Are you about to purchase a plot of land and wondering exactly what role the notary plays? Many buyers underestimate the complexity of the process and the crucial questions that need to be asked. This article will guide you safely through all phases of the notarial process and show you how to protect your investment from the very beginning.
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The topic briefly and concisely
The notary is a legally required, neutral entity that ensures the legal correctness of the property purchase but does not provide financial advice.
The notary and land registry fees are legally defined in the GNotKG and amount to approximately 1.5% to 2.0% of the purchase price.
The priority notice in the land register is a crucial security instrument that protects the buyer before the full purchase price is paid.
Purchasing a property is one of the largest financial decisions for most people in their lifetime. At the centre of this process is the notary - a key figure whose role is often misunderstood. By law, their involvement is mandatorily required under § 311b BGB to ensure legal security for both parties. But what exactly are their duties, what costs will you incur, and what questions absolutely must you ask to minimise risks? Inadequate preparation can lead to delays and unforeseen expenses amounting to several thousand euros. This guide answers the most important questions regarding notaries in property acquisition and provides you with the necessary confidence for a successful conclusion.
Understanding the impartial role of the notary
A notary acts as a neutral and impartial party in a property purchase, ensuring the interests of both the buyer and the seller are equally protected. Their main task is to guarantee the legal correctness of the entire process, not to provide economic advice. For example, they do not assess whether the purchase price of 450,000 euros for the property is reasonable. Their duties include checking the land register, drafting the purchase contract, and notarisation. Engaging a notary is legally required and protects both parties from unsecured advance performances. Typically, the buyer selects the notary as they also bear the majority of the costs, which can amount to 1.5% to 2.0% of the purchase price. This legal obligation for notarisation is a central protective mechanism in German property law.
The process of notarisation step by step
The process of acquiring property follows a clearly defined schema, managed by the notary and typically taking several weeks. Adhering to statutory deadlines, such as the 14-day review period for the draft contract, is crucial to avoid rushing into decisions. The entire procedure ensures that ownership is transferred only once the purchase price has been securely paid. A detailed overview of the individual steps of the notarisation provides you with additional security.
Draft Preparation: Upon engagement, the notary prepares the draft purchase contract based on the details provided by both parties, which often takes only a few days.
Review Phase: Legally, there is a period of 14 days between receiving the draft and the notarisation appointment, allowing both parties to thoroughly review the contract.
Notarisation Appointment: The notary reads the entire contract aloud, clarifies any open questions, and notarises the agreement with the signatures of both buyer and seller.
Pre-Registration Note: Immediately after the appointment, the notary applies for the entry of a priority notice in the land register. This secures the buyer's claim and often takes only a few days.
Due Date for Payment: The notary informs the buyer when the purchase price is to be paid. This is only done once all securities, such as the priority notice, are in place, which can take 4 to 6 weeks.
Transfer of Ownership: After payment of the purchase price and property transfer tax, the notary arranges the final transfer of ownership in the land register, concluding the process after 6 to 12 months.
The cost structure clearly itemised
The costs for the notary and the land registry office are a significant part of the ancillary purchase costs and should not be underestimated. They are uniformly regulated nationwide in the Court and Notary Costs Act (GNotKG) and are therefore non-negotiable. For a property purchase with a price of 300,000 euros, notary and land registry fees can quickly amount to 4,500 to 6,000 euros. These fees are always based on the transaction value, which is usually the purchase price of the property. Detailed knowledge of the incurred notary costs is essential for solid financial planning. These costs cover more than just certification and legally secure the entire process.
Key Questions You Should Ask the Notary
The notarization appointment is your last opportunity to clear up any uncertainties. Good preparation is therefore crucial for your security. Do not hesitate to ask questions, as the notary's advisory service is already included in the fees. Clarifying these points ensures that you fully understand what you are signing. While the notary secures the legal side, an independent assessment by the Auctoa ImmoGPT chat can help you validate the economic aspects of your decision.
Are all documents relevant to the purchase, such as the current land register extract, complete?
Can you explain the regulations on liability for defects and their implications for me as the buyer?
Which registered encumbrances and restrictions in the land register will be removed and which will remain?
What happens if the seller does not fulfil their obligations after notarization?
Is the handover date specified in the contract realistic and what conditions is it tied to?
What is the exact process of the purchase price payment and what securities are there for me?
The Draft Purchase Agreement: What You Need to Pay Attention To
The draft purchase agreement is the central document when acquiring a property. Take the legally required 14-day period to review the draft seriously. This document legally records all the important aspects of the purchase. Pay particular attention to the precise description of the purchase item to avoid later disputes over objects that are sold with the property. Examine the payment terms and the timing of the handover, as these have direct financial implications. Understanding the contract terms and the notarisation is highly beneficial in this context. A careful review protects you from unpleasant surprises after signing the contract.
Security instruments: priority notice and land register entry
Two of the most important safeguarding tools used by the notary on your behalf are the priority notice of conveyance and the final entry in the land register. The priority notice of conveyance is entered shortly after notarisation in the land register and acts like a reservation. It protects you from the seller reselling the property multiple times or burdening it with new debts in the meantime. The purchase price only becomes due after this notice has been entered in your favour. The final entry as the owner takes place only after the full purchase price has been paid and the land transfer tax has been settled, which secures the entire process over several months. These provisions in the land register are the core of the transfer of ownership.
die-wichtigsten-fragen-zum-thema-notar-beim-grundstuckserwerb
Working with a notary is an indispensable and legally required step in purchasing property, ensuring legal security. The costs are a fixed amount at 1.5% to 2.0% of the purchase price, regulated by the GNotKG. The key to a smooth process lies in your preparation: Use the 14-day period to review the contract, ask the right questions, and understand the role of the notary as a neutral intermediary. Thorough preparation for the notary appointment is not an option but a necessity to protect your investment. While the notary ensures legal compliance, a data-driven evaluation from Auctoa provides the economic basis for your decision – empowering you to make the right choice on all levels.
Additional useful links
The Federal Chamber of Notaries (BNotK) provides a glossary with terms related to property purchase.
The Federal Ministry of Justice provides information about online access to the German land register.
The Federal Statistical Office (Destatis) offers information on construction prices and property price indices.
The federal administration provides general information on rights and obligations in property transactions.
The federal administration explains the process of transferring ownership in the land register.
The German Notary Institute (DNotI) offers legal expertise and information on notarial matters.
On Laws on the Internet, you will find the Federal Notary Act (BNotO).
The Consumer Advice Centre provides information on building and property financing.
The Federal Ministry of Finance offers information on land tax and property transfer tax.
FAQ
What exactly are the notary's responsibilities in the acquisition of real estate?
The notary acts as an impartial advisor, notarizes the purchase contract, checks the land register, obtains necessary approvals, and oversees the secure handling of the purchase price payment as well as the transfer of ownership in the land register.
How are notary fees composed?
Notary fees are governed by the Court and Notary Fees Act (GNotKG) and are based on the purchase price. They include fees for notarization, obtaining permits, handling the process, and registration in the land register. Additional costs and statutory VAT are also included.
Why is there a 14-day period before notarisation?
This statutory protection period is designed to ensure that private buyers in particular have sufficient time to examine the complex draft purchase agreement, clarify any questions, and not be rushed into signing quickly. It serves as protection against hasty decisions.
What is the difference between a notice of conveyance and a land registry entry?
The priority notice is a temporary "reservation" in the land register, which secures the buyer's claim. The final entry in the land register is the last step that legally makes the buyer the new owner of the property.
Can I choose the notary freely?
Yes, the parties to the contract are free to choose the notary. Since, in practice, the buyer usually bears the costs, they are generally granted the right to choose. All notaries in Germany are subject to the same statutory fees and obligations.
What happens if the purchase falls through after the draft?
Even if the purchase contract is not notarised, fees are incurred for the preparation of the draft by the notary. These must be borne by the party that commissioned it, which is usually the buyer.
