Contact Ralph
As a condominium owner, you enjoy a lot of freedom and can design your condominium according to your personal ideas - as long as you do not interfere with the common property. However, the intended use of your apartment is predetermined even before you buy it, as your apartment is intended either as part ownership or as condominium ownership. In short, you are not allowed to use your living room as a commercial space. What exactly this means and how part ownership differs from condominium ownership is explained in the following text.
Definition of part ownership: What is it?
Partial ownership is a term from the German Condominium Act (WEG) and is defined in Section 1 (III) WEG. Partial ownership is therefore a special form of special ownership. It allows you to use the rooms of your residential property that are not used for residential purposes for other purposes as separate units.
The declaration of partition is linked to the partial ownership, as it regulates the rights and obligations of condominium owners and the use of the partial ownership units.
Partial ownership vs. special ownership vs. condominium ownership
Partial ownership and condominium ownership both belong to special ownership.
Special ownership is initially a superordinate term that includes both partial ownership and condominium ownership. It refers to premises within a building that belong to an individual owner.
The main difference between residential and partial ownership lies in the use. Condominium ownership describes the rooms in a building that are used for residential purposes. Partial ownership, on the other hand, refers to the rooms of a building that are not used for residential purposes.
Despite the distinction between condominium and part ownership, both forms of special ownership are treated equally in legal terms.
Regardless of whether you are a homeowner or part owner, you always have co-ownership shares in the common property. This includes all areas of the property that are used jointly by all owners, such as the stairwell, garden or roof. Your rights and obligations regarding the common property are governed by the German Condominium Act (WEG) and the community rules.
The role of the declaration of partition in partial ownership
The declaration of division is a document that defines the division of your condominium building into separate ownership (condominium ownership and part ownership). It also states whether the rooms are residential property (remember: rooms that are used for residential purposes) or part ownership (i.e. rooms that are not used for residential purposes, e.g. commercial premises).
The declaration of division defines the specific rights and restrictions of use for the partial ownership. For example, it may include a provision stating that certain types of business may not be carried out in the rooms.
The declaration of division may deviate from the statutory provisions of the WEG. This means that the agreements in the declaration of division take precedence, even if they do not comply with the law. In the event of disputes between the owners, the declaration of division is of particular importance. It serves as important evidence and generally takes precedence over the statutory provisions.
Examples of partial ownership
Partial ownership opens up a wide range of possible uses beyond living. According to § 1 WEG para. 3, this includes the following examples:
- Commercial space: For example, office, store, warehouse or workshop. They enable entrepreneurs and the self-employed to use them for business purposes.
- Medical practice and law firm: Members of the liberal professions such as doctors, lawyers or tax consultants will find a possible home for their practice or law firm in part-ownership.
- Cultural institutions: Art galleries, music schools or theater groups can use the part-owned property for the purposes of creative activities and cultural events.
- Co-working spaces: Co-working spaces in partial ownership offer freelancers, start-ups and small companies an office.
- Gyms and wellness centers: Gyms and wellness centers are also a good example of the use of partial ownership.
- Vacation apartment: Under certain circumstances, partial ownership can be used as a vacation apartment, even if the declaration of division originally provided for a different use.
- Other creative uses: Hairdressing salons, retail stores, event rooms, beauty salons, yoga studios or photo studios, etc. are permitted for use as part-ownership.
- Special features for parking spaces and gardens: Clearly defined parking spaces in enclosed areas such as garages or underground garages can also be part-ownership if the areas are defined by specifying the dimensions in the partition plan and identified by markings. Open-air parking spaces are considered common property, but can be provided with special rights of use. Garden areas do not count as part-ownership as they do not constitute a building.
Using part-ownership for residential purposes - is that possible?
You now know the difference between part ownership and condominium ownership, but can part ownership be used for residential purposes? Here, too, there are clear rules on condominium ownership.
In contrast to residential property, partial ownership is intended for commercial use and not for residential purposes. However, under certain conditions, partial ownership can also be used for residential purposes.
Residential use is possible if the following conditions are met:
- First of all, the area of the part-ownership must be large enough to enable comfortable living.
- In addition, residential use must not affect the other owners of the condominium association more than commercial use.
- For residential purposes, there must also be connections for the kitchen and bathroom with toilet, washbasin and shower or bathtub.
Is it possible to change the use of the separate property?
Even if the usage regulations for your separate property are set out in the declaration of division, these are not set in stone. It is perfectly possible to change the type of use of your separate property, e.g. from residential to commercial space or vice versa.
Conversion of residential property into partial ownership
The conversion of partial ownership into condominium ownership is generally only possible if the partial ownership is not located in a purely industrial area. In all other properties with existing residential units, however, there is generally nothing to prevent conversion.
Despite the potential benefits, the process is associated with hurdles. The first step is to obtain the consent of all other owners in the condominium. As long as the declaration of division has not been amended accordingly, construction measures to create living space are considered inadmissible. Consent should not only be given verbally, but should also be documented by a notarized signature.
You will need a certificate of completion from your building authority to change the condominium ownership. You can then arrange a notary appointment, at which all condominium owners in your WEG must appear in person or be represented.
Once the change has been successfully entered in the land register, you are free to make the necessary structural changes to your residential property and change its use accordingly.
Conversion of partial ownership into condominium ownership
The conversion of condominium ownership into part ownership requires the same procedure and the consent of all co-owners. As with any amendment to the declaration of division, it is necessary for all condominium owners to have the changes notarized.
Structural alterations to property - what is permitted?
Part owners generally have the right to make structural changes within their own premises. As long as the changes only affect the part-ownership and do not affect any load-bearing components of the building or the common property, the consent of the other condominium owners is not required. This even applies to the removal of walls, provided they are not load-bearing walls.
The consent of the co-owners is always required for structural changes that affect the common property. This includes, for example, changes to the façade, the windows facing the street or the entrance door.
Even if these areas belong to the separate property, they may also be assigned to the common property due to their function and appearance. In such cases relating to separate property, a resolution of the community of owners is required.
The change to Ralph is uncomplicated.
Selling part-ownership - is that possible?
Yes, the sale of partial ownership is generally possible. However, there are some special features to consider before the sale, as partial ownership is inseparably linked to the co-ownership share in the common property in accordance with condominium law.
For example, if you own a store in a condominium property, this store is your part-ownership. You also have a share in the common property of the property, the co-ownership share, such as the stairwell or the garden.
Therefore, you cannot sell your store without your share of the common property. So if you want to sell your part-ownership, you must always sell your co-ownership share in the common property as well. The two belong together legally. The Condominium Act stipulates that this connection must exist in order to fairly regulate the rights and obligations within a community of owners.
Tip: What you should consider before buying a condominium
If you are interested in purchasing an apartment in a condominium with partial ownership, you should inform yourself in advance about the potential restrictions that may be associated with such a constellation.
A typical example of this is if there is a doctor's surgery on the first floor of the building. In this case, as the owner of an apartment on the upper floors, you would have to expect to regularly encounter strangers visiting the practice in the hallway and on the property.
Another example of possible restrictions would be if a restaurant were to operate in the same building. In such cases, there may be increased background noise during the restaurant's opening hours, which could affect your quality of living.
To find out whether there is part ownership in a residential property you are considering, it is important to take a look at the declaration of division. The declaration of division regulates the division of the building into residential property and part ownership and provides information about the respective rights of use.
Do you already know Ralph?
Ralph is your modern, digital property management company from Berlin. Put your trust in our expertise and benefit from a comprehensive service. Contact us today for a free quote!
