Notary fees

Notary Fees - Notary fees are the legally prescribed charges for notarial services, which are mandatory in real estate transactions. These fees are governed by the German Act on Court and Notary Fees (GNotKG) and are uniformly regulated nationwide, meaning they are non-negotiable and are charged at the same rate by every notary.

Components and Calculation of Notary Fees

When purchasing real estate, notary fees consist of several individual items. The notarization fee represents the largest item and is charged for the preparation and reading of the purchase agreement. It amounts to 2.0 times the full fee according to Fee Schedule B of the GNotKG. Added to this is the execution fee, amounting to 0.5 times the full fee, which the notary charges for handling the purchase agreement-that is, for obtaining permits, deletion authorizations, and correspondence with the land registry and tax office.

The service fee, amounting to 0.5 times the full fee, applies if the notary performs services beyond the mere notarization, such as monitoring the payment of the purchase price via a notary escrow account. Land registry fees are billed separately and are paid not to the notary but to the land registry office. These include the registration of the new owner, the registration of a land charge, and the cancellation of old encumbrances.

As a rule of thumb, the total notary and land registry costs amount to approximately 1.5 to 2.0 percent of the purchase price. For a purchase price of 350,000 euros, this amounts to approximately 2,600 euros for the notary and around 1,750 euros for the land registry office, for a total of approximately 4,350 euros. The exact amount depends on whether a land charge is registered and whether additional services, such as the notarization of a priority notice of conveyance, are required.

Calculation example for a purchase price of 400,000 euros

For a purchase price of 400,000 euros, the full fee according to Fee Schedule B of the GNotKG is 1,070 euros. The notarization thus costs 2,140 euros (2.0 times the base fee), the execution 535 euros (0.5 times the base fee), and the administration another 535 euros (0.5 times the base fee). Together with out-of-pocket expenses and VAT, the pure notary fees amount to approximately 3,800 euros. If a land charge of 320,000 euros is additionally registered, land registry fees for the transfer of ownership (approx. 935 euros) and the registration of the land charge (approx. 635 euros) are added. The total cost of notary and land registry fees in this example is approximately 5,400 euros.

Important: Notary fees are generally borne by the buyer, unless otherwise agreed in the purchase contract. However, both contracting parties are jointly and severally liable to the notary.

Fees for Additional Notarial Services

In addition to the notarization of the purchase agreement, fees for other notarial acts are frequently incurred in the real estate sector:

• Notarization of a mortgage deed: 1.0 times the full fee based on the mortgage amount. For a mortgage of 300,000 euros, approximately 800-900 euros plus land registry fees.
• Priority notice of conveyance: Generally free of charge as a ancillary service to the notarization or included in the execution fee.
• Notarization of a gift agreement: As with the purchase agreement, 2.0 times the value of the gifted property.
• Certification of signatures: Flat fee pursuant to § 45 GNotKG, significantly cheaper than a full notarization.
• Inheritance partition agreement: 2.0 times the full fee based on the value of the transferred share of the inheritance.

If a notary escrow account is used-i.e., the purchase price is processed through the notary’s escrow account-an additional custody fee applies. This model is significantly more expensive than direct payment and is now only recommended in situations involving special risks.

Practical Tip for Buyers in Nuremberg and Franconia

In the Nuremberg metropolitan region, we recommend that buyers include notary and land registry fees in the overall calculation of incidental purchase costs from the very beginning. Together with the real estate transfer tax in Bavaria (3.5 percent) and a potential real estate agent’s commission, the incidental costs amount to 7 to 10 percent of the purchase price. Anyone buying a property in Nuremberg, Fürth, or Erlangen should contact the notary early on, as popular notary offices in the region often require several weeks’ notice for a notarization appointment.

Please note that the notary is a neutral official in a real estate purchase and advises both parties. Special requests, such as a notary escrow account for the purchase price settlement, incur additional costs and should only be chosen if special circumstances require it-such as in complex inheritance disputes, multiple preemptive rights, or unclear land registry situations.

Those who forego a notary escrow account and pay the purchase price directly to the seller after receiving the notary’s notice of due date save the service fee of approximately 535 euros (for a purchase price of 400,000 euros). For straightforward purchase transactions, this approach is now the standard and offers sufficient security, as the priority notice of conveyance protects the buyer.

Frequently Asked Questions

Can notary fees be negotiated or reduced?

No. The fees are set by the GNotKG and are binding nationwide; they may not be exceeded or undercut. There is no price competition among notaries. Savings are only possible indirectly: Those who forego a notary escrow account save on the service fee. Additionally, buyers can check whether a slightly lower land charge is sufficient, as land registry fees depend on the registered amount-though banks typically require a certain buffer above the loan amount.

Who pays the notary fees when buying real estate?

Typically, the buyer bears the notary and land registry costs. This is agreed upon in the purchase contract. However, both the buyer and seller are jointly and severally liable to the notary. This means that the notary can also claim their fees from the seller if the buyer fails to pay. In practice, however, the notary bills the buyer. The costs for removing existing encumbrances on the seller’s property (e.g., an old land charge), on the other hand, are generally borne by the seller.

Are notary fees tax-deductible?

For owner-occupied properties, notary fees are generally not tax-deductible. For rental properties, however, notary and land registry costs can be added to the tax-deductible acquisition costs as incidental acquisition expenses and claimed through depreciation. The costs for registering a land charge are classified as financing costs and are immediately deductible as income-related expenses when the property is rented out-meaning they do not increase the depreciation base but directly reduce the profit.

What happens if a real estate purchase is not completed after notarization?

If the purchase does not go through despite notarization-because one party withdraws or financing falls through-the notary will still charge fees for services already rendered. The notarization fee is incurred upon the reading and signing of the deed, regardless of subsequent completion. Buyers should be aware that withdrawing from a notarized purchase agreement incurs significant costs-and, without a contractually agreed right of withdrawal (e.g., financing contingency), may also trigger liability for damages to the seller.

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