The Agreement of Sale of Immovable Property is a fundamental document in German real estate transactions, used whenever ownership of land, buildings, or condominiums is transferred between parties. This agreement must comply with strict German legal formalities, including mandatory notarization and registration in the land register (Grundbuch). It covers essential elements such as precise property identification, purchase price, payment conditions, warranties, and specific German legal requirements like pre-emption rights and energy efficiency certificates. The document is crucial for both private and commercial property transactions and must address various aspects of German property law, including provisions from the BGB (Civil Code), GBO (Land Registration Code), and relevant tax regulations. Its preparation requires careful consideration of existing encumbrances, building regulations, and any special provisions under German law.
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1. Parties: Identification of seller and purchaser with full legal names, addresses, and registration details if companies
2. Background: Context of the sale and brief description of the property and transaction
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed description of the property including land register details (Grundbuch), plot number, address, and size
5. Purchase Price: Purchase price, payment terms, and escrow arrangements
6. Transfer of Ownership: Terms for the conveyance of title (Auflassung) and registration in the land register
7. Condition of Property: Current state of the property and any known defects
8. Warranties and Representations: Seller's warranties regarding ownership, encumbrances, and property condition
9. Costs and Taxes: Allocation of transaction costs, notary fees, and real estate transfer tax
10. Possession and Risk: Date of handover and transfer of risk
11. Pre-emption Rights: Confirmation regarding any statutory pre-emption rights
12. Notarization: Acknowledgment of notarization requirement and related provisions
13. Governing Law: Confirmation of German law application and jurisdiction
1. Existing Encumbrances: Details of existing mortgages, easements, or other encumbrances if any exist
2. Tenant Rights: Required if the property is currently leased, addressing existing tenancy agreements
3. Monument Protection: Required if the property is under monument protection (Denkmalschutz)
4. Construction Obligations: Required if there are pending building permits or construction obligations
5. Contamination Provisions: Required if there are known or suspected contamination issues
6. Utilities and Connection Rights: Optional section detailing utility connections and rights of way
7. Parking Rights: Required if separate parking rights or garage spaces are included
8. Development Conditions: Required if the property is subject to development restrictions or obligations
1. Land Register Extract: Current extract from the Grundbuch showing ownership and encumbrances
2. Cadastral Map: Official property map and site plan
3. Energy Performance Certificate: Mandatory energy efficiency documentation (Energieausweis)
4. Property Plans: Floor plans and building specifications
5. Inventory List: List of included fixtures and fittings if applicable
6. Due Diligence Reports: Technical and legal due diligence findings if available
7. Building Permits: Copies of existing building permits and related documentation
8. Property Tax Assessment: Current property tax assessment and payment status
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Hospitality
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Relevant Teams
Legal
Real Estate
Property Management
Finance
Compliance
Risk Management
Corporate Development
Facilities Management
Investment
Operations
Tax
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Relevant Roles
Real Estate Manager
Property Developer
Legal Counsel
Corporate Lawyer
Real Estate Agent
Property Manager
Facilities Manager
Asset Manager
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Chief Financial Officer
Real Estate Director
Compliance Officer
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