Owner Statement

Written by Richard Gürlich
of GÜRLICH & Co.

Statement of the owner Significance of the statement of the owner In principle the ownership of the dwelling may be arranged by one of two ways. One of them is the purchase of the whole house as a complex. In such a case it is a purchase of real estate and the owner of the house, by means of a entry into the cadastre of real estates, becomes the owner of the whole house with the plot under the house. The other case is the purchase of a flat that forms part of the house as a unit. The statement of the owner lists the individual flats in the house. It is necessary to point out that flat (unit) is a part of the house and its use is connected with use of further parts of this house as well (incl. other rights and duties of the individual owners of units). Terms of the statement According to the law, the statement about ownership of flats must be comprehensive and include; address and location within the building, description of the unit and equipment, floor area, common areas and any plot subject to a change of ownership right. Furthermore the statement should include the rights and obligations with respect to the buildings, their common parts and rights to the plot and the transfer of rights from the building owner to the owners of the units. It should include the rules of contributions of the co-owners of the house for costs connected with administration, maintenance and repairs of the common parts of house. Additionally, it should clearly state the person responsible for the administration on the whole complex and the rules for this. Attached to the statement must be the ground plans of all floors, ultimately including the plans determining the location of the units and the common parts of the house, together with data about floor areas of units. Common parts of a house are understood to be the parts of the house determined for common use, mainly the base, roof, main construction, entrances, staircases, corridors and many other areas, even those located outside the house. The extras included with the house (e.g. petty constructions) and common equipment of the house (e.g. equipment of area for common laundry) are also considered as common parts of a house. Record into cadastre of real estates The determination of the units inside the house is not completed by the statement of the owner itself. It is necessary to record the statement of the owner into the cadastre of real estates at the respective cadastre office. The proposal for the entry of ownership right into cadastre of real estates is submitted by the owner of the house. The cadastre office will examine this proposal and will approve or refuse it. Transfer of the unit Provided the statement of the owner is approved by the cadastre office, the definition of units inside house have the ownership transferred. This would include the transfer of the share of co-ownership of the common parts of house and of plots on which the house is built. The transfer is completed by a contract for the transfer of ownership of the unit. The contract has to include data about the building or house according to cadastre of real estates, the number of  the unit (including its designation and location inside building), the description of the flat or non-residential area, determination of the floor area and description of the equipment of the flat or non-residential area. Further inclusions are the  determination of the common parts of the house including determination about which parts of house are common to the owners of only a few units, stipulation of the  co-ownership share of the owner of the unit on the common parts of the house according to the Law( namely stipulation of the co-ownership share of the owner of the unit on common parts of house that are common to owners of only some units, indication of plot that forms the subject of the ownership transfer or other rights by data according to the cadastre of real estates, and the  rights and obligations concerning the house, its common parts and rights to the plot that are being transferred from the present owner of the house to owner of the unit). Conclusion The execution of the statement of the owner, and its input into cadastre of real estates, normally occurs when the house consists and where it is the intention of the owner to transfer such units in the ownership of other persons. The statement of the owner defines rights and duties resulting from the ownership of the units inside house, together with co-ownership share on common parts of a house and a plot.

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Purchase of real estate

The question of real estate purchases is presently enjoying great interest,  due to the desire of many people to live in their own dwelling and ,for example, as a result of entrepreneurial activity. Additionally, relating to real estate contracts there could be a few legal pitfalls, that I will refer to. Due to the comprehensive nature of this subject it is necessary to split it up into several partial stages.

These stages can be categorised as follows: 
 
1. Reservation contract
2. What you need to know about real estate before concluding the contract
3. Future Purchase Contract
4. Purchase Contract
5. Application of a mortgage
6. Record into cadastre of real estates
7. Contract of work for house construction
8. Statement of the owner
9. Partnership of the owners
10. Purchase through the intermediary of a legal entity
11. Cooperatives and membership of them