The Home For Sale By Owner Contract is a crucial legal document used in Germany when property owners wish to sell their residential property directly to buyers without real estate agent involvement. This document must strictly comply with German legal requirements, including mandatory notarization under the Beurkundungsgesetz (German Notarization Act) and registration in the Grundbuch (Land Registry). It is particularly relevant in private property transactions where parties seek to avoid agent commissions while ensuring full legal compliance. The contract includes essential elements required by German law such as detailed property description, precise payment terms, warranties, and specific provisions for transfer of ownership. It must address various aspects of German property law, including real estate transfer tax obligations, energy efficiency requirements, and land registry procedures.
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1. Parties: Identification of seller and buyer with full legal names, addresses, and marital status as required by German law
2. Background: Context of the sale and confirmation that the seller is the registered owner of the property
3. Definitions: Key terms used in the contract including Property, Purchase Price, Closing Date, and other relevant terms
4. Property Description: Detailed description of the property including land registry details (Grundbuch), parcel numbers, address, and size
5. Purchase Price: Agreed purchase price, payment terms, and escrow arrangements
6. Payment Terms: Schedule of payments, including deposits and final payment, and payment methods
7. Transfer of Ownership: Terms for transferring title (Auflassung) and registration in the land registry
8. Representations and Warranties: Seller's declarations regarding property condition, encumbrances, and known defects
9. Possession and Transfer Date: Date of property handover and transfer of possession
10. Costs and Taxes: Distribution of transaction costs, including real estate transfer tax, notary fees, and registration costs
11. Due Diligence: Buyer's inspection rights and documentation requirements
12. Notarization: Acknowledgment that the contract requires notarization to be legally valid
13. Governing Law: Confirmation that the contract is governed by German law
1. Mortgage Release: Required if there are existing mortgages that need to be cleared
2. Fixtures and Fittings: Detailed list of items included/excluded in the sale
3. Property Management: Required for properties in multi-unit buildings with shared management
4. Tenant Provisions: Required if the property is currently rented
5. Environmental Conditions: Required if there are known environmental issues or contamination
6. Building Permits: Required if there are ongoing construction works or pending permits
7. Right of First Refusal: Required if any third parties have pre-emptive rights
8. Special Use Rights: Required if there are easements or special use rights attached to the property
1. Land Registry Extract: Current extract from the Grundbuch showing ownership and encumbrances
2. Property Floor Plans: Official floor plans and property measurements
3. Energy Certificate: Mandatory energy efficiency certificate (Energieausweis)
4. Property Tax Assessment: Current property tax assessment and payment status
5. Building Documentation: Building permits, inspection reports, and maintenance records
6. Inventory List: Detailed list of fixtures, fittings, and items included in the sale
7. Property Photographs: Current photographs documenting the property's condition
8. Cadastral Map: Official cadastral map showing property boundaries
9. Building Insurance: Current building insurance documentation
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