A German purchase runs through a mandatory notary and a land-register priority notice. Eight checks to make before you sign and pay.
A German property purchase is more procedurally rigid than in many countries — a notary is mandatory by law, and that structure protects you, but only if you know what to check and when. Below is a step-by-step checklist for buying resale property in Germany, whether it's a house or an apartment in a shared building.
What to check, in brief:
- the Grundbuch extract and title
- whether the property is vacant or tenanted
- the WEG reserve fund and minutes, for apartments
- the notarized purchase contract
- payment timing against the Auflassungsvormerkung
- the full closing-cost stack
- financing and Grundschuld registration, if you're borrowing
- the final Grundbuch entry
1. Get a current Grundbuch extract
The Grundbuch (land register) is the authoritative record of ownership, mortgages (Grundschuld or Hypothek) and easements. Request a current extract — Abteilung I shows the owner, Abteilung II shows easements and restrictions, Abteilung III shows mortgages and charges. Confirm the seller is the registered owner and note any charges that need to be cleared before or at completion.
2. Establish whether the property is vacant or tenanted
A tenanted property comes with a sitting tenant whose lease you inherit as the new landlord — German tenant protection makes ending that lease slow, even for your own use. Ask for the current lease, the rent history, and whether the rent is at or below the local Mietspiegel reference.
3. For an apartment, review the WEG's finances
Ask for the Wohnungseigentümergemeinschaft's recent meeting minutes (Protokolle), the current balance of the reserve fund (Erhaltungsrücklage) and any planned major works or special assessment (Sonderumlage). A building with a thin reserve fund can turn into an unplanned bill shortly after you buy.
4. Use the mandatory notary and read the contract before signing
By law, a German property sale must go through a notary (Notar), who drafts the purchase contract (Kaufvertrag) and reads it aloud at signing. The notary is neutral — acting for the transaction, not for either side — so bring your own lawyer if you want independent advice, and get a translation in advance if German isn't your working language; don't rely on an on-the-spot interpretation of a legal document.
5. Don't pay before the priority notice is registered
After signing, the notary registers a priority notice (Auflassungsvormerkung) in the Grundbuch, which protects your claim to the property before you've paid. The purchase price typically becomes due only once this notice is in place and other conditions (such as tax clearance) are met — paying earlier removes a protection the German system is built to give you.
6. Budget the full closing-cost stack
- the real estate transfer tax (Grunderwerbsteuer), 3.5-6.5% depending on the state
- notary and land-registry fees, roughly 1.5-2% combined
- your share of the agent's commission, typically around half of 5.95-7.14% including VAT
Together these usually add 10-15% on top of the purchase price.
7. If you're financing, align the mortgage with the registration timeline
A German lender will want its own charge (Grundschuld) registered in the Grundbuch, which the notary coordinates alongside your purchase. Get your financing decision in principle before you sign, and confirm with the notary how the bank's registration fits into the completion sequence.
8. Confirm the final Grundbuch entry
A signed, notarized contract is not the same as ownership. Registration as the new owner in the Grundbuch typically takes several weeks to a few months after the tax clearance certificate (Unbedenklichkeitsbescheinigung) is issued. Ask the notary to confirm once the entry is complete.
FAQ
Is a notary really required? Yes — by law, no German property sale is valid without one, and the fee (roughly 1.0-1.5%) buys real protection, not just paperwork. When do I actually pay? Normally only after the Auflassungsvormerkung priority notice is registered and other conditions in the contract are met, not on signing. What if the building I'm buying into has a small reserve fund? You can still buy, but ask for recent minutes and the reserve balance, and factor a possible special assessment (Sonderumlage) into your budget. Can I get the tenant out to move in myself? Only with a valid personal-use notice and the statutory notice period — plan for months, not weeks.
How we help
We work through this checklist with you, connect you with a German notary and, where useful, an independent lawyer, and keep the payment timing aligned with the Grundbuch protections the process is designed to give you. Informational only, not legal or tax advice — confirm current rules and figures with a notary or qualified adviser.