Goodwill

The transaction value (also known as the value in dispute) is the value used to calculate notary fees, court costs, and attorney fees. In Germany, it is governed by the Court and Notary Fees Act (GNotKG) and the Attorney Fees Act (RVG) and generally corresponds to the economic value of the transaction-in the case of a real estate purchase, this means the purchase price. The higher the transaction value, the higher the fees; however, this is not linear but based on graduated fee schedules.

Transaction Value in Real Estate Purchases

When purchasing real estate, the transaction value for the notarial certification of the purchase agreement corresponds to the agreed-upon purchase price (Section 97 GNotKG). This determines the notary fee as a multiple of the base fee. In addition, there are fees for the transfer of ownership in the land register (land registry office), which are also calculated based on the purchase price. As a rule of thumb, total notary and land registry costs amount to approximately 1.5% to 2% of the purchase price.

An overview of the most important fee items when buying real estate:

Transaction	Fee Multiplier	Example for €400,000
Notarization of purchase agreement	2.0 times the fee	approx. €1,870
Priority notice of conveyance	0.5 times the fee	approx. €467
Transfer of ownership	0.5 times the fee (Land Registry Office)	approx. €467
Creation of a land charge	1.0 fee	approx. €935

In addition, there are out-of-pocket expenses (copies, land registry searches, certifications) and sales tax on the notary fees. In total, for a purchase price of €400,000, notary and land registry costs of approximately €6,000 to €8,000 are to be expected.

Transaction Value for Land Charges and Powers of Attorney

When a land charge is created or a declaration of purpose for a land charge is notarized, the transaction value is based on the amount of the registered land charge-not on the purchase price. Banks often require a real estate lien in the amount of 110 to 120% of the loan amount to ensure a margin for interest and ancillary costs. This increases the transaction value of the real estate lien accordingly.

In the case of a general power of attorney for real estate transactions, the notary may set a separate transaction value that reflects the principal’s total assets. For real estate inheritance settlement agreements as well, the market value of the property is considered the transaction value-not the tax value or any agreed-upon purchase price.

Practical Calculation and Cost Transparency

Notaries are required to disclose their fees transparently in accordance with the GNotKG. An overview of the fee schedules can be found in Appendix 1 to the GNotKG (Schedule of Fees). For standard transactions such as the notarization of a purchase agreement, the creation of a land charge, and the transfer of ownership, the notary can issue a preliminary fee estimate upon request. Online calculators provided by the notary chambers allow for an initial estimate of the costs.

If multiple transactions are notarized simultaneously-such as a purchase agreement, the creation of a land charge, and a priority notice of conveyance in a single deed-you do not pay separate fees for each transaction, but rather a combined fee based on the highest individual transaction value. This can reduce the total costs. We recommend discussing with the notary in advance which transactions can be combined.

Transaction Value for Attorney Fees

Attorneys also bill according to the Attorney’s Fees Act (RVG) based on the transaction value unless a different fee has been agreed upon. In real estate purchase law, the transaction value typically corresponds to the purchase price. In the event of a dispute over defects, the transaction value would correspond to the amount of damages claimed.

In the event of a dispute, buyers and sellers should always factor legal fees into their calculations: For a dispute value of 50,000 euros (such as a disputed claim for defects in a Nuremberg condominium), the statutory attorney’s fees for a single instance amount to approximately 2,500 to 3,500 euros-plus out-of-pocket expenses and sales tax. However, an initial legal consultation is often capped at 250 euros and is almost always worth it.

Practical Tip for Property Owners in Nuremberg and Franconia

When purchasing a property in Nuremberg, buyers should factor notary and land registry fees into the ancillary purchase costs from the outset. For a purchase price of 400,000 euros, notary and land registry fees of around 6,000 to 8,000 euros are typically to be expected. We recommend requesting a preliminary fee estimate from the notary early on-notaries are bound by law and cannot negotiate fees, but transparency regarding the expected costs helps with financial planning.

When planning your costs, also keep in mind that real estate transfer tax (3.5% in Bavaria), real estate agent commission (typically 3.57% including VAT in Nuremberg), and notary fees can together drive the closing costs to 7 to 10% of the purchase price. This amount must generally be covered by equity, as banks rarely co-finance incidental purchase costs.

Frequently Asked Questions

Can I negotiate the notary’s fee?

No. Notary fees are regulated by law and cannot be increased or decreased. Every notary in Germany must charge the same fee for the same transaction. Differences between notaries arise, if at all, from the nature of the services provided, not from different fee rates.

What happens if the price stated in the purchase agreement differs from the actual value?

The notarized purchase price is decisive, even if it is below market value. If the contract includes non-monetary ancillary benefits (e.g., assumption of inventory, assumption of liabilities), these are added to the purchase price. Deliberately undervaluing the property is a criminal offense and may result in tax consequences.

Are there additional costs at the notary’s office besides the fees?

Yes. In addition to the notarization fees, expenses (copies, postage, land registry retrieval fees) and sales tax are added to the notary fee. These items are also regulated by law. For complex contracts (e.g., with many attachments or intermediaries), expenses of several hundred euros may arise.

What is the transaction value for a real estate inheritance settlement agreement?

The transaction value is based on the fair market value of the property-that is, the market value at the time of notarization. The tax office and the notary may use an appraisal or current comparable values to determine the fair market value. A value set excessively low may be rejected by the notary.

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