Notary and land registry fees when buying real estate

Anyone buying an existing property should definitely factor in the incidental acquisition costs . Experience shows that ancillary purchase costs such as property transfer tax, notary fees, and possibly real estate agent commissions frequently underestimated.

The largest item is the real estate transfer tax, which amounts to five percent of the purchase price in Baden-Württemberg and Rhineland-Palatinate, and 6.5 percent in Saarland.

If you found the property through a real estate agent, they are entitled to a commission of 3.57 percent (including VAT) for their services. Notary and land registry fees are unavoidable, as the sale of real estate is not legally valid without notarization. This also applies to land purchase agreements.

What fees are involved?

Approximately one percent of the purchase price goes toward the notary's fee , which is based on a fixed fee schedule. The costs of the land registry office for the necessary entries in the land register and the change of ownership at the local court account for roughly 0.5 percent.

The land register is a public register that records not only all properties but also the ownership rights to them, including all encumbrances. One such encumbrance is the land charge or mortgage, including the enforcement clause, which the bank uses to secure a loan. It is notarized and registered by the land registry. (Even if you are already the owner and want to take out a more favorable loan with another bank after the fixed interest rate period agreed upon with your current lender expires, this must be recorded in the land register.)

If your financing is already arranged when the purchase agreement is signed, it is advisable to have the mortgage notarized immediately after the contract is signed. Every additional appointment incurs unnecessary costs.

To save costs, you should also agree with the seller not to cancel any existing mortgage on paper, but rather to have it suspended or assigned to you. This is significantly cheaper for both parties than canceling and re-registering it

Canceling a mortgage exceeding €150,000 incurs fees of approximately €300. For a loan of the same amount, the buyer must pay a total of €600 to the notary and land registry for registering the new mortgage. In contrast, assigning the mortgage costs only about a third of these fees.

The exact amount of notary fees therefore depends not only on the purchase price, but also on the details of the notarization.

Therefore, our advice is: Have the notary explain the costs to you before the property purchase is notarized. Explain to the notary what services you expect and which entries in the land register need to be changed or made. If the costs end up being higher than estimated, you should have them itemized.

Notary fee calculators can be found on the internet at www.steuerrechner24.de/notarkosten-rechner/ or at www.finanzrechner-grundbuch.faz.net and elsewhere.

Sources: Federal Chamber of Notaries, Citizen Service

Finanzen.net; faz.net