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Isar Estate

Founder: Dipl.-Kfm. Christian Dürr

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    Notarial purchase contract for real estate: What you need to pay attention to

    Notarial contract of sale for real estate

    Are you planning to buy or sell a property? In order to execute this legally, a notarial certification is required in accordance with § 311b of the German Civil Code (BGB). The notarized contract of sale for real estate specifies all important key points of the real estate purchase. The purchase contract is intended to protect both buyer and seller and ensure that all details of the purchase are legal and binding. Therefore, in preparation for the notary appointment, it is important for you to determine which aspects should be included in the notarized purchase agreement.

    In our blog article we will show you the most important aspects for a notarized purchase agreement in real estate.

    Preparatory tasks of the notary for the purchase of real estate

    The notary has to act as a neutral party between buyer and seller. He clarifies all legal details, regulates the respective rights and obligations of both contracting parties and drafts the notarial purchase agreement in advance. In doing so, the notary must appreciate the interests of all parties to the contract and formulate the purchase agreement in a legally balanced manner. The drafting of the contract should also ensure that the seller's property is not transferred to the buyer until full payment has been made and that the buyer becomes the owner of the purchased property after the purchase price has been paid.

    Preparations on the part of the buyer and seller for the purchase

    Before you sign a notarized purchase agreement, you should make some preparations. As a buyer, you should have dealt with all relevant aspects concerning the property and take care of securing financing if you want to purchase the property partly with borrowed capital. As a seller, you should have the creditworthiness of the buyer checked and think through all the modalities of the transfer. The parties to the contract should also discuss which inventory is included in the purchase price. For the buyer, it makes sense that the acquired inventory and its value is listed in the notarized purchase contract, since he does not have to pay real estate transfer tax for this part of the purchase price if the value is realistically determined.

    Prior to the purchase, a reservation agreement or a preliminary purchase agreement may be concluded, depending on the circumstances. A reservation agreement serves to provisionally reserve the desired property until the conclusion of the purchase contract and to ensure that no other interested party submits an offer for the property. However, this does not provide absolute certainty for either the buyer or the seller that the notary appointment to sign the purchase agreement will actually take place. A reservation agreement is a non-notarized letter of intent, sometimes backed up by a reservation fee paid by the buyer. The reservation fee should not exceed 10% of the broker's commission.

    A preliminary purchase agreement, on the other hand, is a notarized legal commitment to conclude a purchase contract and already lists essential points of the purchase contract. Due to the considerable amount of notary fees for a preliminary purchase agreement, it is rarely concluded

    Signing of the purchase contract at the notary appointment

    During the notary appointment, the notary reads the entire purchase agreement to the contracting parties. If minor changes are requested, the notary can usually add them to the contract immediately, provided both parties agree. The purchase agreement is then signed by the contracting parties and the notary. Once signed and notarized, the contract can no longer be rescinded, with the exception of a few special cases.

    In Bavaria, the notary receives a notary fee of around 1.5 percent of the purchase price. The costs for this and for the new registration of a land charge are borne by the buyer. However, the seller bears the costs for the deletion of the seller's land charge already entered in the land register or other existing encumbrances.

    The contract should include

    A contract of sale for real estate is more extensive than a standard commercial contract. It is therefore important to be precisely informed about the contents. We have compiled a checklist for you with the most important regulations that should be included in a purchase contract:


    Personal data of the parties involved, such as name and address


    Land register and property status, such as registered land charges and rights of way


    Description of the object of purchase with location, condition, existing defects


    Co-sold inventory and its value


    Purchase price, payment terms and payment deadlines


    Encumbrances such as mortgages and rights of use




    Conditions and dates for the transfer of ownership and possession


    Default interest

    What happens after the signing of the purchase contract?

    After signing the purchase agreement, there are still a few steps to be taken before ownership is transferred. It is important that the purchase price payment is not due until certain requirements have been met. These include the registration of the priority notice of conveyance in the land register, the deletion approval for the cancellation of any land charge of the seller and, if applicable, the consent of the property management as well as the waiver of the pre-emptive right on the part of the pre-emptor.

    Only when all the conditions specified in the purchase contract have been fulfilled does the notary make the purchase price due. After the due date of the purchase price, the buyer usually has between 10 and 20 days to pay the purchase price in full. Often, the date of full payment of the purchase price is also the cut-off date for the transfer of possession to the buyer, as well as for the accrual of property tax, house payments and any rental income.

    Note that the notary applies for the transfer of ownership only after the purchase price and the land transfer tax have been paid. The final registration of the new owner takes between two and three months at some land registry offices.


    As a real estate buyer, you do not have some rights as soon as possession is transferred, but only when you are entered in the land register as the new owner. These include your rights against the tenant from a tenancy taken over with the purchase.

    Conclusion: No purchase without a notarized purchase agreement

    For the legally effective purchase of a property, the signing of a notarized purchase agreement is essential. Whether a reservation agreement or a notarized preliminary purchase agreement makes sense depends on the individual circumstances. The preparation of the notary appointment is also an important and time-consuming step in the sales process and should be well thought through.

    In case of little experience or lack of time capacity, it is recommended to hire a professional broker for the sale of a property, who will accompany the entire sales process and assist in the preparation of the notary appointment. A good broker is also the interface between the notary's office and the contracting parties, he maintains communication and accompanies you throughout the entire sales process.

    Founder Christian Dürr

    We at Isar Estate have profound knowledge of the real estate market in Munich and the surrounding area and will be happy to provide you with personal advice, also on the subject of notarized purchase agreements.

    Feel free to contact us!



    +49 (0) 89 901 697 46


    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

    Image credits: Adobe stock photos, Patrick Daxenbichler, 220289342