The Pre Sale Purchase Agreement is a critical document in German real estate transactions, used when parties wish to create a binding commitment to a future property sale while addressing necessary preliminary steps or conditions. This document type is particularly relevant when there are outstanding matters to be resolved before the final purchase can be completed, such as obtaining financing, conducting due diligence, or resolving planning permissions. The agreement must comply with German civil law requirements, including mandatory notarization under §311b BGB. It typically includes comprehensive details about the property, parties' obligations, timeline for completion, and conditions that must be met before proceeding to the final purchase agreement. The document provides security for both parties while maintaining flexibility to address specific transaction requirements.
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1. Parties: Identification and details of the seller and buyer, including full legal names, addresses, and registration details for legal entities
2. Background: Context of the transaction, including description of the property and current ownership status
3. Definitions: Key terms used throughout the agreement, including technical and legal terminology
4. Property Description: Detailed description of the real estate, including land registry details, exact measurements, and current usage
5. Purchase Price: Agreed purchase price, payment terms, and any adjustments or conditions
6. Deposit Terms: Amount, timing, and handling of deposit payments
7. Conditions Precedent: Conditions that must be fulfilled before the main purchase agreement is executed
8. Timeline: Schedule for executing the main purchase agreement and closing the transaction
9. Due Diligence: Rights and obligations regarding property inspection and documentation review
10. Representations and Warranties: Seller's declarations regarding the property's condition and legal status
11. Notarization Requirements: Provisions regarding the notarization process for both pre-sale and main agreements
12. Costs and Taxes: Allocation of transaction costs, including notary fees, taxes, and registration costs
13. Governing Law and Jurisdiction: Confirmation of German law application and competent courts
1. Financing Provisions: Include when buyer requires external financing, specifying conditions and deadlines for obtaining mortgage approval
2. Construction Requirements: Include for properties under construction or requiring specific modifications before sale
3. Property Management: Include when the property is currently leased or requires interim management arrangements
4. Environmental Provisions: Include when environmental investigations or remediation may be required
5. Urban Planning Conditions: Include when future development or zoning changes are relevant to the transaction
6. Existing Tenancies: Include when the property is subject to existing lease agreements
7. VAT Election: Include when the transaction may be subject to VAT taxation options
1. Property Plans: Official land registry plans and property boundaries
2. Land Register Extract: Current extract from the Grundbuch showing ownership and encumbrances
3. Property Condition Report: Technical assessment of the property's current condition
4. Payment Schedule: Detailed breakdown of payment terms and installments
5. Due Diligence Checklist: List of documents and investigations to be completed
6. Building Permits: Copies of relevant building permits and certificates
7. Existing Encumbrances: List of existing easements, mortgages, or other encumbrances
8. Property Tax Assessment: Current property tax assessment and payment status
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