the appointment of a Property management
What does the declaration of division look like?Link to this section
The declaration of division is a document of approximately 20 to 40 pages. It includes the division plan, the certificate of completion, the community regulations, and the provisions for maintenance and repair.
The allocation plan
The division plan is a mandatory component of the declaration of division. This is a detailed construction drawing at a scale of 1:100, depicting the entire building and its division into individual residential units. The division plan precisely specifies which areas belong to the common property and which are assigned to individual apartment owners as private property.
Each residential unit is assigned a unique number in the floor plan. This numbering includes not only the apartment itself, but also associated rooms such as basements or attics. In addition, the floor plan also specifies special usage rights for owners, such as garden areas or parking spaces assigned to specific apartments.
In addition to the division plan, the declaration of division also contains a written description of the building and the individual residential units. This details such as the size, location, and furnishings of the apartments, as well as the distribution of costs and burdens, are recorded.
The declaration of division is not to be confused with the division plan. In this article you will find an explanation and everything important to practice the difference between the declaration of division and the Allocation plan .
The certificate of completion
The certificate of completeness is based on the floor plan. It demonstrates that all residential units in a building are structurally separate and self-contained.
The certificate of completion is issued by the responsible building authority and serves as the basis for the registration of special ownership of apartments or non-residential premises in the land register.
To be considered "completed," apartments or rooms must meet the following criteria:
They must be structurally completely separated from other apartments and rooms, for example by walls and ceilingsThey must have their own lockable entrance, accessible either directly from the outside, from a stairwell or an anteroom
The Community Regulations
Another important component of the declaration of division is the community regulations. These regulate the coexistence of the owners and tenants in the building. The community regulations include the Rights and obligations of apartment owners and forms the basis for the administration of the common property represents.
Regulations on maintenance and repair
Finally, the declaration of division often also contains provisions regarding the maintenance and repair of the condominium building, as well as the distribution of associated costs. These provisions are particularly important for maintaining the value of the property and the land.
Who can create a declaration of division?Link to this section
In principle, every condominium owner is entitled to prepare a declaration of division. The condominium owner must ensure that the declaration of division meets all legal requirements and complies with the provisions of the Condominium Act (WEG).
Although theoretically anyone can prepare a declaration of division, in practice it is advisable to leave it to the experts. Due to the legal complexity and far-reaching consequences of a declaration of division, it is common and advisable to consult experts. Often, lawyers specializing in real estate law or experienced property managers are commissioned to prepare it. These professionals have the necessary knowledge to consider all relevant aspects and avoid potential legal pitfalls.
As a reminder:An important step in the process is that the declaration of division must be notarized. The notary will review the document for completeness and legality and ensure that it meets the formal requirements. Once the declaration of division is notarized, this certifies its legal validity and is a prerequisite for registration in the land register.
How much does the declaration of division for a property cost?Link to this section
The cost of a declaration of division depends on various factors, as the extent of the work required and the value of the property influence the costs.
The total costs of a declaration of division consist of several components:
Preparation of documents:If you prepare the declaration of division yourself, the notarization costs between €70 and €140. This certification confirms the authenticity of the signatures on the document.Certificate of completion and division planThese components of the declaration of division can incur costs of up to €200. They are required to document the structural separation of the residential units and the precise division of the property.Notarial certification:This is usually the most costly part. The fee is governed by the Court and Notary Fees Act (GNotKG) and is based on half the market value of the property. A 10/10 fee is due. Our example illustrates this: For a property valued at €1,000,000, the calculation basis is €500,000. According to the GNotKG, the fee in this case would be €935.
Where is the declaration of division kept?Link to this section
The responsible land registry office assumes official custody of the declaration of division. Not only the declaration of division, but also the notarial deed contained therein is archived at the land registry office.
This not only ensures that the declaration of division is stored securely, but also that it is accessible and viewable when needed. This, in turn, simplifies administration and provides legal certainty for all parties with a legitimate interest in the declaration of division, such as the owners, potential buyers, and lenders. Authorized persons can inspect the declaration of division or request copies if necessary.
Filing the declaration with the land registry is not just a formality, but also has legal significance. As soon as a declaration of division is submitted, a corresponding entry must be made in the land register. This entry is an official record that documents the existence of the declaration of division and thus the division of the property.
Individual residential land registers
The declaration of division is also a necessary prerequisite for the creation of individual apartment land registers. Each condominium receives its own land register sheet, which records the specific ownership rights and relationships of that residential unit. Without a valid declaration of division, the creation of these individual land registers would not be possible.
The declaration of division and its pitfallsLink to this section
The declaration of division is a complex document that can pose numerous pitfalls for owners. Given these potential challenges, it is crucial for condominium buyers to carefully review the declaration of division, and especially the community regulations. A thorough analysis can help avoid future problems and provide a clear understanding of the rights and responsibilities of condominium owners.
Here are some of the most common problems that can arise in declarations of division:
Cost distribution
A common challenge in the declaration of division concerns the Distribution of costs according to the new WEG law Inappropriate cost allocation keys can lead to unplanned costs. For example, heating and hot water costs should be billed per residential unit in accordance with the Heating Cost Ordinance. An unfavorable arrangement can financially disadvantage individual owners or the entire condominium association.
Incorrect allocation of property
Another common mistake is the incorrect classification of building components as separate property or common property. For example, windows and window frames are sometimes incorrectly declared as separate property in the declaration of division, even though they legally belong to the common property. This can lead to confusion regarding maintenance obligations and costs.
Rights of use and restrictions
The definition of usage rights, for example for common property such as lawns, can be problematic if they are not clearly defined or are distributed unfairly. Restrictions on the type of use ( Partial ownership or condominium ownership) can have a detrimental effect on owners if they are too strict or impractical.
Voting rights regulations
The determination of voting rights in the Owners' meeting can also cause problems. Whether voting is based on the head principle or on value or share voting has a significant impact on the decision-making processes among the owners.
Opening clauses
Opening clauses that allow for subsequent changes to the declaration of division by majority vote can have adverse effects on future owners. For example, they can lead to unexpected changes that are not in the best interests of all owners.
Unclear or contradictory wording
Ambiguous or contradictory wording in the declaration of division can also sometimes cause legal disputes. Therefore, the declaration of division must be worded clearly and unambiguously.
How do I change the declaration of division for a house?Link to this section
Under certain circumstances, the declaration of division for a house and its residential property can and must even be amended. Amendments to the declaration of division become necessary, especially when significant aspects of the ownership structure or use change.
Two common reasons and special features for such changes are:
The conversion of private and common property:For example, if a communally used room (part of the common property) is to be converted into a private apartment (separate property).Changes in co-ownership shares:This can happen when apartments are combined or divided, which affects the percentage distribution of ownership.
The process of amending a declaration of division requires several steps:
Consent of all owners:Any amendment to the declaration of division requires the consent of all condominium owners. This protects the rights of each individual owner.Notarial certification:The change must be certified by a notary. The notary will verify the legality of the change and ensure that all formal requirements are met.Entry in the land register:After notarization, the change must be recorded in the land register. Only then does the change become legally effective.
In some cases, the aforementioned opening clauses may also be included in the original declaration of division, allowing certain changes by majority vote. However, these clauses should be viewed with caution, as they may restrict the rights of individual owners.
The costs of this process, including notary fees and the costs for land registry registration, are usually borne by the community of owners. This means that all owners contribute to the costs in proportion to their co-ownership shares.
TipChanges to the declaration of division should be carefully considered. They can have far-reaching consequences for all owners and should therefore only be made if they are truly necessary and in the interest of the entire condominium association.
How long is a declaration of division valid?Link to this section
The declaration of division has permanent legal effect. Its validity is, in principle, unlimited in time. The unlimited validity of the declaration of division serves as the legal basis and ensures the stability of the community of owners. It ensures that the fundamental structures and agreements will endure over the long term.
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Understanding the declaration of division is difficult for many owners. At Ralph, we understand the complexity of this task. Our administrators bring extensive experience and expertise to optimally manage your condominium association. Interested in switching to Ralph? Request a quote now. a free offer on!
