What costs are associated with the notarization of a purchase agreement?
What costs are associated with the notarization of a purchase agreement?
In Germany, notarization of a contract is required when selling real estate. Here you can find out what costs and taxes are incurred when selling a property. This article is part of a series in which we deal with the specific contents of a purchase agreement, which in detail are: the parties involved, the subject matter of the purchase, the purchase price, the seller's liability for defects, Transfer of possession, use, burdens, and risk, costs and taxes, Conveyance and land register entry.
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Who bears which costs in a real estate sale
Buyer
- Cost of the contract
- Costs for permits and declarations
- Real estate transfer tax (in Bavaria 3,5 % of the purchase price)
- Costs incurred by the buyer, such as ordering land charges and mortgages to finance the purchase price.
Seller
- Costs incurred by the seller, such as the removal of encumbrances on the property that the buyer does not assume.
The buyer pays the costs for the notarization of the purchase agreement, i.e., the notary. That is how the German Civil Code (BGB) regulates it. In addition, the buyer assumes the costs for the registration of the Cancellation caveat into the Land Register. In addition, the sale of a property also incurs costs for various official permits that must be obtained. These costs are also borne by the buyer.
The seller bears the costs for deletions. If surveys are necessary, the seller also bears the costs for these.
When purchasing real estate, the buyer is also asked to pay by the tax office. A so-called real estate transfer tax is incurred, the amount of which varies depending on the federal state. The amount of Real estate transfer tax ranges from 3,5 % in Bavaria to 6,5 % in Brandenburg.
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