Berlin Property - The Buying Process

The buying process for Berlin property is both simple and comprehensive, protecting the purchaser and seller by ensuring fit and proper transactions.

The role of the property Consultant / Estate Agent

The property Consultant / Estate Agent receives an instruction from the seller regarding the sale of their property. Depending on the property the purchaser can be charged a commission for the purchase which can range from 4 – 6%.

The Notary’s role

The notary acts as the middle man in the purchase and sale of a property – importantly he is legally obliged to ensure impartiality (protecting both parties).

Making an offer

Offers are made verbally through the property consultant or estate agent but are not legally binding. Negotiations can go back and forth, as with most purchase and sales, until a price and terms and conditions are agreed.

The buying contract

Importantly this is prepared by the notary (whom plays the most important role in the sale and purchase ). The notary can be appointed by the buyer but it is not widely practiced and is usually recommended by the seller or their representative.

The buying contract lays out the obligations of the buyer and seller, the terms of the purchase and penalties for any defaults.

The buying contract is read out (the reading) by the notary to ensure full understanding by the purchaser. It is perfectly expectable for the purchaser to interrupt and ask questions through the reading of the buying contract to ensure clarity. A copy of the buying contract is made available prior to the reading and subsequent signing.

The buying contract will contain details such as:

• A detailed description of the consequences of either the buyer or the seller not fulfilling the agreed terms and conditions.
• Agreed purchase price and terms and conditions of the sale.
• Names and addresses of both parties and the property.

Restrictions on the property use

As part of the function carried out by the notary they will conduct a land register search ensuring the property can be sold and if sold there are no prevailing conditions on the property use.

Payment for the property

The payment method is entirely up to the buyer, the most common and safest method is by depositing the funds into the notarised account. Payment for the property only happens when the signing of the buyers contract has taken place. After the notary has received the funds or confirmation from the seller that the funds were received, the transfer gets lodged at the land registry.

Existing tenancy Agreements

If the property is already rented out, it is essential that existing rental agreements are seen and understood as any agreements entered into by the previous owner must be adhered to and will be taken over with the transfer of the property.

Change of ownership - completing the purchase

The change of ownership can only happen when the notary makes an entry at the land registry at the district courthouse. This can occur when all previous mortgage or finance issues have been addressed and it is confirmed that no previous taxes are outstanding on the property.

Once all these issues have been confirmed to the notary and buyers satisfaction payment then is made from the notarised account and transfer takes place.

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