Notarized contract

Notarized Contract - A notarized contract (notarial deed) is a legal transaction that has been certified by a notary. In the real estate sector, notarization of the property purchase agreement is mandatory under Section 311b(1) of the German Civil Code (BGB) - without a notary, a real estate purchase is void. The notary advises both parties, drafts the contract, handles the land registry formalities, and ensures the completion of the purchase.

Contents of a Real Estate Purchase Agreement

A complete notarial contract contains: identification of the contracting parties, exact property description (land registry district, volume, page, parcel), purchase price and payment terms, conditions for payment, priority notice of conveyance (security for the buyer), authorization for registration, warranty provisions (exclusion of liability for material defects in existing properties), transfer of possession and change of encumbrances, creation of a land charge (for the financing bank), as well as provisions regarding ancillary agreements and special arrangements.

Other common components of a real estate purchase agreement in Nuremberg and the surrounding region: provisions regarding existing leases (tenant assumption), agreements regarding left-behind furnishings, agreements regarding freedom from encumbrances (redemption of the seller’s existing land charges), as well as conditions for the purchase price becoming due, such as authorization to cancel the prior land charge.

Notarization Process

The typical process: The buyer or real estate agent engages the notary → the notary prepares the draft contract and sends it at least 14 days before the notarization date (mandatory for consumer contracts, § 17 (2a) BeurkG) → at the notarization appointment, the notary reads the contract in full and answers questions → both parties sign → the notary arranges for the notice of transfer, obtains approvals, and notifies the parties of the due date for the purchase price → after payment, he applies for the transfer of ownership in the land register.

It generally takes six to twelve weeks between notarization and the entry of the new owner in the land register. The priority notice of conveyance protects the buyer during this phase from any interim dispositions by the seller.

Special Clauses in the Nuremberg Real Estate Market

For existing properties in Nuremberg, the notarial contract typically includes a comprehensive disclaimer of liability for material defects (with the exception of defects fraudulently concealed). For condominiums (WEG units), the most recent annual financial statements and WEG meeting minutes are often attached as appendices, and it is agreed that the buyer will assume the property management contract. For new construction, purchase agreements often include detailed building specifications as an attachment to the contract.

Practical Tip for Buyers in Nuremberg

We recommend that buyers in the Nuremberg metropolitan area thoroughly review the draft contract at least one week before the appointment and note any open questions. Exercise your right to ask the notary for explanations in advance-this is free of charge and part of their duties.

Pay particular attention to: warranty exclusions (standard for existing properties, but make sure you understand the scope), conditions for payment (do these align with your financing?), and the closing date (is there enough time for the bank?). In Nuremberg, there are numerous experienced notaries specializing in real estate-choose one who specializes in real estate law and is available for questions.

Frequently Asked Questions

Who chooses the notary-the buyer or the seller?

In practice, the buyer usually chooses the notary, as they bear the notary fees. There is no legal requirement-both parties can agree on a notary. The notary is obligated to remain neutral and does not represent either party. In real estate development projects, it is common for the developer to suggest a notary-but buyers can insist that a different notary handle the transaction.

How much does the notarial contract cost?

Notary fees are governed by the Court and Notary Fees Act (GNotKG) and are non-negotiable. For a purchase price of 400,000 euros, notary fees (notarization, execution, escrow services) amount to approximately 4,000-6,000 euros plus land registry fees of approximately 1,500-2,500 euros. In total, buyers should expect to pay 1.5-2% of the purchase price for notary and land registry fees.

Can I still withdraw from the notarized contract?

A notarized purchase contract is binding. Withdrawal is only possible if a contractual right of withdrawal has been agreed upon (e.g., financing contingency) or if there is a legal ground for withdrawal (e.g., fraudulent misrepresentation, serious material defect). Mere “regret” after notarization is not a valid reason for withdrawal. Anyone who no longer wishes to proceed with the purchase must either persuade the seller to agree to a mutual termination or consult a lawyer.

Powers of Attorney and Representation at the Notary Appointment

Anyone who cannot appear in person at the notarization appointment must be represented by a notarially authorized representative. A simple written power of attorney is not sufficient-a notarized or notarially certified power of attorney is mandatory for submitting a declaration of conveyance or concluding a real estate purchase agreement.

In practice, notaries often offer the option of so-called pre- and post-notarization: One of the parties signs in advance, the other at the actual appointment-the legal transaction is only concluded once both signatures have been obtained. This solution is practical if one party is from abroad or cannot attend due to scheduling conflicts.

For remote notarizations via video conference (possible under certain restrictions since the 2023 amendment to the Notarization Act), the requirements are strictly regulated and limited to specific cases. As a general rule, the obligation to be physically present at the notary appointment still applies.

Subsequent Changes to the Notarized Contract

After notarization, changes to the purchase contract can generally only be made through a new notarized addendum. Verbal agreements between the buyer and seller after notarization are irrelevant for registration with the land registry-and can lead to significant problems in the event of a dispute.

Typical cases in which addenda are required:

• Subsequent agreement on the purchase price (e.g., after discovery of defects)
• Change in the handover date
• Inclusion or exclusion of inventory from the purchase agreement
• Extension or restriction of the warranty exclusion

Each addendum incurs additional notary fees, which are based on the value of the subject matter of the change. It is therefore advisable to fully clarify all outstanding issues before notarization.

Purchase Price Escrow and Notary Escrow Account

In certain cases-particularly when a complex release of encumbrances on the seller’s part is required-the purchase price is processed through a notary escrow account (the notary’s escrow account). The buyer pays the purchase price into the escrow account, and the notary does not disburse it until all conditions for payment have been met.

The notary escrow account provides security for both parties: The buyer does not have to pay until the property is free of encumbrances. The seller has the assurance that the funds are available and will be disbursed once all conditions have been met. This incurs escrow fees for the notary, which are charged in addition to the other notary fees. In the Nuremberg metropolitan area, the notary escrow account is used less frequently than in other regions, as most purchase price payments are processed immediately after the notice of due date is issued.

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