July 4, 2022

The basis of every justification for home ownership is the so-called utility value appraisal (often also referred to as “parification” or “parification appraisal”). In this article, you get a utility report North Town Residency .This not only determines the respective co-ownership share in the property, but also has an impact on the amount of the management costs to be borne by the respective owner (pro rata) or his share of votes in resolutions. The legal basis for this can be found in the Home Ownership Act (WEG) .

Who can prepare a utility appraisal?

In the past, the initial utility value determination was carried out by the courts or arbitration boards. In order to relieve them of this, the legislator has now placed the preparation in the hands of experts (§ 9 Para. 1 WEG). Accordingly, may

  • a civil engineer responsible for building construction , or
  • a generally sworn and court-certified expert for structural engineering or real estate.

create a utility report.

What is “utility”?

Value in use is the measure used to describe the value of a condominium in relation to the values ​​of the other condominiums in the property. It results from the usable area of ​​the property and from surcharges or deductions for value-increasing or value-reducing properties of the same (§ 2 Para. 8 WEG).

The usable area is clearly defined by the law (§ 2 Para. 7 WEG). However, the additions or reductions that can be made by the expert are only mentioned as examples , which is why there is a certain amount of leeway for the expert : purpose, floor location, location within a floor or the equipment with open balconies, terraces and accessories, etc.

When can the utility appraisal be prepared?

As soon as a legally binding building permit for a building project is available, the utility value report can be prepared on the basis of the submission planning on which the permit is based and residential ownership can be established for the property. Construction does not have to be started or completed. Home ownership can therefore already be established “on the green field”.

Can the utility value appraisal be changed later?

The original utility value report can be changed at any time. The triggers for this are usually deviating construction plans, subsequent additions and conversions, attic conversions, etc., which result in a change in the usable area. Depending on the extent to which the utility values ​​change, the (certified) signature of all apartment owners on the utility value report is often sufficient (changes in utility values ​​of less than 10%). Otherwise, a corresponding contract must also be drawn up by a lawyer or notary. The relevant provisions can be found in particular in §§ 9 and 10 WEG.

What does utility affect?

Unless the owners have agreed otherwise, the expenses for the property (the entire management costs) and the reserve are divided according to the ratio of the co-ownership shares (§ 32 WEG). The higher your utility value, the higher your share of the total expenses for the property.

In the community of owners, resolutions are made with the majority of the co-ownership shares (§ 24 Para. 4 WEG). Owners with more shares (= utility values) therefore have a “stronger weight” in voting.

Where can I find the utility appraisal for my residential complex?

Since the utility value appraisal serves as the basis for the justification of home ownership, this can be viewed in the land register (at the relevant district court). Older expert opinions still have to be obtained on site , newer ones can already be called up digitally (e.g. via lawyers, notaries or our own websites for a fee).

Since the property managers need the utility value appraisals to carry out their administrative activities, they are usually also available there for inspection.

The basis of every justification for home ownership is the so-called utility value appraisal (often also referred to as “parification” or “parification appraisal”). This not only determines the respective co-ownership share in the property, but also has an impact on the amount of the management costs to be borne by the respective owner (pro rata) or his share of votes in resolutions. The legal basis for this can be found in the Home Ownership Act (WEG) .

Who can prepare a utility appraisal?

In the past, the initial utility value determination was carried out by the courts or arbitration boards. In order to relieve them of this, the legislator has now placed the preparation in the hands of experts (§ 9 Para. 1 WEG). Accordingly, may

  • a civil engineer responsible for building construction , or
  • a generally sworn and court-certified expert for structural engineering or real estate.

create a utility report.

What is “utility”?

Value in use is the measure used to describe the value of a condominium in relation to the values ​​of the other condominiums in the property. It results from the usable area of ​​the property and from surcharges or deductions for value-increasing or value-reducing properties of the same (§ 2 Para. 8 WEG).

The usable area is clearly defined by the law (§ 2 Para. 7 WEG). However, the additions or reductions that can be made by the expert are only mentioned as examples , which is why there is a certain amount of leeway for the expert : purpose, floor location, location within a floor or the equipment with open balconies, terraces and accessories, etc.

When can the utility appraisal be prepared?

As soon as a legally binding building permit for a building project is available, the utility value report can be prepared on the basis of the submission planning on which the permit is based and residential ownership can be established for the property. Construction does not have to be started or completed. Home ownership can therefore already be established “on the green field”.

Can the utility value appraisal be changed later?

The original utility value report can be changed at any time. The triggers for this are usually deviating construction plans, subsequent additions and conversions, attic conversions, etc., which result in a change in the usable area. Depending on the extent to which the utility values ​​change, the (certified) signature of all apartment owners on the utility value report is often sufficient (changes in utility values ​​of less than 10%). Otherwise, a corresponding contract must also be drawn up by a lawyer or notary. The relevant provisions can be found in particular in §§ 9 and 10 WEG.

What does utility affect?

Unless the owners have agreed otherwise, the expenses for the property (the entire management costs) and the reserve are divided according to the ratio of the co-ownership shares (§ 32 WEG). The higher your utility value, the higher your share of the total expenses for the property.

In the community of owners, resolutions are made with the majority of the co-ownership shares (§ 24 Para. 4 WEG). Owners with more shares (= utility values) therefore have a “stronger weight” in voting.

Where can I find the utility appraisal for my residential complex?

Since the utility value appraisal serves as the basis for the justification of home ownership, this can be viewed in the land register (at the relevant district court). Older expert opinions still have to be obtained on site , newer ones can already be called up digitally (e.g. via lawyers, notaries or our own websites for a fee).Since the property managers need the utility value appraisals to carry out their administrative activities, they are usually also available there for inspection.

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