The position of the notary
As the holder of a public office, the notary is neutral and independent. She therefore does not unilaterally represent the interests of just one party, but advises all contracting parties impartially. Thanks to her outstanding qualifications, she guarantees legal advice at the highest level and ensures a fair and balanced contract. This avoids risks and prevents later disputes in advance. The notary also ensures that the purchase contract is processed smoothly and securely. The notary plays a particularly important role when the contract is concluded between a consumer and a company. In these cases, she ensures that inexperienced parties to the contract are not taken advantage of and are not exposed to any one-sided risks.
Before notarization
The main aspects of the upcoming transaction are usually discussed in advance: How much is the purchase price, when will the property be ready for occupation, what condition is it in, will movable items be included in the sale, etc.? The contracting parties can then contact a notary of their choice with a request to prepare the purchase contract. The notary will first clarify the facts before checking whether and how the desired agreements can be legally implemented. He/she will use the extract from the land register to obtain information on the ownership structure, existing encumbrances on the property and any obstacles to the implementation of the contract. In addition, he/she will point out various structuring options if necessary and draw the parties' attention to possible risks.
The focus is on the secure exchange of services, which means that the seller only loses his ownership once he has received the purchase price and, on the other hand, the buyer only hands over his money once it is certain that he will become the owner of the property. The economic evaluation of a contract, in particular the appropriateness of the purchase price and the tax consequences of the intended purchase, on the other hand, are not part of the notary's remit. The notary also does not advise the parties on tax matters. If the parties to the contract wish to obtain clarity here, they should consult a tax advisor or the tax office before notarization.
Finally, the notary translates the individual ideas of the buyer and seller into a tailor-made draft in a legally correct manner. This is sent to the parties in good time before notarization, at least two weeks in the case of a contract between a consumer and an entrepreneur. This gives the contracting parties the opportunity to discuss the contract in advance and ask questions.
If the buyer wishes to take out a financial loan, it is advisable to discuss the details with the financing bank as soon as possible. As the loan is usually secured by a land charge on the property, the bank will inform the notary of the details.
The notarization
When notarizing the purchase contract, the notary reads out the complete contract word for word, explains the content and draws attention to the legal implications of the transaction. During the notarization hearing, the buyer and seller have the opportunity to address any outstanding points. Once all questions have been answered and any final amendments have been incorporated, the parties to the contract and the notary sign the deed. If the notary has been provided with the data for the land charge in advance, this can be notarized immediately after the purchase agreement.
After notarization
Once the purchase contract has been signed, the notary will take care of the smooth execution of the purchase contract over the coming weeks. In the meantime, the parties to the contract can take care of the things that are important to them, such as moving house, planning furnishings, etc., without being disturbed. The notary obtains the necessary approvals and other declarations from the authorities required for completion, takes care of correspondence with the courts and land registry and the necessary notification to the tax office. The notary also takes care of the complicated process with the banks to be redeemed and financing banks. She secures the buyer against the loss of his rights from the purchase contract by entering a priority notice of ownership in the land register and ensures that his mortgage is registered.
Once it has been established that there are no longer any obstacles to the acquisition of ownership, she informs the buyer that the purchase price can now be paid without any worries. Once the purchase price has been paid, the notary applies for the transfer of ownership at the land registry and monitors its completion. Finally, she informs the buyer that he has now finally become the new owner of the contractual property.
Costs
Notaries charge fees for their work in accordance with a statutory social fee system that is based solely on the value of the transaction. The same contract therefore costs the same for every notary. My office will be happy to provide you with information on the expected costs of a real estate purchase contract.
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Your contact person
Florence Wetzel
Together with my expert team, I am happy to offer you notarial advice in all areas. This means you can be sure that everything will go according to your wishes and be legally compliant. If you have any questions or need help, please do not hesitate to contact me. I am here for you and will be happy to assist you.