Purchaser

Purchaser - In real estate law, a purchaser is defined as the person or company that acquires a property or a parcel of land for purchase. In the purchase agreement, the purchaser is the buyer; following the notarization of the purchase agreement and registration in the land registry, the purchaser assumes all rights and obligations of the seller as the new owner. The term is found in particular in purchase agreements, in real estate transfer tax law (GrEStG), in the allocation of brokerage commissions, and in condominium law.

Rights and Obligations of the Purchaser

Upon the conclusion of a real estate purchase agreement, the purchaser assumes extensive rights and obligations:

Rights of the Purchaser:

• Right to take possession of the property in the condition agreed upon in the contract
• Right to registration in the land register after full payment of the purchase price
• Right to receive all relevant documents (energy performance certificate, construction plans, condominium association documents, lease agreements)
• Warranty claims for defects in accordance with the purchase contract (often limited in the case of private sellers)
• Right to inspect the land register and all public records pertaining to the property

Obligations of the purchaser:

• Payment of the purchase price by the agreed date
• Payment of real estate transfer tax (3.5% of the purchase price in Bavaria)
• Payment of notary fees (pro-rata or in full, as agreed)
• If a real estate agent is involved: Payment of the agent’s commission (Section 656c of the German Civil Code [BGB]: max. half of the total commission for residential properties)
• Assumption of ongoing operating costs and encumbrances as of the agreed-upon handover date

Buyers in Special Situations

In the real estate industry, the buyer assumes various roles:

Buyers of WEG apartments:

• Automatically joins the condominium association upon registration in the land registry
• Is liable for the previous owner’s outstanding maintenance fee obligations (§ 9a (4) WEG, max. 2 years)
• Should review the minutes of the WEG meetings, the annual financial statements, and the status of the maintenance reserve prior to purchase

Purchaser of new construction from a developer:

• Pays in fixed installments according to the Real Estate Agent and Developer Ordinance (MaBV), depending on construction progress
• Has the right to inspect and claim for defects upon completion of construction
• Is protected by consumer protection laws (right of withdrawal under the German Civil Code (BGB)) in certain cases

Commercial buyer:

• Is subject to different real estate agent commission regulations than consumers
• Faces more complex purchase price payment structures when dealing with real estate companies and limited liability companies (GmbHs)

Due Diligence: What the buyer should check before the purchase

A thorough due diligence review before closing the purchase is recommended for every buyer. The following documents and information should be available:

• Current land registry extract (Sections I, II, and III): encumbrances, easements, land charges
• Energy performance certificate (legal obligation of the seller)
• For condominiums (WEG): minutes of the last three owners’ meetings, current annual statement, budget plan, amount of the maintenance reserve
• List of encumbrances: public-law encumbrances not listed in the land register
• Zoning plan and land-use plan: future rights of use and building rights
• If the property is rented out: all current lease agreements, rent accounts, security deposit receipts

Practical Tip for Property Owners in Nuremberg and Franconia

We assist buyers in the Nuremberg metropolitan region from the search phase through to the handover of keys. Especially important: Obtain a current land registry extract before signing the purchase agreement to identify any encumbrances (mortgages, easements, rights of first refusal). For condominiums (WEG), we also recommend requesting a statement of maintenance fees from the property manager-special assessments shortly after purchase can be costly. The Nuremberg Notary Office provides advice on all aspects of the purchase agreement.

Frequently Asked Questions

When does the buyer become the official owner?

Ownership is transferred upon the buyer’s registration as the new owner in the land register. Until then, they are protected against the seller’s dispositions by a priority notice of conveyance (Section 883 of the German Civil Code). The transfer of possession, benefits, and encumbrances generally takes place upon payment of the purchase price-often before the land registry entry.

Is the buyer liable for the previous owner’s debts?

Generally not-they are liable only for encumbrances registered in the land register (land charges, mortgages) that they assume or must redeem. For condominiums under the Condominium Act (WEG), they are liable for the previous owner’s delinquent maintenance fees for up to two years. The seller’s personal debts do not pass to the buyer.

Can the purchaser withdraw from the purchase agreement?

Generally no-notarized purchase agreements are binding. Rights of withdrawal exist only if an explicit right of withdrawal is agreed upon in the contract, the seller has acted with fraudulent intent, or essential elements of the contract are missing. In the B2C sector (purchase from a commercial seller), consumers may have a right of withdrawal.

What is the difference between a purchaser and a buyer?

In real estate law, both terms refer to the same person-the one who buys a property. The term “purchaser” is the legal-formal term and is found in laws (GrEStG, WEG, GBO), while “buyer” is the term commonly used in everyday language. The term “purchaser” is generally used in the purchase agreement and in the land register.

Real Estate Transfer Tax and the Purchaser’s Tax Obligations

The Real Estate Transfer Tax (GrESt) is one of the largest ancillary costs associated with purchasing real estate. In Bavaria, the tax rate is 3.5% of the purchase price-for a purchase price of 500,000 euros, that amounts to 17,500 euros, which the purchaser must pay to the tax office within four weeks of the purchase agreement. Only after the tax office issues a clearance certificate-proof that the real estate transfer tax has been paid-will the land registry office transfer ownership. Buyers should factor this deadline into their plans and not delay paying the tax, as the clearance certificate is a prerequisite for land registry entry. In certain situations-such as acquisitions in the context of estate settlement or transfers between spouses-tax exemptions may apply. Seeking tax advice in advance is particularly worthwhile for transactions exceeding the €250,000 threshold.

Buyers as Consumers: Special Protective Rights

If a private individual purchases real estate from a commercial seller (e.g., a real estate developer or project developer), special statutory protective provisions apply. In such B2C scenarios, the German Civil Code (BGB) grants extensive warranty rights-warranty for defects, statutory limitation periods of five years for buildings (Section 634a BGB)-and imposes much stricter limitations on standard-form liability disclaimers than those applicable to private sellers. In sales contracts with property developers, the Real Estate Brokerage and Property Development Ordinance (MaBV) also governs the payment structure: The purchaser does not pay the entire purchase price at once, but in installments based on construction progress-a maximum of 13 fixed installments, secured by a bank guarantee or completion insurance. Anyone purchasing from a property developer should have the contract reviewed by an attorney specializing in property development law before signing.

Multiple Purchasers: GbR, Spouses, and Joint Ownership

When multiple people purchase a property jointly, specific legal issues regarding co-ownership arise. Spouses often purchase as co-owners with equal or unequal shares-the corresponding share is entered in the land register next to each purchaser. For unmarried couples or investor groups, it is advisable to enter into a co-ownership agreement that includes provisions regarding use, cost-sharing, right of first refusal, and dispute resolution. If shareholders purchase as a GbR (civil law partnership), the GbR has been entered directly as the owner in the land register since the 2024 GbR reform-with the addition “registered in the commercial register.” We assist with such arrangements in Nuremberg, from drafting the contract to land registry entry, and always recommend seeking legal advice prior to notarization for joint purchases.

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