Just bought a property in Germany

jcuurthht

Me and my wife just bought a property in Germany, and I thought I would detail the procedure here because it is different to the UK.

1. After finding a property and having the offer accepted, the buyer will contact a solicitor to deal with the conveyancing.

(This solicitor does not act in the interest of the buyer or the seller; they are instead completely neutral, and their purpose is to create the purchase contract, ensure all parties involved fully understand the contract, and execute the contract.)

2. The buyer and seller will meet at the solicitors office, and the purchase contract will be read out in full by the solicitor. The solicitor will regularly ask if all parties fully understand everything. If not, they will do their best to explain without legalese. Changes can be made to the contract if required and agreed by all parties. The buyer and seller will sign the contract. At this point, the sale is official and the buyer and seller can't back out. The contract will include the date of completion.

3. The solicitor begins the conveyancing process.

The time between having an offer accepted and signing the contract can be as little as a week, therefore greatly reducing the risk of gazumping and gazundering.

The solicitor fees are paid fully by the buyer and are 2% of the purchase price.

aoleks

so that's what civilisation and a robust legal system looks like. thanks for sharing!

user1977

Is the contract unconditional though? Presumably there are escape routes depending on what "the conveyancing process" may uncover?

After all, in Scotland (in theory at least) you can conclude a contract almost immediately, but it's going to be conditional on the seller producing a good title, clear searches etc. And in practice buyers will also want it to be conditional on them getting a mortgage offer, concluding a contract for their sale, etc. Think it's more common in non-UK places though for people to sell, rent, and then buy, rather than try to form any sort of chain.

2% fees sound good for the solicitor though, especially if they're not even doing any negotiation!

jcuurthht

aoleks said:

so that's what civilisation and a robust legal system looks like. thanks for sharing!

I'm currently seeling a property in the UK and my solicitor contacted the buyer's solicitor end of May & June, yet still has not heard anything back. The seller's solicitor only just informed my estate agent they have started conveyancing. The EA then informed me and my solicitor.

I think the EA for the German property is now out of the picture. He is just waiting for him commission cheque.

jcuurthht

user1977 said:

Is the contract unconditional though? Presumably there are escape routes depending on what "the conveyancing process" may uncover?

After all, in Scotland (in theory at least) you can conclude a contract almost immediately, but it's going to be conditional on the seller producing a good title, clear searches etc. And in practice buyers will also want it to be conditional on them getting a mortgage offer, concluding a contract for their sale, etc. Think it's more common in non-UK places though for people to sell, rent, and then buy, rather than try to form any sort of chain.

2% fees sound good for the solicitor though, especially if they're not even doing any negotiation!

The purchase contract should not be signed before financing is approved. We signed our mortgage contract yesterday.

The solicitor was already given the Grundbuch (land registration), so they know the seller owns the property and it does not contain any charges.

Yeah I got the impression chains are not very popular/done at all in Germany.

Yeah, the solicitor is making serious €€€. €7k in our case.

user1977

jcuurthht said:

user1977 said:

Is the contract unconditional though? Presumably there are escape routes depending on what "the conveyancing process" may uncover?

After all, in Scotland (in theory at least) you can conclude a contract almost immediately, but it's going to be conditional on the seller producing a good title, clear searches etc. And in practice buyers will also want it to be conditional on them getting a mortgage offer, concluding a contract for their sale, etc. Think it's more common in non-UK places though for people to sell, rent, and then buy, rather than try to form any sort of chain.

2% fees sound good for the solicitor though, especially if they're not even doing any negotiation!

The purchase contract should not be signed before financing is approved. We signed our mortgage contract yesterday.

The solicitor was already given the Grundbuch (land registration), so they know the seller owns the property and it does not contain any charges.

How long does the mortgage application take?

What about other things - do you have a survey in advance of all this too? How are matters which would be covered by searches in the UK dealt with - statutory notices, consents for alterations, contamination, etc? Is anyone giving you advice about relevant risks, given the solicitor is meant to be impartial?

eddddy

jcuurthht said:

Me and my wife just bought a property in Germany, and I thought I would detail the procedure here because it is different to the UK.

<snip>

I guess to be fair, you can buy property in a similar way in England. For example, you can buy a property at auction with potentially no searches, no surveys, no pre-contract enquiries and no other due diligence, if you want to.

But based on the experience of somebody I know who bought in France, I think my advice might be different - before buying, hire a local lawyer and/or other professionals who can advise you and act in your best interests.



The purchase process in France is the same as you describe in Germany.

Initially the buyers were saying how wonderfully easy it was to buy property in France - much less complicated than in the UK.

But then they discovered that the property had subsidence, and the seller probably knew about it but said nothing. The entire ground floor had to be taken up so that deep holes could be dug for concrete piling. Initially, they thought that the cost would bankrupt them, but after many months of stress and worry, and complaints to various authorities, the insurers caved-in and agreed to pay.

It was meant to be a home to relax and and enjoy their retirement, but it turned out to be one of the most stressful experiences of their lives. 

GDB2222

How much are you paying the Machler?

jcuurthht

GDB2222 said:

How much are you paying the Machler?

We pay them 0€