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WHAT BUYERS SHOULD KNOW ABOUT CONVERTED APARTMENTS
When apartments in rented buildings are converted into condominiums, the tenants always have a statutory right of first refusal. The tenant must therefore always be informed of the planned sale and can take over the purchase contract.
WHEN DOES THE RIGHT OF FIRST REFUSAL APPLY?
In principle, the right of first refusal only exists if the owner decides to sell the apartment. If the apartments are merely converted into condominiums but are not for sale, the tenant cannot exercise the right.
The right of first refusal gives the tenant a one-time opportunity to buy the apartment. It is a one-off right. The tenant exercises it by a written declaration. If he does not exercise it on the first sale, he can no longer invoke it at a later date.
Tenants of converted condominiums enjoy special protection against termination. Depending on where the property is located, it can take up to 10 years before the landlord may give notice. This applies above all to areas with a particular housing shortage, e.g. Munich, Bad Reichenhall and Kempten. Otherwise the blocking period for termination is three years. In practice this means that the new owner can only use the apartment himself after the blocking period and the notice period have expired.
WHAT SHOULD A TENANT LOOK OUT FOR WHEN BUYING HIS APARTMENT?
A tenant who wants to exercise his statutory right of first refusal knows his own apartment more than well. He is clear about its advantages and disadvantages, and usually has a good overview of the building too. However, it is advisable for him to look as closely as possible at the situation of the community of owners.
In practice this means inspecting the declaration of division and the community regulations. An objective inspection of the structural condition of the property is also an advantage, so that he can better estimate what investment in the common property will be needed.
It is important to get a precise overview of the backlog of maintenance and modernisation. In this context, the amount of the maintenance reserve is decisive. The purchase price of the condominium should take upcoming renovations and maintenance into account.