2026-10-10 11:23

What happens at the notary when you buy property in Germany?

A contract to buy German real estate is valid only in notarial form: the notary reads it aloud to the parties, who approve and sign it — otherwise the contract is void (§ 311b(1) BGB). Signing is only the halfway point: the buyer pays only after the notary confirms that a priority notice in the land register (Auflassungsvormerkung) secures their position, and then as a rule within 10–14 days. The buyer becomes owner only on registration, the last of the deal's seven steps.

The notary records the whole deal but does not negotiate it

The notary is an independent holder of a public office and the impartial adviser of all parties, not the representative of one of them (§§ 1, 14(1) BNotO). The notary explains the legal effect of the contract (§ 17(1) BeurkG) but does not discuss the price or assess the taxes, so each party needs its own lawyer. By market convention the buyer proposes the notary; the law contains no such rule. As a statutory default the buyer bears the notary's fees (§ 448(2) BGB), which are fixed by statute (§ 125 GNotKG). On a €10 million deal, they come to about €41,000 including VAT (see Part 11 of the series German Prime Retail).

The notarial form covers the entire deal. A rent guarantee or a side letter on price left out of the deed can render the whole contract void until the buyer is registered. A price understated in the deed turns it into a sham transaction (§§ 117, 125, 311b(1) BGB). A buyer who is a consumer generally receives the draft contract two weeks before signing (§ 17(2a) BeurkG).

On signing day the contract is read aloud in full

The deed is read aloud to the parties in the notary's presence, and they approve and sign it (§ 13 BeurkG); the annexes are part of the deed and must, in principle, be read too. For a new supermarket, in our experience, that means 150–200 pages or more. Plans are presented for inspection instead of being read, and bulky annexes are moved into a reference deed (Bezugsurkunde) executed in advance. The parties may waive a second reading of it if they declare that they know its content (§ 13c BeurkG). At one of our closings, a forgotten reference deed added four more hours to the hour and a half spent reading the contract (Part 8).

On the same day the parties declare the conveyance (Auflassung), with both present at the same time, in person or through representatives (§ 925(1) BGB). If you do not speak German well enough, the deed is translated for you (§ 16 BeurkG).

Money moves only once the buyer's position is secured

Exhibit 1. The buyer pays at step four of seven and becomes owner only at the last

Step	What happens	Legal basis
1. Signing	Purchase agreement and conveyance	§§ 311b, 925 BGB
2. Priority notice	Protects the buyer against a second sale, new charges and the seller's insolvency	§ 883 BGB; § 106 InsO
3. Payment conditions	The municipality waives its pre-emption right (it has up to three months to decide); consents to the release of existing land charges	§§ 24–28 BauGB; contract
4. Due date	The notary's letter confirming that the conditions are met; the price is usually paid within 10–14 days	Contract
5. Transfer	Possession, rent, risks and costs pass to the buyer	§ 446 BGB; contract
6. Transfer tax	Due one month after the assessment notice; the tax office then issues its clearance certificate	§§ 15, 22 GrEStG
7. Registration	The buyer becomes owner and landlord	§§ 566, 578, 873 BGB

Payment is by bank transfer only: cash, crypto-assets, gold, platinum and gemstones are prohibited, and non-cash payment must be proved to the notary (§ 16a GwG). A notary escrow account is permitted only where there is a legitimate need for security (§ 57(2) BeurkG). A foreign buying company must first register its beneficial owners in the Transparency Register (Transparenzregister), unless it has filed them with the register of another EU member state. Otherwise the notary must refuse to notarise (§§ 10(9), 20(1) GwG).

Implications for investors

1. Put every agreement into the deed. A rent guarantee or a side letter on price left outside the deed can render the whole contract void until the buyer is registered.

2. Have the reference deed executed in advance, and read it. You can then waive its second reading: at one of our closings, a forgotten reference deed added four more hours to the hour and a half spent reading the contract.

3. Prepare the payment and the documents before signing. Payment is by bank transfer only, and only after the notary's letter. A foreign buying company needs an entry in the Transparency Register or in another EU member state's register: without it, the notary must refuse to notarise.

What to check:
• Ask your own lawyer to approve the final text, and make sure every agreement is in the deed.
• Have the reference deed executed in advance, and read it.
• Prepare passports, register extracts and powers of attorney in the form required by § 29 GBO — apostilled or legalised where required.
• Check the foreign buying company's entry in the Transparency Register, and gather the source-of-funds documents.
• Book an interpreter in advance if you do not speak German well enough.

Sources: §§ 117, 125, 446, 448, 566, 578, 873, 883, 925 BGB; §§ 13, 13c, 16, 17, 57 BeurkG; §§ 1, 14 BNotO; § 29 GBO; § 125 GNotKG; § 106 InsO; §§ 24–28 BauGB; §§ 15, 22 GrEStG; §§ 10, 16a, 20 GwG; the series German Prime Retail, Parts 8 and 11. Legal position as of 10 October 2026.

Photo: Jan-Philipp Thiele / Unsplash

This page is general information and not investment, legal or tax advice.

Ilya Gordon