Legal Issues in Germany
After the client chooses the object and decides on its purchase, a purchase and sale agreement is drawn up, which, in particular, specifies the conditions and form of payment.
The preparation and signing of the contract takes place at the German natarius, which conducts the entire transaction from the beginning to the end, including cash payments, obtaining all necessary certificates and permits, and entering the buyer’s property rights into the land registry. Only after that the buyer becomes the owner of real estate in Germany.
When signing the contract of sale, or rather immediately after signing, the buyer makes a deposit to the notary, most often through the bank, on an open account specifically for this transaction. The remaining part of the value of the object can be paid within 28 days to the same account, controlled only by a notary.
From this account, the notary has the right to pay all the seller’s debts with which the selling property is burdened (if there are any debts) in order to relieve it of its encumbrances. All the money remaining on the account, the notary is obliged to transfer to the bank account of the seller after entering the ownership of the buyer in the land registry.
The notary checks the property rights of the seller, receives the municipality’s refusal of the preemptive right to purchase and prepares all the necessary documents. After signing a bilateral agreement with a notary and a 100% payment for the transaction to the said account, the notary sends the documents to Grundbuchamt (the real estate rights registration office).
After entering into the Land Registry a corresponding record about the new owner, the buyer becomes the owner of the acquired object. It takes about two months from the date of full payment of the property value. The buyer receives by mail two copies of a notarized purchase contract.
It is also possible for an additional fee (about 70 euros) to order an extract from the Land Registry with your name on it, but this is not necessary. Although many distrustful Russians order it for their peace of mind. With the subsequent sale it is not needed. Strictly speaking, the contract itself is not needed for the subsequent sale.
And that’s it! No BTI documents, extracts from the house book, etc. Simultaneously with the contract by mail the notary sends the invoice for their services. They range from 0.7 to 1.5% of the value of real estate. Notary fees paid by the buyer.
Since cash payments are made through a notary-controlled account and the seller receives his money after the buyer has acquired the ownership right, fraud in real estate transactions is excluded. For this, you would have to buy a German notary, and for that a million euros is not enough.