Transfer of Ownership

Transfer of Ownership - In Germany, the transfer of ownership of land and real estate involves two steps: the agreement (Auflassung) between the seller and the buyer before a notary, and the registration of the new owner in the land register (Sections 873, 925 of the German Civil Code (BGB)). Ownership is not actually transferred until the entry in the land register is made - the notarized purchase agreement alone does not yet make the buyer the owner. The entire process typically takes 6-12 weeks after notarization.

Process of Transferring Ownership

1. Notarization (Purchase Agreement with Transfer of Ownership)

The purchase agreement is notarized (§ 311b BGB). As a rule, it already includes the transfer of ownership-the agreement regarding the transfer of title. The notary then initiates the following:

2. Registration of the priority notice of conveyance

Within a few days, the notary applies for the priority notice of conveyance in the land register (Section 883 of the German Civil Code). This protects the buyer: The seller can no longer sell the property to another party or encumber it.

3. Notice of Due Date and Payment of Purchase Price

The notary verifies the prerequisites (permits, waiver of the municipality’s right of first refusal, release from encumbrances) and issues the notice of due date. The buyer pays the purchase price-typically into a notary escrow account or directly to the seller.

4. Transfer of Ownership in the Land Register

Upon receipt of payment, the notary applies for the transfer of ownership in the land register. The buyer is entered as the new owner in Section I-thus completing the transfer of ownership.

Costs of the Transfer of Ownership

Cost Item	Amount	Who Pays
Notary fees	Approx. 1.0-1.5% of the purchase price	Buyer
Land registry fees	Approx. 0.3-0.5% of the purchase price	Buyer
Real estate transfer tax	3.5% in Bavaria	Buyer
Real estate agent’s commission	3.57% (incl. VAT) per party in Bavaria	Buyer and seller split equally

Special considerations: Transfer of possession vs. transfer of ownership

A frequently misunderstood point: Possession and ownership are transferred at different times in real estate transactions. The transfer of possession-that is, the handover of keys and the right to use the property-is individually agreed upon in the purchase contract and typically takes place after the purchase price has been paid. The transfer of title, on the other hand, does not occur until the property is registered in the land registry, which usually takes 6-12 weeks. In the meantime, the buyer is already the economic owner (bearing insurance costs, receiving rental income), but is not yet the legal owner. Under Section 95 of the German Insurance Contract Act (VVG), building insurance automatically transfers to the buyer upon transfer of possession-the buyer should check immediately after the transfer of possession whether the coverage amounts are sufficient.

Practical Tip for Property Owners in Nuremberg and Franconia

The period between the purchase agreement and the transfer of title currently takes approximately 8-12 weeks in Nuremberg-at the Nuremberg Land Registry Office, it may take longer if there is a high volume of applications. During this phase, the priority notice of conveyance is your most important protection as a buyer. We recommend clearly stipulating the transfer of ownership (handover of keys) in the purchase agreement-it should only take place after the seller has received the full purchase price. Make sure that the building insurance is transferred to your name as of the transfer of ownership, and verify that the City of Nuremberg has waived its right of first refusal before you transfer the purchase price-otherwise, the city could exercise its right of first refusal and you would have paid for nothing.

Frequently Asked Questions

When do I actually become the owner of my property?

You only become the owner upon registration in the land registry-not upon signing the purchase agreement and not upon payment of the purchase price. Registration in the land registry typically takes place 6-12 weeks after notarization. However, starting from the agreed date of possession, you already bear the economic burdens and benefits (insurance, maintenance, rental income), even if you are not yet formally the owner. Between the transfer of possession and the transfer of title, the priority notice of conveyance protects you from the seller disposing of the property in any other way.

What happens if the seller dies between the purchase agreement and the land registry entry?

The notice of transfer protects you: The claim to transfer of ownership continues against the seller’s heirs (Section 883(2) of the German Civil Code (BGB)). The notice prevents the heirs from otherwise selling or encumbering the property. The notary will continue to handle the process with the heirs-provided the conditions for completion are met and the purchase price has been paid. In the event of inheritance, however, the process may be delayed by several months due to the application for a certificate of inheritance.

Can I speed up the transfer of ownership?

The biggest time-consuming factor is the processing time at the land registry office. You have little influence over this. However, you can optimize the process: Finalize the financing before notarization so that the purchase price can be paid immediately upon notification of due date. Ensure that the municipality issues the waiver of preemptive rights quickly (in Nuremberg: approx. 2-4 weeks). And avoid complicated encumbrance releases by resolving any existing encumbrances in the land registry before notarization. An experienced notary-there are numerous notary offices in Nuremberg specializing in real estate transactions-will coordinate all deadlines and keep the process moving smoothly.

The transfer of ownership is a multi-phase process in which the transfer of possession and the legal transfer of ownership occur at different times-a frequently misunderstood point that must be taken into account when planning the move-in, insurance, and tax treatment of the property. In the Nuremberg metropolitan region, we guide buyers and sellers through all phases and recommend involving experienced notaries with regional real estate expertise.

What happens during a transfer of ownership in the event of inheritance?

In the event of inheritance, ownership of land and real estate passes to the heirs by operation of law-without a transfer of title and without registration in the land registry (Section 1922 of the German Civil Code). The inheritance itself automatically creates the substantive right. However, an application for the transfer of title must be filed with the land registry within two years of the inheritance, otherwise fees will apply. For the transfer of title, a certificate of inheritance or a notarized will with a record of its opening must be submitted to the land registry as proof of inheritance. In Nuremberg, the attending notary often handles the coordination of the transfer. Anyone wishing to sell or finance an inherited property should arrange for the land registry transfer promptly, as banks and buyers generally insist on a current land registry extract showing the correct owner.

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