Buying Property in Germanythe Complete Guide

Even so, in practice there are numerous steps that first-time buyers often do not know about, and which can delay the process or make it more expensive if they are not considered in good time. This guide takes you through every phase.

Step 1: Sort out financing – before you search

The most common mistake: buyers start looking for a property without knowing their financing limit. This leads to disappointment when the dream property exceeds the budget, or to lost time when the bank turns the financing down.

What you should do:
Arrange an initial meeting with your own bank or an independent mortgage adviser. Clarify: How much equity do you have? What monthly instalment can you sustain over the long term? What purchase price can you afford on that basis?

Rule of thumb: equity of at least 10–20% of the purchase price plus the full incidental purchase costs (about 7–9% in Bavaria). The Verbraucherzentrale (consumer advice centre) offers independent financing advice.

→ More on this: Financing: equity vs. loan

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Step 2: Search for and view properties

With a clear idea of your budget and needs, the search begins. Use property portals, talk to regional estate agents and activate your personal network: in Oberfranken, many properties come onto the market through personal contacts.

During the viewing, pay attention to:
The condition of the roof, façade, windows and heating. Damp in the cellar. Smells. Electrics. Layout. Light. Surroundings (neighbours, transport links, infrastructure). Plan at least two viewings: once in daylight, and once at a different time of day.

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Step 3: Check the property

Before making an offer, check the following documents:

Land register extract (Grundbuchauszug): Who is the owner? Are there encumbrances (land charges, rights of way, rights of residence, usufruct)? A current land register extract is available from the competent local court (Amtsgericht).

Building permits (Baugenehmigungen): Have all parts of the building been approved – extension, garage, converted attic? The building file is held by the municipality or the district office (Landratsamt). Bavaria has no register of building encumbrances (Baulastenverzeichnis); third-party rights are entered as easements in the land register.

Energy performance certificate (Energieausweis): Mandatory for every sale. It shows the building's energy efficiency and points to foreseeable renovation needs.

Structural inspection: For existing properties, we recommend an inspection with a building surveyor (cost: about €400–800). The investment can uncover tens of thousands of euros of hidden damage.

→ Checklist: Checklist for buyers

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Step 4: Negotiate the purchase price

In Oberfranken, room for negotiation of 5–15% on the asking price is not unusual, provided your arguments are well founded. Use comparison data from ImmoScout24, Immowelt and BORIS Bayern (standard land values) as your basis.

A professional estate agent supports you in the negotiation, or conducts it on your behalf.

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Step 5: Notary appointment and notarisation

In Germany, the purchase contract must be notarised by a notary (Notar). The notary is legally obliged to remain neutral and advises both sides.

The process:
The notary prepares the draft purchase contract. Both parties receive it at least two weeks before the notarisation appointment for review (statutory waiting period). At the appointment, the notary reads the entire contract aloud and explains the individual clauses. Once all parties have signed, the contract is notarised.

Costs: Notary and land register fees together amount to about 1.5–2% of the purchase price. Information is available from the Bundesnotarkammer (Federal Chamber of Notaries).

→ More on this: The notarial purchase process

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Step 6: Pay the purchase price

After notarisation, the notary arranges several steps: registration of a priority notice of conveyance (Auflassungsvormerkung), which protects the buyer; obtaining approvals and waivers of pre-emption rights; and obtaining the cancellation documents for the seller's existing land charges. Only when all conditions are met does the notary notify you that the purchase price is due.

Land transfer tax (Grunderwerbsteuer): 3.5% of the purchase price in Bavaria. The tax office usually sends the assessment a few weeks after notarisation. More on this: Land transfer tax in Bavaria.

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Step 7: Transfer of ownership and key handover

Once the purchase price and the tax office's clearance certificate (Unbedenklichkeitsbescheinigung, which confirms payment of the land transfer tax) have been received, the notary applies for the transfer of ownership in the land register. The whole process from notarisation to registration usually takes two to three months.

The keys are handed over once the purchase price has been paid in full. A handover report documents the condition of the property, all meter readings and the keys handed over.

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The timeline at a glance

Build in a buffer if you have to give notice on a rented flat. The three-month notice period usually fits well with the time between the notary appointment and the handover.

The costs at a glance

You will find a complete worked example under Incidental purchase costs in Bavaria.

Existing property or new build from a developer?

The process described applies to existing properties. When buying a new-build flat or a house from a developer (Bauträger), there are differences:

More on new-build projects under Developers and Project development.

What can go wrong – and how to prevent it

1. The bank declines after agreement has been reached. Prevention: a firm financing commitment before the notary appointment, not just a general confirmation.
2. Another buyer gets there first. Prevention: a quick decision thanks to prepared financing and a clear search profile.
3. Defects after the purchase. Prevention: a surveyor at the second viewing, questions asked in writing, assurances written into the contract.
4. Unclear rights in the land register. Prevention: read Section II and have unclear entries explained by the notary. → The land register explained simply
5. A pre-emption right is exercised. Rare, but possible – for example with converted rental flats or plots in a redevelopment area. → Pre-emption right

Further typical mistakes are described in the guide Common mistakes when buying property. For the on-site appointment, the viewing checklist will help.

Special features of buying in Oberfranken

• Many older houses: A large part of the housing stock dates from the 1950s to the 1980s. Renovation costs belong in every calculation. → Buying an older property
• Large price differences: The price per square metre can be several times higher in Bamberg than in a village in the Frankenwald. → Oberfranken market report
• Funding programmes: Families buying older houses benefit from KfW programmes; some municipalities subsidise the purchase of vacant houses in the village centre. → Funding programmes
• Buyers from abroad: The process is the same, with an interpreter at the notary. → International buyers

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A purchase in figures: example of a flat in Bamberg

In this example, just under three months passed from the financing confirmation to the handover. The total costs on top of the purchase price came to around €22,000.

Rights and obligations between the notary appointment and the handover

In the period between notarisation and handover, the seller is still in possession, but the buyer is already protected. The following applies to both sides:

• The seller must keep the property in the condition in which it was viewed and may not alter or encumber it.
• The buyer may usually view the property by arrangement, for example with tradespeople for later renovations.
• Damage that occurs during this period is, in principle, borne by the seller – until the agreed transfer of benefits and burdens.
• Insurance remains with the seller until the property passes over; the buildings insurance then transfers to the buyer.

After the purchase: the first weeks

1. Transfer electricity, gas, water and internet into your name.
2. Register your change of address within two weeks.
3. For flats: inform the property manager and set up a direct debit for the service charge (Hausgeld).
4. Check the buildings insurance and add cover for natural hazards if necessary.
5. Fulfil the obligations under the Buildings Energy Act (Gebäudeenergiegesetz) within two years. → Heating law
6. If you plan renovations: submit funding applications before awarding contracts. → Funding programmes

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