Due Date Notice

A notice of due date is the official letter from the notary who notarized the contract to the buyer of a property, confirming that all contractual conditions for the payment of the purchase price have been met. The purchase price becomes due only upon receipt of this notice-and the buyer is then obligated to make the payment. It is therefore one of the most important documents in the real estate purchase process.

Requirements for the Notice of Due Date

Before issuing the Notice of Due Date, the notary systematically verifies whether all conditions specified in the purchase agreement have been met. Typically, these include:

1. Registration of the priority notice of conveyance: This is entered in the land registry and secures the buyer’s claim to the transfer of ownership. It protects against any encumbrance or double sale of the property by the seller in the meantime.

2. Submission of the negative certificate / municipal waiver of preemptive rights: Municipalities have a statutory right of first refusal in certain circumstances (e.g., for properties in redevelopment areas). The municipality must confirm in writing that it will not exercise this right.

3. Freedom from encumbrances or consent of creditors: If there are still land charges or mortgages from the seller on the property, the seller’s bank must have given its consent to their cancellation.

4. Building permits and other approvals, if applicable: For certain purchases (e.g., agricultural land, properties in redevelopment areas), official permits must be obtained.

5. Consent of the legal representative (for minors or guardianship situations)

Process following the notice of due date

Upon receipt of the notice of due date, the following process typically takes place:

1. The buyer receives the notice (by mail or digitally) with a payment deadline (usually 10-14 days)
2. The buyer transfers the purchase price to the account specified by the seller (or via the notary’s escrow account)
3. The seller confirms receipt of payment
4. The notary initiates the transfer of ownership in the land registry
5. Handover of the property (often at the same time as or shortly after the land registry entry)

Time until the notice of due date: Typical timeframes

The time between notarization and the notice of due date varies considerably depending on the specific circumstances. The following factors determine the duration:

Land Registry Office: The Land Registry Office must enter the priority notice of conveyance. Depending on its workload, this takes between 1 and 6 weeks. During peak periods in the real estate market, the processing time at the Nuremberg Land Registry Office has occasionally risen to 4 to 6 weeks.

Municipal right of first refusal: The municipality generally has two months to exercise or waive its right of first refusal. In practice, the municipality often issues the negative certificate earlier-but the statutory deadline sets the pace.

Redemption of existing land charges: The seller’s bank must prepare the cancellation documents (cancellation authorization) and send them to the notary. This process takes 2 to 4 weeks at some institutions.

Special Cases: In the case of communities of heirs that have not yet fully settled an inheritance, or if a certificate of inheritance is missing, the notice of payment due date may be significantly delayed.

Overall, buyers in the Nuremberg metropolitan area should expect a waiting period of 4 to 8 weeks after notarization before the notice of payment due date arrives.

What is a notary escrow account, and when is it advisable?

In certain cases, the purchase price is not transferred directly to the seller but is first deposited into a notary escrow account (also known as the notary’s trust account). The notary releases the funds only once all conditions-particularly the transfer of ownership in the land registry-have been met.

The notary escrow account offers the buyer maximum security: they pay without running the risk that the seller will receive the money before the transfer of ownership is fully secured. For the seller, however, it means a delay in receiving the funds. The notary escrow account is used less frequently in Germany than in other countries, but is recommended for high-risk transactions (e.g., sales of inherited property with an unclear legal status, foreign sellers).

The costs for the notary escrow account amount to approximately 0.2-0.5% of the managed amount-so for a purchase price of 400,000 euros, that’s 800 to 2,000 euros. These costs are usually borne by the buyer.

Practical Tip for Property Owners in Nuremberg and Franconia

In our work assisting with real estate purchases in Nuremberg and the metropolitan region, we regularly find that the time between notarization and the notice of payment due is underestimated. Typically, 4 to 8 weeks pass-and even longer in redevelopment areas or for agricultural land.

We recommend that buyers obtain their financing confirmation from the bank before the notarization and coordinate the disbursement schedule with the bank. Discuss with your bank how long it takes for the loan to be actually disbursed after the request is made-some banks require up to 5 business days’ lead time. The notaries practicing in Nuremberg handle the requirements professionally and actively communicate progress. As real estate agents, we maintain contact with all parties involved and will inform you if delays are anticipated.

Frequently Asked Questions

What happens if I do not pay on time after receiving the payment notice?

As of the due date, you are in default. The seller may charge late payment interest (5 percentage points above the base rate) and, in the event of continued default, may under certain circumstances withdraw from the purchase agreement-which would make you liable for damages.

Can the buyer pay the purchase price before receiving the notice of due date?

This is legally possible, but not recommended. As long as the priority notice of conveyance has not been entered in the land registry, there is a risk that the seller could encumber the property in another way. Always pay only after receiving the notary’s notice of due date to protect yourself legally.

Why does it take so long to receive the notice of due date?

The main reasons are the processing times at the land registry office and the municipality. The Nuremberg Land Registry Office is responsible for the entire region; during peak periods in the real estate market, the entry of the priority notice of conveyance alone can take 3 to 6 weeks. Added to this is the time required for the municipal clearance certificate (up to 2 months) as well as the preparation of the cancellation documents by the seller’s bank.

Does the buyer’s bank need to see the notice of due date?

This varies from bank to bank. Many mortgage lenders require the notice of due date as a prerequisite for disbursing the loan-they want to ensure that the purchase price is actually due and that the priority notice of conveyance has been registered in the buyer’s favor before they disburse the loan. Clarify this in advance with your lending bank so that you can forward the notice as quickly as possible.

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