Buying a German Apartment: The Due-Diligence Checklist

An apartment viewing tells you whether you like the rooms. It does not tell you what you are buying into.

In Germany, an apartment purchase normally makes you a member of a Wohnungseigentümergemeinschaft (WEG) (condominium owners’ association). You acquire the unit, but also a share of the roof, façade, pipes, heating system, land and financial history of the building. Decisions made before your purchase can therefore become payments after it.

The right question is not simply “Is €360 a month a reasonable service charge?” It is:

What does the €360 cover, what work is approaching, how much money is available, and which share can fall on this unit?

This guide provides a document-led review for an existing apartment. A new-build purchase from a developer needs additional checks on the construction contract, specifications, payment schedule, completion and acceptance. For the surrounding transaction sequence, use the German property-buying process.

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Quick answer: review the apartment, the building and the owners’ association

Do not sign the notarised purchase contract until these seven questions have documented answers:

A missing document is not proof of a defect. It is an unresolved risk. Ask the seller to obtain it, explain the gap and, where relevant, cover the answer in the notarial contract.

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1. Understand the legal package before judging the floor plan

1.1 Separately owned property and common property

The Sondereigentum (separately owned property) is the legally defined part allocated to your unit. The Gemeinschaftseigentum (common property) belongs to the owners collectively. Structural or safety-critical elements do not become private because they are visible only from one apartment. The distinction controls alteration, repair and cost. For a balcony, window, pipe or garden, rights to use, maintain and pay can differ; read the governing documents rather than inferring ownership from access.

1.2 Read these documents as one set

The Teilungserklärung (declaration of division) establishes the division into units. Its Gemeinschaftsordnung (community rules) sets rights, voting, permitted use and often cost rules. The Aufteilungsplan (partition plan) shows the numbered rooms and areas. The Abgeschlossenheitsbescheinigung (certificate of self-containment) confirms self-containment for creating and registering condominium ownership. It does not prove that the building or its current use is permitted under building law. Section 7 WEG requires the partition plan and authority certificate for the land-register filing.¹

Compare them with the current Grundbuch (land register), sale draft, brochure and reality. Apartment number, cellar, attic, garage and parking place must line up; seller use alone does not include a parking space in the sale. Notar.de recommends obtaining the declaration before notarisation and checking assigned areas and rights.²

Record the Miteigentumsanteil (co-ownership share) and every alternative cost-allocation rule. Under section 16 WEG, community costs generally follow co-ownership shares, but the owners can decide different allocation for individual costs or categories.³ Your percentage in a proposed project may therefore differ from your apartment’s share of the building area.

1.3 Check area, exclusive rights and permitted use

For every room or area advertised, ask which legal category supports it:

• separately owned part of the apartment;
• separately owned cellar or parking unit;
• common property with a Sondernutzungsrecht (exclusive-use right);
• common space used only by custom, without an exclusive recorded right.

Compare the advertised Wohnfläche (living area) with the sale contract, plans and any measurement calculation. If walls, doors, a terrace or an attic differ from the approved plan, obtain clarification before pricing the apartment. Notar.de warns that discrepancies between the declaration and actual construction can create ownership, approval and cost problems.⁴

Also check the purpose clause. Section 13 WEG generally allows an owner to occupy or let separately owned property, but the recorded purpose, community rules, other laws and third-party rights still matter. Ordinary residential letting, furnished short stays, holiday letting and commercial use are not interchangeable. The Federal Court of Justice has also made clear that short-term letting cannot simply be prohibited against affected owners under a general Öffnungsklausel (opening clause), while an agreed purpose can still limit use.⁵

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2. Read decisions, not just the latest meeting minutes

2.1 Resolution register and meeting record answer different questions

The Beschlusssammlung (resolution register) contains the wording of announced meeting resolutions, written resolutions and relevant court decisions since July 2007, including notes on challenges or reversals. The Versammlungsprotokolle (owners’ meeting minutes) show more context: what was reported, debated, deferred or rejected. Section 24 WEG requires both minutes and a resolution register.⁶

One boundary deserves particular attention in 2026. Since 1 January 2026, a resolution adopted before 1 December 2020 under an Öffnungsklausel (opening clause) in the community rules generally binds a later purchaser only if it is entered in the land register. Resolutions based directly on a statutory power generally do not need that entry. Compare the wording and legal basis of older resolutions with the land register: appearance in the resolution register alone does not decide whether a resolution binds a successor.⁷

Request the complete register and three to five years of invitations, supporting papers and minutes. Go further back when an older building shows a recurring issue. Search for:

• roof, façade, balcony, windows, pipes, heating, lift, moisture and fire protection;
• tenders, surveys, insurance claims and postponed work;
• changes to cost allocation or service charges;
• special assessments and community loans;
• challenges to resolutions, court cases and disputes with contractors or the manager;
• chronically delayed accounts or resolutions that were never implemented.

No resolution does not mean no cost. “Obtain quotations next year” or a repeatedly postponed repair may be the key finding.

2.2 A buyer needs the seller’s cooperation

An owner can inspect management records under section 18(4) WEG; an owner or authorised third party may inspect the resolution register.⁸ A prospective buyer has no automatic access to the full archive. Ask the seller for copies or written authority. Personal data can be redacted while preserving financial and technical substance.

If the seller or manager refuses access, do not fill the gap with verbal assurances. List the missing documents, assess the possible exposure and ask the notary or an independent lawyer how the contract should address it.

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3. Reconstruct the owners’ association finances

3.1 Use the budget, accounts and asset report together

The Wirtschaftsplan (annual budget) forecasts income and expenditure and supports advance payments. The Jahresabrechnung (annual statement of accounts) records the year’s income and expenditure and supports later adjustments. The Vermögensbericht (asset report) states the reserves and material community assets. These are separate statutory documents under section 28 WEG.⁹

For due diligence, request:

• the current annual budget and the resolution adopting the advances;
• the last three annual accounts and the related resolutions;
• the last three asset reports;
• the current bank balance and reserve allocation, if not clear from those reports;
• a list or confirmation of service-charge arrears;
• community loan agreements, guarantees and material unpaid invoices;
• information on pending litigation, insurance claims and contractor disputes.

Reconcile opening and closing reserve balances. Large withdrawals should match decisions, invoices or work. Compare budget with actual spending and note repeated deficits or unusually low maintenance expenditure.

3.2 A reserve is meaningful only next to the repair plan

The Erhaltungsrücklage (maintenance reserve) is community money set aside for common-property maintenance. Section 19 WEG includes an adequate reserve in proper management, but the statute does not prescribe one universal amount per square metre.¹⁰

“The building has €120,000 in reserve” is therefore not enough. Ask:

• How many units and how much common property does it support?
• How old are the roof, façade, heating, lifts, pipes and windows?
• Which part of the balance is already earmarked?
• Are current owners in arrears?
• Is a major project merely discussed, formally resolved or already contracted?

A well-maintained small building can need less cash than a large building with lifts, underground parking and façade damage. Judge reserve and condition together.

3.3 Treat special assessments as transaction items

A Sonderumlage (special assessment) is an additional payment decided when normal advances and available reserves are insufficient. Check assessments that are proposed, decided, partly called, overdue or still subject to challenge.

The payment risk cannot be allocated safely by saying “the seller voted for it”. In case V ZR 257/16, the Federal Court of Justice held that a purchaser can be liable for an assessment decided before the ownership change when the contribution becomes due only after the purchaser becomes owner. The judgment also points to contractual clauses as the way to allocate that risk between seller and buyer.¹¹

Ask the notary to make the internal allocation explicit: which party bears assessments already decided, later calls under an existing resolution, later resolutions for work already known, and any seller arrears. That contractual allocation does not automatically change whom the owners’ association may pursue under WEG law.

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4. Split the service charge before entering it in the calculator

4.1 Hausgeld is not the same as a tenant’s operating costs

Hausgeld (condominium service charge) is the owner’s advance to the community. It can contain:

• Betriebskosten (operating costs), such as eligible heating, water, cleaning, refuse collection or building insurance;
• owner-only administration and maintenance expenditure;
• contributions to the maintenance reserve.

For a rented apartment, operating costs can be billed to the tenant only when the lease provides for them and the item is legally recoverable. Section 556 of the Bürgerliches Gesetzbuch (BGB) (German Civil Code) provides the contractual basis; section 1 of the Betriebskostenverordnung (BetrKV) (Operating Costs Ordinance) expressly excludes administration, maintenance and repair costs from operating costs.¹² The WEG allocation statement is therefore not automatically a valid tenant service-charge statement.

4.2 Reproducible example: €360 monthly service charge

Assume a 75 m² apartment and the following current plan:

German Immo Flow subtracts the full entered service charge from Kaltmiete (net rent excluding operating costs). It does not add a tenant’s Betriebskostenvorauszahlung (operating-cost advance). If the tenant validly advances all €220 and later billing confirms that amount, the calculator’s displayed cash flow is €220 per month, or €2,640 per year, lower than that specific cash movement. This can make the model conservative on recurring cash flow.

But the calculator does not model each real cost either. It has no separate input for a special assessment, one-off repair, arrears of other owners or a rise in the service charge. Do not “correct” the conservative treatment by entering only €140 unless you also model the tenant’s advances and all omitted risks outside the calculator. Keep a reconciliation beside the saved scenario; the IRR and ROI guide explains the wider investment-model boundaries.

4.3 Add the known project outside the model

Suppose the documents also show a €360,000 façade and balcony project. The proposed financing uses €80,000 of reserves and a €280,000 special assessment. If this unit’s applicable allocation key is 4%, its illustrative share is:

€280,000 × 4% = €11,200

That €11,200 is additional cash needed; it is not captured by the €360 monthly service-charge input. Confirm the actual resolution, allocation key, due dates, reserve use and contract clause. The example is a due-diligence calculation, not a statement that the project or allocation is legally valid. Assess the tax treatment separately; start with the 2026 German property-tax guide.

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5. Inspect the whole building and connect defects to money

5.1 Walk beyond the apartment door

Inspect the apartment and the accessible common property, preferably with an independent building surveyor when age, condition or planned works justify it. Existing apartments are often sold with broad contractual exclusions for defects, while a notary does not inspect construction quality. Notar.de therefore recommends examining the common property and involving an expert where needed.¹³

Review at least:

• basement and roof spaces for moisture, odour, corrosion and patch repairs;
• roof covering, drainage, façade, balconies and visible cracking;
• windows, external doors and shading, including who must maintain them;
• central heating, hot-water equipment, fuel type and replacement history;
• water, waste-water, electrical and gas risers;
• lifts, underground parking, fire doors and shared ventilation;
• past reports on pollutants, pipe damage, mould or structural issues;
• permits and community approvals for alterations visible in the apartment.

For each concern, ask four questions: What is the diagnosis? Which component is legally affected? Has the community decided what to do? How will your unit’s share be funded?

5.2 Read the energy certificate as a building indicator

The Energieausweis (energy performance certificate) is issued for the building, not normally for one apartment, and is designed for an approximate comparison. It does not predict the unit’s individual bill. Under sections 79 and 80 of the Gebäudemodernisierungsgesetz (GModG) (Building Modernisation Act) in force and checked on 8 August 2026, the certificate is generally valid for ten years; the seller or agent must present it no later than the viewing and hand it over promptly after the sale contract.¹⁴

Check whether it is a calculated-demand or measured-consumption certificate, its expiry date, energy carrier, building and heating-system years, indicator, efficiency class and modernisation recommendations. Then compare it with invoices, heating history and planned works. A favourable consumption value can partly reflect previous occupants’ behaviour; an unfavourable certificate does not quantify your unit’s exact future cost.

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6. Check arrears, litigation and management quality

Financial risk does not come only from the seller’s unit. If several owners do not pay, the community may face liquidity pressure or need higher advances. Ask for the total arrears, age of debts, collection status and whether the budget assumes recovery that may not occur.

For litigation, record parties, subject, amount in dispute, legal-cost exposure, insurance and next step. Include resolution challenges, defects claims and disputes about contractors, neighbours, management, use or cost allocation. “The WEG is in court” cannot price the risk.

Management quality is visible in the records. Warning signs include:

• annual accounts or asset reports delivered persistently late;
• unexplained differences between accounts and bank balances;
• an incomplete resolution register;
• expired insurance or manager contracts;
• repeated emergency repairs without a maintenance plan;
• unanswered arrears and unresolved implementation of valid resolutions.

One late document need not end a purchase. A pattern of weak records, deferred work and low liquidity is different.

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7. Turn findings into price, conditions or a no-go decision

Use three buckets rather than a vague feeling:

Separate price negotiation from liquidity planning. A €10,000 discount does not fund an €11,200 assessment due two weeks after handover unless cash and financing bridge it. Banks may also treat assessments differently from the purchase price.

Before notarisation, give the notary the findings, not only the brochure. The notary can allocate legal risk, but does not replace technical, tax or investment review. Use an independent lawyer for contested records and a qualified surveyor for defects.

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8. Complete a documented handover

Use an Übergabeprotokoll (handover report), signed by both parties. Record:

• date, possession and condition of every room, cellar and parking area;
• photographs and all known defects or unfinished seller work;
• electricity, gas, water and heat-meter readings;
• every key, access card, remote control and locking-system key;
• manuals, warranties, invoices and available technical documents;
• service-charge payments and agreed allocation around the handover date;
• for a let unit: lease, amendments, deposit evidence, tenant accounts and open claims.

The notarial contract normally distinguishes possession and the economic transfer of benefits, burdens and risk from legal ownership in the land register. Do not assume all dates are identical. Follow the contract and confirm who can vote, who pays which call and who receives or owes later annual-account adjustments during the transition.

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9. Common mistakes

Mistake 1: treating the latest service charge as the total cost

It says little about an underfunded roof, a pending assessment or future energy work. Split the amount and read the repair history.

Mistake 2: looking only at the apartment

The expensive components are often common property. Inspect the roof, façade, heating, pipes, basement, lifts and parking structure.

Mistake 3: relying on three meeting minutes without the resolution register

Minutes contain context; the register identifies formal resolutions and relevant court outcomes. You need both.

Mistake 4: assuming reserve money belongs to the unit

The reserve is community property, not a savings account the seller can pay out to you. Its relevance is whether it can fund common work.

Mistake 5: leaving the special-assessment clause vague

The resolution date alone does not settle the buyer’s exposure. Check due dates and define the seller/buyer allocation in the notarised contract.

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FAQ

How many years of meeting minutes should I request?

Three to five years is a useful starting point, not a legal safe harbour. Go further back for an older building or whenever roof, façade, heating, moisture, litigation or a repeatedly postponed project appears. Always obtain the complete resolution register as well.

Is a high maintenance reserve always good?

No. Its adequacy depends on the building, committed projects, arrears and condition. A high balance may already be earmarked; a lower balance may be reasonable after completed renovation. Reconcile it with the asset report, decisions and technical inspection.

Can I pass the whole service charge to a tenant?

No. Only contractually agreed, legally recoverable operating costs can be billed through the tenancy. Administration, maintenance, repairs and reserve contributions remain with the owner. The WEG statement must be converted into a tenancy-compliant annual statement.¹²

Who pays a special assessment decided before I buy?

It depends on the resolution, due date, ownership change, governing documents and purchase contract. A buyer can face a call after becoming owner even if the resolution was earlier. Have the notary allocate known and pending assessments explicitly.¹¹

Does an energy certificate replace a building inspection?

No. It provides standardised building-level energy information. It does not diagnose moisture, structural defects, failing pipes or the actual cost of planned work, and it does not predict one apartment’s bill.

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Conclusion: buy the documents and the building, not only the rooms

A sound condominium review connects four things:

1. the legal scope of the unit and its rights;
2. the owners’ association’s decisions and finances;
3. the physical condition and near-term projects;
4. the contract and handover allocation between seller and buyer.

Use German Immo Flow to model price, ancillary purchase costs, financing and the full monthly service charge. Keep a separate due-diligence sheet for the landlord/tenant split, reserve position, one-off work and special assessments. The calculator is a planning tool; it cannot decide whether the WEG records or building justify the price.

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Disclaimer: This article provides general information and a simplified planning example. It is not legal, technical, tax, financing or investment advice. Documents, state building rules, community agreements and the notarised contract can change the result. Have the specific transaction reviewed by the relevant qualified professionals before signing.

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