Purchasing property in Germany requires notarial certification. This article explains the complete process from initial contact to the transfer of ownership in the land register.
Why Is Notarial Certification Required for Property Purchases?
In Germany, § 311b Abs. 1 BGB stipulates that contracts for the sale or acquisition of land require notarial certification. Without such certification, the purchase agreement is void. Notarial certification serves to protect both contracting parties and ensures that all legal requirements are met.
Step 1: Preparation and Document Compilation
Before the actual certification appointment, various documents must be gathered. These typically include:
- A current land register extract
- Details of the contracting parties (full names, dates of birth, addresses, tax identification numbers)
- Information about the property (plot size, buildings, condominium declaration where applicable)
- Details of the financing and purchase price
- Any existing encumbrances, easements or building obligations where applicable
The notary's office frequently provides data collection forms that facilitate the structured compilation of the required information.
Step 2: Drafting the Purchase Agreement
On the basis of the information provided, the notary's office prepares a draft purchase agreement. This draft is sent to both parties at least two weeks before the certification appointment. This period is required by law where a consumer is involved (§ 17 Abs. 2a BeurkG) and is intended to ensure sufficient time for review.
The draft agreement contains, among other things:
- Identification of the contracting parties and the subject of the purchase
- Purchase price and payment terms
- Provisions on handover and transfer of risk
- Warranty provisions
- Priority notice of conveyance and transfer of ownership
- Provisions on existing encumbrances
Step 3: The Certification Appointment
At the certification appointment, the notary reads the entire contract text aloud. Both parties have the opportunity to ask questions and discuss changes. The notary is obliged to remain neutral and advises both sides equally.
After the reading and any amendments, the agreement is signed by both parties and the notary. The notary authenticates the signatures and certifies the agreement.
Step 4: Processing after Certification
After certification, the notary's office handles the processing of the agreement. This typically includes:
- Priority notice of conveyance: The notary applies to the land registry for the registration of a priority notice of conveyance in favour of the buyer. This secures the transfer of ownership.
- Payment notification: Once all prerequisites are fulfilled (in particular the registration of the priority notice of conveyance and the submission of any official approvals), the notary notifies the buyer that the purchase price is due.
- Payment of the purchase price: The buyer transfers the purchase price directly to the seller or to a notary escrow account.
- Transfer of title: After receipt of the purchase price and confirmation by the seller, the notary applies for the transfer of ownership in the land register.
Step 5: Transfer of Ownership
The transfer of ownership is only completed upon the registration of the buyer in the land register. In practice, several weeks to months typically elapse between certification and the transfer of title. The priority notice of conveyance protects the buyer during this transitional period.
What Costs Are Involved?
Notary fees are governed by the Gerichts- und Notarkostengesetz (GNotKG) and are linked to the purchase price. In addition to notary fees, land registry charges apply. As a guide, for a purchase price of 300,000 euros, total notary and land registry costs of approximately 1.5 to 2 per cent of the purchase price should be expected. An individual cost overview can be requested from the notary's office in advance.
Guidance for Buyers and Sellers
- The two-week review period for the draft agreement should be used to clarify any open questions.
- All encumbrances registered in the land register should be reviewed before certification.
- Financing should be secured before the certification appointment, as the purchase agreement creates binding payment obligations.
- Real estate transfer tax is assessed by the tax office after certification and must be paid by the buyer.
