Real Estate Glossary

An acceptance report documents the condition of a property when it is handed over to the buyer. It records defects, meter readings and keys handed over in a legally secure manner.

The depreciation allowance (Absetzung für Abnutzung, AfA) enables owners of rented properties to claim the loss in value of the building against tax. Straight-line depreciation is generally 2 % per year.

Old buildings are buildings that were constructed before 1949. They are typically characterised by high ceilings, wooden floorboards, stucco and solid construction.

An extension is the structural expansion of an existing building, for example with a conservatory, a garage or additional living space.

An annuity loan is the most common form of construction financing in Germany. The borrower pays constant monthly instalments consisting of interest and repayments.

Follow-up financing replaces an expiring mortgage when the fixed interest rate ends and there is still a residual debt. Options include prolongation, debt rescheduling or forward loans.

Share ownership refers to the co-ownership share in a property or building that is linked to the special ownership of a specific flat.

The conveyance is the legally binding agreement between the seller and buyer on the transfer of ownership of a property. It must be notarised and is a prerequisite for the transfer in the land register.

The priority notice of conveyance is an entry in section II of the land register that secures the buyer's claim to transfer of ownership. It prevents the property from being sold or encumbered a second time.

A prefabricated house is a new build that is only handed over by the property developer as a shell or in a partial construction stage. The interior work is carried out by the buyer.

A balcony is an open platform that protrudes from the façade and serves as outdoor living space. When calculating living space, it is usually counted as 25 to 50 per cent.

The building permit is the official authorisation to carry out a building project. It is issued by the responsible building supervisory authority and confirms compliance with the applicable building regulations.

A subsoil survey analyses the soil conditions of a property with regard to load-bearing capacity, groundwater level and contaminated sites. It forms the basis for the structural planning of a new building.

The Baukindergeld was a state subsidy that supported families with children buying their first home with 12,000 euros per child. The programme has expired and follow-up programmes are being discussed.

Construction costs include all expenses for the construction or renovation of a property, including materials, labour, ancillary construction costs and outdoor facilities.

Urban land-use planning is the central instrument of municipal urban development. It is divided into the land use plan (preparatory) and the development plan (binding).

A home loan and savings contract combines a savings plan with an entitlement to a low-interest loan. Once the minimum savings amount has been reached, the building society loan is ready for allocation.

The development plan (B-Plan) is a binding statute of the municipality that defines the type and extent of building use, construction methods and superstructural land areas.

The mortgage lending value is the sustainable value of a property determined by a bank, which serves as the basis for granting a loan. It is usually lower than the market value.

The standard land value is an officially determined average value for the price per square metre of undeveloped land in a specific location. It is determined by the expert committee on the basis of real purchase prices.

A carré is a residential complex or ensemble of buildings that forms a rectangular or square courtyard development. The building form creates sheltered inner courtyards with a high amenity value.

The brokerage fee (agent's commission) is the fee for the successful brokerage of a property. Since December 2020, the statutory commission split between buyer and seller has applied to residential property sales.

Co-living is a modern living concept in which residents combine private residential units with communal areas such as kitchens, living rooms or co-working areas.

The cash flow of a property describes the actual cash surplus from rental income less all ongoing costs such as interest, administration, maintenance and non-recoverable ancillary costs.

A cluster flat consists of several small, self-contained residential units with private bathrooms and kitchenettes that share communal living and lounge areas.

Community building in the property industry refers to targeted measures to promote social interaction in residential complexes - through common rooms, events and digital platforms.

A core location is the best and most stable property location in a city - centrally located, with excellent infrastructure and maximum value security.

Corporate real estate (CRE) includes all real estate used by companies themselves - office buildings, production halls, logistics centres or retail space.

In crowd investing, many small investors participate together in property projects, usually via online platforms. The minimum investment amounts are often just a few hundred euros.

Curb appeal describes the first visual impression of a property from the outside. It has a decisive influence on whether prospective buyers decide to view a property.

An attic flat is located on the top floor of a building and is characterised by pitched roofs, special lighting conditions through skylights and often a roof terrace.

A roof terrace is an accessible open space on the flat roof of a building. It is usually counted as 25 to 50 per cent of the living space and significantly increases the property value.

A loan is a credit granted by a bank or credit institution for the purchase, construction or renovation of a property. It is collateralised by a land charge or mortgage.

A listed building is protected by the monument protection authority and may only be renovated or remodelled subject to strict conditions. In return, it offers considerable tax advantages through the monument depreciation allowance.

A deposit contract (escrow agreement) regulates the deposit of the purchase price in a notary escrow account. The amount is only released once all contractually agreed conditions have been met.

With a direct purchase, the buyer and seller negotiate the property sale directly with each other without the involvement of an estate agent. There is no estate agent's commission, but also no professional support.

A semi-detached house is a detached house that shares a common partition wall with a neighbouring house of identical construction. It offers the advantages of an owner-occupied home with lower property costs.

Triple glazing refers to windows with three panes of glass and two spaces between them, which provide excellent thermal and sound insulation. It is standard in new buildings and KfW efficiency houses.

An instantaneous water heater heats water directly as it flows through and does not require a storage tank. Modern appliances are electronically controlled and achieve energy efficiency class A.

The average rent refers to the average net cold rent per square metre in a specific area and serves as a benchmark for rental prices and yield calculations.

A condominium is a flat in an apartment building that is registered as separate property in the land register and grants the owner independent rights of disposal over his unit.

Equity is the share of the property purchase price that the buyer contributes from their own financial resources - without external financing from banks or credit institutions.

The owners' association (WEG) comprises all flat owners in a complex who jointly decide on the management, maintenance and use of the common property.

A detached house is a detached or attached residential building that is designed for use by a single family and usually has its own garden and parking space.

The energy performance certificate is a legally required document that documents the energy consumption or energy requirements of a property and must be presented when selling or letting.

The leasehold entitles the owner to erect and use a building on a third-party property without having to buy the property themselves - typically for 50 to 99 years.

Leasehold is the colloquial term for a heritable building right - a contractual agreement under which a property is used in return for regular payment of ground rent without having to purchase it.

Development costs are the costs of creating the technical infrastructure of a property - this includes water, wastewater, electricity and road connections.

An exposé is a professionally prepared sales document that presents a property to potential buyers with all relevant data, high-quality photos, floor plans and location information.

The income capitalisation approach is a recognised method of property valuation that calculates the market value on the basis of the sustainable rental income and the land value.

A fixed-rate loan is a property loan with a fixed interest rate for the entire fixed-interest period, which offers the borrower full planning security for the monthly instalments.

The financing plan is a detailed list of all equity and borrowed funds as well as the monthly charges required for the purchase of a property.

A parcel is an officially surveyed, clearly delimited part of the earth's surface that is recorded in the real estate register with its own parcel number.

The cadastral map (also known as a property map) is an official plan that shows all the parcels of land in an area with their boundaries, buildings and types of use to scale.

The land use plan (FNP) is a preparatory land-use plan that determines which areas are designated for housing, commercial, green spaces or transport for the entire municipal area.

Borrowed capital refers to borrowed funds from banks or credit institutions that are used to finance property and must be repaid over agreed terms.

Underfloor heating is a surface heating system in which heating pipes are laid in the screed and heat the room evenly from below - particularly energy-efficient in combination with heat pumps.

The due date notice is the notary's written notification to the buyer that all requirements for payment of the purchase price have been met and that the purchase price is now due.

The release note is a declaration by the seller's financing bank that it will cancel the land charge after payment of the purchase price and release the property from encumbrances.

An escape route is a secured route prescribed by building regulations that enables rapid and safe evacuation from a building in the event of fire or other hazards.

A garage is an enclosed storage space for vehicles which, as a single garage, double garage or underground car park, increases the value of a property and provides additional storage space.

A garden shed is a small outbuilding on a property that is used as storage, a workshop, hobby room or garden shed and may require authorisation depending on its size.

The building value quantifies the financial value of a building without the associated land value and is used for insurance, tax valuations and sales price calculations.

Common property includes all parts of a residential complex that are not owned separately by individual owners - this includes the stairwell, roof, façade, outdoor facilities and load-bearing walls.

The authorisation requirement means that certain construction measures such as new buildings, conversions or changes of use may only be carried out after official planning permission has been granted.

The clause 'handed over vacated' in purchase or rental contracts means that the property is handed over to the new owner completely free of personal belongings, furniture and rubbish.

The land register is a public register at the local court that documents the ownership, encumbrances, rights and restrictions of all properties in a district in a legally secure manner.

An easement is a right entered in the land register that allows the owner of a neighbouring property certain uses - such as a right of way, pipeline or passage.

Property tax is a municipal tax that every property owner must pay annually to the municipality - it is calculated on the basis of the property tax value, the tax base and the assessment rate.

The property valuation determines the market value of a property on the basis of standard land values, location, size, layout and degree of development - it is the basis for sale, mortgage and tax valuation.

The house allowance is the monthly advance payment that condominium owners make to the condominium management - it covers operating costs, management costs and the allocation to the maintenance reserve.

Property management is a professional service provider that takes on the commercial, technical and organisational management of a property or residential complex on behalf of the owners.

A mortgage is a mortgage that encumbers a property as security for a loan - it is entered in the land register and automatically expires when the secured claim is repaid.

The heating bill is the annual statement of a property's heating costs, which are allocated pro rata to the users in accordance with the Heating Costs Ordinance - at least 50 % according to consumption.

The heating requirement indicates the calculated amount of energy that a building requires annually for heating - it is shown in kilowatt hours per square metre and year (kWh/m²a) in the energy performance certificate.

Contents insurance protects the movable property in a flat or house against damage caused by fire, burglary, mains water, storms and hail.

Wooden windows are windows with wooden frames that are characterised by natural aesthetics and good thermal insulation, but require regular care and maintenance.

Liability insurance for property (homeowners' and landowners' liability insurance) protects owners against third-party claims for damages caused by the property.

House construction refers to the entire process of planning and constructing a residential building - from the architectural design and planning permission through to turnkey completion.

Domiciliary rights give the owner or authorised occupier of a property the authority to determine the access and presence of persons on their property or in their home.

The property valuation determines the market value of a property using recognised methods such as the comparative value, income value or asset value method in accordance with the ImmoWertV.

A real estate agent is a commercial intermediary who professionally brings buyers and sellers or tenants and landlords together and accompanies the entire transaction process.

A property loan is an earmarked loan that is used exclusively to finance the purchase, construction or modernisation of a property and is secured by a land charge.

Maintenance includes all measures to maintain or restore the proper structural condition of a property - from servicing the heating to replacing the roof.

The index-linked rent is a rental agreement in which the rent is linked to the consumer price index of the Federal Statistical Office and is automatically adjusted in line with price developments.

Investment costs include all expenses for the acquisition, construction, extension or significant modernisation of a property - they form the basis for depreciation and return calculations.

Infrastructure refers to all the facilities and connections of a location - including transport links, schools, shopping facilities, medical care and leisure activities.

The interior fit-out includes all work inside the building after the shell construction phase - from electrics, plumbing and heating, screed and plaster to flooring, tiling and painting.

Insulation refers to materials and measures for heat, cold and sound insulation in buildings - it reduces energy consumption and improves living comfort.

A property fund pools the capital of several investors and invests it in property projects or existing properties. A distinction is made between open-ended and closed-ended funds with different risk and return profiles.

The annual statement of accounts is the annual statement of all income and expenditure of a homeowners' association (WEG). It is prepared by the property management company and approved at the owners' meeting.

The annual rent is the sum of all monthly rental income in a calendar year. It serves as the basis for calculating the rental yield and the capitalised earnings value of a property.

A joint venture is a partnership between two or more companies for the joint realisation of a property project. Risks, costs and profits are shared by contract.

Art Nouveau refers to an architectural style of the late 19th and early 20th century, characterised by ornamental, floral façade design and high-quality interior furnishings. Art Nouveau properties are considered to be particularly stable in value.

The annual interest rate (also known as the nominal interest rate) indicates the interest rate that is charged annually on a property loan. The effective annual interest rate is decisive for the actual cost comparison.

Turn-of-the-century properties are buildings from the period around 1900 that are characterised by their striking architecture, high ceilings and historic building fabric.

A young property is a building that is only a few years old and is characterised by modern construction standards, contemporary energy efficiency and low maintenance requirements.

The annual reserve (maintenance reserve) is the amount that a condominium owners' association sets aside for future maintenance and repairs to the common property.

Youth protection regulations in the property sector regulate the requirements for residential buildings and communal facilities to protect minors, for example when using playgrounds or communal areas.

Joint use describes a utilisation concept in which property space is used jointly by different parties, such as co-working spaces or shared commercial space.

The purchase contract is the legally binding agreement between the buyer and seller on the purchase of a property. In Germany, it must be notarised in order to be effective.

The deposit is a security deposit that the tenant pays at the start of the tenancy. It may amount to a maximum of three months' net cold rent and must be invested separately from the landlord's assets.

KfW funding includes low-interest loans and grants from the Kreditanstalt für Wiederaufbau for energy-efficient construction, refurbishment and age-appropriate property conversions.

An investment property is acquired primarily to generate a return through rental income and capital appreciation, not for owner-occupation.

A cellar is an underground part of a building that serves as a storage, technical or hobby room. Basement areas are generally not taken into account when calculating living space.

A day-care centre in the immediate vicinity is an important location factor for residential properties and increases their attractiveness for families with children.

A KfW Efficiency House fulfils defined energy standards set by the Kreditanstalt für Wiederaufbau. The lower the figure (e.g. KfW 40), the more energy-efficient the building.

The loan instalment is the amount to be paid regularly to repay the principal and interest on a property loan. It is made up of an interest portion and a repayment portion.

Incidental purchase costs are the additional costs incurred when purchasing a property, including land transfer tax, notary and land register costs and, if applicable, estate agent commission. In Bavaria, they amount to approx. 7-10 % of the purchase price.

The notice period is the period that tenants or landlords must observe before a tenancy ends. For tenants it is usually three months, for landlords it is extended depending on the length of the tenancy.

A site plan is an official drawing that shows the exact position of a property, its boundaries and the surrounding buildings. It is drawn up by the land registry office or a surveyor.

The life annuity is a property sales model in which the seller receives regular, usually lifelong annuity payments instead of a one-off purchase price and often retains a right of residence.

The release of encumbrances is the cancellation of encumbrances such as land charges or mortgages from the land register, which usually takes place after a loan has been repaid in full.

The real estate cadastre is an official register that documents all properties in an area with their boundaries, areas and types of use. Together with the land register, it forms the basis of property ownership.

A listing refers to the publication of a property on sales portals or in estate agent databases for active marketing. The quality of the listing has a significant influence on the number of enquiries.

A luxury property is characterised by its exclusive location, high-quality fittings, spacious areas and special features such as a pool, roof terrace or smart home technology.

Encumbrances are third-party rights entered in the land register that encumber a property, e.g. land charges, mortgages, rights of way or usufructuary rights.

A loft flat is a spacious, open-plan form of living with few dividing walls and high ceilings, often created by converting former industrial or commercial buildings.

Agricultural land is land that is primarily intended for agricultural use. Their sale is subject to special regulations, such as the Land Transfer Act and the pre-emptive right of the agricultural authority.

Vacancy refers to the state when a property or individual residential units are unused and without tenants. Prolonged vacancy incurs costs and can reduce the value of the property.

The brokerage fee (broker's commission) is the remuneration for the successful brokerage of a property. Since 2020, the buyer-purchaser principle has applied to residential property, with half of the commission split between buyer and seller.

The tenancy agreement is the contractual basis between tenant and landlord that regulates the rights, obligations, rent amount, notice periods and conditions of use of a property.

The rent index is an official or qualified overview of local comparative rents. It serves as a guide for rent adjustments and new lettings.

Loss of rent insurance protects landlords against financial losses if tenants do not pay their rent or do not vacate the flat after giving notice.

Rental income is the regular payments that a landlord receives from letting his property. They form the basis for calculating the rental yield and the capitalised earnings value.

Modernisation includes structural measures to improve the equipment, energy efficiency or living comfort of a property, e.g. new windows, heating or bathrooms.

Solid construction refers to a construction method in which load-bearing walls are built from solid materials such as bricks, sand-lime bricks or concrete. Solid construction is considered to be particularly durable and stable in value.

The rental deposit is a security deposit paid by the tenant to the landlord to cover loss of rent or damage. It amounts to a maximum of three months' net cold rent and must be invested at interest.

The market value (fair market value) is the price that could be realised in the ordinary course of business for the type, location and condition of the property on the valuation date (Section 194 BauGB).

An apartment block is a residential building with three or more residential units designed for different households. It is often used as an investment to generate rental income.

Service charges are the operating costs of a property that are incurred in addition to the net rent, such as water, heating, waste collection, insurance and caretaker services.

The notary is an independent lawyer who notarises property purchase contracts, accompanies the transfer of ownership and informs both parties of their rights and obligations.

Notarisation is the legally required form for property purchase contracts in Germany. Without notarisation by a notary, the purchase contract is invalid.

Neighbour law regulates the rights and obligations between neighbouring property owners, for example with regard to boundary distances, noise, overbuilding or planting.

The usable area includes all areas of a property that are actually usable, including cellars, attics and utility rooms - in contrast to living space, which only includes rooms used for living.

A subordinate land charge is a security entered in the land register that is only serviced after senior land charges. It has a lower priority in the event of a forced sale.

A new build is a property that has recently been constructed and is not yet occupied or is being occupied for the first time. New buildings comply with current energy standards and building regulations.

The net cold rent is the pure basic rent without operating costs and heating costs. It forms the basis for calculating the rental yield and rental deposit.

In the property sector, the German Act on the Provision of Evidence regulates the obligations of estate agents when brokering: The estate agent must prove that he has brought the contracting parties together in order to claim his commission.

A change of use is an officially authorised change in the purpose of a building or part of a building, e.g. from commercial to residential use or vice versa.

The property description is a detailed presentation of a property with all relevant information on location, facilities, size, condition and special features - the centrepiece of every exposé.

The open construction method is a form of development in which buildings are erected free-standing or with lateral boundary distance. It is typical for single-family and semi-detached house areas.

An open-plan kitchen is a kitchen area that flows directly into the living and dining area without separating walls. It creates a generous feeling of space and is very popular with modern buyers.

A site visit is the personal inspection of a property on site, which is carried out by experts for the purpose of valuation, purchase decision or appraisal.

The upper floor (OG) refers to all floors of a building that are above the ground floor. The floor position influences the amount of light, the view and often also the price of a flat.

The property address is the exact postal address of a property that is relevant for identification, valuation and entry in the land register.

An option in the property sector is a contractually secured right to acquire a property within a fixed period at a price agreed in advance.

An open fireplace is a fireplace without a glass insert that serves as a cosy design element. In Germany, it is subject to strict building and emission protection regulations.

A district is a defined area or neighbourhood within a municipality that is characterised by its own infrastructure, character and often different property prices.

Public subsidies include state grants and low-interest loans for the construction, purchase or energy-efficient refurbishment of properties. Typical programmes are KfW subsidies and state funding.

A lease agreement regulates the transfer of a plot of land or property for use and utilisation in return for payment. In contrast to a lease, the lessee may also realise economic income.

A ground floor flat is located on the ground floor of a building and often offers direct access to the garden or courtyard. It is particularly suitable for barrier-free living.

A penthouse is an exclusive flat on the top floor of a building, typically with a roof terrace, generous ceiling height and panoramic views.

A lien on a property secures a creditor's claim and is entered in the land register. In the event of default, the property can be realised to satisfy the claim.

A photovoltaic system converts sunlight into electrical energy and is installed on roofs or open spaces. It can increase property value and reduce ongoing energy costs.

The plausibility check checks property documents such as floor space details, floor plans and energy values for factual and logical accuracy. It uncovers errors and inconsistencies.

The estate agent's commission is the remuneration for the successful brokerage of a property. Since December 2020, residential property in Germany has been divided equally between the buyer and seller.

Parquet flooring is a high-quality floor covering made of real wood that increases the quality of living and property value. It is durable and can be sanded and refurbished several times.

Project development refers to the planning, design and realisation of real estate projects - from the purchase of land and planning permission through to completion and marketing.

A care property is a specialised property designed for the care and nursing of elderly people or people in need of assistance - such as care homes or assisted living.

The square metre (m²) is the standard unit of measurement for areas in real estate. It serves as the basis for living space, usable space and property information.

The price per square metre indicates the value of a property per square metre of living space or land area. It is the key figure for price comparisons on the property market.

A qualified rent index is drawn up in accordance with recognised scientific principles and officially recognised by the local authority. It serves as a binding guide for the local comparative rent.

Cross ventilation is created by opposing windows or openings that allow a natural exchange of air. It improves the indoor climate and prevents mould growth.

Proportional cost allocation regulates the allocation of operating and maintenance costs according to co-ownership shares within a homeowners' association (WEG).

The eviction of a property refers to the complete emptying and handover of the premises. It is carried out voluntarily or compulsorily following a court order.

An action for eviction is a legal procedure by which a landlord enforces the return of a rented flat if the tenant does not move out despite effective notice of termination.

A real charge is a right entered in the land register that obliges the respective property owner to make recurring payments - such as payments in cash or in kind.

A terraced house is a detached house that is connected to other houses in a closed row. It offers its own garden and entrance with efficient utilisation of the plot.

An investment property is a property that is acquired primarily as a capital investment in order to achieve a financial return through rental income and appreciation in value.

The residual debt is the outstanding loan amount that has not been repaid at the end of the fixed-interest period or at a certain point in time. It must be settled through follow-up financing or redemption.

The topping-out ceremony is a traditional celebration following completion of the building shell and erection of the roof truss. It marks an important stage in the construction of the new building.

The maintenance reserve is a financial buffer that homeowners' associations save in order to finance future repairs and renovations to the common property.

The repurchase right gives the seller the contractual right to repurchase a sold property at a predetermined price or under certain conditions.

The room height refers to the distance between the floor and ceiling of a room. It influences the feeling of space and must comply with certain minimum building regulations.

Refurbishment refers to structural measures to restore or improve the condition of a property. It includes energy, technical and visual modernisation.

Special property is the part of a residential complex that belongs to one owner alone - typically the flat itself, including interior walls, floor coverings and sanitary installations.

With a graduated rent, fixed rent increases are agreed in the tenancy agreement at certain points in time. It offers landlords planning security and protects them from costly rent increase procedures.

The asset value method is a standardised valuation method in which the value of a property is determined from the land value plus the production costs of the building minus the reduction in age value.

The Schufa report provides information about a person's creditworthiness and is used by banks when financing property and by landlords when selecting tenants.

Sound insulation includes structural measures to reduce airborne and impact noise between rooms as well as external noise. The requirements are regulated in DIN 4109.

A parking space is a permanently allocated parking space for a vehicle - as an outdoor parking space, in an underground car park or a carport. It is often entered separately in the land register as a separate property.

The electricity connection connects a building to the public electricity grid and is a basic requirement for the use of any property. The costs for the connection are usually borne by the owner.

The asset value of a property is made up of the land value and the value of the structural substance. It forms the basis of the asset value method.

Speculation tax is payable if a property not used by the owner is sold at a profit within ten years of purchase. The profit is taxed at the personal income tax rate.

With a partial purchase, an owner sells only a percentage share of their property to an investor and retains a lifelong right of use. In return, he pays a monthly utilisation fee.

The declaration of division is a notarised document that regulates the division of a building into separate and common property. It defines the rights and obligations of the condominium owners.

Repayment is the scheduled repayment of a property loan. The higher the amortisation rate, the faster the residual debt is reduced and the lower the total interest costs.

The repayment schedule is a tabular overview that shows the breakdown of each instalment into interest and repayment components as well as the remaining debt.

An underground car park is a subterranean parking facility that provides parking spaces protected from the weather. It is seen as a value-enhancing feature in residential complexes and city centre buildings.

The stairwell is the communal access area of a block of flats and is part of the common property of the condominium. It includes stairs, corridors and entrance areas.

The eaves height is the distance between the ground and the eaves - i.e. the lower edge of the roof surface. It is a central specification in development plans.

In a partial sale, the owner sells a percentage of their property to an investor and receives an immediate payment in return. He retains a lifelong usufructuary right.

Technical building equipment includes all the technical systems in a building: Heating, ventilation, sanitary, electrical and lift systems. It influences energy efficiency, comfort and operating costs.

An escrow account is a special account in which funds - usually the purchase price of a property - are managed by a trustee (e.g. notary) until all contractual conditions have been met.

Debt rescheduling refers to the replacement of an existing property loan with a new loan, often at more favourable conditions or with a different credit institution.

Change of use means changing the previous type of use of a property, e.g. from commercial to residential. It generally requires authorisation under building law.

Basement refers to the presence of a cellar beneath a building. It influences the residential value, the usable area and the building fabric of a property.

The clearance certificate is issued by the tax office and confirms that the land transfer tax has been paid. It is a prerequisite for the transfer of ownership in the land register.

In the property context, maintenance refers to the ongoing costs for the upkeep and operation of a property, including repairs, maintenance and care.

Apportionable costs are operating costs that the landlord is permitted to pass on to the tenant in accordance with the Operating Costs Ordinance (BetrKV), e.g. property tax, refuse collection or water supply.

Subletting is when a tenant sublets the rented flat or parts of it to third parties. This generally requires the landlord's consent.

Urbanisation describes the process of densification and urbanisation in which rural areas increasingly take on an urban character and the demand for living space in conurbations increases.

The U-value (heat transfer coefficient) indicates how much heat escapes through a building component. The lower the U-value, the better the thermal insulation of the building.

Overbuilding occurs when a building or part of a building exceeds the property boundary and projects onto the neighbouring property. The legal consequences are governed by §§ 912-916 BGB.

The market value (market value) is the objectively estimated price of a property on the valuation date under normal market conditions, defined in Section 194 BauGB.

The right of first refusal entitles a person or institution to enter into the purchase agreement on the same terms when a property is sold. It can be agreed by law (e.g. municipality) or by contract.

An auction is the public sale of a property, usually as a forced sale by the local court. The property is knocked down to the highest bidder.

The administrator contract regulates the rights and obligations between the condominium owners' association (WEG) and the appointed administrator, including remuneration, term and duties.

The sum insured is the maximum amount stipulated in the insurance contract up to which the insurer pays out in the event of a claim - in the case of buildings insurance, it ideally corresponds to the reinstatement value.

A full storey is a storey that has a certain minimum height in accordance with the provisions of the respective state building regulations and is included in the calculation of the permitted floor area ratio (GFZ).

A priority notice is a protective entry in the land register that secures a claim to transfer of ownership under the law of obligations. The most common form is the priority notice of conveyance in favour of the buyer.

Surveying is the official determination of property boundaries and building dimensions by a publicly appointed surveyor or the surveying office.

Shoring refers to a safety measure in civil engineering in which excavation pits are secured against collapse by sheet piling, bored piles or Berlin shoring.

The administrator's consent is the consent of the condominium administrator required under Section 12 WEG for the sale of a condominium, insofar as this is provided for in the declaration of division.

The living space is the area of all rooms in a flat that are suitable for permanent living, calculated in accordance with the German Living Space Ordinance (WoFlV). Balconies and terraces are counted proportionately.

Condominium ownership is the special ownership of a specific flat in connection with a co-ownership share in the common property of a building, regulated in the German Condominium Act (WEG).

The homeowners' association (WEG) is the community of all owners of a building divided according to the WEG. It manages the common property and passes resolutions at owners' meetings.

The Wohnberechtigungsschein (WBS) entitles the holder to rent publicly subsidised social housing. It is issued by the social welfare office to people with a low income.

Thermal insulation includes all structural measures to reduce the heat loss of a building, e.g. by insulating the façade, roof and basement ceiling.

A conservatory is a glazed extension to a building that serves as additional living space. A distinction is made between cold (unheated) and warm (heated and usable all year round) conservatories.

The residential location describes the quality of the location of a property, assessed according to criteria such as infrastructure, transport links, neighbourhood and local recreation. A distinction is made between simple, medium, good and very good locations.

The right of residence is a right in rem that allows a person to occupy a property or parts of it without being the owner. It is entered in the land register and is not transferable.

An appraisal is an expert valuation of a property by a certified valuer who determines the market value according to recognised methods (comparative value, income value, asset value).

A weekend house is a small residential building in a weekend or special area that is only intended for temporary residence and may not usually be used as a permanent residence.

Xenon lighting uses high-pressure lamps filled with inert gas, which produce a particularly bright light similar to daylight. In the property sector, it is used for high-quality outdoor and property lighting.

XPS insulation (extruded polystyrene) is a pressure-resistant, moisture-resistant insulation material that is used in particular for perimeter insulation, flat roofs and components in contact with the ground.

Xeriscaping is a garden design concept that relies on water-saving planting and drought-resistant plants to minimise maintenance and water consumption.

X-shaped floor plans refer to building floor plans with four wings radiating from a central point. This shape maximises light incidence and ventilation in each wing of the building.

X-glazing (double or triple glazing) refers to the number of panes of glass in a window. The more panes, the better the heat and sound insulation.

Ytong is a brand name for aerated concrete blocks (gas concrete), which are often used in residential construction due to their low weight, good thermal insulation and easy processing.

In the property sector, yield refers to the ratio of annual rental income to the purchase price of a property and is a key indicator for investors.

A yard is an Anglo-Saxon unit of length (0.9144 metres) that is occasionally used in the international real estate context. In Germany, property areas are specified exclusively in square metres.

A yoga room is a specially designed room in a property or residential complex that is used for yoga, meditation and fitness - a feature of upmarket properties.

The Y-axis in the construction plan is the vertical reference axis in the coordinate system of technical drawings. It is used for the exact positioning of components and building elements.

The fixed interest period is the period during which the interest rate of a property loan is fixed - usually 5, 10, 15 or 20 years. Follow-up financing takes place at the end of this period.

A forced sale is the court-ordered sale of a property to satisfy creditor claims. It is carried out by the local court and follows the rules of the ZVG.

A second home is an additional dwelling in addition to the main residence. In many cities, a second home tax is levied, which must be taken into account when selling.

The payment plan regulates the timing and amount of the purchase price payments when purchasing a property, especially for new construction projects in accordance with the German Real Estate Agent and Property Developer Ordinance (MaBV).

A certificate in the property sector is official proof of certain properties of a building, e.g. the energy performance certificate, KfW efficiency house certificate or a sustainability certificate (DGNB).

The condition of a property describes the structural and visual state of the building. It is categorised as being as good as new, well-maintained, in need of renovation or in need of refurbishment.

The secondary market refers to trading in existing property fund units, home loan and savings contracts or closed-end investments before their regular term ends.

Brick construction is a traditional solid construction method in which walls are built from fired clay bricks or modern plane bricks. It offers excellent sound insulation and a good indoor climate.

Compound interest arises when interest earned is not paid out but added to the capital and also accrues interest in the subsequent period - an exponential growth effect.

A compulsory mortgage is a security mortgage entered in the land register by court order in favour of a creditor. It is created without the owner's consent as a compulsory enforcement measure.