10 tips for buying real estate in Germany





30.10.2010 11:15
1. Consultants
Contract sale of real estate is a valid in Germany only after assurances by the notary. A notary must be independent and impartial. His participation is first and foremost to protect both parties. Notary provides legal advice, legal security of the transaction, protect the inexperienced from hasty action. Brokers and financial institutions are the main economic advisers. As residents of Germany, unlike foreigners, must confirm the origin of the funds for purchasing real estate, they need more and tax consultant.

2. Content of the contract
Agreement shall contain the following data: the sides, the subject contract, price, responsibility of the parties in the case of physical or legal defects, the date of transfer of ownership, method of payment and financing for the Protection of the risks of both parties, that are associated with numerous points of agreement.

Features of the property, other circumstances always influence the drafting of the treaty. Therefore, every contract of sale of real estate should be prepared individually, even if the sample model contract will be subject to the first discussion. The notary checks each contract proposal that was drafted during the protracted negotiations for the possibility of their implementation in practice. Not a notary and the parties define and explain the contents of the contract. The notary only legal expert, advisor and the person who takes minutes.

3. Land Register
When buying real estate plays an important role of land book (Das Grundbuch). Land Register is a public register maintained by the district courts of Germany. Loyalty to the Land Register can be relied upon. It contains information about who owns the property, and whether there are restrictions. Before signing the contract the notary must verify its contents. This will help avoid any unpleasant surprises.

4. Execution of contract
After assurances contract notary draws up the necessary documents and controls the transfer of ownership. For information about changing the owner, first introduced in the Land Register. This procedure may take several weeks. Until such time changes to the Land Register, the seller remains the owner and, therefore, may dispose of real estate. Although the seller and do not have the right, but he could theoretically dispose of real estate for the second time and place, such as a mortgage loan, which would entail the forced sale of real estate.

To protect the buyer against such risks, usually in the Land Register is made pre-recording the transfer of ownership of real estate - Buyer`s real estate record is written as a future owner. Land Register for some time withdrawn from circulation.

But attention! Land Register is not blocked completely. Entries that are contrary to the agreement can still be made in the Land Register. But in this case the buyer has the right to request cancellation.

5. Product for the money
In Germany, pay special attention to the safety of the sale of real estate. To achieve maximum security for both sides, as a rule, you need to make payments through a special notary`s bank account. At the expense of, access to which is only a notary, the buyer takes full value of the property. It was only after the transfer of property rights lawyer transfers the money to the seller.

All efforts to ensure the transaction is a task of the notary. However, the lawyer does not advise on the financing of the transaction.

6. Private apartment
Buying property has its own characteristics, since the apartment is an independent part of the apartment building. All owners of apartments are co-owners as the land on which the house is built, and the attic, basement, garage.

Legal ownership of an apartment provided by the document, which is called in German Teilungserklrung - a statement of the division of a house. Condition for such a separation would be the spatial completeness of each apartment, which was confirmed by the administrative department for construction supervision (Baubehrde). Architect builds required for this plan. A notary draws up the documents for each individual apartment.

Apartment owners of a house can take binding decisions.

7. Construction of "turnkey"
A great many nuances exist in the construction of "turnkey". A great many nuances exist in the construction of "turnkey". A feature of this type of home purchase is that you buy land with a house that had not yet built. The project and job description specifies how will be construction of a house. All that the customer should find out more before signing the contract. Project and description of the works are a mandatory part of a notarized home, otherwise the contract would be invalid.

Typically, the contract stipulated time schedule of construction works, the "special" wishes of the customer, form of payment (on a regular basis at the end of a certain stage of construction). Such agreement must comply with the laws of Germany "construction contractor".

8. Apartment Houses
In Germany, there are many nuances in the acquisition of tenements. Investor is interested not primarily a real estate purchase, as such, and the income from its rent. Should carefully examine the law of landlord and tenant and Germany signed earlier agreement for each specific facility. Desirable trait of economic advisers, brokers and financial advisers.

9. Commercial real estate
When buying and selling commercial real estate often have questions such as: public works and planning, including the Law on Pollution Control; legislative regulation of relations with neighbors; restrictions that were imposed on the property earlier.

Planned use and development of the object is only possible in close cooperation with the administrative authorities for construction supervision.

Laws on "private and public neighborhood" can cause the prohibitions imposed by the court, or damage claims. Hence, before buying you need to know about the legal relationship with present and future neighbors.

10. Costs
Buying property, you should consider paying a notary, legal costs, brokerage costs, financing costs and stamp duty (tax on property purchase).

The latter, according to federal land, ranging between 3,5% and 4,5% of the cost. Notary and court costs will also depend on the contract value of the object. Their value is determined by law and is binding, with strong differentiation - the higher the price, the lower the percentage.

Brokers usually charge a percentage of the purchase price - from 3,5 to 7,5 percent. The real interest rate in Germany, by our standards quite simply ridiculous - from a few up to 6-7 percent. Nevertheless, if the loan is made for several decades, the total amount would be substantial.

Typically, the buyer assumes the cost of the contract. But by mutual agreement of the parties are permitted and rejection.

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