If you decide to buy a house or apartment, a visit to a notary is indispensable to doing business legally. Because without the official seal of a notary no real estate transactions may be made within Germany. The duties of a notary include, among other things, the certification of all real estate transactions such as purchase, inheritance and donation, as well as advice to all contracting parties. Furthermore, a notary is obliged to inform his clients about all sorts of rights and obligations . However, most people associate notaries with long, hard-to-understand texts and contracts.
In our contribution Notar-Deutsch / Deutsch-Notar we have collected and simplified some typical questions and answers from the everyday life of a notary.
Why do you have to become a notary public for the conclusion of a real estate purchase contract?
When purchasing a property, it is always necessary to have a notarization by a notary for the conclusion of a purchase contract. Furthermore, the notary advises on far-reaching legal transactions and makes sure that the will of all parties involved is clearly and unequivocally taken into account and recorded.
Why is a contract of sale so long and complicated?
The length and complexity of a purchase contract is due, among other things, to the fact that a contract must always be fair to several parties. The seller wants to receive the purchase price at a pre-agreed time and the buyer wants to become the owner of the property. Furthermore, all formalities of the Land Registry have to be considered. If there is a dispute between the individual parties, you can refer to the document in an emergency.
What do the terms land registry and land registry mean?
The land register is a public register that records the ownership of real estate and land. It names the owner and additionally contains all the important contents regarding rights and burdens of the property.
The land registry is a department of the district court, which is responsible for the management of the land register.
What is a mortgage?
The mortgage is a lien, which encumbers a property to secure a loan. Prerequisite is the entry in the land register. If a debtor fails to meet his contractual obligations, the lender can, in an emergency, sell the property in the course of foreclosure.
What is a reservation?
A reservation or a notice of default is a security in favor of the buyer. It serves to secure a claim and is entered in the land register. Among other things, the buyer protects the buyer against double sales, intermediate charges or a bankruptcy of the seller.
What is a purchase price due notice?
A purchase price due notice is a letter from a notary that now the purchase price must be paid. However, the notary may not send this notification until all agreed purchase price due conditions have been met. Only when the purchase price due notice, the purchase price must be paid.
What is the foreclosure submission?
FH A foreclosure submission is a notarized statement by a debtor that he is subject to immediate foreclosure. The execution submission makes it possible to enforce a claim without the extrajudicial procedure, with the help of the notarial deed alone. For example, a buyer may submit to the seller because of his obligation to pay the purchase price of foreclosure.
What do the rules about the purchase price financing say?
Most buyers finance the purchase of a property or land with the help of a loan. As a rule, in such a case, banks require as security the registration of a mortgage. Normally you order this mortgage on the object that you want to buy. However, since you are not yet the owner before the purchase price payment, you need the approval of the seller. If an agreement is reached, the seller gives you a power of attorney in the purchase contract. Subsequently, the bank pays the financed part of the purchase price directly to the seller.
What do the rules on material defect liability state?
In the case of so-called material defect liability, a seller is liable if the sold property is not in the agreed condition. Depending on the severity of the defect, there may be claims for damages or even withdrawal from the agreed contract.
Do you still have questions about mortgage lending? Or would you like more information on funding, subsidies or similar? Your MBA financial partner in Kiel, Hamburg and Flensburg is at your side from the initial consultation through to the purchase price payment. For MBA your wishes and possibilities are the focus of personal consultation.