Valuation report for condominium conversion of an apartment building: ancillary areas and common parts

A condominium valuation report converts plans and the actual building into the values from which the minimum co-ownership shares of the future units are derived. In an older apartment building this is rarely a purely mathematical exercise. Cellars may have been exchanged, attic areas used differently, commercial premises combined or terraces added later. If the building file, measurements and intended dedication do not match, the discrepancy carries into the condominium agreement, the land register and every later unit sale.

The owner should therefore review more than the figures. Each apartment, independent room, appurtenance and common part must be classified and described consistently. Early coordination between the expert, designer and legal advisers reduces later corrections and lets buyers understand what they may use exclusively, what remains common and which assumptions still require completion before registration.

Separate units, appurtenances and common parts first

Section 2 WEG 2002 distinguishes apartments, other independent rooms and marked parking spaces as possible condominium units. Appurtenant ownership may cover a cellar, attic room, garden area or storage space if it is clearly delimited and accessible without passing through another condominium unit. Common parts are areas intended for common use or whose purpose prevents exclusive ownership. That classification determines what the report may treat as a unit, an appurtenance or a shared area.

Older buildings often contain unclear boundaries. A cellar door bears an old number, the approved plan shows another layout or part of a corridor has long been used by one shop. Long use does not by itself create an appurtenance. The project list should record every area with its plan reference, physical description, previous use and intended dedication. The condominium conversion and unit sales topic page places this allocation work within the wider sales process.

Usable floor area and condominium value are different concepts

Under section 7 WEG 2002 the usable floor area is generally calculated from the approved building plan. If that is impossible, or if the plan differs from the measured area of a unit by more than three per cent, the actual measurement is used. This comparison is particularly relevant in old buildings where rooms have been combined, sanitary facilities added or conversions omitted from the plan record. The measurement basis must be reliable before any additions or deductions are considered.

The condominium value under section 8 WEG 2002 starts from floor area but also reflects factors such as intended use, floor level, position within a floor, open balconies, terraces and appurtenances. It is not a market valuation and must not be presented as the sale price of a unit. Its principal function is to determine minimum co-ownership shares and, subject to valid alternative arrangements, it later influences the allocation of common expenses.

Provide the expert with a complete and consistent record set

For registration, section 6 WEG 2002 requires the instrument establishing condominium ownership, a certificate or expert confirmation of the eligible units, and the valuation report or a final judicial assessment. In practice the expert needs more than a floor plan. The current land register, approved plans, measurements, intended dedications, appurtenance schedule and a record of all discrepancies between the file and the building should be assembled first.

Legal review runs in parallel because the proposed allocation must be capable of being reflected in the condominium agreement and sale documents. Technical and legal work should not proceed in isolation. Otherwise the report may treat an area as an appurtenance while the contract describes it as shared use. The data room completeness check assists with assembling the main building records before coordination begins.

Distinguish appurtenances from contractual use rights

Not every ancillary area can become appurtenant condominium ownership. Access, physical delimitation and functional suitability matter, as does the requirement that some areas remain common. Plant rooms, structural elements, escape routes and shared access cannot be turned into exclusive property merely by a label in a contract. Where appurtenant status is unavailable, a use arrangement may organise occupation without changing the property law classification.

Buyer information should state the distinction plainly. Does a garden area form an appurtenance, is there only an exclusive contractual use arrangement, or is use shared? The same questions arise for attic compartments, courtyards, bicycle rooms and advertising areas. Vague terms later create disputes about alterations, maintenance and cost. The condominium ownership and management topic page explains the consequences for the future owners’ association.

Address discrepancies before registration and later changes promptly

Section 9 WEG 2002 provides for judicial assessment in defined cases, including a breach of mandatory valuation principles, a difference of more than three per cent between a unit and the actual situation, or a material change caused by later building works. Changes between directly adjoining units and transfers of appurtenances may also require adjustment. Not every minor inaccuracy reshapes the entire scheme, but each discrepancy should be classified by an expert.

Correction is usually easier before the first registration than after several units have been sold. Later, new values may require changes to co-ownership shares, contracts and land register entries. Section 10 WEG 2002 contains different standing and timing rules depending on the cause. Once a material issue is identified, the owners should determine whether an agreed reassessment is feasible or whether a judicial route is needed.

Connect the report with each unit sale contract

A unit sale contract should describe the specific condominium unit, appurtenances, known use arrangements and the status of the registration process. Plans and report must use the same designations. If an area is not yet authorised, differs from the plan or awaits final registration, the contract needs transparent rules on completion, cooperation, cost and possible adjustment. Merely attaching the report does not resolve these contractual issues.

Rented units add a separate layer. The valuation report allocates property units but does not change existing tenancy rights. Buyers need to know which areas are actually included in a lease and whether the lease, plan and future appurtenances agree. The rent roll and lease agreements topic page covers this comparison without conflating tenancy law with the valuation exercise.

Prevent recurring disputes at the project stage

Disputes often arise from unclear source material rather than arithmetic. Typical examples are exchanged cellar compartments, an omitted terrace, a shared passage shown as an appurtenance, different boundaries for a shop or an attic converted after the original report. Each issue can affect shares, expense allocation, disposal rights and price expectations. A numbered unit schedule with plan markings and photographs is more useful than broad wording in a contract.

Before marketing starts, the owner, expert, designer and legal advisers should approve unit names, appurtenances, common parts, intended use and known discrepancies together. Only then should marketing plans, the sale template and land register instruments be finalised. The apartment building risk check can provide an additional overview of the technical and legal project record.