ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN AUSTRIA]

32

KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER AUSTRIAN LAW

I.

Introduction There are many considerations that a buyer/ seller of real estates should make before buying or selling a property. The following article is intended to give a brief overview of the most important "Must- Knows" when selling or buying real estate in Austria. Preliminary clarifications for the buying or sale of real estate - What type of property should be bought or sold and what special features need to be considered? - Who draws up the sales agreement? - How is the purchase financed? Must banks or third parties be involved? - Do I need official approvals? - What are the risks and who must take them? - What do I have to pay special attention to when buying / selling the selected property? - How can I protect myself best? Most important types of property acquisition In the Austrian market, following typical types of real estate transactions may be described: - Purchase of an undeveloped plot of land Plots of land are often bought for the purposes of construction. In this regard, first and foremost the relevant Austrian zoning and construction rules should be checked, to ensure that the desired building may indeed be developed on the given land.

- Purchase of a developed plot of land: As a rule, buildings located on a plot of land are considered part of the land and treated as part of the land plot. This means that, in general, with the purchase of the land, the purchaser automatically acquires the building(s) as well (so- called “ superficies solo credit ” ). - Purchase of a condominium property: Condominium ownership is the right granted to the owner or an ownership partnership to exclusively use and dispose of an independent apartment, other independent premises, or a parking space. The transfer of ownership of real estate may also be administered in the form of a donation (see below), an exchange agreement or during an inheritance. Formal Requirements It is necessary to conclude a valid contract of sale (purchase), i.e., an agreement between the contracting parties on the object of purchase and the purchase price. However, for the necessary execution of the agreement in the land register a written contract is required; the signatures on this agreement must be certified by a notary public or a court. Central issues in a purchase agreement The following points should in any case be part of a property purchase agreement: a. The contracting parties; b. the purchase price and the payment terms;

II.

IV.

III.

V.

ILN Real Estate Group – Buying and Selling Real Estate Series

Made with FlippingBook Online newsletter