Notary Real Estate Law Berlin

In this second step, we prepare the draft contract. Notary Franke takes the individual wishes of all parties into account. Any requests for amendments can be made at any time at no additional cost. We will then agree on a notarisation appointment with you and all parties involved.

In many cases where contracts are concluded between businesses and consumers, the law requires a 14-day reflection period for the protection of the buyer. At least two weeks must therefore pass between the sending of the purchase agreement and the appointment for the binding signature. The contract may not be notarised before this period has elapsed.

A further particular feature of buying and selling property is that the buyer does not automatically become the owner upon payment of the purchase price and handover of the keys, as is the case with everyday goods. The buyer only becomes the legal owner once they have been entered as such in the land register. We handle the many intermediate steps required during this interim period on your behalf.

The buyer naturally wishes to make payment only once they can be certain that unencumbered ownership of the house, apartment, or land will pass to them securely. For this reason, the notary will include certain conditions in the purchase agreement that must be fulfilled before the purchase price falls due. Only once all specified requirements are met does the buyer become obliged to pay. We are happy to obtain all necessary official, court, and private documents on your behalf, and can of course also be instructed to submit all required applications for you. Once Notary Franke has all required documents in hand, we will notify the buyer accordingly. This is known as the due date notification (Fälligkeitsmitteilung). After this point, you as the buyer can safely transfer the purchase price.

An alternative is the use of a notary escrow account, to which the buyer transfers the purchase price. The funds held in the account do not belong to the notary but are merely administered by them. The notary, together with the buyer and seller, sets out in the purchase agreement the conditions that must be met before the amount is transferred to the seller. This option is now used only in exceptional cases, however, as it incurs additional costs and contractual safeguards are sufficient in most situations.

Under German law, a creditor must first obtain a court judgment before being able to enforce a claim against a debtor’s assets – a process known as forced execution (Zwangsvollstreckung). This process is not only time-consuming but also typically expensive. For this reason, both the seller and the lending bank generally require additional security from the buyer. A notarial acknowledgement of debt is included in the purchase agreement between seller and buyer. In connection with the land charge registration, the buyer submits themselves and all of their assets to immediate forced execution in favour of the financing bank, in the event that they are unable to repay the loan. The creditor – whether seller or bank – therefore does not need to go through the lengthy and costly court process to enforce their claims. They simply contact us and receive an enforceable copy of the purchase agreement, which – just like a court judgment – allows them to enforce claims against the buyer’s assets.

Unlike everyday goods, a house, apartment, or plot of land is not transferred upon handover of the keys. Legal ownership is only acquired once the buyer has been entered in the land register, which can take some time. In some cases, the parties therefore agree that the buyer may use the property as if they were already the owner before the formal registration takes place. This is known as economic transfer. From that point, all costs and obligations associated with the property are borne by the buyer – for example, property tax, insurance premiums, and duties such as winter maintenance. In return, the buyer may use the property for residential purposes and also receives any income generated by it, such as rental income. The date of economic transfer is set by your notary in the purchase agreement. In most cases, the purchase price must already have been paid before the buyer receives the keys or access to the property.

Regardless of the economic transfer, it is naturally not in the seller’s interest to give up ownership of the house, apartment, or land before the buyer has paid the purchase price. The purchase agreement therefore typically includes a provision that only permits the notary to apply for the transfer of ownership in the land register once proof of payment of the purchase price has been provided.

Unlike movable everyday objects, a house, apartment, or plot of land cannot be handed over physically. In the case of real estate, the concept of conveyance (Auflassung) is therefore used: both parties – buyer and seller – declare in writing their intention to transfer ownership.