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Founder: Dipl.-Kfm. Christian Dürr
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The priority notice of conveyance is a central element in German land and real estate law and provides legal protection for the buyer of a plot of land or property.
This protection is particularly relevant in the period between the notarization of the purchase agreement and the entry of the buyer as the new owner in the land register. In this phase, there is a risk that the seller could still sell or encumber the property or the property on it to a third party, which would lead to considerable legal disadvantages for the buyer. To counteract this risk, the priority notice of conveyance is entered in the land register.
This entry ensures that no dispositions are made of the land or property during the transitional period that conflict with the rights of the buyer. It renders ineffective all subsequent dispositions that could impair the buyer's rights.
Once the transfer of ownership has been completed and the buyer has been entered in the land register as the new owner, the priority notice of conveyance has fulfilled its protective purpose and can therefore be deleted. Further details and information on this topic can be found in the following section.
In the context of land and real estate transactions, a priority notice of conveyance can offer the following advantages for the buyer:
The notary's office will only ask you as the buyer to transfer the agreed purchase price to the seller once certain requirements have been met. One of these requirements is confirmation from the land registry that the priority notice of conveyance has been entered in the land register.
The legal provisions on priority notice of conveyance are set out in the German Civil Code (BGB), in particular in sections 883 to 888. These sections define the nature and effects of the priority notice of conveyance. The conveyance, i.e. the agreement on the transfer of ownership, is specifically regulated in Section 925 BGB .
While the conveyance represents the actual transfer of ownership, the priority notice of conveyance protects the buyer from detrimental changes between the conclusion of the contract and the entry of the transfer of ownership in the land register.
A priority notice of conveyance is entered in the land register to secure the buyer's claim to the transfer of ownership agreed in the notarized purchase contract. This entry offers the buyer protection against the risk of the seller selling the land or property to a third party again after the contract has been concluded.
The relevance of the priority notice of conveyance in the context of property law is enormous. It guarantees legal security for the buyer and ensures that the transfer of ownership agreed in the purchase contract is carried out. This primarily includes protection against unlawful double sales by the seller and against the encumbrance of the land or property with third-party rights, such as mortgages. The priority notice of conveyance is therefore a decisive instrument for effectively protecting the interests of buyers in real estate law.
The registration of the priority notice of conveyance is carried out according to a fixed procedure, the process of which is described in more detail here.
First of all, the purchase of a plot of land or property must be notarized. Only then can the priority notice of conveyance be registered. The notary's office also takes care of submitting an application for registration of the priority notice of conveyance to the land registry. The land registry checks this application and the notarization to ensure that all the necessary conditions for registration have been met.
After successful verification, the priority notice of conveyance is entered in the land register. This entry documents the buyer's claim to the transfer of ownership of the property, including any real estate on it. As soon as the buyer is entered in the land register as the new owner, the priority notice of conveyance is usually deleted.
1
Legal protection in the transitional phase: The priority notice of conveyance protects the buyer between the notarization of the purchase contract and the entry in the land register.
2
Prevents double selling: It prevents the seller from selling or encumbering the land or property to third parties.
3
Legal security: Secures the buyer's claim to transfer of ownership and minimizes legal risks.
4
Legal basis: Regulated in Sections 883 to 888 BGB, with conveyance specifically defined in Section 925 BGB.
5
Automatic deletion: Deleted from the land register as soon as the buyer is registered as the new owner.
6
Conflict minimization: Reduces potential disputes between buyer and seller.
Do you have questions about the priority notice of conveyance? Let an experienced real estate agent from Munich advise you. We at Isar Estate will listen to you carefully and give you individual recommendations for action. Get in touch with us. We look forward to getting to know you.
Disclaimer
Despite careful research and checking of the sources, the author assumes no liability for the accuracy and completeness of the information presented. In case of unclear legal and tax questions, it is advisable to consult a lawyer and/or tax advisor for clarification.
Author: Dipl.-Kfm. Christian Dürr
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