Buying Property in Germany

Your journey into one of the most stable, fast-growing Markets in Europe..

The first question you should ask is “Why Germany”?

As most of the world has known for decades, Germany is the economic powerhouse that powers Europe. Modern infrastructure, education and healthcare systems ensure stability in times of crisis. If there is a mechanical heart of Europe, then Germany is it.

Background

Buying property in Germany is probably different than what you are used as an International Buyer. The differences are often simple to highlight, but complex to explain. Our goal is not to treat you like a dummy, we want you to understand the differences and how we can work with you to overcome any obstacles. After years of experience we aim to make this process as simple and as clear as possible while always remaining true to our obligations to provide sound legal security to both sides of the transaction.

Buying German property is a structured process that has minimum risk and exceptional security of title. The security aspect is achieved by using a network of long-established Civil Law Notaries. A sale of property is only legally recognised in Germany when authenticated by a German Civil Law Notary. At GermanHouses.de we have developed a strong relationship with key Notaries across Germany, enabling us to facilitate transactions across the Country.

Once the property is sold we offer our Customer up to six-months-free of Property Management Service to manage the work required with the Civil Law Notary to ensure that the various stages required by law are concluded and we reach the key-handover stage. After this stage, based on individual requirements, the Property Management Service can be extended at favorable Customer rates.

A Brief Overview of the Process

There are in general two defined “phases” to a German purchase agreement. At the point that the Buyer and Seller agree to the terms of a sales agreement the German Civil Law Notary, or “Notar” is approached to provide a sales draft for review of all the parties. A Notar is a trained legal professional who is appointed by the state to legalize, among other tasks, purchase agreements. Once the draft is approved an appointment is set up and both the Buyer and Seller are required to attend before the Notary in person or by representative.

Before the appointment the Notar will check the contents of the Land Register to ensure the Seller is entitled to sell the subject matter of the contract to the Buyer- this step is similar to a title check. It is important to know here that the Notar does not represent the interests of either the Seller or the Buyer- the Notar represents the interests of the State and ensures that the contract is executed fully in compliance with German conveyance statutes and to the safety of all parties involved. The fees of the Notar are based on the value of the transaction and are regulated across the country ensuring fair and equal access to services. Only a Notar is legally allowed to execute a purchase agreement in Germany.

Once the contract has been executed the Notar and their staff then get to work in notifying the various authorities of the sale. This first phase of the contracting process ends upon the successful entry of a Priority Notice (Auflassungsvormerkung) on behalf of the Buyer in the Land Register. This Priority Notice ensures the sale is secure between the parties and signals the date of economic transfer from the Seller to the Buyer unless otherwise negotiated.

The second and final phase of the conveyance concludes with the removal of the Seller’s name from the Land Register and the registration of the Buyer as official owner.

The first phase of the conveyance usually takes between 6 to 8 weeks depending on the geographic location of the subject matter; Phase 2 can take another 8 to 12 weeks. The Notary is always available to all parties of the contract to inform on status.

From time-to-time we will offer articles detailing various aspects involved in the process of buying property in Germany. These articles are intended to be general information guides and do not represent specific legal advice.