ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN AUSTRIA]

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Note a special rule in Vienna : Since July 1 st , 2000, Viennese attorneys-at-law are obligated to process the trust funds entrusted to them exclusively via electronically secured escrow accounts. These accounts may only be used after the Vienna Bar Association has given its (electronic) "seal of approval". Other dispositions (especially cash withdrawals) are excluded and technically not possible. There are similar security safeguards for accounts held by other Austrian lawyers and notaries. Financing The usual way of financing real estate in Austria is through a bank loan/mortgage for at least part of the purchase price. In this case, the bank usually insists on a lien as collateral which is to be entered in the land register at the same time as the registration of ownership of the purchaser.

comes into existence upon registration in the land register. As far as the management of the general parts of the property is concerned (e.g., staircase, garden), the condominium owners together form the community of owners (“Wohnungseigentümergemeinschaft”) . This community of owners is a separate legal entity under private law that can act on behalf of the individual owners of one apartment building. Setting a right to build ( ”Baurecht“) A building right (“Baurecht”) is the right to establish a building on another person's property. The purpose of the building right is the utilisation of the property without the owner having to relinquish his ownership rights. The owner of the building right must pay an agreed monthly or yearly fee for the use of the property (“Bauzins”) to the property owner. The so called “Baurecht” is created by registration in the land register of the property and may be granted for a term of not less than 10, but not more than 100 years. If the building right expires, the building reverts to the owner of the real estate and any lien on it (the building) is transferred to the property.

X.

VIII.

IX.

Condominium

ownership

(„Wohnungseigentum“) A special rule applies to condominium ownership. Here, the owners of a property or owner partnerships (each consisting of two natural persons) acquire the right to exclusively use and solely dispose of independent apartments or other independent premises or parking spaces for vehicles in an apartment building or other building complex. The basic law on condominium ownership is called the „Wohnungseigentumsgesetz - WEG“. The WEG contains detailed regulations on the establishment and administration of condominium ownership. For its establishment, a written agreement of all co-owners of a building complex is required. The exclusive right of use (condominium ownership) of the co-owners

XI.

Buildings

on

third-party

land

(“ Superädifikate “ ) Buildings erected on land owned by others (“ Superädifikate ”) are structures (buildings) placed on another person's land with the intention that they should not remain on said land indefinitely. This lack of intention to firmly attach the building to the ground and leave it there indefinitely allows a building to belong to the builder and not to the landowner (this is a similar situation as

ILN Real Estate Group – Buying and Selling Real Estate Series

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