Due date

In real estate and contract law, due date refers to the point in time from which a claim-usually a payment obligation-can be asserted and the debtor is obligated to perform. In the real estate sector, the due date is of central importance, particularly with regard to the payment of the purchase price, loan payments, and the payment of the real estate agent’s commission.

Due Date in a Real Estate Purchase Agreement

When purchasing a property, the purchase price does not become due immediately upon notarization of the purchase agreement. The notary issues a notice of due date to the buyer only after certain conditions have been met:

1. A preliminary notice of conveyance has been entered in the land register (protects the buyer against double sales)
2. All official approvals have been obtained (e.g., a negative certificate regarding the municipality’s right of first refusal)
3. The property is free of any encumbrances (existing land charges have been discharged)
4. The buyer has submitted their financing confirmation to the bank (if applicable)

Only after the notary has confirmed these points does he send the notice of due date to the buyer-thereby setting a payment deadline, typically 14 to 30 days.

Due Dates for Real Estate Loans and Incidental Costs

Loan Interest and Principal Repayment: For construction financing, the monthly payment (interest + principal) is generally due monthly in arrears-i.e., at the end or beginning of the month, as agreed in the loan agreement. Delay in payment from the first day after the due date entitles the bank to charge late payment interest (Section 288 of the German Civil Code (BGB): at least 5 percentage points above the base rate).

Condominium fees (WEG): The monthly advance payment of condominium fees is generally due on the first business day of the month. Special assessments have a due date determined separately by the owners’ meeting.

Brokerage commission: The brokerage commission becomes due as soon as the main contract (purchase agreement) has been notarized and the broker can prove the causal link between their services and the conclusion of the contract.

Default and legal consequences of late payment

The concept of due date is closely linked to the concept of the debtor’s default. Pursuant to § 286 BGB, the debtor is in default if, after the due date has passed, they fail to perform following a demand for payment. In the case of a specific, calendar-based performance period (such as the due date following receipt of the notice of due date), default occurs without further demand-simply by the expiration of the deadline.

The consequences of default in real estate law are severe:

Default interest: The seller may demand statutory default interest at a rate of 5 percentage points above the base rate starting from the first day of default (Section 288(1) of the German Civil Code (BGB)). For a purchase price of 400,000 euros, this corresponds to a base interest rate of currently approx. 2.62%, resulting in default interest charges of around 30,480 euros per year-a significant risk.

Right of withdrawal: If the buyer remains in default after a grace period has been set, the seller may withdraw from the purchase agreement (Section 323 of the German Civil Code (BGB)). This is accompanied by a claim for damages covering costs already incurred (notary fees, real estate agent’s commission, lost sales proceeds in the event of a market downturn).

Enforcement: The notarized purchase agreement is generally an enforceable title if the buyer has agreed in the contract to immediate enforcement. The seller can then enforce the agreement directly without litigation.

Due Dates for Real Estate Transfer Tax and Other Incidental Costs

In addition to the purchase price, other due dates must be observed when purchasing real estate:

Real Estate Transfer Tax: In Bavaria, the real estate transfer tax amounts to 3.5% of the purchase price. The tax office assesses it following notification by the notary and issues the buyer a tax assessment notice with a payment deadline (typically: one month after notification). Payment is a prerequisite for the issuance of the tax clearance certificate, without which the land registry office will not transfer ownership.

Notary fees: The notary’s invoice is issued after the notarization and is usually due within 30 days. Notary fees are strictly regulated under the Court and Notary Fees Act (GNotKG) and are based on the transaction value (usually the purchase price).

Land registry fees: The land registry office issues an invoice after the rights have been registered (priority notice of conveyance, land charge, transfer of ownership)-also calculated in accordance with the GNotKG.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that buyers in the Nuremberg metropolitan area do not wait for the notary’s notice of due date before securing their financing. Experience shows that in Nuremberg, it takes 4 to 8 weeks after notarization for all requirements to be met and the notice of due date to be sent. Those who park their funds in a money market account for a short period can make them available at any time within 1 to 2 banking days.

Contact your financial advisor in a timely manner to avoid the risk of late payment interest. As real estate agents, we actively coordinate communication between the notary, seller, and buyer and inform all parties involved early on about the expected due date. This allows the bank to prepare the loan disbursement in time and prevents the buyer from falling into unnecessary default.

Frequently Asked Questions

What happens if I do not pay the purchase price on time after receiving the due date notice?

As of the due date, you are in default. The seller can claim late payment interest and, in the event of continued default, may even withdraw from the purchase agreement-which would make you liable for damages. The notary will be informed of the default; in the worst-case scenario, you may be liable for damages for all losses incurred by the seller as a result of the default.

When is the real estate agent’s commission due in Nuremberg?

The obligation to pay the commission arises upon the conclusion of the notarized purchase agreement (conclusion of the main contract as a condition). We typically issue our invoice shortly after notarization, with a payment term of 14 days. The commission is independent of the purchase price payment-it becomes due even if the buyer pays the purchase price only after the real estate agent’s commission.

As a buyer, can I delay the due date?

No. The commission becomes due as soon as the conditions specified in the purchase agreement are met and the notary issues the notice of due date. After that, the buyer is contractually obligated to pay. Delays due to personal reasons (e.g., travel, illness) do not relieve the buyer of this obligation-they must take timely precautions to ensure payment can be made within the specified timeframe.

Can the buyer refuse to pay if they discover defects in the property?

A right of retention in the event of discovered defects is generally provided for in the German Civil Code (Section 320 BGB), but is typically excluded or restricted in the real estate purchase contract through notarial wording. The text of the contract is decisive. In the case of defects that were fraudulently concealed, the buyer may still assert their rights-but refusing to pay without legal advice is risky. In such a case, consult a real estate lawyer immediately.

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