Friday, 4 May 2018

Pitfalls to Avoid When Buying an Apartment

You are planning to buy an apartment and you're satisfied with your calculations. A few months after the purchase you receive a letter from the property manager asking you to transfer 2,400 Euros because of a decision made by the owners association months before your purchase.

This has happened to a buyer and he thought he was not liable for decisions made by the owners association before he became the owner of his apartment. He took it to court but the court denied his objection. So did the next to levels of courts of appeal. The payment of any extraordinary payment agreed in the owners meeting are not due right away but when the property manager calls in the payments. Whoever is the owner entered in the land register at that point in time is liable for the payment.




This is proof that the investment into a due diligence is not a luxury but a necessity. When performed thoroughly it would have detected and highlighted the looming payment and would have enabled the buyer to make a provision in the purchase contract, support price negotiations or at a minimum would have avoided a nasty surprise.

In the example given, the surprise payment exceeded the cost of a due diligence for one apartment sixfold.

For more information on due diligence services see also http://www.berlin-portfolio.com/Purchase.html


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