german-hawk-group
FAQ
Can anyone buy property in Germany?
No matter what your nationality, anyone can buy German real estate.
Do I get a permanent residence?
Owning a property does not invest the right to live and stay in Germany. You still may need to apply for a visitor’s visa or permanent residency. Regulations and entry requirements should be checked with your embassy.
Do I need a translator?
If one of the parties does not speak German a qualified translator is required to make sure all persons understand the content of the deed.
What are the purchaser's costs?
Usually all transaction costs are paid by the buyer. These are as follows:
- Real estate agent (incl. VAT) - of purchase price: 3,57% - 7,14%
- Land transfer tax/ stamp duty - of purchase price: 3.50%
- Notary public and land registry - of purchase price: approx. 1.50%
- Certified translator: approx. € 1,000-2,000
- Legal advise (depending on transaction size): approx. € 1,500-...
What are the costs of owning a property?
The costs of owning a property depend heavily on the agreed provisions of the lease contract and the type of lease. Whereas there are more options for commercial lease contracts, it is not that easy to pass on ancillary expenses to residential tenants as German law tends to favour residential tenants.
However generally speaking, all costs except maintenance, repairs and property management may be passed on to the tenant. Furthermore it’s up to the investor to accumulate a structural reserve.
The costs of property management vary from €25-35 plus VAT per apartment unit per month. For commercial real estate it can be up to 4% of the total lease.
What ist the German notary public?
In Germany the notary (public) plays an important role in contractual agreements relating to special laws such as
1. property law
2. land charge certification
3. law of succession
4. family law
5. corporate law.
The notary public is a solicitor, who acts on behalf of the government and is authorised to certify deeds. He provides independent and impartial advice to contractual parties. The notary officiates either as a single-profession notary, which means he’s acting as a notary only, or as an solicitor and notary at the same time.
The notary prepares the deeds in accordance with German law and provides legal advice regarding a contract. He will read aloud the deed in front of all parties involved. The deed is signed by all parties and sealed by the notary. It is irrevocable.
In comparison to the USA or UK the role of the German notary is much more important in daily business. All property transactions must be signed and sealed at the office of the notary public (§ 311 b of the German Civil Code).
Is a notary public necassary?
In accordance with the German Civil Code, all real estate transactions have to be signed at the office of the notary public. The notary public is a solicitor, who acts on behalf of the government and is authorised to certify deeds.
What is the role of the notary public?
He prepares the deed between the selling and the buying party and an appointment is arranged at the office of the notary public to complete the transaction. All legal documents are checked. The check includes a check of passports and authorisation documentation (if a person is acting on behalf of a company). The notary public then reads the deed aloud in front of all parties. The deed is signed by the vendor, investor/ buyer and the notary public. The deed is irrevocable.