Real estate / Land and forestry

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A real estate or a real estate is inclusive a property on it of buildings present and their accessories. It is legally seen "immovable property", from where also the word real estate is derived: Latin in-mobilis for a not mobile thing.

The possession of "reason and soil" and its newer analogue of the residential property is considered than safe affair, because exact regulations exist. Real estates are by far more difficult yield moderate however to estimate.

Therefore there are some branches of profession of the real estate economy, which specialized in real estate properties, buildings and the property market: Building management, and other civil technicians, real estate agents and reality offices, mortgage banks, real estate funds, insurance and not least the Federal Institution for tasks of real estate.

Special regulations with real estates

Purchase, property, rights and taxes

Because of their "immobility" real estates are subject to use etc. other legal regulations than mobile goods regarding acquisition of property. The purchase and the transfer of title of a property require three procedures:

a notarially recorded sales contract
the notarially recorded agreement over the passage of title (conveyance, in Austria see also abstraction principle (separation from sales contract and conveyance),
and the entry of the new owner into the land register.

Real estates can be loaded with rights like mobile things. To such rights belong in particular mortgage liens (e.g. the Belehnbarkeit, see mortgage credit) and different easements. This rights of way can be, regulations to the water law or other easements.

For properties real estate tax is to be usually paid, which is a local rate. Their height depends on the unit value of the real estate and on the so-called rate of assessment (percentage). Exceptions of the tax liability apply to properties, for public, charitable, religious and scientific purposes serve (see "§"§ 3, 4 GrStG). With the purchase of land also a prozentuelle results purchase of land-expensively beside land register and other fees.

Building law and regulations in mountain countries

The so-called building law offers the possibility of establishing on strange reason a building. Frequently the building law is maximally limited to 99 years to 50 years, which with the service life of operational buildings is well compatible. In the south of the German linguistic area such buildings also Luftkeu established in the building law are called, although they can accept the extent of a whole house block in cities.

In mountain countries - depending upon Land of the Federal Republic and/or canton - special regulations exist for the protection of the alpine infrastructure, the soil economy and partly also the tourism. They can concern the purchase of land and the management, which also supply minimum property size and with mountain peasants and vomit. Besides there is so-called pasture right (e.g. between individual municipalities in north and South Tyrol), the jointly usable common land and other local regulations.

Real estates in enterprises and as investment of funds

Since a large existence of real estates is in the property from enterprises, an active and result-oriented management of enterprise real estates gained in the last years strongly significance (Corporate material Estate management). Example for this is the professional Facility management of objects or the project development of unused properties or older inventory buildings.

If a real estate serves the direct use less, but primarily as investment of funds, also the value development is to be considered during a longer period apart from its yield by letting or farm lease. Real estate properties are to a large extent resistant to inflation, because its value does not have tendency rising on a long-term basis as "increasable property". Medium-term the value of real estates is connected approximately with the construction cost index, which rises for decades more rapidly than the consumer price index.

Value development of real estates

In order to be able to regard the value development of real estates, one must divide it into different categories. There are among other things vacant properties, commercially used buildings and residential buildings, which one uses or rents privately. Different factors of influence determine the value of a real estate.

The value of a vacant property increases, if it is opened by a suitable infrastructure, i.e. if it is supplied over a good traffic route ordered and with lines for gas, water, river and telecommunications. Also the proximity of schools, health and leisure facilities affects the value usually favorably. With first development as construction site or development land however a basic strip must be retired as public property, so that the municipality can build roads and lines.

Depreciating are however immissions, a high noise level or refuse dumps - e.g. if on property a gas station stood before and the soil is contaminated thereby. Also a classification as protected area can be depreciating, because a building prohibition will then usually issue. Depreciations or - increases can be also consequence of a political decision (for example building of an airport or a motorway). The value development depends then on the use possibilities of property before and after such a decision.

Valuation

The determination of the value of a real estate is regulated in Germany in the valuation regulation (regulation on principles for the determination of the market values of properties from 6 December 1988). It is an official regulation on the basis "§ 199 BauGB over the evaluation of real estates. The following procedures for the determination of real estate values are described therein: