Glossary: terms used in off-market property transactions

Off-market

Off-market refers to the sale of a property without it being publicly listed. Instead of on portals or in newspapers, the property is offered to selected buyers in a targeted way – via estate agent networks, platforms with restricted access or personal contacts. Equivalent terms are „quiet“ or „discreet marketing“. In Germany, off-market is not a legal term of its own; the same rules apply as for any property sale.

Example: A community of heirs sells a let apartment building without the tenants or neighbours finding out. More in the guide What is off-market property?

Anonymous profile (Steckbrief)

An anonymous profile (Steckbrief, also called a teaser) is a short anonymous description of a property that allows no conclusions about its address or owner. It states only key data such as broad region, property type, price and size range, and serves to test interest before confidential information is shared. On diskret.immo, the anonymous profile is the first of three release stages (stage A); it shows no photo of the façade.

Example: „Apartment building, Leipzig-South, 10–14 units, price range €1.8–2.2 million, period building, fully let.“

Exposé

An exposé is the detailed property description with data, photos, floor plans and location details, on the basis of which buyers prepare a purchase decision. For public listings it is available to anyone. In off-market sales, buyers usually only receive it after a confidentiality agreement. On diskret.immo, the exposé is stage B: it requires a verified account, a confidentiality undertaking and the release with the owner’s consent or on the instructions of their estate agent.

Example: A buyer sees „investment apartment building in Berlin“ in the anonymous profile and, after confirming the NDA, receives the exposé with the tenancy schedule and year of construction.

NDA

An NDA (non-disclosure agreement, Vertraulichkeitsvereinbarung) is a contract by which the recipient undertakes to keep information received confidential and to use it only for a specific purpose. In a property purchase, it protects the owner, the tenants and the state of negotiations. Typical contents: which information is confidential, who may see it, how long the obligation applies and what happens in the event of a breach.

Example: Before an investor receives the exposé of an office building, they confirm that they will not pass on tenant names and the address.

Note: have confidentiality agreements legally reviewed where necessary.

Data room

A data room (Datenraum) is a protected place – nowadays usually digital – in which the seller makes all documents relevant to the review of a property available to selected buyers. These include, for example, the land register extract, leases, service charge statements, energy performance certificate, plans and expert reports. Access is usually logged there. diskret.immo currently has no digital data room: our team hands over documents in person at stage C after release.

Example: A buyer checks the remaining terms of all commercial leases in the data room before making an offer.

Purchase price multiple (Kaufpreisfaktor)

The purchase price multiple is the purchase price of a let property divided by its annual net cold rent. It shows how many years‘ rent the purchase price corresponds to and allows a quick comparison of similar properties. The German valuation committees (Gutachterausschüsse) call it the „gross rent multiplier“ (Rohertragsfaktor). Its reciprocal in per cent is the gross yield. The multiple does not reflect condition, location or costs.

Example: purchase price €1,000,000 ÷ annual net cold rent €50,000 = multiple of 20. More in the guide purchase price multiple for apartment buildings.

Gross yield

The gross yield (Bruttorendite) is the annual net cold rent in relation to the purchase price, expressed as a percentage. It takes neither transaction costs nor running costs into account and is therefore an initial indicator, not an income forecast. It equals 100 divided by the purchase price multiple. Exposés often state the gross yield, because it is higher than the net yield.

Example: annual net cold rent €50,000 ÷ purchase price €1,000,000 × 100 = 5.0% gross yield. In detail with calculator: calculate rental yield.

Net yield

The net yield (Nettorendite) is the annual net income of a property – rent minus non-recoverable costs – in relation to the total investment of purchase price and transaction costs, as a percentage. The costs deducted include management, maintenance and rent loss risk. Financing costs and taxes are left out. The net yield is more realistic than the gross yield.

Example: In the fictitious worked example in the guide calculate rental yield, a gross yield of 5.04% falls to a net yield of 3.52% after costs and 10% transaction costs.

Due diligence

Due diligence is the careful review of a property before purchase – legal, economic, technical and tax-related. Among other things, the buyer checks the land register, public easements (Baulasten), leases, tenant creditworthiness, building condition, contamination and, in the case of companies, also their contracts and taxes. The aim is to identify risks before they become yours and to justify the price. It is based on the documents in the data room and a viewing.

Example: During the due diligence on an investment apartment building, a surveyor finds damp in the basement; the buyer renegotiates the price.

LOI

An LOI (letter of intent, Absichtserklärung) is a letter in which a buyer records their serious interest and the key points of a possible purchase, such as price, financing, timetable and conditions. An LOI is usually not binding; in Germany, a land purchase only becomes effective with the notarised agreement (§ 311b of the German Civil Code, BGB). It does, however, create clarity and can agree exclusivity for a review phase.

Example: An investor offers €2.4 million by LOI, subject to satisfactory due diligence within six weeks.

Share deal

A share deal is the purchase of shares in a company that owns a property, instead of the land itself. The buyer takes over the company with all its rights and obligations, including its liabilities. In Germany, real estate transfer tax (Grunderwerbsteuer) can be payable if at least 90% of the shares pass within ten years (§ 1(2a), (2b), (3) GrEStG). Share deals are common mainly for large commercial and residential portfolios.

Example: A buyer acquires all shares in a GmbH whose only asset is an office building. In detail: share deal or asset deal.

Note: share deals are complex in tax and legal terms – no advice on individual cases.

Asset deal

An asset deal is the direct purchase of a property – the buyer acquires the land with the building and is entered in the land register as the owner. It is the standard case when buying property. Existing leases pass to the buyer („sale does not break a lease“, § 566 BGB), but the seller’s other liabilities do not. Real estate transfer tax is payable.

Example: A buyer acquires an apartment building by notarised purchase agreement and steps into all twelve tenancies. In detail: share deal or asset deal.

Joint deal (Gemeinschaftsgeschäft)

A joint deal is the cooperation of two estate agents on a sale: one brings in the property, the other the buyer, and both share the commission as agreed in advance. This way a property reaches buyers that the instructed agent does not know on their own. On diskret.immo, partner agents can bring in properties and buyers; rules for the joint deal are in place. Details under for agents.

Example: A Munich agent has a buyer looking for a villa on Lake Starnberg that another partner agent has been instructed to sell.

Client protection (Kundenschutz)

Client protection is the agreement that an agent who has introduced a buyer or a property shares in a later transaction – even if it comes about by other means. It prevents buyers or properties from being brokered past the party who introduced them. Client protection is usually limited in time and requires a demonstrable first contact. For partner agents on diskret.immo, it is provided for.

Example: A partner agent introduces an investor; if the investor buys a property on the platform within the agreed period, the agent receives their share.

Anti-Money Laundering Act (Geldwäschegesetz)

The German Anti-Money Laundering Act (Geldwäschegesetz, GwG) requires, among others, estate agents and notaries (Notare) to identify the parties to a property purchase and to report suspicious transactions. Agents must identify the parties as soon as there is a serious interest in the purchase and the parties are sufficiently determined (§ 11(2) GwG). For companies, this includes the beneficial owners. Paying the purchase price in cash, crypto assets or gold is prohibited (§ 16a GwG).

Example: Before the address is released, a buyer proves their identity with an identity card; a GmbH additionally with an extract from the commercial register and the transparency register.

Proof of funds (Finanzierungsnachweis)

Proof of funds is evidence that a buyer can raise the purchase price – for example a financing confirmation from the bank or proof of equity. It protects the seller from wasted time and from viewings with prospects who lack purchasing power. A non-binding financing confirmation is not a loan commitment, but shows that the bank has reviewed the budget. On diskret.immo, we ask for it in a personal conversation before the address (stage C) is released.

Example: A buyer presents a confirmation from their bank of a financing budget of €3 million.

Pre-marketing (Vorvermarktung)

Pre-marketing („coming soon“) is the limited period in which a property is offered to a small circle of buyers before its public launch. Unlike a permanent off-market sale, a later public appearance is planned. Pre-marketing serves to test demand and the price range. On diskret.immo, this is possible as a quiet market test: owners check demand before they decide.

Example: An owner quietly lists their anonymous profile for a few weeks and decides, based on the number of matching search profiles, whether to advertise publicly.

Standard land value (Bodenrichtwert)

The standard land value is an average location value for land in an area, stated in euros per square metre of plot area (§ 196 of the German Building Code, BauGB). The valuation committees determine it from actual purchase prices, at least every two years and annually in many places; for developed plots, the value applies as if the plot were undeveloped. It is a guide, not a market value. It can be accessed free of charge in the BORIS-D portal.

Example: With a standard land value of €400/m² and a plot of 800 m², the land value is arithmetically around €320,000, before adjustments to the specific plot.