The Assignable Real Estate Contract is a specialized agreement used in German property transactions where the initial buyer may need to transfer their contractual rights to another party. This document is particularly valuable in commercial real estate development, property investment, and corporate transactions where flexibility in ownership transfer is desired. It must comply with German civil law requirements, including notarization under the Beurkundungsgesetz and registration in the land registry (Grundbuch). The contract includes comprehensive provisions covering property transfer, payment terms, warranties, and specific conditions for assignment rights. It's commonly used in development projects, corporate restructuring, or investment scenarios where the potential for transferring purchase rights is anticipated. The document's assignability feature makes it especially suitable for property developers, investment companies, and businesses planning potential resale or transfer of property rights before completion.
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1. Parties: Identification of seller and buyer with full legal names, addresses, and registration details if applicable
2. Background: Context of the transaction and brief description of the property being sold
3. Definitions: Key terms used throughout the agreement including Property, Completion Date, Purchase Price, etc.
4. Property Description: Detailed legal description of the property including land registry details (Grundbuch) and cadastral information
5. Purchase Price: Amount, payment terms, and method of payment including escrow arrangements if applicable
6. Assignment Rights: Terms and conditions under which the buyer can assign their rights and obligations under the contract
7. Conditions Precedent: Conditions that must be met before completion, including financing and regulatory approvals
8. Seller's Warranties: Representations regarding property ownership, encumbrances, and condition
9. Due Diligence: Buyer's inspection rights and timeline for conducting property investigations
10. Completion Process: Steps for transfer of ownership, including notarization and registration requirements
11. Costs and Taxes: Allocation of transaction costs, including transfer tax, notary fees, and registration costs
12. Notice Provisions: Communication requirements and contact details for all parties
13. Governing Law: Confirmation of German law application and jurisdiction
1. Tenant Provisions: Required if the property is sold with existing tenants, covering lease agreements and tenant rights
2. Mortgage Arrangements: Needed if there are existing mortgages to be discharged or new financing arrangements
3. Property Management: Required for transition period arrangements if property is commercially managed
4. Environmental Provisions: Necessary for properties with potential environmental concerns or specific requirements
5. Development Rights: Include if the property has unused development potential or pending permits
6. Monument Protection: Required if the property is under historical monument protection (Denkmalschutz)
7. Usage Restrictions: Needed if there are specific limitations on property use or zoning requirements
8. Defects Liability: Enhanced provisions for properties with known defects or ongoing repairs
1. Property Details: Detailed technical description, floor plans, and cadastral maps
2. Land Register Extract: Current Grundbuch extract showing ownership and encumbrances
3. Inventory List: List of fixtures, fittings, and other items included in the sale
4. Energy Certificate: Mandatory energy performance certificate (Energieausweis)
5. Existing Leases: Copies of current lease agreements if applicable
6. Building Permits: Copies of relevant building permits and certificates
7. Due Diligence Reports: Technical, legal, and environmental survey reports
8. Payment Schedule: Detailed breakdown of payment terms and installments if applicable
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