The German Property Purchase Contract: What You Need to Know
The 'Kaufvertrag' is a complex legal document. We explain the role of the 'Auflassungsvormerkung' and why the notary reads the entire contract aloud.
InvestBud Team
Investment Analysts
Signing the purchase contract (Kaufvertrag) is the point of no return. In Germany, this must happen in the presence of a notary. By law, the notary must read the entire contract aloud to both parties to ensure every clause is understood. This session can last an hour or more.
1. The Priority Notice (Auflassungsvormerkung)
This is a uniquely German concept and crucial for your protection. After signing, the notary registers a 'priority notice' in the land registry. This prevents the seller from selling the property to someone else or taking out new loans against it while the transfer is being processed. You should not transfer the purchase price until the notary confirms this notice is in place.
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2. Payment and Handover
The contract will specify a payment due date (Fälligkeit). Usually, you pay the purchase price directly to the seller (not the notary) once the notary gives the green light. Only after payment is received do you get the keys. This is strictly 'Zug-um-Zug' (step-by-step).
Written by
InvestBud Team
Our team of investment analysts brings you data-driven insights on the German real estate market. We combine financial expertise with local market knowledge to help you make smarter investment decisions.
Test this investment idea on your own address
Pick a location and enter the purchase price. We'll prepare rental yield, cash flow, tax impact, and the cost breakdown as a private report.
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