buying an apartment in berlin
8 steps of purchasing process
STEP 1 - FIRST CONSULTATION
It all starts with a call - you reach out to us and we discuss the criteria of your search. Your wants, your needs, your means. We then can begin our search within our database and throughout our network of partners to find apartments in accordance with your individual desires. Once we find something you like, we arrange the viewing.
STEP 2 - PERSONAL MEETING & VIEWING
We meet personally at the apartment you selected. Apart from going over the details of the apartment, we also show you around the neighbourhood so you get a first hand impression of what might be your new home.
STEP 3 - RESERVATION AGREEMENT
Once you decide to buy, you have to act fast. “First come - first served” is the rule in Germany to avoid bidding wars for apartments, so the potential buyer who signs the reservation agreement first also gets the first right to actually buy the apartment.
The reservation agreement is signed by both parties: the agency that represents the seller and the potential buyer. A reservation fee has to be paid by the buyer as a sign of commitment. Depending on the price of the apartment the fee can cost a few thousand Euros, but once you buy the apartment, the fee will be returned to you by being deducted from the commission.
The reservation agreement usually is valid for 4 - 6 weeks and gives you the following advantages:
You have the first right to buy the apartment.
The apartment is taken off the market so that no one else can buy it - it is reserved for you only.
You now have time to go through the process of organising your financing, without taking the risk of someone else buying your desired apartment in the meantime. And as the reservation fee will be returned to you in case the bank refuses the loan, you will not lose any money if you decide to buy. Thus, we always recommend to reserve.
STEP 4 - THE DRAFT CONTRACT & COOLING PERIOD
When you’ve signed the reservation agreement, you will receive a draft purchasing contract. If you are from abroad, we recommend you to seek legal advice at this stage, and to appoint a lawyer with a Power of Attorney (POA) that can be your authorised recipient. He can act in your name in all legal matters, and he can even represent you at the notary appointment to sign the contract for you, if you’re unable to travel to Germany.
After the draft purchasing contract is sent to you, you have 14 days “cooling period.” This means you are given time to consider the conditions and you have the right to withdraw from the decision. The notary appointment can only be made once these 14 days are over.
STEP 5 - CONFIRMATION OF FINANCING OR BANK LOAN
Your financing or loan has to be arranged promptly after you sign the reservation agreement, as the bank has to approve your financing before the notary appointment can be set. If you are in need counselling, we can connect you with financial brokers who can find the most suitable bank for your loan.
STEP 6 - NOTARY APPOINTMENT
As soon as your financing is in order and the 14 days “cooling period” have passed, you tell us what date you wish to set the notary appointment to sign the actual purchasing contract. The notary acts as a neutral party that certifies the purchase contract. Both seller and buyer have to be present at this appointment, and our own real estate consultant will also be present in order to guide you through the process.
The notary appointment is in German. If you do not speak German, there are two options:
Either you hire a translator
Or the lawyer that you appointed with a POA can act in your name. In this case, you do not even have to be present, as he can sign for you. This option is often used by our clients who live abroad and do not wish to come to Germany “just” for a contract signing.
STEP 7 - PAYMENT OF THE PURCHASING PRICE & ALL PURCHASING COSTS
After the purchasing contract is signed, the notary will take the necessary steps to place your name as the potential new owner into the land registry. This is called “Auflassungsvormerkung.”
The notary will then notify you and your bank that the payment of the purchase price is due. Without it, you cannot become a full rightful owner. Once you payed the purchase price and informed the notary about it, he can notify the land registry once again, asking for the ownership of the apartment to be transferred fully to you. When the land registry has confirmed to the notary that the note about the new owner is made, the notary can in turn notify you via post: Now the property officially is yours.
The entire process between the notary appointment and the day you become official owner of the apartment usually can takes between 8 - 12 weeks, mostly because the land registry needs time to process the data.
In the weeks following the notary appointment, you will receive the following invoices, all related to purchasing costs: real estate transfer tax, notary fees, land registry fees, real estate agency commission fee, and the lawyer fee if you had one supporting you during the process. All those invoices generally need to be paid within 14 days after receiving them.
STEP 8 - KEY HANDOVER
Once your name has been entered into the land registry as the new owner of the apartment, the key handover can finally take place.
Do you still have questions? Call us for a personal consultation.
Contact us for more information:
+49 176 23 22 69 47
office@jonathanvandamme.com