Purchase of Real Estate in Germany

The actual and authorized circumstances for a real estate buy in Germany differ considerably from those in different countries. The transfer of title is carried out in two steps: The conclusion of the purchase contract and the entry of the switch of title into the land register.

The Land Register

The land register (Grundbuch) is administrated by the Land Registry on the explicit Native Court. The function of the Land Register is to inform the general public concerning the authorized relationships in regard to a specific parcel of land. Albeit being a public register solely such people gain access to it who can demonstrate a justified curiosity, e.g. banks and different creditors, public notaries, estate agents and potential purchasers.

With the intention to evaluate the legal situation, every potential buyer is properly advised to demand an precise extract of the land register. It is a fundamental feature of the German real estate legislation that transfers of possession is effected by the transcription of title within the land register. Any individual haus verkaufen who's nominated within the register is at all times and automatically the lawful proprietor of the property. Resulting from its publicity, the contents of the sheets are ascribed public religion and credit. As a consequence, everyone can rely on their accuracy and further research relating to the title held by the vendor need to not be carried out. I

Every property needs to be registered on a separate sheet. Previous entries in the sheets are deleted by the officers of the Land Registry by underlining them in red. The files attributed to each sheet contain all relevant deeds regarding current or future entries within the register.

Every sheet is split into a listing itemizing (Bestandsverzeichnis) and three sub-sections (Abteilung). The inventory listing identifies the cadastral district (Flur) and unit (Flurstueck) of the real estate and its size. The first section nominates the owner of the estate and the authorized ground of his acquisition (purchase/ inheritance etc.). The second section shows all encumbrances in regard to the estate corresponding to easements on the real estate or personal easements, heritable building rights, pledges or claims for recurrent payments or providers, usufruct, priority notices, the owners limitations regarding the proper to eliminate his title. The entries within the third part doc if the real estate has been used earlier than as a collateral security. These informations are necessary for any potential purchaser because no matter the individual who owns the property, each bailee of a lien on the real property is entitled to put the real estate onto auction with the intention to implement his cash claim.