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Right of Occupancy - In the context of real estate, the right of occupancy refers to a person’s right to occupy a property-that is, to enter and use it. It generally arises on the contractually agreed-upon date of transfer and requires the transfer of ownership. In a broader sense, the term is also used to refer to the right to receive benefits from an insurance or home savings contract that are intended for real estate financing.

Right of Occupancy in Real Estate Purchases

When purchasing a property, the right of occupancy is governed by the notarized purchase agreement. The buyer generally obtains the right to occupy the property:

• Upon full payment of the purchase price - the notary confirms receipt of payment to the seller
• On the agreed date of transfer - from this date, ownership, use, and encumbrances pass to the buyer
• After key handover - the physical handover documents the transfer of ownership

The right of occupancy is not identical to the transfer of ownership: The buyer may already move into the property even though they are not yet registered as the owner in the land register. The notice of transfer protects their right of expectancy in the meantime. In Nuremberg practice, four to eight weeks or longer may often elapse between the transfer of possession (key handover) and the transfer of ownership (entry in the land register), depending on the workload of the land registry office.

Handover Report and Documentation

When exercising the right to move in-that is, the actual handover of the property-a detailed handover report should be prepared. It documents the condition of the property at the time of handover, all keys handed over, the meter readings for electricity, gas, water, and heating, as well as any existing defects. The report protects both the buyer and the seller from future disputes regarding the condition of the property at the time of handover. We recommend having the report signed by both parties and attaching photos.

Right of Drawdown in Building Savings and Insurance Contracts

In a financing context, the right of drawdown refers to the right to receive benefits under a contract:

• Building savings contract: The right to draw down the building savings loan arises upon allocation-the saver can then draw down the loan funds for their real estate purpose
• Life insurance: In the case of term life insurance assigned as collateral for a real estate loan, the bank has the right to receive the insurance proceeds in the event of death

Timeline from Transfer of Possession to Transfer of Ownership

Phase	Event	Typical duration in Nuremberg
Notary appointment	Purchase agreement notarized, priority notice of conveyance registered	Day 0
Approvals	Tax office: no preemptive rights, clearance certificate	4-8 weeks
Payment of purchase price	Notice of due date from the notary, payment by bank	1-3 banking days
Key handover / Right of occupancy	Transfer of possession after receipt of payment	Day of handover
Land registry transfer	Transfer of ownership after cancellation of the priority notice of conveyance	4-12 weeks after payment

In Nuremberg, there is often a gap of two to three months between the handover of keys and the land registry entry. During this time, the buyer has the right of occupancy (possession and use) but does not yet have registered ownership-the priority notice of conveyance secures their right.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that buyers in the Nuremberg metropolitan area clearly stipulate the handover date-and thus the right of occupancy-in the purchase agreement and link it to full payment of the purchase price. Build in a buffer: It can take one to three banking days between the loan disbursement and the seller receiving the funds. Coordinate the handover date with your move and specify in the contract whether the seller will pay compensation for use in the event of a delayed move-out-typically in the amount of the local market rent for the corresponding period. In Nuremberg, it is advisable to complete the handover report together with the real estate agent or an expert who can professionally document any hidden defects.

Frequently Asked Questions

When can I move into the purchased property?

From the handover date agreed upon in the purchase contract-usually after full payment of the purchase price and confirmation by the notary. You may not enter the property before then unless the seller expressly agrees (e.g., for renovation work prior to moving in). Such temporary access rights prior to the official handover date should also be agreed upon in writing to clearly settle liability issues. Important: Anyone who enters the property before the agreed handover date and causes damage in the process is liable for it as an unauthorized user.

What happens if the seller does not vacate the property on time?

The buyer is entitled to possession of the property as of the agreed handover date. If the seller does not vacate on time, the buyer is entitled to compensation for use and can enforce eviction through the courts. Many purchase agreements contain a clause regarding compensation for use in the amount of the local market rent. In extreme cases, the buyer can obtain the surrender of the property via a preliminary injunction-the process is costly and time-consuming, but it is the last resort for dealing with stubborn sellers.

Can the right to purchase under a home savings contract expire?

The allocation of a home savings contract does not expire automatically, but the saver must accept the allocation within a certain period. If the allocation is not accepted, the home savings bank may offer acceptance again or continue the contract. The exact regulations vary depending on the home savings bank and the plan. Anyone who cannot use their home savings contract promptly for a real estate purchase should check whether the contract remains profitable with an extension or whether terminating it and investing the saved funds elsewhere makes more sense.

What risks do buyers face in the period between the right of possession and land registry entry?

The period between the actual move-in (right of possession) and the formal transfer of ownership in the land registry is not entirely risk-free for buyers. While the priority notice of conveyance protects against new encumbrances by the seller, the buyer is not yet the full legal owner during this phase. Practical risks include: the seller’s insolvency after receipt of payment but before the land registry transfer-in this case, the priority notice secures the claim, but the process is significantly delayed. Additionally, without land registry entry, the buyer cannot yet use the property as collateral for further loans. Even in the context of claims settlements through building insurance, questions of liability may arise regarding who is considered the policyholder between the handover and the transfer of ownership. We recommend explicitly stipulating in the purchase agreement the point in time at which insurance coverage and safety obligations transfer to the buyer, and taking out your own residential building insurance effective as of the handover date.

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