You’ve done your research, found your property and secured your mortgage; you now need to know how to buy property in Germany. The real estate buying process in Germany is not dissimilar from in other European countries with the only real difference being the fees that you have to pay. The best way to explain this process is to look at it step by step. Below we’ll outline the things you need to do, the steps you’d be wise to take and outline the fees you should expect to pay.
Guide to buying property in Berlin
- After finding a property you like, it is wise to verify that the price is correct. This can be done by hiring a surveyor who will know the true value of a property. This is done at the expense of the purchaser.
- A surveyor can also inspect the property and ensure that there is nothing fundamentally wrong with it. Inspecting a property is the same the world over. One should check the roof, the cellar, the hot water boiler, etc.
- Now is the time to identify any expensive jobs that may need doing. You can then use these as a bargaining chip or get their repair written into the contract.
- During this time it is also good to inspect that the deeds are in order. If you cannot understand German, you need to get an English speaking solicitor or notary.
- If your property was recently renovated, it makes sense to ensure that the work was done according to building regulations.
- Another obvious and important thing to check is the size of the property. German property is often valued in price per metres square, you must ensure that flat is the size that the paperwork claims it to be!
- It is also strongly advised to seek out the annual reports of the residents association as most property for sale in Berlin is apartments. There is likely to be minutes available from the meetings too, these will outline and possible problems with the property you are about to buy.
- Inspect any rental agreements. This will give you an understanding of the current tenants, the yield you are likely to achieve and most crucially, will help identify any non-payers of rent. There are a surprising number of tenants in Berlin who opt not to pay rent, this is especially true in poorer areas where you may be buying as an investment. Also keep in mind that as a purchaser of a property you must honour any rental agreements the tenant had with previous owners. You can’t just buy an apartment and turf the tenant out!
- The actual conveyance of the property has to be done by a public notary. This notary acts as an impartial middle-man and will check that property is indeed up for sale and will agree a date with both parties for the signing of the property sales contract.
- On the date of the contract signing, the notary will read, word-for-word, the contract to both parties and then make any additions agreed by both parties. In is strongly advised that if you need a translator, they attend this meeting. The document will then be signed by both parties and the notary.
- Both buyer and seller need bring some identification, such as passports, to this meeting to prove to the Notary that they are who they claim to be!
- The contract will state the agreed price of sale, the day of handover or Uebergabe and any special obligations in terms of work to the property etc. It is the buyer’s responsibility to ensure they are happy with the description of the property.
- In the weeks that follow, the notary will update the land registry with the new information, the seller will complete any pending work and the buyer will make his last payment (the buyer may use the notary’s account to hold this money until ready). When all this is complete, the property is officially yours.
Property Fees in Germany
The fees associated with buying a property vary depending on who is involved. In general you should expect to pay 10-12% of the price of the property on fees. These include the following
- The Notary will receive about 1.5 % of the sale price.
- Translation fees are quite simply whatever you pay for them, check that your are not paying too much.
- Stamp Duty or property tax (Grunderwerbsteuer) is 3.5% of the price of the property.
- Estate agent fee is about 5 % of the buying price, including tax. This varies state to state.
- Registration fees are between 0.8 and 1.2 %
