In Germany, all real estate transactions must be secured by notarized purchase agreements. The notary charges a fee for this, which is based on the property's value and amounts to approximately 1.5 percent of the purchase price.
Sellers and buyers are free to agree who pays this fee. Usually, it is paid by the buyer.
The notary is obligated to remain neutral towards both parties, seller and buyer. Both can contact the notary if they have any questions. Both you, as the seller, and the buyer have the right to receive their draft contract at least two weeks before the notary appointment. This gives you the opportunity to review the contract details or, in the case of a complex transfer, to consult a lawyer.
Most purchase agreements are standardized contracts. Nevertheless, you should pay particular attention to deadlines associated with the property transfer.
The purchase agreement contains information about the seller and buyer, as well as bank details for the transfer of the purchase price. Furthermore, it must include a property description (cadastral map) and a current land register extract.
When selling a used property, the clause "sold as seen" is usually included. This is because, unlike new builds, which are still under construction by a developer at the time of signing the purchase agreement and come with a 5-year warranty on the building, you are not obligated to provide any warranties when selling a used property.
However, with second-hand buildings, defects are often explicitly included in the purchase agreement, such as damp basements that the buyer discovered during the viewing. This provides you with additional protection.
Furthermore, various dates must be stipulated in the purchase agreement, such as the date of payment of the purchase price and the date of property transfer. Sellers often request that the buyer take over additional items such as kitchen appliances, garden furniture, or heating oil still in the tank and pay for them separately. This should also be included in the purchase agreement. However, these items are not considered when calculating real estate transfer tax.
Do you need help drawing up a legally sound purchase agreement? Contact us now. We'd be happy to advise you.
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