The Real Estate Contract of Sale is a fundamental document in German property transactions, required whenever real estate ownership is transferred between parties. This contract must be executed before a German notary public to be legally valid and must comply with strict formal requirements under German law. It is used for all types of real property transactions, from residential homes to commercial properties, and includes essential elements such as precise property identification, purchase price arrangements, warranties, and the formal conveyance declaration (Auflassung). The document serves multiple purposes: it establishes the legally binding agreement between parties, enables the transfer of ownership through the land registry, and ensures compliance with German property law requirements. The contract's content and structure are heavily influenced by German Civil Code provisions and related legislation, making it a crucial document for property transactions in Germany.
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1. Parties: Identification and details of the seller and purchaser, including full legal names, addresses, and registration details if companies are involved
2. Background: Context of the sale and brief description of the transaction
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed description of the property including land registry details (Grundbuch), exact location, size, and included fixtures
5. Purchase Price: Specification of the purchase price, payment terms, and escrow arrangements
6. Due Diligence Results: Confirmation of property inspection results and disclosure of known defects
7. Transfer of Ownership: Terms for the Auflassung (conveyance declaration) and registration in the land register
8. Representations and Warranties: Seller's warranties regarding property condition, encumbrances, and legal status
9. Costs and Taxes: Allocation of transaction costs, including transfer tax, notary fees, and registration costs
10. Possession and Risk: Transfer of possession, keys, and risk allocation
11. Notice and Registration Consent: Consent for land registry registration and required notices
12. Governing Law: Confirmation of German law application and jurisdiction
13. Execution: Signature blocks and notarization requirements
1. Existing Tenancies: Details of existing rental agreements and their handling - included when the property is sold with sitting tenants
2. Mortgage Release: Provisions for releasing existing mortgages - included when the property has existing encumbrances
3. Construction Requirements: Specific provisions regarding incomplete construction or required renovations - included for properties under construction or requiring specific work
4. Environmental Conditions: Special provisions regarding environmental issues - included when environmental concerns exist
5. Pre-emptive Rights: Handling of municipal or other pre-emptive rights - included when such rights exist
6. Agent Provisions: Details of real estate agent involvement and commission - included when agents are involved
7. Furniture and Fixtures: Detailed list of included/excluded items - included when specific items need to be addressed
8. Special Use Requirements: Specific provisions regarding property use restrictions - included when special use conditions apply
1. Property Plans: Official cadastral plans and property boundaries
2. Land Register Extract: Current extract from the Grundbuch showing ownership and encumbrances
3. Energy Certificate: Current energy performance certificate (Energieausweis)
4. Property Condition Report: Detailed description of property condition and any defects
5. Inventory List: Detailed list of included fixtures and fittings
6. Building Permits: Copies of relevant building permits and certificates
7. Property Tax Assessment: Current property tax assessment and payment status
8. Technical Due Diligence: Reports on building condition, contamination checks, and other technical assessments
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