2 3

Title of a Property In Germany, the title of a property refers to the legal rights that a property owner holds in a property. Proof of title is recorded in the land registry. The descriptions of the most common titles held in Germany are Freehold and Condominium ownership.

Freehold Ownership ( Eigentum ) Freehold interest means that the owner has absolute ownership over the plot of land and the entire building.

Condominium Ownership ( Wohnungeigentum ) Leasehold interest means that an owner has absolute ownership of the unit ( Sondereigentum ) and proportional rights ( Miteigentum ) of the common areas inside the building, as well as the common areas outside of the building on the plot that the building is located on.

Building Warranties If you are purchasing a new build property in Germany, then owners typically receive a statutory 5 year building warranty. The sales contract should be checked to ensure that this is included.

LEGAL RENT CONTROLS

Rent Cap in Berlin ( MietenWoG Bln ) Berlin introduced a new rental cap law in February 2020. This rental cap applies to all apartments completed prior to 1st January 2014. New tenancy agreements are limited to certain price levels set out by the government that incorporate the buildings age and condition. Rents are to be fixed for 5 years. For more information please speak to your IP Global wealth manager or property manager.

Rent Control ( Mietpreisbremse ) The Mietpreisbremse , or rental brake was introduced by the Federal Government June 1, 2015. Each federal state could choose how the rental brake would be implemented. These comprehensive measures were designed to curb the increasing rents as the market rates were growing at an unprecedented level. The controls apply to all properties other than those that are New Build or have been Refurbished to a high standard. If your property is excluded from the Rent Controls, you are free to market your property at any price you see fit.