The exact amount of equity to be contributed depends on the assets and income of the potential buyer as well as the location of the property. As a rule, between 20% and 30% of the purchase price is required as equity in order to cover the 8-10% incidental acquisition costs. Lower equity ratios are possible depending on the buyer's income and other assets, but usually mean an interest premium. Bank lending depends on the creditworthiness of the borrower and their collateral. If the loan-to-value ratio is below 60%, the financing costs are the most favorable.

The term "leasehold" refers to a right equivalent to real property that is created in a separate "leasehold land register".

A plot of land can be leased as a "heritable building right" for a fixed period of 60 to 99 years in return for a monthly ground rent. However, ownership of the property remains with the leaseholder during this period. The leaseholders generally have the right to build on and use the property during the term of the contract. The leasehold can be sold by the leaseholders during this time, but this requires the consent of the leaseholders.

At the end of the leasehold contract, the property reverts to the leaseholders or is extended. In the case of residential properties, compensation is often paid to the leaseholders for the material value of the buildings (often referred to as the common value). The leasehold contract stipulates what the leaseholders still have to pay at the end of the lease.

Land and rights equivalent to land (e.g. heritable building rights) are a delimited part of the earth's surface (Section 905 BGB) and are registered in the land register. The land register is an official, conditionally public register of properties in which, for example, the ownership structure and any rights associated with the property as well as any encumbrances on it are recorded. According to § 3 GBO, each plot of land has its own place in the land register (land register page). Read more about the Munich Land Registry here.

Section 8 of the German Condominium Act (WEG) regulates the declaration of division. A declaration of division is drawn up for a divided property and all essential rights and obligations of the co-owners are established in it.

Original owners of a property can divide a building into co-ownership shares in the property so that each share is associated with the special ownership of a specific apartment or non-residential rooms.

It is also regulated which parts of the building are owned separately or used as common property. In addition, special rights of use (e.g. to garden areas) can be assigned to certain units and community rules can be issued. The declaration of division must be notarized. Before the land register sheets are created, the partition plan of the building must be checked by the responsible approval authority (§ 7 WEG) and the closed nature of the property confirmed.