Accurately calculate living space – avoid liability risks
Real estate is currently in high demand – leading many to believe they don't need a real estate agent to sell their property. This is risky, as it not only results in a longer sales period or a lower price, but also creates liability risks, for example, due to incorrect calculations of living space. Legal disputes concerning incorrectly stated living areas are a recurring issue.
Accurately measuring a living space yourself isn't always easy. Spot checks by experts show that 90% of these measurements are incorrect for existing properties. While simply including such measurements in a property listing or purchase agreement without verification doesn't automatically justify a claim for damages by the buyer, it's still advisable to proceed carefully when determining the living space to ensure transparent communication.
Professional appraisals provide information about the exact living space
The first step in professional marketing is a qualified valuation based on an expert appraisal. A reputable real estate agent who prepares such an appraisal, either independently or through a qualified expert, will begin by thoroughly inspecting your property and remeasuring or recalculating the living space, especially if the existing documentation is insufficiently accurate or predates the current calculation regulations (Living Space Ordinance of 2004). Accurately calculated living space is crucial for a precise valuation. A well-founded appraisal is therefore not only essential for setting a fair market price, but also ensures you have a complete understanding of all the important features of your property. These include not only the location, features, and condition of the property, all of which are considered in detail in the appraisal, but also the exact living space.
Errors in calculating living space and claims for damages
The German Residential Space Ordinance (WoFlV) contains numerous regulations for calculating living space, taking into account all possible structural features of properties. The question of which rooms are considered living space and which are not is also regulated in detail. One thing is almost certain: floor area is not the same as living space. Anyone attempting to measure their property themselves as a layperson will likely make mistakes. For professional real estate agents, however, calculating living space is part of their daily routine, meaning they are thoroughly familiar with all applicable regulations. A professional living space calculation minimizes the risk of facing claims for damages from a future buyer. While a successful claim for damages would require the buyer to prove that you, as the seller, intentionally provided false information about the living space, even if they fail to do so, it is already frustrating enough for you to be involved in a legal dispute after the sale. Incidentally, you cannot rely on the warranty disclaimer stipulated in the purchase agreement when it comes to the living space that was agreed upon as part of the contract.
Do you have further questions about calculating your living space? Contact us! We'd be happy to advise you.
You can find more information here:
https://www.gesetze-im-internet.de/woflv/BJNR234610003.html
Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.
Photo: © franckito/Depositphotos.com
About the author
Harry Mohr
Real estate agent (Chamber of Industry and Commerce)Harry Mohr, author of this article
