What is a Wholesale Real Estate Contract?
The Wholesale Real Estate Contract is a specialized legal instrument used in German commercial property transactions where real estate is transferred between commercial entities, typically involving larger-scale or multiple property deals. This document type is essential when conducting wholesale property transactions in Germany, requiring strict adherence to German property law, including mandatory notarization under the BGB and registration in the land registry (Grundbuch). The contract encompasses comprehensive due diligence provisions, detailed property specifications, commercial terms, and specific requirements for wholesale transactions. It is particularly relevant for investment companies, property developers, and commercial real estate portfolios operating under German jurisdiction, where bulk property transfers or commercial-scale real estate transactions are involved.
Governing law
Applicable law
This Wholesale Real Estate Contract is drafted to comply with Germany law. Key legislation includes:
BGB §§ 873, 925: Provisions regarding the conveyance of real property (Auflassung) and the requirement for registration in the land registry
BGB § 311b: Requirement for notarization of real estate purchase contracts
Grundbuchordnung (GBO): German Land Registry Act governing the registration of property rights and changes in the land registry
Handelsgesetzbuch (HGB) §§ 343-372: German Commercial Code provisions relevant to commercial transactions between merchants
Makler- und Bauträgerverordnung (MaBV): Regulation on real estate agents and property developers, relevant for wholesale real estate transactions
Grunderwerbsteuergesetz (GrEStG): German Real Estate Transfer Tax Act, governing taxation aspects of property transactions
Energieeinsparverordnung (EnEV): Energy Saving Ordinance requiring energy performance certificates for property transactions
Wertermittlungsverordnung (WertV): Regulation on property valuation, important for determining and documenting property values in wholesale transactions
