Buying an apartment or house is a big investment, so a thorough review of the purchase contract and the associated documents such as the land register or the declaration of division is essential. Contracts are often incomprehensible to normal people and full of legal terminology. We will help you to understand the contracts and check for you whether the contract disadvantages you or contains clauses that are unfavorable to you. We will also show you the risks.

Real estate law: Basics and importance

Definition of real estate law

Real estate law covers all legal aspects related to the acquisition, ownership and sale of real estate. It protects the rights of buyers, sellers and owners and ensures that transactions are legally sound.

Why is real estate law important?

A sound understanding of real estate law is crucial to avoid legal problems and ensure that your real estate investments are safe and legally compliant.

Reviewing a real estate purchase contract

Why is reviewing a real estate purchase contract necessary?

The real estate purchase contract is a legally binding document that sets out all the terms and conditions for the purchase of real estate.

Carefully reviewing a real estate purchase contract protects against hidden clauses and unforeseen costs. It ensures that all contract terms are fair and transparent. Small mistakes or negligence can lead to legal problems and major financial disadvantages later on.

Buying an apartment or a house is something special and unique for most people – you don’t buy an apartment or a house every day. It is also usually a large investment that you have to pay back over several years. It is therefore important not to neglect the risks and not to sign the purchase contract in a hurry.

It is important to note that the real estate agent only receives his commission if the buyer signs the purchase contract – the agent’s statements must therefore be critically questioned and checked. The small print of the exposé always states “all information is based on information from the owner/seller”.

What does the review of a property purchase contract include?

The lawyer reviews the entire contract, including the associated documents – in particular the land register extract (Grundbuchauszug) and, in the case of apartments, the declaration of division (Teilungserklärung). We analyze and check the contract for unclear or unfavorable contract clauses, hidden costs and disadvantageous conditions, so that you know your risks before buying and there are no nasty surprises afterwards. The contract should be fair and legally correct. Formulations that are unfavorable for you can cause problems and high additional costs later on.

Real estate lawyer: your expert in real estate law

Why consult a real estate lawyer?

A specialized lawyer knows the intricacies of real estate law and can advise you comprehensively and represent your interests. The real estate agent, who is usually hired by the owner, and the seller are only interested in selling as quickly as possible at a high price. The notary is obliged to be neutral and therefore cannot represent your interests.

It is therefore very important for you to have someone at your side who looks after your interests and checks the purchase contract for risks and formulations that are disadvantageous to you.

Services of a real estate lawyer

A lawyer offers comprehensive support in reviewing purchase contracts and the associated documents as well as in preparing legally secure documents.

We offer comprehensive advice and representation for all legal matters relating to house and apartment purchases.

Advantages of legal advice

Early advice prevents expensive mistakes and ensures legal clarity.

You have time until you sign at the notary to decide whether you really want to buy the property. After signing, it is usually not possible to withdraw from the contract, so the time before signing should be used effectively for checking and consulting. You will then know the risks and can decide for yourself whether you want to sign the contract.

Check the apartment purchase contract: What you should pay attention to

Special features of an apartment purchase contract

An apartment purchase contract must take special features such as declarations of division (Teilungserklärungen) and special rights of use (Sondernutzungsrechte) into account.

Risks of apartment purchase contracts

Is the apartment empty, is it used by the owner or is it rented? – The different case constellations have different risks that must be taken into account when drafting the contract so that you do not have any disadvantages and unforeseen costs later.

Incorrect or unclear regulations can lead to conflicts and problems within the community of owners or the contracting parties. A careful review of the documents minimizes these risks.

Check the contract: security with every purchase

Important contract components

The lawyer checks whether all important and necessary contract components have been taken into account and clearly formulated.

A detailed look at the contract clauses prevents misunderstandings, later legal problems and subsequent high costs that could have been avoided.

Our review processes

We use tried and tested methods to ensure that every contract is complete, clear and correct. It is also essential to pay attention to risks and clauses that are negative for you. It is important to us to inform you about any risks and dangers before you sign.

Check the purchase contract for a apartment: How to avoid pitfalls

Special features of a purchase contract for apartments

Our audit also includes aspects such as the declaration of division (Teilungserklärung), maintenance payments (Hausgeldzahlungen), business plan (Wirtschaftsplan), maintenance reserves (Instandhaltungsrücklagen), community regulations (Gemeinschaftsordnungen) and the minutes of the owners’ meeting (Protokolle der Eigentümerversammlung).

Common errors in purchase contracts for apartments

Unclear regulations in the contract, such as special usage rights (Sondernutzungsrechte) and maintenance obligations (Instandhaltungsverpflichtungen), can lead to problems later. In addition, a detailed review of the minutes of the owners’ meeting is necessary, as there are often additional costs hidden here that need to be identified.

Land register extract (Grundbuchauszug): What you need to know

Meaning of the land register extract

A land register extract contains all land register entries for a property and thus gives the buyer all important information about ownership and encumbrances such as liens on real property (Grundpfandrechte), usufruct (Nießbrauch) or land charges (Reallasten). Knowing and checking the current land register extract is of crucial importance for the purchase decision and the purchase price.

How to apply for a land register extract

We support you in obtaining and interpreting land register extracts. You usually receive the land register extract directly from the seller or real estate agent.

Declaration of division (Teilungserklärung): Important information for apartment owners

What is a declaration of division?

The declaration of division is a very extensive document, often more than 100 pages long, which regulates the division of a building into individual property units and their use. The declaration of division also contains the community rules/house rules, which are binding for the buyer and regulate the interaction between the owners. It should be noted that often additional changes to the declaration of division exist.

Relevance of the declaration of division when buying an apartment

A careful review of the declaration of division and their changes ensures that all rights and obligations are clearly defined and known to you. The purchase contract only briefly refers to the declaration of division, but the exact content and the resulting obligations are not discussed. We check the declaration of division and the changes for special features and problems so that you are not surprised by them.

Apartment owners’ meeting (Wohnungseigentümerversammlung)

What is an owners’ meeting?

The owners’ meeting normally takes place once a year. All apartment owners meet and discuss problems and concerns of the house community as part of self-management. The relevant resolutions are made at the meeting, which are binding for all owners. It also serves to supervise the property management.

Significance for the purchase contract

It is mandatory to take minutes of the owners’ meeting. All resolutions and the topics discussed are recorded in the minutes. The protocol shows important criteria for the buyer that are also decisive for the purchase, such as changes to the house rules, the decision on a special levy and, in particular, upcoming repair and renovation measures. We look through the protocols and inform you about important points so that you can include these aspects in your purchase decision.

Costs and duration of the review of a property purchase contract

What costs are incurred during the review?

The costs depend on the value of the property, the scope and complexity of the review. After receiving all the documents, we can estimate the costs and tell you the expected costs so that you know what to expect. Compared to the problems, hassle and costs that can arise if you sign the purchase contract without a conscientious and thorough review, the costs for the review are minimal.

How long does a review of the purchase contract take?

The duration depends on the complexity of the documents and whether all the paperwork and documents are already available. A comprehensive review and a detailed report outlining the problems and pointing out the clauses that are negative for you takes a certain amount of time. We work quickly but carefully so that you receive a report with suggestions for changes and additions as soon as possible.

We are of course also available to answer any additional questions so that you can sign your contract with peace of mind.