Notary contract - 4 things you should know when selling a house

No house sale without a notarial contract

In order for the sale of the property to be legally completed, the notarial contract of sale is absolutely necessary. This is because it is only through the notarial contract that the purchase of a property is notarised that changes in ownership can be applied for in the land register. However, there are also other reasons why the contract of sale of the property is notarised by a notary: The notary acts as a neutral mediator between buyer and seller and is supposed to impartially explain any questions that arise during the notary's appointment as well as ensure the legal legitimacy of the contents of the contract.

Of course, notaries are paid for this advice. In addition to the legal advice, the execution of the contract and the notarisation itself are included in the notary's fees. Since the notary usually also takes care of the registration of the land charge, additional costs are incurred for the land register entry. The exact amount of the notary's fees also varies from property to property due to these factors. As a guideline, costs of 2% of the purchase price of the property are usually quoted.

The parties often ask who pays the notary's fees. As a rule, the property buyers have to bear these costs. They are part of the obligatory incidental costs when buying a house. Legally, both property buyers and sellers are liable for the notary's fees.

What must be written in the notary contract?

A large part of the notary contract often consists of standardised formulations and paragraphs. However, this does not mean that individual wishes cannot be taken into account: During the notary's appointment, the notary will read out the contract of sale again, which has already been handed over to the buyer and seller of the property for review in advance.

Even at this stage of the property sale, changes can still be made with regard to the purchase contract, provided this is in accordance with the wishes of both parties. The notary will explain in his function as mediator to what extent such changes are legally possible. However, it is not part of his duties to determine whether such short-term changes to the notarial contract are to the disadvantage of one or the other party.

When is a notarial contract valid?

When a notarial contract is signed, the contents of the contract as described are binding on all signatories. Nevertheless, circumstances may arise which may cause a notarial contract to be rescinded. This may be the case, for example, if the seller of the property has knowingly withheld glaring defects in the property from the purchasing party. Likewise, withdrawal is possible if both the buyer and the seller of the property have agreed in advance on a corresponding withdrawal clause or certain grounds for withdrawal in the contract.

Checklist: What should be included in the notary contract?

No two properties are the same - which is why all notary contracts differ from each other in terms of content. Nevertheless, there are certain sections that are listed in every notary contract. Here is the most important information that a notary contract usually contains:

✓ Personal data of the contracting parties: This part of the notary contract lists the general information about the two contracting parties involved.

✓ Information about the property: The most important, general data about the property is recorded here. This includes, for example, the type of property, the address and the size of the living space.

✓ Energy certificate: No notarial contract without an energy certificate: Since the Energy Saving Ordinance of 2014, information on the energy efficiency of a building has been mandatory. The energy certificate gives property buyers an idea of the heating costs they can expect, for example.

✓ Land register data: This section lists the most important data from the land register. It includes, among other things, information on the previous owners listed in the land register and the previous owners of the property.

✓ Information on land charges: Closely linked to the land register data is information on any existing land charges. These list all loans in the notary contract that have been taken out for the property or that serve as collateral for the property.

✓ Purchase price and payment modalities: What does the property cost and when must the agreed purchase price for the property be paid? This section of the notary contract lists such information.

✓ Financing information: The notary contract usually also contains information on how the buyer will finance the property.

✓ Rental information: The property for sale is not always ready for occupancy. If the property is already rented, this information can be found in this section of the notary contract.

Depending on the property and the wishes of both contracting parties, the notary contract for the sale of real estate may, of course, contain further points. Therefore, the above checklist is only a general example of the notarial sales contract. In order to make the path to this decisive phase of the property sale as efficient as possible, it is worth hiring an experienced estate agent. This person can handle the tedious but necessary tasks according to the wishes of the house seller.

That is why you should choose Engel & Völkers and thus Germany's fairest estate agent! We look forward to receiving your contact request.

Notary appointment when selling a house - what do I have to bear in mind?

The appointment with a notary is one of the final and most important steps when it comes to selling your property. Without a notarial deed, such as a notary contract, no legally binding sale of a flat or house can take place. Such an appointment needs to be carefully prepared. What you can expect before, during and after the notary appointment when selling your property is explained below.

Preparing for the notary appointment - what documents do I need to bring with me?

Once both parties have agreed on details such as the purchase price of the property and the associated payment modalities, an appointment can be made with the notary. Usually, the notary is appointed by the buyer of the property. As part of the preparations for the appointment, the notary will draw up a contract in advance and send it to both parties for review. For this reason, the notary will need information from you as the property seller in advance about, among other things:

• the land register

• the purchase price of the property

• the transfer date of the property

• any existing defects in the property

Notary appointment - how does it work?

An essential task of the notary is to act as a neutral mediator between the two parties to the contract. For this reason, at the beginning of the appointment the notary reads out the purchase contract for the property and explains legal terms. In addition, any questions regarding the contents of the notary contract will be answered at this point. If, in the course of this, the parties wish to change certain contents, the notary will explain to what extent this is legally possible. If both parties can agree on the purchase contract for the property, it can be signed and sealed by the notary.

Notary appointment - what happens afterwards?

After the contract has been signed, the notary informs the relevant tax office about the purchase of the property. He will also ensure that the new owners of the property are recorded in the land register. The tax office will then send a notice of real estate transfer tax to the property buyers. In addition, the notary will charge the costs for his services. Who bears these costs is explained in the following section.

Who pays the notary's fees?

In principle, notary fees are based on the purchase price of the property. As a rule, the notary's fees are paid by the buyer of the property. The seller of the property, on the other hand, usually only has to bear part of the costs, for example if special changes have to be made to the land register entry on the occasion of the property sale. Nevertheless, from a legal point of view, both the buyer and the seller are liable for the notary's fees. This is of particular interest if it turns out that the property buyer is unable to pay. In this case, the seller must pay for all notary fees. For this reason, you as the seller of a property should always check the creditworthiness of potential buyers in advance.

Do you have any further questions about selling a house, the notary appointment, the new 2019 law on estate agent commission or the value of your property? Our experienced and trustworthy real estate experts will be happy to assist you with all the processes involved in selling a house. We look forward to hearing from you!

Frequently asked questions about notarial contracts

When is a notarial contract advisable?

For the purchase or sale of a property, a notarial contract is not only recommended, but absolutely necessary. Without a notarised contract of sale, no changes can be made to the land register and the property cannot be transferred to the new owners. It therefore makes sense for both buyers and sellers to deal intensively with the subject of notarial contracts in advance.

How binding is a notary contract?

A notary contract is legally binding when it is signed in full by both parties. Serious grounds are required to contest a notarial contract. In addition, both parties are legally liable for the notary fees stipulated in the contract. As a rule, however, the property buyers bear these costs.

Can a notary contract be contested?

Under certain circumstances, a notary contract can be contested. This is the case, for example, if the former owner knowingly withheld significant defects in the property from the buyer. Another possibility is to withdraw from a contract if a corresponding withdrawal clause is part of the purchase contract.