Building Purchase Agreement for Germany

Building Purchase Agreement Template for Germany

A comprehensive legal document governed by German law that formalizes the transfer of ownership of a building from seller to buyer. The agreement must be notarized and includes detailed specifications of the property, purchase price, payment terms, warranties, and conditions for transfer of ownership. It complies with German Civil Code (BGB) requirements and includes provisions for land registry registration, handling of existing encumbrances, and allocation of transaction costs and taxes. The document addresses both physical and legal aspects of the property transfer, ensuring compliance with German property law and real estate regulations.

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What is a Building Purchase Agreement?

The Building Purchase Agreement (Kaufvertrag für ein Gebäude) is a crucial document in German real estate transactions, used whenever a building changes ownership. This agreement must be notarized under German law and serves as the foundation for property transfer in the land registry (Grundbuch). It contains essential elements required by German property law, including precise property description, purchase price arrangements, warranties, and specific conditions for ownership transfer. The document is particularly important as it triggers various legal obligations and rights under German law, including real estate transfer tax (Grunderwerbsteuer) obligations and formal registration requirements. It protects both parties' interests by clearly defining their rights and obligations in the transaction.

What sections should be included in a Building Purchase Agreement?

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 transaction and brief description of the property being sold

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the building and land, including exact address, land registry details, and cadastral information

5. Purchase Price: Specified purchase price, payment terms, and method of payment

6. Transfer of Ownership: Terms for the transfer of title (Auflassung) and registration in the land registry

7. Condition of the Property: Current state of the property, known defects, and as-is provisions

8. Warranties and Representations: Seller's warranties regarding the property, including ownership, encumbrances, and building permits

9. Costs and Taxes: Allocation of transaction costs, including notary fees, land registry costs, and real estate transfer tax

10. Possession and Risk: Date of handover, transfer of risk, and utility arrangements

11. Encumbrances: Existing mortgages, easements, and their handling

12. Closing Requirements: Conditions precedent and steps necessary to complete the transaction

13. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Building Purchase Agreement?

1. Tenant Provisions: Required if the property is currently leased, addressing existing tenancy agreements

2. Mortgage Arrangements: Needed if the purchase is financed through a mortgage, including coordination with lender

3. Construction Completion: Required for buildings under construction or requiring completion works

4. Environmental Provisions: Needed if there are known environmental issues or specific requirements

5. Heritage Protection: Required if the building is listed or subject to preservation orders

6. Commercial Use Provisions: Needed for buildings intended for commercial use, including permits and licenses

7. Property Management: Required for multi-unit buildings with shared facilities

8. Development Rights: Needed if there are unused development potential or building rights

9. Defects Escrow: Optional provision for holding back funds for known defects

What schedules should be included in a Building Purchase Agreement?

1. Land Registry Extract: Current extract from the land registry (Grundbuchauszug)

2. Property Plans: Floor plans, site plans, and building plans

3. Energy Certificate: Current energy performance certificate (Energieausweis)

4. Building Permits: Copies of existing building permits and related documentation

5. Property Inventory: List of included fixtures, fittings, and equipment

6. Technical Due Diligence: Building inspection reports and technical assessments

7. Encumbrance Documentation: Details of existing mortgages, easements, and other encumbrances

8. Property Tax Assessment: Current property tax assessment and payment status

9. Building Insurance: Details of existing building insurance policies

10. Maintenance Records: History of major repairs and maintenance work

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Banking & Finance

Property Development

Commercial Property

Residential Property

Property Investment

Hospitality

Retail

Industrial & Manufacturing

Healthcare

Relevant Teams

Legal

Real Estate

Property Management

Finance

Acquisitions

Risk & Compliance

Facilities Management

Investment

Asset Management

Development

Operations

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Developer

Investment Manager

Facility Manager

Commercial Director

Chief Financial Officer

Real Estate Agent

Property Surveyor

Asset Manager

Acquisition Manager

Legal Counsel

Property Portfolio Manager

Development Director

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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