Negotiations over the property's purchase price are concluded, financing is secured, and the notary appointment is imminent. For those involved, the property purchase agreement often appears to be the last formal hurdle before the change of ownership. However, it is essential to carefully review the details of this document, as it can contain far-reaching regulations and potential risks. Experts emphasise the necessity of allocating sufficient time for a thorough review of the contract before the notary appointment, to avoid misunderstandings and create the conditions for a smooth transaction. This applies in particular to aspects such as the transfer of possession, benefits and encumbrances, the regulation of defects and liability, and the scope of the inventory included in the sale.
Legal Securities and Handover Modalities
The signing of the notarised purchase agreement does not immediately lead to the transfer of property ownership. For this, registration in the land register is primarily required. The buyer's claim to ownership transfer is secured in the interim by the so-called priority notice of conveyance. This protects the buyer in the period between the conclusion of the contract and the final transfer of ownership, which can only take place after the contractually agreed conditions have been fulfilled. This is to be distinguished from the transfer of possession, benefits and encumbrances, the timing of which is stipulated in the purchase agreement. This determines when the buyer can use the property and, for example, assumes ongoing costs or certain burdens. Often, this timing is linked to the full payment of the purchase price.
The handover date also requires precise stipulation in the purchase agreement. Not only is the handing over of keys important, but also the condition of the property and the exact scope of the handover. Items such as a fitted kitchen, an awning, or a wardrobe are not automatically part of the purchased item. If specific inventory is to be sold with the property, this must be explicitly listed in the contract. Corresponding agreements on clearance or outstanding works should also be concretely recorded. Such precision minimises the risk of later disagreements between the contracting parties, as both sides have clear expectations for the time of handover.
Defects, Liability and Purchase Price Due Date
Another critical point concerns the condition of the property and liability for defects. Particularly with existing properties, purchase agreements often contain clauses that limit or completely exclude the seller's liability for material defects. Buyers are therefore required to carefully check the contractually agreed properties and ensure that known defects or damage are sufficiently documented. An exclusion of liability does not release the seller from the duty to transparently communicate known defects. Both sides benefit from a clear and honest representation of the property's condition.
For buyers, the due date of the purchase price is also important. After notarisation, the notary initiates the necessary steps, for example, the registration of the priority notice of conveyance and the procurement of relevant documents. The request for payment is only made when all contractually provided conditions have been met and the notary sends the notice of due date. It is pointed out that the purchase price should not be transferred independently after signing the contract, but that the official notification from the notary should be awaited. Clarified financing before notarisation is advisable, as the purchase agreement generally remains valid even if financing subsequently fails.
- —Priority notice of conveyance as buyer's protection
- —Precise stipulation of possession, benefits and encumbrances
- —Clear regulations on inventory and handover condition
- —Clear agreements on defects and exclusion of liability
- —Awaiting the notary's notice of due date for purchase price payment
