Legal background and significance
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.