What you should look out for in a property purchase agreement
A number of things need to be considered in order to complete a property transaction correctly. If you are thinking about the purchase contract, you have probably already completed the negotiations and are close to the notary appointment. But what agreements and details in the contract do you need to pay attention to in order to avoid any disadvantages?
The purchase contract forms the basis for the settlement of every property transaction. When a house or flat changes hands, the buyer and seller enter into a binding agreement.
What is the role of the notary?
- The purchase contract must be notarised in order to be legally binding.
- Notary fees amount to approx. 1.5 per cent of the purchase price and are usually borne by the buyer.
- The notary is obliged to remain neutral and advises both parties.
When should you have the purchase contract?
- The draft contract must be available to both parties at least two weeks before the notary appointment.
- This enables a review, if necessary by a lawyer.
What should be in the purchase contract?
- Details of seller and buyer, including bank details.
- Property description (parcel map) and current extract from the land register.
- Clauses such as „bought as seen“ for second-hand properties.
- Listing of any defects in used buildings.
- Determination of handover dates and special agreements (e.g. furniture taken over, heating oil).
- Special items such as furniture are not included in the calculation of real estate transfer tax.
Further information:
- Property purchase agreement on Wikipedia
- Number of owner-occupied homes sold in Germany
- Purchase price on Wikipedia
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
