Condominium ownership or co-ownership – what is the difference?

Under the Condominium Act (WEG 2002) you acquire a co-ownership share in the property that is inseparably linked to the exclusive right to use and dispose of a specific flat. It is based on a usable-value report and the condominium agreement; the land register records the condominium right with your share.

• You can sell, let, mortgage and bequeath your flat on your own.
• Banks finance condominium flats without difficulty.
• Common parts (staircase, roof, façade) are managed by the owners’ association.

With plain co-ownership you own an ideal share of the whole building. Who uses which flat follows only from a use agreement between the co-owners.

• Each co-owner can in principle demand the dissolution of the co-ownership – in the extreme case by court auction of the whole building (partition action).
• A use agreement should be noted in the land register so that it also binds buyers.
• Financing and resale are often harder, which is why prices tend to be lower.

Two natural persons – such as a couple – can jointly acquire condominium ownership of one flat (Eigentümerpartnerschaft). Each holds half and they can generally sell or mortgage their shares only together.

• Land register extract: has condominium ownership already been established?
• New builds or loft conversions: is only a “prospective condominium owner” recorded? Special protective rules then apply.
• Co-ownership: is a use agreement noted? Has a waiver of partition been agreed?
• Condominium agreement, usable-value report, reserve fund and minutes of owners’ meetings.