AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
2.4 Real Estate Due Diligence In Vienna, thorough due diligence is essential for secure real estate transactions. This includes: • reviewing legal ownership and encumbrances via the Land Register; • verifying compliance with zoning and building laws; and • identifying outstanding liabilities such as taxes or utility bills. Buyers must also account for additional costs, such as the 3.5% property transfer tax and 1.1% registration fee. A technical inspection assess - es the property’s condition and environmental risks, particularly for historic or former industrial sites. Professional advice from agents, lawyers and surveyors is key to minimising risks. Buyers should also consider Vienna-specific factors like heritage protection laws and strict zoning regula - tions that may limit renovations or modifications. 2.5 Typical Representations and Warranties In Vienna’s commercial real estate transactions, representations and warranties are critical com - ponents that allocate risk and provide assur - ances between buyers and sellers. Typical Representations and Warranties Sellers commonly provide representations and warranties covering various aspects, including: • title and ownership – assuring unencumbered ownership of the property or shares; • legal compliance – confirming adherence to zoning laws, building codes and possession of necessary permits; • financial matters – disclosing existing leases, tax liabilities and outstanding debts;
common areas such as hallways, the roof and courtyards with other owners. This form of prop - erty right is regulated by the Austrian Condomin - ium Act ( Wohnungseigentumsgesetz ) and grants owners exclusive rights to their units, along with shared responsibility for the maintenance and management of common spaces. 2.2 Laws Applicable to Transfer of Title In Austria, real estate ownership is primarily governed by the General Civil Code (ABGB) and the Land Register Act. Ownership is trans - ferred through a notarised purchase agreement recorded in the land register. Additional rules apply to certain property types, with residential real estate subject to the Rent Act (MRG) and Condominium Act (WEG). Commercial proper - ties face no special national laws but must com - ply with local zoning and building regulations. Hotel properties are additionally regulated by operating licence and safety requirements. 2.3 Effecting Lawful and Proper Transfer of Title The legal and proper acquisition of ownership of a property is effected by means of a notarised purchase agreement and registration in the land registry. The land registry is a public register in which all properties and their rights, including ownership, are recorded. A transfer of owner - ship only becomes effective once it is recorded in the land registry, which is usually arranged by the buyer’s notary or lawyer. Land registry law is particularly important as it has public legal force and provides a reliable record of ownership. Title insurance is not widespread because the land registry system is considered to be highly reli - able and potential legal problems with owner - ship are usually uncovered by a thorough due diligence investigation prior to purchase.
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