A guide for sellers and buyers - legally compliant, fair and comprehensible
The sale of an apartment building is not just about the purchase price, handover and notarisation. A crucial, often underestimated point is the fair allocation of operating costs in the year of the sale - i.e. the year in which the change of ownership takes place.
Many owners do not realise this: The statement of operating costs must be prepared for the entire calendar year, even if the property has already changed hands. This raises many questions:
- Who is responsible for the statement?
- How are advance payments and actual costs divided up?
- Who bears any credit balances or additional claims?
In this article, we at Wienroth Immobilien GmbH & Co KG give you a comprehensive overview - from practice for practice.
What are operating costs?
Operating costs (also known as ancillary costs) are regularly recurring costs incurred by the owner through the use of the building and the property. According to Section 556 of the German Civil Code (BGB), these costs may be passed on to tenants, typically by means of monthly advance payments followed by an annual statement.
The apportionable operating costs include, among others
- Property tax
- Costs for water, waste water, heating and hot water
- Refuse collection and street cleaning
- General electricity and lighting
- Property and liability insurance
- Caretaker, garden maintenance, winter service
What happens in the year of sale?
In the year of sale, the responsibility for operating costs is divided between the seller and the buyer. The allocation relates to:
- 1.The advance payments already made by the tenants
- 2.The actual costs of the year
- 3.The responsibility for the operating cost statement to the tenants
- 4.Any back payments or credit balances
These points should be clearly regulated in advance in order to avoid misunderstandings or financial discrepancies later on.
1. the key date: change of ownership, transfer of benefits and encumbrances
A transfer date is defined in every notarised purchase agreement, usually as the economic transfer date, i.e. the date on which possession, benefits and encumbrances are transferred from the seller to the buyer. This date forms the basis for the allocation of operating costs.
- All income and expenses up to this date relate to the seller.
- Everything that occurs after this date concerns the buyer.
2. distribution of advance payments
Tenants generally make monthly advance payments on the operating costs. These are split pro rata temporis between the seller and buyer, in practice usually on a monthly basis.
Example:
A property is handed over on 01.07.2025. A tenant has made an advance payment of€200per month.
- The seller is entitled to the period from January to June → 6×€200= €1,200€
- The buyer is entitled to the period from July to December →€6×200=€1,200€
These amounts must be taken into account at the time of transfer - either by direct payment or offsetting.
3. allocation of the actual operating costs
The actual costs incurred (e.g. heating bills, rubbish charges, insurance premiums) are also apportioned pro rata temporis according to the transfer date.
There are two options here:
- Flat-rate apportionment by month (e.g. 6/12 seller, 6/12 buyer)
- Accurate apportionment based on consumption (e.g. through documented interim meter readings on handover)
The latter is more accurate, but requires close coordination and metering protocols.
4. billing the tenants
In accordance with Section 566 of the German Civil Code (BGB), the buyer enters into existing tenancies and thus also assumes the obligation to prepare the statement of operating costs for the entire year, including the period in which the seller was still the owner.
The buyer is therefore obliged to prepare the complete annual statement and deliver it to the tenants.
The seller must ensure that
- Hand over all relevant documents (invoices, advance payments, meter readings, contracts)
- Clear listing of his share of time
- Co-operation in the event of queries
Buyer has the right:
- To complete documentation
- Reliable information on the previous period
5. additional payments and credit balances. Who gets what?
Once the annual statement has been drawn up, each tenant receives an individual result, either a credit balance or an additional payment.
The underlying costs and advance payments must be reconciled internally between the seller and buyer.
Recommendation:
- Credit balances resulting from the seller's period are due to the seller (e.g. if advance payments were higher than actual costs during the seller's period).
- Subsequent claims relating to the seller's period are also to be borne by the seller.
A tabular comparison or a written protocol is strongly recommended.
Recommendation for the purchase contract
To avoid later discussions, a suitable clause should be included in the purchase agreement.
Suggested wording:
"The operating costs for the current calendar year shall be divided between the seller and buyer pro rata temporis according to the economic transfer date. The buyer undertakes to prepare the annual statement of accounts for the tenants in full. The seller shall hand over all relevant accounting documents for this purpose and co-operate as required. Additional claims or credit balances shall be settled internally between the parties on a pro rata basis."
This clause is clear, legally secure and has proven itself in practice.
Conclusion
The allocation of operating costs in the year of sale of an apartment building is not a formal detail, but a central point for a clean and fair ownership relationship. If you create clarity at an early stage, you prevent conflicts, ensure the correctness of the operating cost statement and protect yourself from financial surprises.
Wienroth Real Estate –
Your partner for clear solutions
We accompany owners and buyers not only until the notary appointment, but also afterwards. Questions about operating costs, billing and handover processes are in good hands with us.
FAQ
How are the operating costs allocated in the year of sale of an apartment building?
The apportionment of operating costs in the year of sale of an apartment building is carried out pro rata temporis, based on the key date of the transfer of ownership, use and encumbrances. The seller assumes the operating costs up to this date, the buyer thereafter.
Who is responsible for preparing the statement of operating costs in the year of sale?
In the year of sale of an apartment building, the buyer is responsible for preparing the statement of operating costs, as he enters into the tenancy in accordance with Section 566 BGB and assumes the obligation to prepare the statement.
How are tenants' advance payments in the year of sale allocated?
The tenants' advance payments in the year of sale are divided pro rata temporis between the seller and the buyer, with the period before the transfer date being allocated to the seller and the period after the transfer date being allocated to the buyer.
What happens to back payments or credit balances from the utility bill?
Back payments or credit balances from the operating cost statement in the year of sale of an apartment building are divided between the seller and buyer according to the time shares, whereby the seller remains responsible for the back payments from his time.