Here at BAMBERGER IMMOBILIEN we know that not everyone is engaged with real estate on a daily basis. If you falter at some specialised term or other, you are in the right place, because this is where we provide short and clear explanations of the most important terms. If you still have further questions, please contact us. We will be pleased to take time to assist you in person.
After-Sales Services is the term we use to describe any service which we offer to a client after the sale or rental of a property. This typically includes arranging a removal service, but also tailored support such as recommending a good school for your children.
The obligation on the owner not to transfer his property or subject it to a charge. This can be due to statutory provisions, a court order or a contract.
The commission is the remuneration of the real estate agent for his mediation activity. The commission is earned and due with the conclusion of the legal transaction brought about by the real estate agent’s activity (agreement of will).
Commission on purchase
When a legal transaction is concluded, the maximum rates stipulated in the MaklerVO, BGBI. No. 297/1996 as amended apply, i.e. 3% of the purchase price plus VAT in the case of a purchase.
Commission for rent
When a legal transaction is concluded, the maximum rates provided for in the MaklerVO, BGBI. Nr. 297/1996 idgF apply, i.e. depending on the type of tenancy agreement and the duration of the tenancy, 1 to 2 gross monthly rents plus 20% VAT.
The real estate agent uses a credit check to ascertain whether a potential purchaser of a property does indeed have the financial means to pay for it. This measure offers the owner security in completing the contract and prevents financing problems on the part of the prospective buyer.
The database of interested parties is a service for property owners. In it we collect all search requests from interested parties and we can thus instigate a direct search for potential buyers or tenants of your property.
Under § 30 b of the Austrian Consumer Protection Act (KSchG) the real estate agent must with the due diligence of a reputable real estate agent give the client, who is a consumer, a written outline. From this outline it should be clear that he is acting in the capacity of an agent and will inform the client of all costs that will probably be incurred to the consumer on the conclusion of the transaction, including the agent’s commission. The amount of commission is to be shown separately. If there is the possibility of an economic or family relationship between the agent and the third party, in line with § 6 para. 4 third clause of the Austrian Estate Agents Act (MaklerG), this must be disclosed immediately. If the real estate agent can on the strength of existing practice act as a dual agent, this must also be disclosed. If there are significant changes to circumstances the real estate agent must amend the written outline accordingly. If the agent fails to fulfil these obligations at least before the contractual declaration of the client in relation to the transaction, then § 3 para. 4 of the Estate Agents Act applies. The real estate agent must inform the client of what is required under § 3 para. 3 of the Estate Agents Act. This must include all circumstances essential for the assessment of the transaction.
Any easement must be entered in the Land Register. It serves as a security in rem for any right over a property (servient tenement) to which the owner of another property (dominant tenement) is entitled.
If you as owner sell, let or lease your property in Austria, it is mandatory to present an energy certificate. This document can only be issued by qualified tradespeople and gives information about the overall energy efficiency of a property.
Third-party account with a financial institute to hold money on behalf of contracting parties.
The floor plan is a schematic diagram showing the layout of the rooms in a property. It is an important part of the sales particulars. Thanks to the diagram being true to scale it is possible to form an accurate image of the property and plan structural changes or future furnishing.
The role of home staging is to display the merits of a house, an apartment or a plot of land in the best possible light, to emphasise the benefits of the property. If a house or apartment is already attractively furnished it is easier for a potential buyer to imagine living in the property.
The structured transfer of assets planned in advance in the event of death requires careful consideration. We advise you to make a will. If you have formulated and signed a will stipulating your wishes clearly and precisely, then your will prevails. Without a will, intestate succession applies, and this can diverge significantly from your own wishes. A further important point is safekeeping. You can store the document at home or with a trusted legal representative.
Many do not know that from a purely legal standpoint inheritance tax (Erbschaftssteuer) and gift tax (Schenkungssteuer) were abolished in Austria in 2008. They were replaced by the land transfer tax (Grunderwerbssteuer), which now stands for the inheritance tax and is often cited as such. The value of the property/land is decisive for the calculation of land transfer tax. As a general rule this equates to: 0.5% up to 250,000 euros, 2% for the next 150,000 euros, 3.5% over 400,000 euros. This graduated tariff is only used in the case of non-remunerated acquisitions (e.g. inheritance). Slight deviations in the calculation of the land transfer tax can occur if e.g. the property is let or if the heir resides there. If the inheritance amount is larger, such as with a property, then it is worth seeking legal advice, as this can inform on any individual case.
The ownership by more than one person of a common object. Joint ownership of a property can only be expressed in fractions, not in terms of location or rooms. Home ownership is a special form of joint ownership.
Right in rem over an asset which obligates the owner of the asset to a positive act. The most important charge is the life estate. On a farm this is the obligation in rem to maintain the natural, financial and work-related efforts of the previous owner. Land charges arise when recorded in the Land Register. The content and extent of any right must be recorded as precisely as possible.
Public register from which the legal status of a property can be seen. Land Registers are kept by the regional courts and can be viewed by any member of the public.
The land tax (Grundsteuer) is a tax on domestic land ownership. A distinction is made between agricultural and forestry assets and real estate. The land tax is payable to the relevant local authority.
The land transfer tax (Grunderwerbssteuer) is a transaction tax and relates to the acquisition of domestic land. It amounts as a general rule to 3.5% of the consideration, or 2% for close relatives.
Important questions relating to a purchase should be clarified in the contract. Close attention should be paid at the preparatory stage to contractual obligations. Financing is at the heart of this. That is why the contract conditions in the loan agreement must definitely concur with the corresponding requirements in the sales contract. Pay particular attention that the bank places no other demands on the payment of the sales price than those agreed in the contract.
The market value is the value calculated objectively of a property and thus forms the basis for determining the price. Using a pre-defined process various factors relating to the property and market conditions are considered in order to determine the market value of the house or apartment.
The pre-emptive option to buy is the right to require a property to be first offered to the pre-emptor, if a sale is intended. It is a highly personal right which is valid against the owner and recorded in the Land Register.
In the context of tenancy law, protection against termination means that the landlord can only serve notice on the tenant if there is significant cause.
Finally you have found the property that you would like to acquire. Now every buyer or tenant would like to move in as quickly as possible or start renovation work. Before this, however, there is one more hurdle, the sales contract. In Austria the sales contract for a property can be concluded informally, e.g. even as a verbal contract. However, to protect the contracting parties it should be set out in writing and attested by a notary, in order to certify the authenticity of the signatures.
In addition, the principles of registration in the Land Register must be observed. In Austria it is not the sales contract which is decisive for a transfer of ownership of a property but the entry in the Land Register. For that reason the sale of a property only takes legal effect when the sale has been recorded with the court. Only when the entry in the Land Register is changed is the sale actually concluded.
The sales particulars are the business card of any property offered for sale or rent. The document provides interested parties with all the necessary information about a property. Typically this includes details of size, location and layout, as well as the asking price, pictures of the property and a description.
By submitting a search request you can record with us your interest in buying or renting a property. You inform us what sort of property you are looking for, what requirements you have and in which location you are looking. If a suitable house or apartment finds its way into our portfolio, we contact you and on request establish contact with the owner.
The term secret sale is used to describe the discreet mediation of a property transaction. Thanks to good connections in the region we can offer properties direct, without unnecessary intrusion in the privacy of the owner through publication of photos or personal details.
Usufruct is a personal easement which contractually grants the beneficiary the right in rem to unrestricted use of an object awarded while preserving its substance. Both movable and immovable objects can be the subject of usufruct. The easement ceases upon the death of the beneficiary.
A valuation is the expert calculation of the market value of a property. The valuation comprises a precise survey of the property and considers factors such as location, condition and age of the property. In certain cases such as inheritance or divorce, but also generally before a sale, it is important to know the value of a property and to have this determined in advance with a valuation.
Thanks to a virtual tour interested parties have the opportunity to view a property digitally in order to form an accurate picture and a better feel for the property before viewing it in person. In this way potential tenants or buyers are better able to judge whether the house or apartment really is what they are looking for. Particularly with international property sales a virtual tour is a very appealing and helpful aid to making a choice.
