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© 2016 Dwellworks
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Discovering Germany
As a buyer, it is advisable not to sign an ‘exclusive contract’ with one agent. It is common
practice to use offers from several agents. Ask the agent at the beginning from whom he will
receive his commission and what percentage this is. This commission is between 5-7% of
the purchase price. In a lot of areas, the buyer pays in full. However, in some cases the
commission is split between buyer and vendor, and some agents take the commission from
the vendor only.
The agent may only issue an invoice when he has clearly arranged for the contract between
buyer and vendor. It is also advisable to ask the vendor whether or not he has a contract
with the agent.
Should a prospective buyer receive an offer for a house which he already knows about from
other contacts, it is advisable to inform the second agent immediately in order to avoid the
payment of a double commission.
Once the buyer and vendor have agreed upon a purchase price, an appointment is arranged
at a notary’s office for the final signing of the contract. The notary is legally bound to act as
an impartial mediator between buyer and vendor. He checks the land register whether the
property can be sold at all or if there are certain restrictions. Once the contract is signed he
registers the change of ownership with the municipal government and enters the property
into the land register. The land register records the owner of the land, the mortgages on the
property, and any restrictions on the property.
Additional costs for the purchase of a property
Approximately 0.5% of the purchase price as notary fee
Approximately 1% of the purchase price for administrative fees (land register entry,
certifications, etc.)
3.5% of the purchase price as property purchase tax
It is strongly recommended to obtain professional advice from a lawyer and/or a tax
consultant before and during the process of purchasing a property.
Understanding the Rental Contract
Rental contracts for apartments are usually in a standard, pre-printed format. Details
relevant to the apartment are filled in by the landlord and or estate agent.
Duration of Rental Contracts
There are usually three types of rental agreements: unspecified duration, minimum specified
duration, and specified duration. The details are outlined below.
Unspecified Duration
The contract is valid for an unlimited period of time. The contract can be cancelled by both
parties with the legal cancellation requirements, which are currently three months for the
tenant. The landlord has to give a legally valid reason to cancel the contract.