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How are common charges settled upon transfer?
How are common charges settled upon transfer?
When selling an apartment, the question often arises as to how exactly the common charges are settled between the seller and the buyer. Who pays what? And what if the final settlement is not yet available? The distribution follows clear principles, but the exact result depends on the timing of the transfer and the agreements made.
Which costs are the responsibility of the seller?
The seller remains responsible for all common charges relating to the period during which they were the owner. This includes, among other things:
- Monthly or quarterly provisions up to the date of the notarial deed
- Arrears
- Approved works decided upon before the deed
- Any outstanding contributions to working capital
The notary requests an overview of outstanding amounts from the Property Manager. If necessary, these are deducted from the sale price at the time of the deed.
Which costs are the responsibility of the buyer?
The buyer takes over the common charges from the date of the notarial deed. This means:
- Provisions from the date of transfer
- New decisions made by the general assembly after the deed
- Future contributions to the reserve fund
From the date of the deed, the buyer officially becomes a member of the Owners Association (Owners Association).
What happens with the current provision period?
Often, monthly or quarterly advances (provisions) are used. If the sale takes place in the middle of a current period, a pro-rata settlement occurs.
For example:
If the transfer takes place halfway through the quarter, the seller pays their share up to the date of the deed and the buyer pays the remainder.
This is usually arranged via the notary or later via the Property Manager.
What happens with the annual settlement?
The final annual settlement often takes place months later. In that case, the following are considered:
- The period in which the costs were incurred
- The date of transfer
The Property Manager distributes the costs according to the period to which they relate. Sometimes a provisional settlement is handled by the notary, followed by a final settlement later.
What happens with the reserve fund?
The reserve fund is not reimbursed to the seller. The accumulated share remains linked to the apartment and automatically transfers to the buyer. Therefore, no settlement occurs here.
What is the conclusion?
Upon the transfer of an apartment, common charges are divided according to the date of the notarial deed. The seller pays for their period of ownership, and the buyer pays from the moment of transfer. Outstanding amounts are usually settled through the notary. Clear communication with the Property Manager prevents disputes later on.
The reserve fund remains. The rest is divided.
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