The Cancellation Of Property Sale Agreement is a crucial document used when parties to a property sale in Germany mutually agree to terminate their original transaction. This document becomes necessary in various situations, such as when conditions precedent cannot be met, financing falls through, or material issues are discovered after the initial agreement. Under German law, it must be notarized like the original sale agreement and carefully address the complexities of unwinding the transaction, including Grundbuch (land register) modifications, payment returns, and tax implications. The agreement ensures compliance with §§ 311b and 925 of the German Civil Code (BGB) while providing a clear framework for returning all parties to their original positions. It's particularly important to note that this document requires careful drafting to address all potential liabilities and ensure it will be accepted by the German land registry.

1. Parties: Identification of all parties to the cancellation agreement, including their full legal names, addresses, and registration details if applicable

2. Background: References to the original sale agreement, including date of execution, property details, and relevant circumstances leading to the cancellation

3. Definitions: Key terms used in the agreement, including references to the Property, Original Agreement, and any specific German legal terms

4. Mutual Agreement to Cancel: Clear statement of the parties' agreement to cancel the original sale agreement and the effective date of cancellation

5. Return of Property: Provisions regarding the return of the property to the seller, including condition requirements and timing

6. Repayment Terms: Details of how and when any payments made under the original agreement will be refunded

7. Land Register Requirements: Specific provisions regarding the reversal of any Grundbuch (Land Register) entries and required actions

8. Costs and Taxes: Allocation of costs related to the cancellation, including notary fees, registration costs, and any tax implications

9. Release of Claims: Mutual release of claims related to the original sale agreement

10. Governing Law: Confirmation of German law as governing law and jurisdiction