Living
The Process
Buying a house in Germany is essentially a legal process and real estate agents are only involved if the buyer or seller has chosen to include them. Be warned, however, that if you hire a real estate agent to find you a property and you fall in love with one listed by another agent, you’ll have to pay the fees of both agents. This could easily exceed 10% of the purchase price of the house or flat and would be due the second you sign the sales agreement.
Once you’ve found a property you like and the seller has agreed to sell it to you, you’ll be given a copy of the sales agreement to review. You can negotiate individual points within the contract directly with the seller such as the closing date, what removable items within the apartment will remain and any repairs that need to be completed. It’s a good idea to have an attorney look over the agreement since German law stipulates very little of what must be in it – if you agree to it in writing then you must comply with the contract. An attorney will charge about €1,000 to review the contract. This is especially important if you’re buying a flat or house that hasn’t been renovated because you’ll want the agreement to stipulate staggered payments that coincide with the progress of construction.
When you’ve agreed on the contract, both the buyer and seller meet at a notary’s office. A single notary will oversee the entire sales process and is required by law to remain neutral and protect the interests of both the buyer and the seller. The seller will likely suggest a notary and you can accept their recommendation with a clear conscience – notaries have sworn an oath to the German government to ensure all laws are followed. They can be held accountable if they give bad or inaccurate advice. If you would like to use your own notary, ask friends or colleagues for a recommendation. Notaries are as plentiful as lawyers and chances are you can find one on your block just by looking for a sign attached to an office building advertising their presence.
During the meeting, the notary will read the contract out loud and try to ensure that both parties understand what any legalese means. If you don’t speak German, you’ll need to bring a translator at your expense. Once the agreement is signed, the notary will ensure the title, known as the Grundbuch, is clear and then begin entering you and any creditors, such as your mortgage lender, into the Grundbuch. You’ll have to pick up the cost of the notary, and every time they do anything – even mail you a letter – you’ll be charged according to a set fee schedule that is calculated using the price of the property. Once all the paperwork is clear, you transfer the funds by a deadline set in the contract either to the notary or other intermediary, or even to the seller directly, and the property is yours. If a homeowner’s association is involved with the property, it may also have to approve any buyers in an effort to keep any undesirables out (unless you’re a convicted meth dealer, this is usually just a formality).
At some point during the process you’ll also have to get a mortgage. Clauses can be added to sales contracts that will let you cancel the agreement if you don’t receive financing or, alternatively, you can ask the seller to delay the notary appointment until a bank has agreed to provide funds.
Once you’ve found a property you like and the seller has agreed to sell it to you, you’ll be given a copy of the sales agreement to review. You can negotiate individual points within the contract directly with the seller such as the closing date, what removable items within the apartment will remain and any repairs that need to be completed. It’s a good idea to have an attorney look over the agreement since German law stipulates very little of what must be in it – if you agree to it in writing then you must comply with the contract. An attorney will charge about €1,000 to review the contract. This is especially important if you’re buying a flat or house that hasn’t been renovated because you’ll want the agreement to stipulate staggered payments that coincide with the progress of construction.
When you’ve agreed on the contract, both the buyer and seller meet at a notary’s office. A single notary will oversee the entire sales process and is required by law to remain neutral and protect the interests of both the buyer and the seller. The seller will likely suggest a notary and you can accept their recommendation with a clear conscience – notaries have sworn an oath to the German government to ensure all laws are followed. They can be held accountable if they give bad or inaccurate advice. If you would like to use your own notary, ask friends or colleagues for a recommendation. Notaries are as plentiful as lawyers and chances are you can find one on your block just by looking for a sign attached to an office building advertising their presence.
During the meeting, the notary will read the contract out loud and try to ensure that both parties understand what any legalese means. If you don’t speak German, you’ll need to bring a translator at your expense. Once the agreement is signed, the notary will ensure the title, known as the Grundbuch, is clear and then begin entering you and any creditors, such as your mortgage lender, into the Grundbuch. You’ll have to pick up the cost of the notary, and every time they do anything – even mail you a letter – you’ll be charged according to a set fee schedule that is calculated using the price of the property. Once all the paperwork is clear, you transfer the funds by a deadline set in the contract either to the notary or other intermediary, or even to the seller directly, and the property is yours. If a homeowner’s association is involved with the property, it may also have to approve any buyers in an effort to keep any undesirables out (unless you’re a convicted meth dealer, this is usually just a formality).
At some point during the process you’ll also have to get a mortgage. Clauses can be added to sales contracts that will let you cancel the agreement if you don’t receive financing or, alternatively, you can ask the seller to delay the notary appointment until a bank has agreed to provide funds.
