Lawyer for Real Estate & Property Law

Before signing, the Grundbuch (land register), the building file and the contract belong in front of you: who is registered, which mortgages, easements or rights of residence encumber the property, whether what is actually there matches the building permit, and whether the zoning fits. Surprises afterwards can almost always be traced back to a check that was left undone.

The Grundbuch (land register) is public and gives binding information on owners, mortgages, easements, prohibitions on encumbrance and sale, and annotations. Anyone who acquires property relying on the state of the register is protected. The annotations matter too: they show whether another acquisition or a priority ranking has already been registered.

It is an annotation in the land register that secures the buyer’s rank: later entries – new mortgages taken out by the seller, for example – can then no longer harm them. It is effective for one year from approval. The order granting it exists in a single copy only, which is why it is usually deposited with the escrow agent.

The purchase price does not go directly to the seller but into a Treuhandkonto (escrow account) held by the lawyer or notary. It is paid out only once the transfer of ownership is secured – free of encumbrances and with the agreed priority. Escrow arrangements handled by lawyers run through the escrow register of the Rechtsanwaltskammer (Bar Association) and are additionally insured.

You should reckon with Grunderwerbsteuer (real estate transfer tax) of 3.5 per cent of the purchase price, the land register registration fee of 1.1 per cent, the costs of drawing up the contract and of the escrow arrangement and – where one is involved – the estate agent’s commission. Where the purchase is financed by a loan, the registration fee for the mortgage is added. Allow for these items from the outset.

Yes. For real estate the warranty period is three years from handover. It covers defects that were already present at handover, even if they only come to light later. If the seller fraudulently concealed a defect known to them, they cannot rely on any exclusion of warranty – and are additionally liable in damages.

It excludes the warranty for what was recognisable on a reasonable inspection – no more than that. Hidden defects, circumstances fraudulently concealed and features the seller expressly promised remain covered. With older properties the clause is customary; always have features the seller expressly promised written expressly into the contract.

A Notariatsakt (notarial deed) is not required for the purchase of real estate – the contract can be drawn up by a lawyer. For registration in the land register, however, the signatures on the Aufsandungserklärung (declaration of consent to registration) must be certified by a court or a notary. Whoever draws up the contract usually also takes on the escrow arrangement and the registration.

Wohnungseigentum is the exclusive right to use and dispose of a particular unit, combined with a co-ownership share in the property. Together, all owners form the Eigentümergemeinschaft (owners‘ association), which decides on the common parts of the building. This dual nature explains why you may decide freely about your flat, but about the roof only jointly.

Yes, but within a time limit. Unlawful resolutions can be contested in court – the period usually begins when the resolution is posted in the building and is short. If you were not properly notified of the vote, it is extended. Once the period has expired, even a flawed resolution becomes binding.

You only have to tolerate nuisance from neighbouring land up to the level customary in the area. If the customary use of your property is substantially impaired, you have a claim for an injunction. The position differs for installations approved by the authorities: there is no right to have them stopped, but there is a claim for compensation for the damage caused. Document the time and the extent.

A gift without actual handover requires a Notariatsakt (notarial deed). For tax purposes, a graduated preferential rate applies to acquisitions without consideration instead of the usual 3.5 per cent. Bear the succession side in mind as well: under certain conditions gifts are added back when the Pflichtteil (compulsory share of an estate) is calculated. A right of residence or a usufruct in favour of the donor is often sensible.

The first question is whether and to what extent the Mietrechtsgesetz (MRG, the Austrian law on tenancies) applies – the setting of rent, fixed terms and security of tenure depend on it. A fixed term is only effective if it has been agreed in writing and complies with the statutory minimum duration; a contract with an ineffective fixed term counts as open-ended. This question should be settled before the contract is concluded.

The property then cannot be validly transferred without the consent of the person entitled – a purchase contract cannot be carried through in the land register. Such prohibitions are often registered in favour of relatives when property is handed over within a family. Check prohibitions and rights of residence before the contract is signed; obtaining consent afterwards is, in practice, the most expensive route.