What really matters in a notarized contract

An essential task and basic requirement of the notary’s work is that he is neutral and does not take sides. This means that he can and must provide information about the content of a contract, but does not give individual advice that gives one side or the other an advantage. This also enables legally inexperienced persons to assess the implications of their decisions. In addition, the notary applies for the priority notice of conveyance in the land register, which reserves the property for the buyer. The notary must also apply for the transfer of ownership and entry of the land charge in the land register if the purchase is financed by a real estate loan. If the real estate transfer tax has been paid, he will send the clearance certificate to the tax office. The notary will also send due date notices to the buyer when the purchase price is due.

The notary appointment is the last step before the change of ownership. In order to make this as smooth as possible, careful preparation is recommended. The buyer and seller must clarify the contents of the contract, which include the purchase price, previous liabilities such as existing mortgages or land charges and ancillary agreements. These are important if, for example, furniture is also to be transferred. To do this, you compile all the documents for the purchase. These include extracts from the land register, the current cadastral map or – in the case of a condominium – a declaration of division, which specifies which parts of the property belong to the separate property and what belongs to the common property in a house. An extract from the register of building encumbrances, in which the owner’s obligations under public law are regulated, such as clearance areas or access and parking space building encumbrances, is also necessary. Around two weeks before the appointment, both parties will receive a draft contract from the notary. You need to take a close look at this and work out any changes you would like to make.

Mandatory components of the notarized contract for the purchase of a home are the description of the object of purchase, the purchase price and its due date, the handover of the property and the regulation of liability issues in the event of material defects. As a rule, there are standardized clauses here, but both parties also have the option of inserting individual provisions, provided these are legal. The notary will also check whether this is the case. In addition, a brokerage clause may be included in the notary contract, according to which the buyer pays the brokerage commission. To this end, both contracting parties must be listed with their first and last names, date of birth and address

If both parties have signed the contract, this constitutes a binding legal transaction. However, there are cases in which it is possible to withdraw from the purchase contract. For this purpose, a withdrawal clause stating legitimate reasons for withdrawal can be stipulated in the contract in advance. If this is not done, the statutory right of withdrawal applies. Sellers can withdraw from the notarized contract in the event of default of payment. Buyers have the option of exercising this right if it can be proven that defects in the property have been fraudulently concealed or the seller has assumed a guarantee for a certain quality in the contract and then failed to comply with the agreement in the notarial contract. Rescission is also legal in the event of defects of title in the contract. Before attempting to withdraw from the contract, it may make sense to claim compensation or try to negotiate a reduction in the purchase price instead.