In Germany, it is mandatory to visit a notary when purchasing real estate. The sale of a property—such as a condominium—is not legally binding until the contract has been notarized. First-time buyers, in particular, should thoroughly familiarize themselves with the legal framework in advance. That’s why, in this blog post, we’ll explain what you need to keep in mind when visiting a notary.
The Notary's Responsibilities in a Real Estate Purchase
A notary’s role in a real estate transaction is to oversee the entire process and guide you, as the buyer, through the often complex sales process. Among other things, the notary must verify that all conditions for the sale are met—for example, there must be no outstanding mortgages listed in the land registry. The notary also drafts the purchase agreement. At the notarization appointment, the notary must explain to both parties the rights they acquire by signing the agreement, as well as the obligations they assume. The notary must also point out any potential risks associated with entering into the contract. In everything the notary does, they are bound to remain neutral.
Other important steps in the real estate sales process that fall within a notary’s scope of responsibility include updating the land register to reflect the change in ownership and registering the buyer’s new mortgage. The sales process and the agreements between you and the seller are documented and recorded in the notarial contract. Since the notary must ultimately certify the sale, he or she is also responsible for ensuring that everything is in order throughout the entire real estate transaction. This includes obtaining all necessary documents and completing the required formalities.
Please note: These tasks and obligations apply to notaries in Germany. In other countries, including other EU member states, the situation can vary significantly.
The following documents are required
Once you and the seller have reached an agreement, schedule a joint appointment with a notary. In Germany, you, as the buyer, typically choose the notary—and you are also responsible for paying the notary’s fees. Among the most important documents you must bring to the notary appointment is, first and foremost, an official form of identification. This can be your national ID card or your passport. It is essential that you are clearly recognizable in the photo. Also important: your personal tax ID (consisting of 11 digits)—not to be confused with your tax number (consisting of 13 digits). However, the tax ID can also be submitted later.
If you’ve taken out a mortgage to finance the purchase, you must also have the relevant documents ready. This is because the loan will not be disbursed until the new land charge has been notarized. For this, the notary needs the land charge form from the bank where you took out the loan. Ideally, you should submit the document to the notary two days before the appointment—but it can also be notarized at a later date. Alternatively, you can ask your bank to send the form directly to the notary.
These costs are borne by the buyer
As the buyer, you are generally responsible for covering the notary fees when purchasing a house or apartment. The exact amount depends on the purchase price of the property. You can usually expect fees of approximately 1.5 percent of the purchase price. There’s no need to compare prices among notaries: Notary fees are standardized nationwide under the Court and Notary Fees Act. If you’re unable to attend the notary appointment in person, you can send a representative. However, to ensure the contract is immediately valid, you must provide your representative with a notarized power of attorney. This incurs additional costs. If you send a representative without a power of attorney, the contract must be retroactively approved—and a fee will be charged in that case as well. As a general rule: The fewer appointments you need to schedule with the notary, the more time and money you’ll save. By the way: Buyers can deduct the costs for the notary, the real estate transfer tax, and the land registry entry from their taxes.
Here's How the Notary Appointment Works
The notarization appointment usually follows a clear procedure: After you and the seller have presented proof of identity, the notary reads the contract aloud. The notary explains the clauses, answers any remaining questions, and clears up any lingering ambiguities. You can also request final changes to the contract at this point. Once all questions have been clarified, you, the seller, and the notary will sign the purchase agreement. Once all signatures have been affixed, the contract becomes legally binding. Caution: You should not cancel a notary appointment lightly. If the notary has already finalized the draft contract, they will bill the costs in the event of a cancellation to the party who commissioned the draft—which is usually you, the prospective buyer of the property.
If you have questions about buying real estate and want to enjoy the many benefits of owning your own home, please feel free to contact us at any time—as a reliable and experienced partner, we at ACCENTRO are here to support you throughout the entire purchasing process and help you find the property that best suits your needs.
