When buying or selling a condominium, there are many factors that can make the process time-consuming and energy-sapping. For many people, buying their first condominium is a huge step that involves a lot of money. To make sure you are well prepared for buying or selling your property, we have put together a brief overview of the most important information.
You can expect these costs
In addition to the purchase price, the buyer and seller of the condominium will incur further costs.
Condominiums are often brokered with the help of an estate agent. Depending on the federal state, the estate agent’s commission can be between 5% and 7% of the agreed purchase price. According to the latest regulations, the buyer is no longer solely responsible for the estate agent’s commission. This is split equally between the buyer and the seller.
In the event that you have doubts about buying an older home or are not completely convinced of the structural substance, expert opinions come in handy. These will help you to either dispel or confirm your doubts. The cost of a comprehensive market value appraisal can range from €1,500 to €3,000.
The purchase or sale of a condominium can be completed by a notary. If you want to buy a condominium, you will have to pay notary fees: these amount to around 2% of the purchase price. In addition, the new entry in the land register is also associated with costs. These amount to around 1.5% to 2.5% of the purchase price.
The real estate transfer tax also depends on the respective federal state. The tax rate can vary between 3.5% and 6.5% of the agreed purchase price.
What role does a notary play?
According to the law, every sale of a plot of land, house or apartment must be notarized by a notary. The purchase of the property is only officially valid once the contract has been notarized by the notary.
Especially if you are buying or selling a condominium for the first time, the question often arises: Who appoints the notary when buying an apartment? There is no specific regulation, but in most cases the buyer appoints the notary.
The notary can also clarify questions about the contract and is obliged to maintain complete neutrality. It is best to ask as many questions as possible so that you are fully informed about every detail of the contract. All of the notary’s advisory services are already included in the notary’s fees, so there are no additional costs.
Neither the buyer nor the seller has to pay the notary fees in full. As a rule, the costs are divided equally. For example, it is common for the seller to pay the fees for the deletion of old land charges. The buyer, on the other hand, pays the costs of entry in the land register.
The notary, the seller, the buyer and possibly the estate agent are usually present at the notarization meeting. During the meeting, the notary reads the contract aloud to the two parties involved. Other important provisions are also explained once again. You are still entitled to ask questions here too.
What does the notary need when buying a home?
You will need these documents:
- ID card
- Tax ID
- Loan documents of the seller
- Financing documents of the buyer
Every purchase and sale of a property is associated with a high financial risk. This can be hedged by having a notary accompany you.
The land register: what is it and what can you find in it?
The land register is a public register and is kept by the land registry. The purpose of keeping a land register is to ensure legal certainty. As highly sensitive content can be viewed in the land register, access is restricted. Only the owner of the land or property, other registered persons and persons with a legitimate interest, such as potential buyers, are therefore permitted to take a look at the land register. In general, an officially maintained land register ensures that you can be identified as the owner of a property or plot of land. There are different types of land registers depending on the subject matter. The residential land register is required for the purchase and sale of a condominium.
In a land register, you can find possible encumbrances, a description of the property and the ownership situation. It also provides information on the current owner and, in the case of a purchase, the associated rights and obligations.
You can also find information about the parcel number, location, rights of way and mortgages on the land register sheet. The land register is inspected by the notary and presented and explained to both parties.
As a buyer, you have the right to inspect the land register before purchasing the apartment. In this way, you avoid any risks of a bad purchase.
As soon as you have bought the apartment and paid the full purchase price to the seller, the notary will send the necessary documents for the change of ownership to the land registry and you will be entered in the land register as the new owner.
