Is a notary's escrow account (Notaranderkonto) necessary?

In most cases, no. Direct payment after the payment due notice is now standard and secured by the priority notice.

What happens if the buyer doesn't pay?

The purchase agreement generally contains a declaration of enforceability and rights of withdrawal. The transfer of ownership does not take place without payment.

When do I, as the seller, receive my money?

After the payment due notice, the buyer usually has one to two weeks to pay. Existing loans are repaid directly from the purchase price.

Purchase price payment before land register entry – is it safe?

When buying property, the buyer pays the purchase price before being registered as owner in the land register (Grundbuch). That sounds risky, but the notarial process makes it secure for both parties.

The usual process

After notarisation, the notary's office applies for the priority notice of conveyance for the buyer. In addition, it obtains necessary approvals, waivers of statutory pre-emption rights, and the discharge documents from the seller's financing bank. Once all conditions are met, the notary sends the payment due notice.

Why the priority notice of conveyance protects

The notice secures the buyer's claim to the transfer of ownership. Subsequent dispositions by the seller – such as a second sale or new encumbrances – are ineffective against the buyer. Therefore, the buyer can pay before the transfer takes place.

How the seller is protected

The transfer of ownership is only applied for once the seller has confirmed receipt of the purchase price and the real estate transfer tax (Grunderwerbsteuer) has been paid. So the seller does not relinquish ownership before the money is received.

How long it takes

There are often several weeks between notarisation and payment due date. The actual registration in the land register can then take several more weeks to months. For the transfer of benefits and burdens, the date agreed in the contract is decisive.