Sales Contract (Notarized)

A notarized purchase agreement is the legally binding document through which ownership of a property is transferred. According to Section 311b of the German Civil Code (BGB), notarization is mandatory for the purchase of land or a property-a written or oral purchase agreement alone is void. The notary is not a representative of either party, but rather a neutral public official who protects the interests of both sides, explains the legal situation, and ensures that the transaction is carried out without error.

Notarization Process

The process consists of several steps: (1) Preparation: The notary drafts the purchase agreement based on information provided by both parties; this draft is sent to both parties in advance (at least two weeks prior to notarization for consumers). (2) Notarization appointment: The notary, buyer, and seller (or authorized representatives) meet; the notary reads the contract in full, explains the legal consequences, and clarifies any open questions. (3) Signing: All parties sign; the notary also notarizes and signs. (4) Execution: The notary arranges for the registration of the priority notice of conveyance, the cancellation of any encumbrances, and, following payment of the purchase price, the transfer of ownership in the land register.

Essential Contents of the Notarized Purchase Agreement

A complete purchase agreement contains: a precise description of the subject matter of the sale (parcel number, land register page, living area), purchase price and due date, date and condition of transfer, disclaimers of liability for material defects (to the extent permitted), provisions regarding existing lease or tenancy agreements, powers of attorney and declaration of conveyance, as well as provisions regarding costs (notary, land registry, real estate transfer tax). Deviations from statutory provisions must be expressly agreed upon.

Role of the Notary and Buyer Protection

The notary is obligated to remain impartial. They check the land register for encumbrances, explain the tax implications, and ensure that the purchase price is not paid until all conditions are met (simultaneous performance principle). In developer contracts, the MaBV (Real Estate Brokerage and Developer Ordinance) protects the buyer from making advance payments without appropriate safeguards. In a standard real estate purchase, the notary coordinates the transaction via a notary escrow account or through a direct notice of due date.

Special Clauses and Agreements

In addition to the standard content, a notarized purchase agreement often contains individual agreements negotiated between the parties. These include rights of withdrawal (e.g., in the event of a failed financing commitment), provisions regarding the assumption of lease agreements for rented properties, and agreements regarding included fixtures and fittings (built-in kitchen, garden tools, heating system). These provisions must be carefully worded: Anything not included in the notarized purchase agreement is not legally binding-verbal agreements are of no use after notarization.

When purchasing a rented property, the so-called transition clause is also important: It specifies when the buyer begins receiving rent payments, when operating costs are assumed, and how to handle the current utility bill settlement. The principle “Purchase does not terminate lease” (Section 566 of the German Civil Code) means that the buyer automatically assumes all existing lease agreements-this provision protects tenants but also imposes obligations on the buyer.

Notary Fees and Their Calculation

Notary fees are governed by the Court and Notary Fees Act (GNotKG) and are uniformly regulated nationwide-therefore, comparing prices among notaries rarely results in savings. The fees are calculated based on the purchase price. For a purchase price of €300,000, notary fees amount to approximately €1,500-2,500 (including notarization, priority notice of conveyance, and title transfer). In addition, there are land registry fees of approximately €800-1,500. In total, notary and land registry costs amount to 0.8-1.5% of the purchase price. These costs are generally borne by the buyer; the costs for removing encumbrances on the seller’s title are usually borne by the seller.

Practical Tip for Property Owners in Nuremberg and Franconia

There are numerous experienced real estate notaries in Nuremberg and Franconia. We recommend that buyers and sellers carefully review the draft contract-ideally with legal counsel-before attending the notarization appointment. Be sure to ask for clarification if any clauses are unclear; the notary is obligated to explain them.

Important to know: In Nuremberg, the registration of the priority notice of conveyance by the land registry office currently takes several weeks. This is the time that elapses between notarization and the due date for the purchase price. Use this period to submit all documents for bank financing and to meet the disbursement requirements. A delayed receipt of the purchase price can trigger late payment interest. At my-home.de, we guide you through the entire sales process and are at your side with expert advice up to the notary appointment and beyond.

Frequently Asked Questions

Can I still request changes to the purchase agreement at the notary appointment?

Generally, yes-the notary is obligated to accommodate your requests, provided they are legally permissible. However, last-minute changes may delay the appointment or require a new draft. That is why it is important to thoroughly review the draft in advance and report any requested changes in a timely manner.

What happens if one party wishes to withdraw from the purchase agreement after notarization?

A notarized purchase agreement is generally binding. A right of withdrawal exists only if it was contractually agreed upon (e.g., a condition precedent for a financing commitment) or if there are statutory grounds for withdrawal (e.g., fraudulent misrepresentation). Unilateral withdrawal without a contractually agreed right may result in liability for damages.

Who pays the notary fees-the buyer or the seller?

Typically, the buyer bears the costs for notarization, registration of the preliminary transfer of title, and transfer of ownership. The seller bears the costs for the cancellation of their own encumbrances (e.g., land charges). This allocation of costs is a matter of negotiation and may be regulated differently in the purchase agreement.

Can the notarized purchase agreement be rescinded if defects are discovered only after the purchase?

That depends on the agreed warranty exclusion. In Germany, real estate is usually sold with an exclusion of liability for material defects. However, rescission is still possible if the seller fraudulently concealed a known defect (Section 444 of the German Civil Code (BGB))-in this case, the exclusion of liability does not apply. It is therefore advisable for buyers to have a professional inspection conducted by a building expert prior to notarization to uncover hidden defects before the contract is signed.

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