The real estate purchase agreement from a notary’s perspective
Buying a property is a significant step that involves many legal and financial obligations. In Germany, the notarization of the purchase agreement is required by law for real estate purchases in order to ensure legal certainty for both parties – buyers and sellers.
My tasks as a notary for real estate purchase contracts
Preparing the purchase contract
As soon as the buyer and seller have reached an agreement, the next step is usually to visit the notary.
Drafting the contract: As the notary, I prepare a draft of the purchase contract, which contains all the relevant points such as the purchase price, the condition and location of the property, and the rights and obligations of the buyer and seller. The draft is provided to both parties for review and to answer any questions. The draft is often needed to be submitted to the financing bank in order to obtain a financing commitment.
Instruction and advice
Impartial advice: Before the notarization, the notary advises both parties impartially and answers any questions regarding the content of the contract. This includes, for example, the notarization process, the entries in the land registry and possible encumbrances or rights of way associated with the property.
Explanation of the contract terms: As a notary, it is also my job to explain all the important contract terms and to instruct the parties about the legal consequences of the purchase contract. This ensures that both parties conclude the contract in full knowledge of all the legal implications.
Notarization of the contract
Notarization as a mandatory step: The notary reads the entire purchase contract during the notarization and clarifies any remaining questions. The contract becomes legally binding when all parties have signed it.
Completion and transfer of ownership
Entry in the land registry: After the notarization, the notary ensures that the transfer of ownership is recorded in the land registry. In doing so, the notary particularly monitors the conditions for the transfer of ownership.
Securing payments: The notary also ensures that the purchase price is paid by having an entry in the land register made for the buyer. This prevents the property from being sold to someone else during the process.
Processing of any encumbrances: SIf the property is encumbered with mortgages or other land charges, the notary ensures that these are deleted or transferred to the buyer before the final transfer of ownership – depending on the contractual agreement.
The advantages of notarization when buying a property
Legal certainty for all parties: Notarization provides buyers and sellers with a high degree of legal certainty, as the contract cannot be changed unilaterally afterwards. The land registry is also kept up to date and possible claims by third parties are excluded.
Protection against risks: The notary clarifies possible risks of the real estate purchase, e.g. existing encumbrances in the land registry or special obligations of the buyer. This particularly protects private individuals who do not deal with real estate contracts on a daily basis.
Secure and complete processing: The notary’s role only ends when all obligations have been fully met – from the purchase price to entry in the land registry. This gives both parties the assurance that the process is being carried out correctly and completely.
Conclusion
By notarizing and supervising the purchase contract, the notary ensures that the real estate purchase is secure and legally binding for both parties. This ensures that the investment in real estate is on a stable and legally sound footing.
As a notary, I serve as your independent, impartial, and discreet point of contact. My team and I are pleased to assist you with our notarial expertise, including notarization services with translations into English.
