Notarised purchase contracts: Everything you need to know
In Germany, notarised purchase contracts are required by law to legally secure property transactions. Notary fees amount to around 1.5 % of the purchase price and are based on the value of the property. The buyer and seller are free to agree who pays this fee, but it is usually borne by the buyer.
Neutrality of the notary
The notary acts neutrally and is obliged to both the seller and the buyer. Both parties can consult the notary if anything is unclear. You also have the right to receive the draft contract at least two weeks before the notary appointment. This allows you to thoroughly check the components of the contract and, if necessary, consult a lawyer.
Contents of the purchase agreement
A standardised property purchase agreement contains the following key information:
- Details of seller and buyer
- Bank details for payment of the purchase price
- Property description (e.g. parcel map)
- Current extract from the land register
In the case of second-hand properties, the clause „bought as seen“ is often inserted to exempt the seller from warranty claims. However, known defects, such as damp cellars, should be explicitly mentioned in the contract in order to create legal certainty.
Important contractual components
In addition to the general information, the purchase contract should also regulate the following points:
- Date of payment of the purchase price: The date on which the purchase price must be paid in full.
- Day of the property transfer: The date on which the buyer takes ownership.
- Additional agreements: Acquisition of items such as kitchen equipment, garden furniture or heating oil.
Note: Items such as furniture or heating oil are not included in the calculation of the property transfer tax.
Why a legally compliant purchase agreement is important
A well-drafted purchase contract protects both parties from legal and financial risks. Particularly in the case of second-hand properties, it protects sellers against subsequent claims and gives buyers clarity about the terms of the purchase.
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Robert Schüßler
Property valuer (EIA and IHK)
Note: This text is for information purposes only and does not constitute legal or tax advice. Please consult an expert if you have individual questions.
