
Buying real estate: Legal basics at a glance
From the conclusion of the purchase negotiations to moving in, there are still a few challenges to overcome. We have summarized the most important aspects for you in our article.
The land register extract
Before a property can be purchased, the buyer needs a current extract from the land register. This is essential for checking any encumbrances. The land register extract shows: It is important to clarify whether there is a mortgage on the property that could restrict the sale without the consent of the creditor.
Furthermore, it should be checked whether third parties have a heritable building right that allows them to build on the property. Equally relevant are any building encumbrances or usufructs that may grant or restrict certain rights of use. A professional real estate agent will take care of this step for you. They can inspect the land register, which is kept at the local court.
Financing
For financing, you can contact independent financial intermediaries or your local real estate agent, who can also advise you on subsidies. You will also need documents such as proof of income and a current extract from the land register. Remember to have personal and property-related documents such as proof of income, proof of equity, and an extract from the land register ready in good time.
What should you do if you have not yet received financing approval?
If you have decided on a property but are still waiting for financing approval, you can either conclude a reservation agreement or a preliminary contract with the seller or real estate agent. A reservation agreement secures exclusivity for the buyer for a certain period of time. A preliminary contract binds both parties to the subsequent purchase agreement and should be notarized.
Conclude the purchase agreement and have it notarized
The final step in the real estate purchase process involves paying the purchase price, usually to a notary's escrow account, which offers both parties greater security. In addition, after receiving the real estate transfer tax assessment from the tax office, you must pay the tax as well as the land registry fees and notary costs, which leads to the transfer of ownership.
Involving a real estate agent in the purchase process of your property not only ensures professional expertise and market knowledge, but also a transparent cost structure. Since December 2020, the real estate agent's commission has been divided equally between the buyer and the seller, which benefits both parties.
Once all fees, including the brokerage fee, have been paid, the local court confirms the entry in the land register. With this official confirmation, the purchase process is complete and you can call yourself the proud, legal owner of your new property.
Still looking for your dream property? Let us advise you as your local quality real estate agent. Make an appointment with us at any time. We are happy to help.
Notes:
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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