Whether you are a private individual, a real estate investor or a real estate developer, PRIME LAW Rechtsanwälte will provide you with comprehensive support. Whether you are buying or selling your property, we will handle your transactions with determination. We take care of the land register and provide you with legal advice vis-à-vis the tax authorities. Regardless of whether you are dealing with land, apartments, apartment buildings, single-family homes and multi-family homes, second homes or business premises and buildings.
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We also actively support negotiations with your contractual partners, such as estate agents, tax advisors, architects, building authorities, trade authorities, property managers and many more. PRIME LAW lawyers are also happy to ensure that all processes at your bank run smoothly and efficiently. If you are financing the purchase of your property with a loan and the bank requires the registration of a lien (mortgage) as security, you can place all the relevant steps in our hands with confidence.
Avoid potential pitfalls with an initial groundbreaking consultation before submitting your purchase offer. In this way, you can clarify any existing legal problems in advance. In addition, PRIME LAW Attorneys at Law can also thoroughly examine all legally relevant circumstances of your future property (so-called "real estate due diligence") in order to avoid a rude awakening at an early stage.
PRIME LAW attorneys will be happy to draw up all the necessary contracts and key documents for you. This also includes the professional fiduciary handling of your transaction, up to the execution of your agreement in the land register and its tax processing vis-à-vis the tax authorities.
If required, you have access to the PRIME LAW lawyers' network. This gives you the opportunity to obtain your utility value reports, energy performance certificates, partition plans or valuation reports and much more quickly. If you require notarial certification or a notarial deed, PRIME LAW Rechtsanwälte will also organize the notary. Your signing appointment can be arranged either at PRIME LAW Rechtsanwälte's office or at the premises of your choice.
You can also leave your organizational matters to PRIME LAW attorneys. This means that you do not have to personally take care of everyday tasks - such as handing over or taking over the property, organizing additional keys, registering energy supply contracts and registering your main or secondary residence.
Answers to frequently asked questions
Am I exempt from real estate income tax when I sell my property?
There are two cases in which a sale is exempt from real estate income tax due to the main residence exemption:
- The seller has used the property continuously as a "main resident" for at least 2 years prior to the sale.
- The seller has used the property continuously as a "main resident" for at least 5 years in the last 10 years before the sale.
The main residence exemption extends to an area of up to 1,000 m².
Am I exempt from the fees (registration of ownership and lien) in the land register?
From 01.04.2024, there may be fee exemptions for purchase contracts if entry in the land register is applied for after 01.07.2024.
Up to a purchase price of EUR 500,000, the exemption applies if the property is purchased and used as a main residence for 5 years and if ownership of the property is not relinquished for at least 5 years.
In the case of higher purchase prices, the exemption only applies to the first EUR 500,000; if the purchase price exceeds EUR 2 million, the exemption does not apply.
Make use of the fee exemption with the help of professional support and save yourself up to EUR 11,500 in fees when purchasing your house or apartment.
Can I keep a treasure that I find on someone else's property?
The discoverer and the owner of the property where the treasure was hidden are each entitled to half of the treasure.
Treasure refers to valuables whose owner can no longer be identified. However, there may be an obligation to notify the authorities in accordance with monument protection regulations (e.g. in the case of objects of historical significance).
Is there a threat of a demolition order because the building permit for my building cannot be found in the building file?
Under circumstances to be examined on a case-by-case basis, a "presumed consensus" may be assumed, i.e. that the building was probably approved many decades ago,
- if the building has been in existence for many decades and
- if there are indications that the archives are incomplete.
To avoid a nasty surprise in the form of a demolition order, we are happy to clarify in advance of the purchase of such a property whether there is a "presumed consensus".
Are there any special features when buying a property from a GmbH?
Yes, in addition to the other issues that need to be considered when buying a property, there are special features when buying from a GmbH. If, for example, a GmbH sells its only property, a valid shareholders' resolution on the sale is required for the purchase agreement to be valid. It is also important to note the power of representation of the acting persons. In addition, the liability fund of a GmbH may be smaller, which is why it would make sense to agree a liability waiver for warranty or liability claims, for example.
I would like to parify my apartment building. What do I need for this? Who can I contact?
You will first need a usable value appraisal from a civil engineer on the shares of the individual co-owners. We can then establish the condominium ownership in the land register on the basis of the usable value report.
We are happy to put our network and our contacts to civil engineers at your disposal and successfully implement the parification of your house. We would be happy to make you an offer for this.
I would like to give my house/apartment to my child as a gift. Do I have to pay gift tax?
There has been no gift tax in Austria since 2008.
Land transfer tax and a registration fee for the land register must also be paid in the case of a gift.
We will be happy to advise you on the options for transferring assets to the next generation and draw up your gift agreement. We will clarify the amount of land transfer tax with you in advance.
Can I buy an apartment that has not yet been built?
Yes, that is possible. If the apartment must first be (fully) built, the Property Developer Contract Act must be complied with, which is intended to protect the buyer from the insolvency of the property developer/seller.
Unlike with a finished apartment, there are numerous risks for the buyer until the apartment is completed and handed over, because the Property Developer Contract Act only offers a minimum level of protection. A close examination of the contracts is highly recommended.
Can the view from my property (e.g. of St. Stephen's Cathedral) be protected?
Yes, you can agree with your neighbors that your view may not be obstructed.
This "easement of free view" can also be entered in the land register and then passed on to buyers, which in turn leads to an increase in the value of your property.
We will be happy to draw up a contract for you regarding the easement of the unobstructed view, assist you with the contract negotiations and also enter your rights in the land register to enhance the value of your property.
What additional costs should I expect when buying an apartment or house?
- Real estate transfer tax (usually 3.5% of the purchase price)
- Registration fee (1.1% of the purchase price)
- possible brokerage fee (usually 3 % + VAT)
- Costs for setting up the contract and trusteeship (usually flat-rate fees of between 1% and 3%)
- Possible lien registration fee (1.2% of the lien amount) for loan financing
In addition, the seller must take into account that he may have to pay real estate income tax.
Under what circumstances can a neighbor inherit part of my property?
In the case of real estate, the acquisitive prescription usually lasts 30 years. Seizure only occurs if the land was used in good faith, i.e. in the belief that it was one's own land and was used "genuinely". In this context, "genuine" means that the land has not been acquired by force, cunning or through the misuse of a collateral loan.
When do I need an energy performance certificate?
The seller or landlord of an apartment or house is obliged to provide his contractual partner with an energy performance certificate showing the heating requirements. Failure to do so may result in an administrative penalty and consequences under warranty law.
Why do I need a trustee to buy a house or apartment?
A buyer does not want to transfer money to the seller if it is not certain that it will actually be entered in the land register. A seller, on the other hand, does not want to transfer the property by entering it in the land register without being sure of receiving the purchase price.
What is real estate due diligence?
This refers to the precise technical and legal examination of all relevant circumstances. Legal due diligence includes, for example, checking whether third parties have rights of use and, if so, to what extent (e.g. time limits, termination rights), checking public law circumstances (e.g. dedication, building regulations, encumbrances in rem), whether residential property has been effectively established, etc.
Due diligence should be carried out before submitting an offer so that you can take these circumstances into account when making your purchase decision and determining the purchase price.
What is a lease?
Lease-out means that the landlord makes a tenant move out. This can be achieved by a court decision or by an agreement with the tenant.
Tenants in apartments are usually particularly protected by the Tenancy Act. As a landlord, you need to think about particularly good tactics and gather evidence in order to be optimally prepared for negotiations or court proceedings.
What requirements do I have to meet for a loan to buy a property?
Since August 2022, at least 20% of the purchase price must be available as equity,
the loan may not run for more than 35 years and
the loan installments may not exceed 40% of the monthly income.
What are the advantages of parifying an apartment building?
If an apartment building is not subdivided, no individual apartments can be sold. Parification turns the apartments into condominiums that can be sold, bequeathed or given away without consulting the owners of the other apartments.
How do I find out whether a building is a listed building?
A decision must be issued to place a building under monument protection. Usually, the existence of monument protection is also entered in the list of monuments of the Federal Monuments Office and made visible in the land register. However, since inclusion in the list of monuments and the publication in the land register are not mandatory, it is advisable to check whether a notice has been issued in the past, even if there are no entries. We recommend including appropriate liability and warranty provisions in the purchase contract.
How do I become the owner of an apartment?
In addition to a contract with which the apartment is acquired (e.g. purchase contract or gift contract), the registration of the ownership right in the land register (the so-called "Einverleibung") is required.
Only in exceptional cases do you become the owner without being entered in the land register, e.g. if you inherit a property.
How can I tell whether my property is registered in the boundary register?
An extract from the land register shows whether the property is entered in the boundary register. This entry is shown in the so-called "A1 sheet" of the property in the land register.
We will be happy to prepare and explain a current extract from the land register for your property.