As a homeowner, you enjoy a lot of freedom and can design your condominium according to your personal ideas – as long as you joint property However, the intended use of your apartment is predetermined even before the purchase, as your apartment is intended either as shared ownership or as a condominium. In short, you may not use your living room as business space. What exactly this means and how shared ownership differs from condominium ownership is explained in the following text.
Definition of shared ownership: What is it?Link to this section
Partial ownership is a term from the German Condominium Act (WEG) and is defined in Section 1, Paragraph III of the WEG. According to this law, partial ownership is a special form of separate ownership. It allows you to use the non-residential areas of your property as separate units for other purposes.
The Declaration of division is connected with the part ownership, as it is the Rights and obligations of apartment owners and regulates the use of the part-ownership units.
Partial ownership vs. separate ownership vs. condominium ownershipLink to this section
Partial ownership and condominium ownership both belong to separate property.
Private property is a broader term that encompasses both shared ownership and condominium ownership. These are spaces within a building that belong to a single owner.
The key difference between condominium ownership and shared ownership lies in their use. Condominium ownership refers to the rooms in a building used for residential purposes. Shared ownership, on the other hand, refers to the rooms in a building that are not used for residential purposes.
Despite the distinction between condominium ownership and shared ownership, both forms of separate ownership are treated equally under the law.
Regardless of whether you are a condominium owner or a co-owner, you always have co-ownership shares in the common property. This includes all areas of the property that are used jointly by all owners, such as the stairwell, garden, or roof. Your rights and responsibilities regarding the common property are regulated by the Condominium Act (WEG) and the community regulations.
The role of the declaration of division in shared ownershipLink to this section
The declaration of division is a document that establishes the division of your condominium building into separate ownership (condominium ownership and shared ownership). It also specifies whether the rooms are condominium ownership (remember: rooms used for residential purposes) or shared ownership (i.e., rooms not used for residential purposes, such as commercial space).
The declaration of division sets out the specific rights of use and restrictions for the shared ownership. For example, it may stipulate that certain types of business may not be carried out in the premises.
The declaration of division may deviate from the statutory provisions of the condominium agreement. This means that the agreements contained in the declaration of division take precedence, even if they do not comply with the law. In the event of disputes between owners, the declaration of division is particularly important. It serves as important evidence and generally takes precedence over the statutory provisions.
Examples of shared ownershipLink to this section
Partial ownership opens up a wide range of uses beyond residential use. According to Section 1, Paragraph 3 of the German Condominium Act (WEG), these include the following examples:
commercial space: For example, an office, shop, warehouse, or workshop. They allow entrepreneurs and self-employed people to use them for business purposes.Medical practice and law firm: Members of the liberal professions such as doctors, lawyers or tax consultants find a possible apartment for their practice or law firm in shared ownership.Cultural institutions: Art galleries, music schools or theatre groups can use the shared ownership for the purposes of creative activities and cultural events.Co-working spaces: Co-working spaces in shared ownership offer freelancers, start-ups and small businesses an office.Fitness studios and wellness centers: Fitness studios and wellness centers are also a common example of the use of shared ownership.holiday apartment: Partial ownership can, under certain circumstances, be used as a holiday home, even if the declaration of division originally provided for a different use.Further creative uses: Hair salons, retail stores, event spaces, beauty salons, yoga studios or photo studios, etc. are permitted for use as shared ownership.Special features for parking lots and gardens:Clearly defined parking spaces in enclosed spaces such as garages or underground car parks can also be part-owned if the areas are defined by specifying the dimensions in the Allocation plan and marked with markers. Open-air parking spaces are considered common property, but can be granted special use rights. Garden areas are not considered shared ownership, as they do not constitute a building.
Using part ownership for residential purposes – is that possible?Link to this section
Now you know how shared ownership and condominium ownership differ, but can shared ownership be used for residential purposes? Here, too, there are clear regulations regarding condominium ownership.
Unlike residential property, shared ownership is intended for commercial use and not for residential purposes. However, under certain conditions, shared ownership can also be used for residential purposes.
Residential use is possible if the following conditions are met:
First of all, the area of the shared ownership must be large enough to allow comfortable living.In addition, living must not affect the other owners of the Homeowners association more severely impacted than commercial use.For residential purposes, connections for the kitchen and bathroom with toilet, sink and shower or bathtub must also be available.
Changing the intended use of the special property – is that possible?Link to this section
Even if the intended use of your special property is specified in the declaration of division, it is not set in stone. It is certainly possible to change the type of use of your special property, for example, from residential to commercial space, or vice versa.
Conversion of condominium ownership into shared ownership
The conversion of a part-ownership into a condominium is generally only possible if the part-ownership is not located in a purely industrial area. However, in all other properties with existing residential units, there is generally nothing to prevent such a conversion.
Despite the potential benefits, the process is fraught with hurdles. The first step is obtaining the consent of all other owners of the condominium association. As long as the declaration of division has not been amended accordingly, construction work to create living space is considered inadmissible. Consent should not only be given verbally but also documented with a signature.
To change the special property, you will need a certificate of completion from your building authority. You can then schedule a notary appointment, at which all condominium owners in your condominium association must appear in person or be represented.
After the change has been successfully registered in the land register, you are free to make the necessary structural changes to your property and change its use accordingly.
Conversion of part ownership into condominium ownership
Converting condominium ownership to shared ownership requires the same procedure and the consent of all co-owners. As with any amendment to the declaration of division, all condominium owners must have the changes notarized.
Structural changes to property – what is permitted?Link to this section
Part-owners generally have the right structural changes within their own premises. As long as the changes affect only the shared ownership and do not affect load-bearing components of the building or common property, the consent of the other condominium owners is not required. This even applies to the removal of walls, provided they are not load-bearing.
Structural changes affecting shared property always require the consent of the co-owners. This includes, for example, changes to the facade, the street-facing windows, or the entrance door.
Even if these areas are part of the private property, their function and appearance may also qualify them as common property. In such cases involving private property, a resolution of the homeowners' association is required.
Selling part ownership – is that possible?Link to this section
Yes, the sale of part ownership is generally possible. However, there are some special considerations to be taken into account before selling, as part ownership is inextricably linked to the co-ownership share in the common property under condominium law.
For example, if you own a shop in a condominium, this business is your partial ownership. In addition, you have a share in the property's common property, the co-ownership share, such as the stairwell or garden.
Therefore, you cannot sell your shop without your share of the common property. Therefore, if you want to sell your partial ownership, you must also sell your co-ownership share of the common property. Legally, the two belong together. The Condominium Act (WEG) stipulates that this connection must exist in order to fairly regulate the rights and obligations within a homeowners' association.
Tip: What you should consider before buying a condominiumLink to this section
If you are interested in purchasing an apartment in a condominium association with shared ownership, you should inform yourself in advance about the potential restrictions that may be associated with such a constellation.
A typical example of this is if a doctor's office is located on the ground floor of a building. In this case, as the owner of an apartment on the upper floors, you would have to expect to regularly encounter strangers visiting the office in the hallway and on the property.
Another example of potential restrictions would be if a restaurant were operating in the same building. In such cases, there may be increased noise levels during the restaurant's opening hours, which could impact your quality of life.
To determine whether a residential property you're considering is part-ownership, it's important to examine the declaration of division. The declaration of division regulates the division of the building into residential property and part-ownership and provides information about the respective rights of use.
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