Legal: Notary, main contract and tax regulations

Legal – Do you want to sell your house? Then you need more than just a willing buyer; you should also know your rights and obligations. The sale of real estate is strictly regulated in Germany. This is the only way that sellers and buyers can be protected. However, this also means that laypeople have hardly any chance of getting an overview of the entire legal scope of a house sale without extensive research. This is where a real estate agent can help.

Notary: Purchase contract, property rights and tax law

The notary must certify the sale of every property. He acts as an independent legal authority and is supposed to protect both buyer and seller. After the preliminary contract has been drawn up, he holds a conversation with both parties and subsequently drafts the main contract. He does not represent either side, but both. This reduces the legal risk for both parties. He must not only certify the purchase agreement, but also explain all legal issues. Moreover, he is the one who initiates the entry in the land register. This only takes place once the buyer has paid the purchase price. In addition, the claims stated in the contract are immediately enforceable. If the buyer does not pay, the seller does not have to sue. Instead, the bailiff can be commissioned by the notary immediately.

Before the notary appointment: Organizational matters, documents

Yet before even reaching the notary appointment, many further legal questions must be clarified. For example, the ownership relationships must be clarified and proven. Check whether you are indeed the sole owner or if other persons may also have a claim to the property. For instance, if the property is jointly owned by two people, the sale proceeds will be distributed according to the ownership shares after the sale.

Not least, tax regulations must also be taken into account. If you sell a property that you have used yourself, no tax is due. However, if the property is rented out or used commercially, it must have been in your possession for at least 10 years. Otherwise, the so-called speculation tax must be paid. In this regard, the legislature refers to the date of the notarization of the purchase contracts. The land transfer tax must always be paid. However, this is usually borne by the buyer. The amount of the land transfer tax is a matter for the federal states and is set by the respective federal states themselves.

Legal Support from the Experienced Real Estate Agent

The sale of real estate in Germany is legally regulated by a notary. He clarifies all legal issues related to the purchase agreement. However, prior to this, a large amount of research and work is necessary in order to meet all legal requirements and avoid pitfalls. It is therefore definitely advisable to consult an experienced real estate agent who knows the legal regulations. This way, you can save yourself a lengthy research process as well as a lot of stress and frustration.

Real estate agent contract: Tips and help

You want to sell a house or an apartment, have no experience on the real estate market and want to avoid mistakes at all costs? Then you are well advised to rely on the comprehensive services of a real estate agent and simplify the time-consuming and complex sale of your property. If you hire a real estate agent, you do not need to factor the sale of your property into your schedule, as all tasks will be taken over directly by your real estate agent and carried out in your best interest.

Tasks of a real estate agent

In general, a real estate agent fulfills all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, lists your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but one-time task, answering customer inquiries is part of a real estate agent’s daily business.

• Here you will find more information about the tasks of a real estate agent.

Commission for the real estate agent – The most important regulations

More than 80 percent of all real estate properties offered for sale or rent are handled by a real estate agent. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks until the conclusion of the contract on their behalf. A professional real estate agency is a service agreed upon between the client and the real estate agent. After the service has been provided, a commission, known as the agent’s fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an agent, the buyer usually pays the commission. Since 2015, the principal principle has applied to rentals, so that the recipient of the invoice and the person paying the commission are the same as the person who commissioned the real estate service.

• Here you will find more information about the agent’s commission.