Property purchase with the notary:
The process step by step.
From the draft contract to registration in the land register: this guide explains how the notarial property purchase process works, when it is safe for you to pay and what ancillary costs arise. Notarisations are carried out by Prof. Dr. Frank Martin at his office in Limburg an der Lahn.
Why the purchase must go through a notary
The purchase of a plot of land, a house or a flat is only valid if the contract is notarised (§ 311b BGB). This is not a mere formality: the notary drafts a balanced contract, advises both parties impartially of the legal consequences and manages the process so that neither party makes an unsecured advance payment – the buyer only pays once acquisition of ownership is secured, and the seller only relinquishes ownership once the purchase price has been paid.
How the property purchase proceeds
1. Draft contract
The notary prepares the draft on the basis of the key details (property, price, handover date, financing). If a consumer is buying from a business, there must generally be two weeks between sending of the draft and notarisation (§ 17 para. 2a BeurkG) – time to clarify questions.
2. Notarisation
At the appointment, the notary reads out the entire contract, explains the provisions and answers questions from both parties. Amendments are possible right up to the end. The purchase only becomes binding once it has been signed and notarised.
3. Securing the buyer
Immediately afterwards, the notary arranges for the entry of a priority notice of conveyance in the land register – this blocks intermediate sales and subsequent encumbrances. At the same time, they obtain the discharge documents from the seller's banks and the municipality's waiver of its right of first refusal.
4. Due date of the purchase price
Once all security requirements have been met, the notary notifies the parties of due date . The buyer pays directly to the seller (or to the bank being paid off) – a notary's escrow account is only necessary in special security situations. The buyer's financing bank pays once its charge on the land has been registered, which is usually notarised at the same appointment.
5. Handover
Upon full payment, possession, use and encumbrances pass to the buyer – from this point on, rents belong to them, and they bear the running costs. Handover of the keys takes place simultaneously.
6. Change of ownership
After payment of the real property transfer tax , the tax office issues the clearance certificate; the notary applies for the change of ownership. Once entered in the land register, the buyer is the owner – usually a few weeks to a few months after notarisation.
What ancillary costs you should expect
In addition to the purchase price, the following are payable: notary and land registry fees totalling approximately 1.5 to 2% of the purchase price (set by law under GNotKG, including the creation of the charge on the land) as well as real property transfer tax – 6% in Hesse, 5% in Rhineland-Palatinate of the purchase price. In addition, there may be estate agent commission. Buyers should budget for around 8 to 10% in ancillary costs overall.
This information is needed by the notary
- Property: address and – if available – land register sheet or flat number; the notary will establish everything else via inspection of the land register.
- Names, addresses, dates of birth and tax identification numbers of the buyer and seller.
- Purchase price and what is included in the sale (kitchen, furniture – can save on real property transfer tax).
- Financing: name of the bank and the amount of the charge on the land for joint notarisation.
- Desired handover date and any particulars (let? rights of way? renovation commitments?).
Briefly answered
How long does the property purchase take from draft to ownership?
From instruction to notarisation usually takes two to four weeks (the two-week review period applies where a consumer is involved). From notarisation to the due date of the purchase price, typically four to eight weeks pass; the final change of ownership follows a few weeks later after tax payment. In total: around two to four months.
Who chooses and pays the notary?
Usually the buyer chooses the notary, as they bear the notary's costs. The fees are set uniformly by law throughout the country – every notary costs the same. The notary is not a one-sided representative of the buyer but an impartial adviser to both parties.
Is the reservation with the estate agent binding?
No. Before notarisation, neither party is bound – neither by reservation agreements nor by deposits, which are even risky without notarial form. A binding obligation only arises with the notarised purchase contract.
When do I have to pay – and is my money safe?
Only once the notary notifies the due date: at that point, the priority notice has been entered, the discharge of encumbrances is secured and the municipality's right of first refusal has been clarified. Your acquisition of ownership is legally secured at this point – which is why direct payment to the seller is the standard statutory procedure.
What happens to the seller's debts in the land register?
Registered charges of the seller are paid off out of the purchase price: the notary requests the bank's discharge consent, and the corresponding part of the purchase price is paid directly to that bank. The buyer acquires the property free of encumbrances – the notary oversees this.
Your property purchase – handled securely.
Conveniently submit the key details in the digital data sheet; we will prepare the draft and arrange the appointment.