A property purchase contract often involves risks that are not immediately apparent. The review of the contract by a notary is legally required, but what exactly does it entail – and what does it not? Understand the crucial details to effectively protect your investment of several hundred thousand euros.
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The topic briefly and concisely
The notary is a neutral entity that ensures the legal correctness of the contract but does not represent the interests of any party.
The notary fees are set by law (approximately 1.5-2.0% of the purchase price) and are non-negotiable.
The notary does not check the condition of the property or the appropriateness of the price; external surveyors or advisors are needed for this.
Are you considering purchasing a property and wondering if the notary alone protects your interests? According to § 311b BGB, notarization is mandatory for a property purchase in Germany in order to obtain legal validity. Many buyers and sellers are thereby lulled into a false sense of security. The notary acts as a neutral entity and ensures compliance with legal requirements, but they are not your personal advisor. This article shows you how to properly assess the notarization, avoid cost traps, and when additional legal examination is essential to prevent financial disadvantages of up to 10% of the purchase price.
Define the role of the notary as a neutral entity
The notarisation is legally required for every property purchase in Germany. The notary acts as an impartial holder of a public office, whose role is clearly defined in Section 14 of the Federal Notary Code (BNotO). Their main duty is to ascertain the intent of both parties and ensure the contract is legally sound. They protect inexperienced participants from disadvantage and ensure balanced regulations. The notary is not, however, a partisan advisor or representative of one side. Their advice is limited to the legal implications of the transaction, not to economic or tax consequences. This neutral stance is crucial for legal certainty, but it also means that specific risks for buyers or sellers are not the focus. The legal framework is strict. This neutral function forms the basis for the entire process of property transfer.
Understanding the scope of the notary's examination
The notary examines a range of crucial legal aspects to ensure a secure transaction. Among their core responsibilities is checking the land register for ownership details and existing encumbrances such as mortgages or easements. They establish the identity of the contracting parties and ensure that the contract includes all legally required details. The notary reads the contract in its entirety during the notarisation to ensure that both parties understand the content. What a notary does not assess is the structural condition of the property, the adequacy of the purchase price, or any potential contamination of the land. This gap in examination can pose a financial risk of tens of thousands of euros for buyers. Therefore, for comprehensive security, deeper legal assurance in the sale of a house is often necessary. Knowing these limits is the first step towards risk minimisation.
Quantify the costs of notarial contract review
The costs for notarial services are non-negotiable and are set nationwide in the GNotKG (Court and Notary Costs Act). The fees depend on the transaction value, meaning the purchase price of the property. As a rule of thumb, you can expect notary and land registry costs to total about 1.5% to 2.0% of the certified purchase price. For a property value of €300,000, these costs amount to approximately €4,500 to €6,000. These fees include all notarial services:
Consultation and preparation of the draft contract
Certification of the purchase contract
Obtaining necessary approvals
Execution of the contract, including the registration in the land registry
The consultation with the notary within the framework of the certification does not incur additional costs, regardless of how many appointments are required. A transparent breakdown of the notary costs for a property helps to accurately calculate the ancillary costs. This clear cost structure forms the financial basis for the next step in the purchase process.
Make the most of the 14-day deadline
For contracts between a business and a consumer, the law usually prescribes a period of 14 days between receiving the draft contract and the notarisation date. This period serves to protect the consumer and to prevent rash decisions. Use these two weeks actively to carefully review each clause. Compare the details in the contract with the brochure and any verbal agreements. Particular attention should be paid to provisions on warranty, the handover date, and the due date for the purchase price. Vague terms or clauses that are disadvantageous to you can often still be adjusted before notarisation. Address any open questions directly with the notary's office. The process of notarial certification is formalised, but in preparation lies your opportunity to contribute. Good preparation at this stage is crucial for commissioning further experts.
Additional legal review as strategic safeguarding
While the notary is obligated to remain neutral, a lawyer represents solely your interests. A legal review of the purchase contract is advisable whenever complex issues or large sums are involved. The costs for such a review by a specialised lawyer often range between 550 and 1,200 euros, but can protect against disadvantages reaching five- to six-figure amounts. A lawyer specifically examines the contract for clauses that might be unfavourable to you, such as an extensive exclusion of liability for defects. They can also propose individual arrangements that a notary, due to their duty of neutrality, would not introduce. Especially with builder contracts or the purchase of rented properties, this additional protection is often essential. If you are uncertain, a quick analysis through our ImmoGPT chat can provide initial indications of whether a legal review is warranted in your case. This additional level of security ensures that you not only act legally compliant but also economically advantageous.
Conclusion: Effectively use the notary and minimise risks
The contract review by the notary is a fundamental yet clearly defined component for a secure property purchase. It ensures the legal correctness of the process and guards against formal errors that could render the entire purchase void. However, its role is that of a neutral arbitrator, not a personal advisor. You as the buyer or seller are responsible for assessing economic risks, the purchase price, or the structural condition. An AI-supported property valuation from Auctoa provides you with the data-driven foundation for this. This way, you make your decision based on facts, not solely on legal formalities. A smart approach combines impartial, legal security by the notary with targeted, partisan evaluation of your individual risks.
vertragsprufung-durch-notar
Additional useful links
Bundesnotarkammer offers comprehensive information on the role and duties of notaries in Germany.
notar.de is a central portal for information and services related to notarial matters in Germany.
Wikipedia provides a detailed overview of notarial services and the function of notaries in Germany.
Verwaltung.bund.de provides official information from the German federal administration on rights and obligations in the context of notarial services.
Grundbuch-Portal is an information portal for the German land register system.
Gesetze im Internet offers the full legal text of the Land Registry Code (GBO).
Statistisches Bundesamt (Destatis) publishes current data on building prices and real estate price indices in Germany.
Verbraucherzentrale provides independent information and advice on construction and real estate financing.
Deutsches Notarinstitut is a scientific institution dealing with issues of notarial law and practice.
FAQ
Is the contract review by the notary sufficient for both buyer and seller?
The notarial review ensures legal correctness and compliance with statutory requirements. However, it remains neutral. For an assessment that protects your specific interests as a buyer or seller (e.g., advantageous clauses), additional legal advice is recommended.
Who pays for the contract review by the notary?
Typically, the buyer is responsible for the notary and land registry fees. However, both parties are jointly liable by law. This means that if the buyer does not pay, the notary can also demand the costs from the seller.
What happens if an error is found in the contract?
Errors in the draft contract should be communicated to the notary as early as possible, so that they can be corrected before the certification appointment. Changes can also be made during the appointment. After certification, corrections are only possible with considerable effort.
Can I choose the notary freely?
Yes, the contracting parties are free to choose the notary. Typically, the party who bears the costs, usually the buyer, proposes the notary. However, the notary must be based in the relevant district of the local court.
What documents does the notary review?
The notary primarily examines the current land register extract to determine ownership and encumbrances. Additionally, they verify the identities of those involved and, if necessary, other documents such as declarations of division for condominiums or delete authorizations for old loans.
What is the difference between an examination by a notary and a lawyer?
The notary is obliged to be neutral and ensures a legally balanced contract. A lawyer, on the other hand, is a partisan representative who exclusively looks after your interests, seeks to negotiate the best possible terms for you, and aims to minimize risks.
