The Home Buy Sell Agreement is a fundamental legal document in German real estate transactions, required for any transfer of property ownership. This agreement must be executed before a German notary public to be legally valid, as mandated by German law. It serves as the primary document governing the rights and obligations of both buyers and sellers in property transactions, covering crucial aspects such as property description, purchase price, payment terms, warranties, and transfer of ownership. The document ensures compliance with German property law requirements, including registration in the Land Registry (Grundbuch), and addresses tax implications, particularly the real estate transfer tax (Grunderwerbsteuer). It's essential for both residential and commercial property transactions and must include specific provisions required by German civil law, making it significantly different from similar agreements in other jurisdictions.
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1. Parties: Identification of seller(s) and buyer(s) with full legal names, addresses, and marital status if relevant
2. Background: Brief context of the transaction and confirmation that the seller is the registered owner of the property
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed description of the property including land registry details (Grundbuch), exact location, size, and building specifications
5. Purchase Price: Agreed purchase price, payment terms, and escrow arrangements
6. Transfer of Ownership: Terms and conditions for transferring property ownership, including registration in the land registry (Grundbuch)
7. Possession and Risk: Date of property handover and transfer of risk
8. Warranties and Representations: Seller's warranties about property condition, encumbrances, and disclosed defects
9. Property Condition: Current state of the property, known defects, and as-is provisions
10. Encumbrances: Existing mortgages, easements, and other encumbrances and their handling
11. Costs and Taxes: Allocation of transaction costs, real estate transfer tax, and other fees
12. Notice and Handover: Process for property handover, including utilities transfer and key handover
13. Governing Law: Confirmation of German law application and jurisdiction
14. Severability: Standard clause ensuring remainder of contract remains valid if parts are found invalid
1. Mortgage Arrangements: Required when buyer is financing the purchase through a mortgage
2. Rental Situations: Required when property is currently rented and includes provisions about existing tenants
3. Furniture and Fixtures: Used when sale includes specific furniture or fixtures
4. Development Rights: Included when there are pending or potential development opportunities
5. Environmental Provisions: Required when there are environmental concerns or requirements
6. Heritage Protection: Required for properties under monument protection (Denkmalschutz)
7. Right of First Refusal: Required when municipality has statutory right of first refusal
8. Broker Provisions: Required when real estate agents are involved in the transaction
1. Land Registry Extract: Current extract from the Grundbuch showing ownership and encumbrances
2. Floor Plans: Official floor plans and property measurements
3. Energy Certificate: Mandatory energy performance certificate (Energieausweis)
4. Property Tax Assessment: Current property tax assessment and payment status
5. Building Permits: Copies of relevant building permits and certificates
6. Inventory List: Detailed list of included fixtures, fittings, and furniture if applicable
7. Property Photos: Documentary photographs of property condition at time of sale
8. Technical Due Diligence: Reports on building condition, if commissioned
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