Notary fees

Notary Fees - Notary fees are the legally prescribed charges incurred for the notarization of real estate transactions by a notary. They include the notarization fee for the purchase agreement, the execution fees for the transaction, and the administrative fee, and are set forth in the German Act on Court and Notary Fees (GNotKG).

Fee Structure and Calculation

Notary fees are based on the transaction value, which is generally the purchase price of the property. The GNotKG establishes a fixed fee schedule for each transaction value-notaries may neither grant discounts nor charge higher fees. The costs consist of several individual items:

The notarization fee for the purchase agreement is 2.0 times the full fee according to Fee Schedule B of the GNotKG. In addition, there is an execution fee amounting to 0.5 times the full fee for obtaining and monitoring necessary approvals, deletion authorizations, and land registry declarations. If a land charge is notarized to secure the bank loan, a separate notarization fee equal to 1.0 times the full fee applies, with the transaction value being the amount of the land charge.

In addition, the notary charges the administration fee (0.5 times the full fee) for processing the purchase price payment via a notary escrow account, provided such an arrangement is agreed upon. In practice, however, direct payment is often handled today via a notice of due date from the notary, so the notary escrow account and the associated administration fee are not required.

Land Registry Costs as Part of the Total Expense

In addition to the notary fees themselves, land registry costs are incurred at the local court, which are often considered a single item together with the notary fees. The registration of the new owner costs 1.0 times the full fee based on the transaction value; the registration of a land charge also costs 1.0 times. Priority notices, cancellations, and changes in priority incur additional fees.

As a rule of thumb: Notary and land registry costs together amount to approximately 1.5 to 2.0 percent of the purchase price. For a property with a purchase price of 400,000 euros, this amounts to approximately 6,000 to 8,000 euros.

Overview of typical notary fees for a 400,000-euro purchase price:

Item	Factor	Amount (approx.)
Notarization of purchase agreement	2.0x	2,140 euros
Execution fee	0.5x	535 euros
Custody fee (notary escrow account)	0.5x	535 euros
Land registry - transfer of ownership	1.0x	935 euros
Land registry - mortgage registration (€320,000)	1.0x	€635
Expenses, VAT	flat rate	approx. €300
Total costs (approx.)		approx. €5,100

This table is for guidance only-actual costs may vary slightly depending on the region, notary, and specific transaction details.

Who bears the notary fees?

Under Section 448 of the German Civil Code (BGB), the legal principle is that the buyer bears the costs of notarizing the purchase agreement. In practice, this is expressly stipulated in the notarized purchase agreement. As a general rule, the buyer covers all notary and land registry fees, with the exception of the costs for removing encumbrances on the seller’s property-such as an existing land charge that the seller is paying off. However, both parties are jointly and severally liable to the notary, which is why the notary can also seek payment from the seller if the buyer defaults.

Notary Fees as Ancillary Purchase Costs

When planning financing, notary fees are considered part of the ancillary purchase costs that buyers must cover with their own funds (banks generally do not finance ancillary costs). The total incidental costs for purchasing real estate in Bavaria consist of:

• Real estate transfer tax: 3.5% of the purchase price
• Notary and land registry fees: approx. 1.5-2.0%
• Broker’s commission: typically 3.57% (including VAT) per party when split equally

For a purchase price of 400,000 euros, the incidental purchase costs amount to approximately 34,000-38,000 euros-a significant sum that buyers must factor into their planning.

Practical Tip for Nuremberg and the Metropolitan Region

For real estate transactions in the Nuremberg metropolitan region, we recommend involving a notary early in the purchase process. Many notary offices in Nuremberg, Fürth, and Erlangen offer a non-binding initial consultation during which the estimated costs are broken down transparently. Since the fees are set by law, the choice of notary does not affect the total cost-but it does affect the quality of the advice and the speed of the transaction.

We also advise requesting a written breakdown of notary fees before the notarization and comparing it with your own financial calculations. This way, you can avoid surprises when the purchase price is due. Especially when equity is limited, it is important not to underestimate the actual ancillary costs-experience shows that first-time buyers regularly underestimate this item.

Frequently Asked Questions

Can I deduct notary fees from my taxes?

For owner-occupied residential property, notary fees are not tax-deductible. The situation is different for rental properties: Here, notary and land registry fees related to financing (such as the creation of a mortgage) can be claimed as business expenses against income from renting and leasing. The notarization costs of the purchase agreement itself are considered incidental acquisition costs and increase the tax base for depreciation.

How long does the notary process take?

It usually takes six to twelve weeks between the notarization of the purchase agreement and the entry of the new owner in the land registry. The notary first ensures the priority notice of conveyance is entered in the land registry, obtains the necessary approvals, and then issues the notice of due date for the purchase price payment. Upon receipt of the purchase price, the notary initiates the transfer of ownership. In some cases-such as when approvals are delayed or the land registry office is overwhelmed with applications-the process can take as long as three to four months.

What is the separate cost of notarizing a land charge?

If the land charge is notarized in a separate deed-that is, not together with the purchase agreement-notary fees amounting to 1.0 times the full fee based on the land charge amount apply. For a land charge of 300,000 euros, the notary fees alone amount to around 800 to 900 euros, plus land registry fees for the registration. Some banks insist on a separate deed, while others accept the land charge being recorded in the purchase agreement-this should be clarified in advance with the financing bank.

Are notary fees also incurred if a purchase does not go through?

Yes. As soon as a deed has been read aloud and signed, notary fees are incurred-regardless of whether the purchase is completed or not. If the transaction is rescinded, the costs are still incurred. Only services that the notary has not yet performed (e.g., land registry applications that have not yet been filed) may be waived. Buyers and sellers should therefore ensure that all essential conditions are clarified before the notarization date.

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