Rental apartments
Rental apartments are apartments that do not belong to the people who live in them. These people are called tenants. They pay a contractually fixed amount of money for their right of residence. This amount of money is called house rent.
Regular tenancy and sub-tenancy
These are two possible forms of rent:
Regular tenancy means that a tenancy agreement is concluded with the owner or leaseholder of an apartment or apartment building.
Sub-tenancy means, that a tenancy agreement is concluded with the main tenant of an apartment.
Time limitation
Tenancy agreements can be open-ended or fixed-term. An open-ended tenancy agreement does not have a time limitation and a fixed-term tenancy agreement is only effective for an agreed period.
An open-ended tenancy agreement needs to have a period of tenancy of at least three years, which can be extended. This extension must also be at least three years. Fixed-term tenancy agreements can be extended any number of times by the landlord. However, the tenant can terminate the agreement any time, but they must adhere to a period of notice of three months. (Period of notice means, that during this period it is not possible to terminate the contract and the rental contract continues to exist.)
The Austrian Tenancy Act (Mietrechtsgesetz or MRG) is the legal basis for suretyship. However, exceptions exist. It is indicated in §1 of the MRG if the Austrian Tenancy Act applies to an apartment and to which extent.
Source: BMASK, BM.I
Freehold flats
Owners of an apartment are eligible to exclusively use and to dispose of their particular premises. This right is registered in the land register. In advance, you can inform yourself in the land register if the apartment is unencumbered, i.e. there is no mortgage to pay or valid rights of lien.
When you purchase a particular apartment you become the owner. Additionally, you become a pro rata co-proprietor of the total property (parcel of land, building). Therefore there are two different contracts: the condominium agreement and purchase agreement.
The legal basis of suretyship is the Austrian Condominium Act (Wohnungseigentumsgesetz or WEG).
Generally, you should acquire expert knowledge (notary or lawyer) in advance of purchasing an apartment, a house or a parcel of land.
Source: BMASK