Sole ownership: Information for real estate buyers with home loans

If you are interested in buying sole property, there are usually two options: You buy a house or a condominium. Both have their advantages and disadvantages.

Acquire two property rights

Acquire two property rights

If you opt for the apartment, you actually acquire two property rights – one for special property and the other for shared property. The latter includes parts of the building that cannot be divided, such as the staircase or the communal garden. Special ownership is the actual sole ownership – that is, the parts of the building that represent the owner-occupied home.

In order to be able to acquire house loans, a declaration of division is ultimately required, which describes exactly what is part of the community property in the residential building and where the sole ownership begins.

Sole ownership or individual ownership is defined by the Residential Property Act. Completeness is a prerequisite. As an acquirer, sole ownership of parking spaces can also be established with the purchase in accordance with Section 3 (2) WEG – provided these are marked.

  • When purchasing a condominium, the declaration of division is always one of the documents that banks want to inspect for the building loan.

Home loan quick comparison

Home loan quick comparison

Real estate finance does not only play a role in terms of special property. Banks require partners to be jointly and severally liable for married couples and registered civil partnerships.

How can builders avoid this aspect? Sole ownership of a property can make sense if the building is partially subject to commercial use. At this point, the spouse’s entry can be prevented by the separation of property. The latter must be proven to the bank in the course of the application.

  • The problem of sole ownership arises not only in the context of mortgage lending, but also with regard to debt rescheduling, such as marriage during the term.


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