The Partial Payment Agreement For House And Lot is essential in German real estate transactions where buyers opt for structured payment arrangements rather than complete one-time payments. This document is primarily used when parties agree to split the property purchase price into multiple installments, typically involving a down payment followed by scheduled payments. It must comply with German Civil Code (BGB) requirements, including mandatory notarization and Land Registry (Grundbuch) regulations. The agreement is particularly relevant in situations where traditional mortgage financing isn't used or when parties prefer a direct payment arrangement. It includes comprehensive details about the property, payment terms, ownership transfer conditions, default provisions, and both parties' obligations, ensuring legal compliance while protecting all stakeholders' interests.
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1. Parties: Identification of the seller and buyer with full legal names, addresses, and registration details if applicable
2. Background: Context of the transaction, including brief property description and parties' intention to enter into a partial payment arrangement
3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Installment Payments, etc.
4. Property Description: Detailed description of the house and lot, including cadastral details, land registry information, and exact location
5. Purchase Price: Total purchase price and breakdown of payment components
6. Payment Terms: Detailed structure of partial payments, including down payment, installment amounts, payment dates, and payment methods
7. Transfer of Ownership: Conditions and process for the transfer of property ownership, including Grundbuch registration requirements
8. Seller's Warranties: Warranties regarding property title, encumbrances, and condition
9. Buyer's Obligations: Buyer's commitments, including payment obligations and property maintenance responsibilities
10. Default and Remedies: Consequences of payment default and available remedies for both parties
11. Notarization: Requirements and process for notarization as per German law
12. Governing Law: Confirmation of German law application and jurisdiction
13. Miscellaneous: Standard provisions including severability, amendments, and notices
1. Broker Provisions: Include when a real estate broker is involved, detailing broker's role and commission arrangements
2. Property Inspection: Include when specific inspection conditions or findings need to be documented
3. Renovation Agreement: Include when property requires specific renovations before or after purchase
4. Insurance Requirements: Include when specific insurance obligations need to be imposed on either party
5. Early Payment Provisions: Include when allowing for early payment options with potential discounts
6. Property Management: Include when interim property management arrangements are needed
7. Third-Party Rights: Include when there are existing tenants or other third-party rights to address
8. Utilities and Charges: Include when specific arrangements for utility transfers and ongoing charges need to be detailed
1. Property Details Schedule: Detailed technical description of the property, including floor plans and boundaries
2. Payment Schedule: Detailed breakdown of all payment installments with specific dates and amounts
3. Land Register Extract: Current Grundbuch extract showing property ownership and encumbrances
4. Property Condition Report: Detailed assessment of property condition at time of agreement
5. Title Documents: Copies of relevant property title documents and certificates
6. Building Permits: Copies of relevant building permits and certificates
7. Property Photos: Documentary photographs of the property's current condition
8. Utility Certificates: Current energy performance certificate and other utility-related documents
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