
The purchase agreement for the property – how everything works
The purchase agreement forms the basis for the settlement of every real estate transaction. When a house or apartment changes hands, the buyer and seller enter into a binding agreement that must also be notarized. The fee charged by the notary for this service is based on the value of the property and amounts to approximately 1.5 percent of the purchase price. Normally, this fee is paid by the buyer.
The notary is obliged to remain neutral towards both parties and advises both the buyer and the seller. The draft contract should be available to both parties at least two weeks before the appointment with the notary so that it can be critically reviewed, if necessary by a lawyer.
Purchase agreements are usually standardized contracts. In addition to the necessary information about the seller and buyer, such as their bank details, a description of the property (cadastral map) and a current extract from the land register must be included.
In the case of a used property, the clause "sold as seen" is usually included. Unlike new buildings, which are sometimes still under construction by a developer when the purchase agreement is signed and which come with a five-year warranty on the structure for the buyer, there is no warranty obligation when selling a used property. Instead, any defects in second-hand buildings are explicitly included in the purchase agreement in order to provide additional security for the seller.
The purchase agreement also specifies the deadlines associated with the transfer of the property. The buyer often takes over additional items from the previous owner, such as kitchen fittings, garden furniture, or heating oil still in the tank. These special agreements should also be included in the purchase agreement. However, these special items are not included in the calculation of the real estate transfer tax.
Do you have questions about the correct contract terms for the sale of your property? We would be happy to advise you!