The Estate Contract (Grundstückskaufvertrag) is a fundamental legal document in German property law, used whenever real estate ownership is transferred between parties. This contract type is mandatory for all real estate transactions in Germany and must be executed before a notary public to be legally valid. It encompasses comprehensive details about the property, including its exact description from the land registry, purchase price, payment terms, warranties, and conditions for ownership transfer. The document ensures compliance with German property law requirements, including the necessary steps for land registry registration and tax obligations. It's particularly important as it provides legal security for both parties and serves as the basis for the actual transfer of ownership in the land registry (Grundbuch). The contract is designed to address various scenarios, from simple residential property transfers to complex commercial real estate transactions, and can be adapted to include specific provisions for different property types and transaction structures.
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1. Parties: Identification and details of the seller and buyer, including full legal names, addresses, and marital status if relevant
2. Background: Context of the sale and brief description of the transaction
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed description of the property including land registry details, exact location, and size
5. Purchase Price: Agreed purchase price and payment terms, including any deposits and installments
6. Transfer of Ownership: Conditions and process for transferring property ownership
7. Warranties and Representations: Seller's warranties regarding property condition, encumbrances, and legal status
8. Possession and Risk: Date of possession transfer and allocation of risks
9. Costs and Taxes: Distribution of transaction costs, including notary fees, taxes, and registration costs
10. Land Register Proceedings: Details regarding land registry requirements and procedures
11. Notices: Communication requirements and contact details for formal notices
12. Governing Law: Confirmation of German law application and jurisdiction
1. Mortgage and Encumbrances: Details of existing mortgages and process for clearing them, used when property has existing charges
2. Tenant Rights: Information about existing tenancies and their treatment, required when property is let
3. Building Permits: Details of existing permits and requirements, needed for properties with ongoing construction or planned modifications
4. Environmental Provisions: Special provisions regarding environmental issues, required for properties with potential contamination
5. Right of First Refusal: Details of any existing rights of first refusal, needed when such rights exist
6. Utilities and Connections: Information about utility contracts and connections, relevant for developed properties
7. Inventory: List of included fixtures and fittings, relevant when property is sold furnished
1. Land Registry Extract: Current extract from the land registry (Grundbuchauszug)
2. Property Plans: Official property plans and drawings
3. Energy Certificate: Energy performance certificate (Energieausweis)
4. Property Photographs: Current photographs of the property and its condition
5. Building Documentation: Relevant building permits and certificates
6. Inventory List: Detailed list of included items if property sold with contents
7. Due Diligence Reports: Technical and legal due diligence findings
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