Glossary of real estate terms:

A

Offer price

Selling price set by the seller (negotiable, usually above the expected selling price).

Fraudulent misrepresentation

Intentional concealment or false statements regarding significant defects – leads to the contestation of the purchase contract.

Preliminary registration of transfer of ownership

Registration in the land register, which protects the buyer from double sales (securing the transfer of ownership).

B

Loan-to-value limit

Maximum percentage of the market value that banks accept as loan collateral (usually 80%).

Existing property

A property that is already completed and in use (as opposed to a new building).

Standard land value

Average value of the pure soil per m² in a specific area (determined by the expert committee).

D

Listed building

Legal protection of historically or culturally valuable buildings – restrictions on conversion and modernization.

Easement

A right that burdens one property in favor of another (e.g., right of way).

Semi-detached house

Two single-family houses built directly adjacent to each other with a shared dividing wall, but each on its own plot of land.

E

Personal use

Personal needs of the owner or close family members – an important reason for termination of tenancy in rented apartments.

Condominium

Apartment in separate ownership + share of common property.

Single-family house

Detached house for a family, usually with its own plot of land.

Energy certificate

Mandatory document for sale/rental, showing the energy consumption or demand of the property.

community of heirs

Multiple heirs who jointly own a property (often hindering sales).

Income approach

Valuation method primarily used for investment properties: Value is derived from future income (rent).

Expose

Professional sales brochure with photos, floor plans, equipment and prices.

F

Cadastral map

Official map showing land parcels, boundaries and buildings.

parcel

Smallest surveyed parcel in the land register (part of a property).

G

Common property

In the case of condominiums: all parts of the building that belong to everyone (stairwell, roof, facade, etc.).

Warranty disclaimer

Common clause in purchase contracts: Seller is not liable for hidden defects (except for fraudulent misrepresentation).

Land register

Public register at the local court, in which ownership details and encumbrances are recorded.

Land register extract

Current extract from the land register – the most important source of information before buying.

Land charge order

Security right in favor of the bank (usually instead of a mortgage).

H

maintenance fee

Monthly contribution from the owners to the homeowners' association (for maintenance, administration, etc.).

Property management

Company or person who takes over the management of a condominium association or apartment building.

Home Staging

Professional visual enhancement of the property for better sales opportunities and a higher price.

Brokerage fee (= real estate agent's commission)

Real estate agent's commission – in Berlin usually 3.57% incl. VAT (divisible or paid by the seller).

I

Property valuation

Determining the current market value of a property.

Real estate appraisal

Detailed, legally valid valuation report (usually by an expert).

Real estate purchase agreement

Notarized contract for the purchase of a property.

Real estate agent Berlin

Expert real estate agent in the capital (Me 😉).

reverse mortgage

Sale of the property while simultaneously renting it out for life (sale in exchange for a life annuity).

Indexed rent

Rent that is based on a price index (e.g. consumer price index).

J

Annual statement

Annual statement of accounts from the property management company regarding the actual costs of the homeowners' association.

K

Investment property

Property that is primarily purchased for rental and income generation.

Additional purchase costs

Additional costs when buying (approx. 10–15%): notary, land registry, real estate transfer tax, real estate agent.

Purchase price negotiation

Negotiation of the final purchase price between buyer and seller.

Deposit

Tenant's security deposit (max. 3 net monthly rents).

L

Situation assessment

Assessment of the micro and macro situation (location is everything!).

Deletion authorization

Statement from the bank that a mortgage may be cancelled after repayment.

M

Broker liability

Liability of the broker for incorrect information or failure to disclose information.

Apartment building

Buildings with multiple apartments, mostly used as investment properties.

Modernization costs

Costs for value-enhancing renovations (can be partially passed on to tenants).

N

Subsequent financing

Additional borrowing if construction costs are higher than planned.

invoice for additional costs

Annual statement of operating costs to the tenant.

usufruct

The right to use a property for one's entire life or to derive income from it without being the owner.

Notary escrow account

Secure escrow account held by the notary for the purchase price payment.

Notary fees

Fees for notarization of purchase agreements and land registry entries.

Emergency sale (real estate)

Quick sale, usually below market value (e.g., in cases of divorce, insolvency, or inheritance).

O

Disclosure obligation

Seller's obligation to disclose known significant defects.

Online valuation

Free, but usually inaccurate, initial valuation indication on the internet.

P

Pricing

Professional determination of the realistic selling price.

Private sale of property

Selling without a real estate agent – higher risk and effort for the owner.

Q

Neighborhood development

Urban planning upgrade of an entire neighborhood (strong impact on prices).

R

Return on investment calculation

Calculation of the annual rental yield (net rent in relation to the purchase price).

Reservation agreement

Time-limited reservation of a property for a fee.

Remaining useful life

Period during which a building can still be used economically (important for valuation).

Residual debt insurance

Insurance that pays off the loan in the event of death or disability.

S

Real estate valuation method

Valuation method: based on production costs (land + building).

Renovation costs

Costs for repair and modernization.

Special ownership

In the case of condominiums: the individual apartment itself (interior spaces).

Special right of use

Right to use certain communal areas exclusively (e.g., garden share, parking space).

Graduated rent

Contractually agreed gradual rent increase.

T

Declaration of Division

A notarized declaration dividing a property into individual ownership and common ownership.

Partial sale

Sale of a portion of one's own property (e.g. 50%) while continuing to use it.

Repayment

Loan repayment (amortization rate).

U

Certificate of no objection

Confirmation from the tax office that real estate transfer tax has been paid (prerequisite for transfer of ownership).

Document research

Gather all important documents before the sale (land register, building plans, energy certificate, etc.).

V

comparative value method

Most common method: Value is derived from the selling prices of comparable properties.

Market value appraisal

Officially recognized appraisal of the current market value.

Prepayment penalty

Compensation from the bank if the loan is repaid early.

Preliminary agreement

Preliminary agreement – legally risky, better to go directly to a notary.

W

Condominium owners' association (WEG)

Community of all owners of a residential complex.

Living space calculation

Calculation of usable living space according to WoFlV (important for rent and purchase price).

Right of residence

Personal right to live in a property for life (usually registered in the land register).

Z

Guaranteed characteristic

Features explicitly guaranteed in the contract (e.g., "no moisture") – full liability in case of absence.

Second home tax

A tax that some cities (e.g., Berlin) do not levy on second homes.

Forced auction

Court-ordered auction of a property, usually by a bank or tax office.