Guide
Property purchase agreement in Germany: part II
Buying property in Berlin: what happens before and after the notary appointment
Several steps lie between agreeing on a purchase price and being entered in the land register. If you are buying in Berlin, you should know the procedures at the notary, tax office and borough level.
Peter Guthmann
If you buy an apartment in Berlin or any other property, you need a notary. German law requires it. Once buyer and seller have agreed on the purchase price and key terms, the preparation for notarization begins. The following steps are important for buyers and investors to understand in order to avoid delays.
From draft contract to appointment
Typically, the buyer appoints the notary. The notary first checks the land register (Grundbuch) for existing encumbrances or third-party rights, then drafts the purchase contract. Both parties receive the draft for review. If one party is a consumer, at least 14 days must pass between receiving the draft and the notarization date. You should use this cooling-off period for a thorough review, ideally with a lawyer.
What happens at the notary appointment
The notary reads the entire contract aloud. This is the opportunity to clarify open questions and make changes by mutual agreement. For condominiums, the contract references the declaration of division (Teilungserklaerung). The notary also explains whether any statutory pre-emption rights apply. Both parties then sign the contract.
If you cannot attend in person, you may appoint a representative. This is particularly relevant for international investors. In practice, many use a representative without power of attorney (vollmachtloser Vertreter), since this is less expensive than a separate notarization. The represented party then approves the contract retrospectively through a certified signature.
Transfer tax and pre-emption rights in Berlin
After notarization, the notary reports the sale to the tax office. The tax office then issues the transfer tax assessment. Berlin's property transfer tax currently stands at 6 percent of the purchase price. Only after payment does the tax office issue a clearance certificate, without which no ownership transfer can take place.
A Berlin-specific feature concerns the social preservation areas (Milieuschutzgebiete), such as parts of Neukoelln or Friedrichshain-Kreuzberg. In these areas, the borough has a pre-emption right. The notary submits the purchase contract to the borough, which then has two months to decide. This period extends the overall process and should be factored into your timeline.
When the purchase price becomes due
The purchase price does not become due immediately after notarization. Certain conditions must be met first, including registration of a priority notice (Auflassungsvormerkung) in the land register in favor of the buyer and submission of all deletion authorizations for existing encumbrances. Once everything is in place, the notary sends the buyer a payment notification.
The process concludes with the buyer being registered as the new owner in the land register. In Berlin, the entire process from notarization to registration typically takes several months. In more involved cases, for example when foreign documents require an apostille or legalization, registration can take up to a year.
If you understand the Berlin market and its regulatory particularities, you can plan the purchase process more effectively and account for potential delays.