Buying Property in Germany: Legal Guide

Purchase Process

1. 1. Property Search: Identify suitable properties through online portals (Immobilienscout24, Immowelt), local agents, or Zwangsversteigerung (forced sale) auctions via the ZVG portal.
2. 2. Financing Arrangement: Secure mortgage pre-approval if needed. German banks typically finance 60-80% of property value for foreign buyers.
3. 3. Purchase Offer: Submit a formal offer to the seller. Unlike some countries, verbal agreements are not binding in Germany.
4. 4. Notary Selection: Choose a notary (both parties typically share one). The notary is neutral and ensures legal compliance for both sides.
5. 5. Draft Contract Review: The notary prepares the Kaufvertrag (purchase contract). Both parties receive a 14-day cooling-off period to review before signing.
6. 6. Notary Appointment: Attend the official signing (Beurkundung) where the notary reads the entire contract aloud and both parties sign.
7. 7. Payment and Transfer: Pay the purchase price to a notary escrow account or directly to the seller as specified in the contract.
8. 8. Tax Payment: Pay the Grunderwerbsteuer (property transfer tax) to receive the Unbedenklichkeitsbescheinigung (tax clearance certificate).
9. 9. Land Registry Update: The notary arranges registration of the new owner in the Grundbuch, completing the legal transfer of ownership.

Foreign Buyer Requirements

Germany imposes no restrictions on foreign property ownership. Both EU and non-EU citizens can purchase residential and commercial property without special permits. However, buyers will need a German bank account for the transaction and ongoing property costs. While not legally required, engaging a lawyer (Rechtsanwalt) familiar with German property law is advisable, especially for non-German speakers, as all contracts are in German.