Numerous legal issues can arise during the life cycle of a property and we will be happy to provide you with comprehensive advice. In particular, a careful legal examination of the property to be acquired should be carried out prior to the purchase of a property.

Obtaining the necessary approvals

Before you purchase a property as a buyer, you usually have clear ideas about its use. The property should then either be used for your own use, acquired as an investment for renting out or transferred to your children at some point. It is essential to clarify in advance whether the planned use is feasible at all. Especially in large cities with tight housing markets such as Berlin, there are a number of legal requirements that need to be observed.

• Milieu protection: On the basis of Section 172 (1) No. 2, 4 BauGB, municipalities may designate so-called areas to preserve the composition of the residential population (social conservation areas, also known colloquially as milieu protection areas). Berlin has made use of this and now has 81 social conservation areas. In concrete terms, this means that all structural alterations to apartments are now subject to approval by the city - be it demolition, structural alteration or change of use. In addition, the districts often have pre-emption rights in conservation areas (Section 24 (1) No. 4 BauGB).

• Rent freeze: The so-called rent freeze applies throughout Berlin, as Berlin has made use of its authority to issue regulations in Section 556d (1) and (2) of the German Civil Code (BGB). This means that the rent at the start of a tenancy may not exceed the local comparative rent by more than 10%.

• Conversion Ordinance: The creation or division of residential property is also only possible to a limited extent. The so-called Conversion Ordinance in accordance with Section 250 (1) sentence 1 BauGB came into force in 2021. The creation or division of residential property, which is now only possible in exceptional cases, must now also be approved by the city in advance.

These legal requirements should always be checked before purchasing property. If, for example, a planned conversion cannot be legally approved or the planned letting at an already calculated rent is not possible at all in view of the rent cap, the property will not fulfill its intended purpose and may then have to be sold again at great expense.  

We support you in the legal implementation of your project, check the necessity of urban planning approvals and are happy to represent you in your dealings with the authorities. Get in touch with us.

Legal due diligence  

If you are planning to acquire a property, we will take care of the real estate due diligence for you. This means that we carry out a thorough legal review of the object of purchase before it is acquired.

Legal due diligence includes in particular the examination of

• of the land register,

• the admissibility of your planned measures under public law,

• the existing rental agreements and rental collateral,

• of existing insurance policies and contracts,

• of any existing obligations,

• the level of public charges.

In this way, we ensure that you are aware of the legal risks associated with the purchase before you decide to buy the property. We are also happy to consult with property managers and authorities to ensure that you have all the relevant information before you buy.