Real estate and building law

The legal regulations regarding the topic real estate (purchase, selling, management, commercial use etc.) are largely regulated in the Civil Code (ABGB). Apart from that, however, also further laws like for example the Condominium Act, the Land Register Act and regulations such as the building code or a planning scheme must be considered. If real estate transactions are not part of your daily business, an experienced lawyer can ensure the necessary legal certainty.

We keep an overview for you and accompany you with our experience and competence in the process of drafting the contract. It is our aim to recognise problematic aspects as early as possible, find solutions and carry out your real estate transaction fast and correctly.

Our lawyers are happy to support you in:

  • Drafting of purchase and swap contracts
  • Entry in land registry and changes in land registry
  • Ensuring freedom of load of real estate
  • Purchase transaction in trust thanks to especially secured escrow accounts
  • Price negotiations
  • Obtaining of authority permissions
  • Legal protection in the event of breach of contract
  • Tax-law handling of real estate transactions

The first interview

Every situation requires an individual approach. We are happy to take the necessary time to discuss your specific situation in detail. Therefore, please make an appointment for a non-binding initial consultation. For this we allow ourselves to charge a flat fee of € 216,- gross for each hour.

Registration
By telephone: +43 1 533 70 36, Monday to Friday, 8.00 a.m. to 4.00 p.m.
By e-mail: office@die-anwaelte.at

We will get back to you immediately.

Legal topics & focus areas

Freehold apartments as capital investment

Freehold apartments are considered one of the safe forms of investment. Additionally, an owned apartment can generate returns as a rented object. For investment apartments funded with borrowed capital, the legislator even demands the renting out in order to benefit from the maximum tax advantages. Subsidized freehold apartments on the other hand can only be rented out with the consent of the WOHNBAUFÖRDERUNGSSTELLE (housing subsidy) or after the total repayment of the promotional loan. Apart from purchase or for example inheritance, you can also establish a joint ownership with the participation model. Thereby, in housing projects, private investors can join a participation model with their capital.

Mortgage and sales prohibition

A prohibition of mortgage and selling (BVV) ensures that the consent of the person entitled to prohibit is necessary in order to manage the real estate. A person becomes entitled to prohibit by contract or e.g. by last will. Here, a separate contract is not absolutely imperative, a conditional mortgage and sales prohibition can be stated in the purchase contract. Whoever may be registered as a person entitled to prohibit, must be settled according to inheritance law.

The BVV prevents the owner from selling or mortgaging the property without the consent of the person entitled to prohibit. Both is only possible with the (written) consent of the person entitled to prohibit.

Should a BVV only be acknowledged by legal transactions but not entered in the land register, this only has obligatory effect and a decision (e.g. selling) which goes against the prohibition can be valid towards third parties. However, the person burdened by the prohibition must pay damages to the person entitled to prohibition:

Apart from the BVV, which is acknowledged by legal transaction, there are sales prohibitions by law resp. the judicial sales prohibition.

Neighbourhood law

The neighbour is playing his/her music too loud, the trees on the neighbouring property are too high. These and other issues can disturb neighbourly peace. The civil regulations on neighbourhood law are mainly to be found in the Civil Code and regulate the admissibility of emissions, digging work on real estate, legal problems with property lines and border trees and much more.

Especially before renting or purchasing real estate it must be clarified, which personal interests could be impaired by the factual neighbourhood. In legal disputes, the judge´s sentence most often oscillates between the questions regarding “reasonableness” and “local customs”. Very often, affected parties are surprised when the outcome of a neighbourly dispute does not comply with the personal sense of justice. You can prevent that by consulting an experienced lawyer.

Land transfer tax

An essential aspect in the transfer of real estate and the change of owner connected with that, is the land transfer tax of 3.5% of the purchase price (2% for near relatives) and the 1.1% registration fee. We offer you an electronic self-calculation via FinanzOnline and the payment of tax, in order to obtain the incorporation fast and without additional effort.

FAQ

Real estate and building law

The neighbouring rights (rights and duties of property owners amongst each other) is comprehensively regulated by law.

Basically, a consideration duty applies and exposures that are typical for the location, such as the noise of playing children or the crowing of a rooster in the countryside, must be accepted by every property owner as long as it does not exceed the usual extent and does not considerably impair the use of the property. In the event of a considerable impairment of use, the neighbours can be asked to end the disturbances and to reimburse suffered damages. It is also possible to proceed against the neighbour, if he/she withdraws air or light with plants, which causes an intolerable impairment. Should digging work on the adjacent property cause a danger of collapse of one´s own property, there are injunctive reliefs and claims for compensations against the neighbour. However, there are no injunctive reliefs against an officially authorised installation, but only claims for compensation. Regarding possible building activities on the neighbouring property, the building regulations grant the owners of neighbouring properties party status, as long as their subjective-public rights (rights which serve the protection of public interests and the neighbours´ protection) are affected.

The assessed value is an estimate of the real estate which is drawn upon as a calculation basis for certain fees and duties and is determined upon request by the tax office with a notification.

On the other hand, the market value describes the price that can usually be reached by selling real estate in commercial transactions. The market value is determined under consideration of location, equipment and condition of the property, whereby there are different calculation procedures.

Since the tax reform 2015, the market value also serves as assessment basis for the land transfer tax, for example in endowments and inheritances. Usually, the assessed value lies significantly above the market value.

The owner of an apartment, who is at the same time joint owner of the property, must pay his/her share in all costs which arise in the use of the property.

Specifically, these are operating costs (sewage charge, costs for rubbish collection or property tax), administration costs, maintenance costs (costs for repairs of the outside of the building or necessary repairs) and expenditures for communal facilities (green areas, elevators).

Additionally, there are contributions for the reserve funds of the property, which are a provision for future expenditure and are paid into a separate account for exactly that purpose.