You have finally found your dream property. The purchase price was negotiated, the notary appointment was attended and the purchase contract was signed. The notary appointment also included the notarization of the purchase contract, which is a major milestone in the property purchase process. However, when buying their first home, many people ask themselves what timeline they should expect after visiting the notary. This magazine article describes the process after the purchase contract has been signed and is intended as a guide for future owners of a condominium or other property. The timescales are intended as a guide but may vary.
Why do you need a notary appointment when buying a home?
Going to a notary is required by law. It is not possible to purchase a home without a valid purchase contract. The contract is signed at the notary’s office, who acts as a neutral intermediary between the seller and buyer. It is the notary’s job to draw up a fair purchase contract, which stipulates, among other things, the transfer and payment of the property. In addition, there are further obligations and rights of both contractual partners. The notary has the central role of notarizing the purchase agreement and explaining all the details to the seller and buyer. In addition, the notary examines the land register and analyzes which encumbrances or owners have been entered there. The costs for the notary generally amount to between 1 and 1.5 percent of the agreed purchase price.
Once the purchase contract has been signed by both parties, the new owner of the apartment can be entered in the land register.
What happens after the notary appointment? - The timeline at a glance
The following is an overview of the sequence of events that take place after the notary appointment. The timings are for guidance only, but may vary from apartment purchase to apartment purchase. It is therefore not possible to provide generally valid dates. With the help of our overview, however, you can get a meaningful overview.
Immediately after notarization of the purchase agreement
The notary’s duties are far from complete with the notarization of the purchase contract. This is because the notary is not only responsible for notarizing the contract, but must also process it independently on behalf of the seller and the buyer of the property. First of all, the notary must bring about a land register status that corresponds to the provisions of the purchase contract. Section I of the land register contains the name of the seller at the time the purchase contract is signed. Once the process has been completed, the name of the new owner must appear here. Encumbrances are entered in section II of the land register. For example, this may be a note on a subsequent heir or a note on the execution of a will. These entries must be deleted by the notary as part of the process. Section III of the land register may still contain land charges from savings banks or credit institutions dating from the time when the current seller purchased the property. These encumbrances must be deleted so that the new land charges of the current buyer can be entered.
Approximately 1 week after notarization by the notary: Entry of the priority notice of conveyance by the notary
A few days after notarization by the notary, the seller and the buyer of the property are sent a copy that has been notarized. This is the time at which the notary applies for the entry of a conveyance at the land registry. By registering the priority notice of conveyance, it becomes clear that the buyer has a right to the property that is being sold.
Approximately 2 weeks after the notary appointment: Creation of the land charge by the notary
If the buyer is dependent on borrowed capital from a bank and therefore needs to apply for financing, he can have a notarial land register appointment carried out. The land charge form required for this is issued by the selected bank and must be completed and submitted to the notary. If this is desired, the land charge can be created once the notary has read out the purchase contract and the buyer and seller have signed it.
Approximately 4 to 10 weeks after the notary appointment: Payment of the real estate transfer tax, as well as due date and payment of the purchase price
The tax office will send the buyer a notice for the land transfer tax within a period of between 4 and 9 weeks after the notarial validity of the purchase contract. It is recommended that the amount of the real estate transfer tax be transferred to the responsible tax office in due time. Only when the payment has been received will the tax clearance certificate be issued, which is essential for the transfer of ownership.
The notary wants to guarantee that the sale can be completed without any obstructive incidents. For this reason, he ensures that the priority notice of conveyance is entered in the land register at the agreed rank. In addition, the seller’s former encumbrances must be deleted if they are not taken over by the buyer. If the property is a condominium, the administrator of the condominium owners’ association must give their consent to the planned purchase. Only when all these steps have been completed will the notary send a purchase price due date notification to the buyer of the property.
If an undeveloped plot of land is sold, a negative certificate from the respective municipality is required. This certificate confirms that the municipality has waived its right of first refusal.
As soon as the purchase price due date notification has been sent to the buyer, the buyer can transfer the agreed purchase price to the seller within the contractually stipulated period. If the previous owner still had a residual debt to settle with his bank, this amount is settled directly by the buyer. Only the remaining amount reaches the seller’s account.
Approximately 6 to 8 weeks after the notary appointment: Application for transfer of ownership
As soon as the purchase price has been credited to the seller’s account, the seller must submit a confirmation so that the application for the transfer of the property can be submitted to the land registry. The notary takes care of this in order to guarantee a smooth process. In addition, the buyer is the legal owner of the property from this point onwards and can use it. However, this also means that the new owner must assume all obligations from this moment on. For example, he or she should take out the necessary insurance, as there is also a duty of care. If the seller continues to receive invoices that are directly related to the property sold, they can forward these directly to the new owner.
Approximately 5 to 12 months after the notary appointment: Entry of the buyer in the land register
Within a period of around 5 to 12 months after the notary has notarized the purchase contract, the new owner is entered in the land register. He is now the owner of the property, also in the public register. Once this process has been successfully completed, the notary sends a registration notice to the seller and the buyer of the property. In this context, the building insurance is now also transferred to the new owner of the property. For this reason, it is important to inform the relevant insurance company in writing immediately after the transfer of ownership. The buyer and seller should agree who will forward this information to the building insurance company. The new owner of the property then has the right to cancel the existing insurance policy within one month. Whether the termination takes effect immediately or at the end of the insurance period may vary.
How much does the notary cost when buying a home?
Notary fees can vary. It is therefore not possible to give a fixed amount. As a rule, an amount of 1 to 1.5 percent of the purchase price of the property can be expected. We deal with the amount of incidental purchase costs for condominiums in detail in our magazine.
Conclusion
The seller of a property wants a smooth real estate sales process just as much as the buyer. For a person about to complete their first property purchase, the entire buying process is a mystery. For this reason, we have outlined in detail in this article what steps the notary will take after the deed of sale has been notarized. This will give you an overview of the timeline and let you know which authorities and offices will be involved once the contract has been signed.
FAQ - Frequently asked questions
Numerous questions arise for both the seller and the buyer in connection with the purchase of real estate.
How long does it take after the notary appointment until the purchase price is paid?
Between 4 and 10 weeks after notarization of the purchase contract by the notary, the due date for payment of the purchase price is sent to the buyer. The deadline for payment of the purchase price is agreed in the contract.
How long does it take after the notary appointment until the entry in the land register?
The final entry of the new owner in the land register can take between 5 and 12 months. The land register entry can only be made once the purchase process has been fully completed and the money for the property has been paid to the seller on time.
When will the keys be handed over?
There is no general answer to this question. As a rule, the buyer of a property is entitled to use it as soon as he has paid the purchase price in full to the seller. Details are set out in the contract or agreed verbally.
Is it possible to withdraw from a purchase contract?
The notarized purchase contract usually states that there is a 14-day right of withdrawal. This applies to both the seller and the buyer of the property. The seller can withdraw from the purchase contract if payment of the purchase price has not been received within the stipulated period. In exceptional cases, the buyer can withdraw from the purchase contract if they have been fraudulently deceived by the seller or if the property has serious defects. In this case, it is the buyer’s duty to prove the seller’s deception.
A financing refusal on the part of the bank is not a reason to withdraw from the purchase contract. For this reason, buyers are advised not to sign the purchase contract until the financing has been secured.
Is it possible to withdraw from the loan agreement?
The buyer has the right to withdraw from a loan agreement within 14 days of signing the contract without giving reasons. If no money has been paid at this point, no further action needs to be taken. However, the credit institution is entitled to compensation for non-acceptance. The amount of this compensation varies from bank to bank.
If the loan money has already been paid out to the buyer, there is still a right of withdrawal. However, the process is somewhat longer because a reversal procedure must be initiated. Check the bank documents to find out the specific terms of the loan agreement.
Where is the conveyance entered in the land register?
The note on the conveyance is entered in section I of the land register.
