Property Purchase Agreements
Sign Your Name on the Dotted Line
By signing the real estate purchase agreement, you’re not yet the official owner of the apartment or house—but you’re already a big step closer. The purchase agreement is one of the most important documents in the buying process: the seller commits to transferring the property to you, and you commit to paying the agreed purchase price.
To make sure everything goes smoothly up to this point, just keep a few things in mind: the information about the parties to the contract must be correct, all details about the property need to be included, and the payment terms—who pays what and when—should be clearly stated in the real estate purchase agreement. The notary will make sure everything is in the right place, but it’s up to you to verify that all the content is accurate.
The purchase agreement for your property is a major milestone. That’s why it’s important to familiarize yourself in advance with the key dos and don’ts. In the Urbyo Community, you can of course exchange experiences and insights on this topic. Oliver and Nina also discuss the subject of purchase agreements in the Urbyo podcast “Immobilien einfach machen”—clear, concise, and easy to understand. Feel free to give it a listen. And of course, we’ve also compiled all the essential information about purchase agreements for you right here.
- Contents
- Notary-Free
- After Signing
- Withdrawal
- FAQ
Crucial Information in a Real Estate Purchase Agreement
You’ve reserved your dream property, managed to negotiate the purchase price a little, and already secured a solid financing agreement. Perfect! Now all that’s missing is your signature on the real estate purchase agreement.
However, you can’t just finalize the deal directly between you and the seller. The purchase agreement for a house or apartment must be notarized. This process protects both you and the seller—after all, buying real estate is no small matter. You can usually get a draft of the purchase agreement from the
The contract itself is quite detailed, so it’s essential that you read it carefully from start to finish—it defines your rights and obligations as a property owner. If you have any questions, don’t hesitate to reach out to us. We’ll gladly translate the legal jargon for you.
Here’s a quick preview of what to expect in a real estate purchase agreement, among other things:
Personal details of the contracting parties: names and addresses
General information about the property: apartment or house, including any existing mortgages, usage rights, included items, living space, location, etc.
Condition of the property and known defects
Liability for defects (warranty)
Purchase price and payment terms
Breakdown of additional costs
Handover details
P.S. In addition to the purchase agreement, there’s usually also a loan agreement if you’re financing your property purchase with a mortgage. But that’s a whole different topic.
Good to know
If you are buying real estate from someone whose job it is to sell real estate, then as a private buyer, you are entitled to receive a copy of the purchase agreement 14 days before the notary appointment — either from the seller, from the notary or us. You can use that time to get questions answered, settle any outstanding issues and familiarize yourself with what you are buying. If something in the agreement doesn't sit well with you, you can — and should — make use of your right of withdrawal. Because once the deal is signed, there's technically no easy way to get out of it.
Preliminary Contract in a Real Estate Purchase — Do I Need One?
In addition to the actual purchase agreement, you may have already heard about something called a preliminary contract in the context of real estate purchases. Important to know: a preliminary contract is not the same as a reservation agreement. It might sound similar at first, but they’re actually two completely different things.
A reservation agreement is not legally binding. Essentially, it just means that the seller agrees not to advertise your desired property for a certain period, giving you time to secure financing approval.
A preliminary contract, on the other hand, is signed before the actual purchase agreement and, in most cases, is also notarized. It confirms that both buyer and seller have agreed on the main terms and conditions, but that the ownership transfer will take place later—for example, if the bank still needs more time to issue financing approval, or if the seller is waiting on a building permit for a plot of land.
So, if for some reason the final purchase agreement can’t yet be signed—but you and the seller have already reached an agreement and essentially everything is settled—then you can conclude a preliminary contract and have it notarized. Once that’s done, completing the official purchase is usually just a formality.
Otherwise, there’s generally no need for a preliminary contract when buying real estate.
Not a Good Idea: A Purchase Agreement Without a Notary
You’ve reviewed the real estate purchase agreement. Everything looks good? Great! Then it’s time to make it official. That means heading to the notary—because buying an apartment or house without a notary is not legally binding. In other words: according to Section 313b of the German Civil Code (BGB), notarization is legally required for any real estate purchase agreement.
The notary serves as a neutral advisor who protects and legally guides you as the buyer. You can learn more about the notary’s responsibilities in our German podcast episode “No Notary – No Property.” Make sure to ask the notary any questions you may have about the purchase agreement before signing it. And if you haven’t found a notary yet—don’t worry, we can arrange an appointment for you in no time.
One thing is certain: the purchase agreement only becomes valid once it’s signed by the notary. There’s no way around it. Afterward, both you and the seller will receive a certified copy of the notarized contract.
Real Estate Purchase Agreement Signed — What Happens Next
Congratulations! After the notarization of the purchase agreement, you’re almost the official owner of your property. Before you get the keys, though, the notary still has a few important tasks to take care of—such as registering the priority notice of conveyance (Auflassungsvormerkung) in the land register, confirming that the purchase price is due, and updating the land register once the payment has been received. This entire process can take a few weeks.
In the meantime, you’ll need to make the required payments. The additional purchase costs—such as the broker’s commission, land registry and notary fees, and the real estate transfer tax—become due gradually after the notarization. And of course, you’ll also need to pay the purchase price itself.
To keep track of when you need to transfer what and to whom, take a look at our information on payment schedules.
When you get the final "okay" from the notary saying that all preconditions have been met, it's time to collect the keys and start earning money on your investment.
If You Want to Cancel the Purchase Agreement
Backing out of a notarized real estate purchase agreement is difficult, as there is no general legal right of withdrawal. However, there are exceptions: for instance, if serious defects are discovered after signing that were unknown at the time of purchase or were fraudulently concealed by the seller. The same applies if a contractually guaranteed repair was not carried out.
Before you can actually withdraw from the contract, you must first give the other party a deadline to fix the issue. If nothing happens within that time, you have the right to withdraw from the agreement.
Undoing a real estate transaction is generally a bureaucratic and time-consuming process that must be handled by a notary. For example, the land register needs to be updated again. The seller bears the costs of this reversal—but only if the defects in question are significant and were deliberately concealed. In such cases, the seller must also cover any financing costs, as well as expenses for appraisals or renovations, if applicable.
If your purchase agreement includes specific clauses regarding withdrawal, those always take precedence over the general legal rules. We strongly recommend including such a clause—especially if you’re planning to sign the contract before receiving final financing approval.
By the way: if you fail to pay the agreed purchase price, the seller also has the right to cancel the purchase agreement. In that case, you’ll be responsible for all resulting costs.