dansk norsk deutsch english

    Hot tips for buying real estate


    Buying real estate in Berlin is in many ways unique in Europe. Listed below are the most important differences (please read to the end):

    • The purchaser typically pays the agent’s fees.
    • The agent does not carry any liability for the sale and does not have any third party liability insurance.
    • No formal training or certification is required to be an agent in Germany.
    • A building survey is not required by law.
    • Change of ownership insurance does not exist.
    • Real estate is sold “as is”, and the seller is only liable for hidden problems if it can be demonstrated that he was aware of the faults at the time of the property transaction.
    • All documents associated with the property transaction must be notarized with an official notary who will be responsible for registration of the documents.
    • Stamp duty, known as Grunderwerbsteuer, is due to the German state on all property sales. The tax is currently 4.5% in Berlin while it is 3.5% in the rest of Germany.
    • Owner occupancy is not required.

    From the above, it may appear that buying property in German is a risky affair. This is, however, not the case.It is no more risky than buying property anywhere else in Europe. 

    One simply must be prepared and know how to use the system to one’s advantage.

    Below is a list of recommendations and hot tips:

     

    • The public notary is personally responsible for ensuring that every property sale is properly conducted. He must check that the seller actually has the rights to sell the property and he must notify the purchaser of any covenants and easements affecting the property.
    • The notary must guarantee the payment for the property via his client account or act as guarantor in case of a part-payment system.
    • The purchaser may organize his own building survey when buying an existing property.
      For newly constructed or fully renovated properties, the purchaser will receive a building report from the construction company which in details describes the property and its features which the company is obliged to deliver.
    • All buildings and features come with a 5 year warranty when the property is a refurbishment project or new build.
    • The purchaser can engage a building inspector to check the progress of the construction or refurbishment. The building inspector will prepare regular reports identifying possible problems which can then be addressed in time.
    • If buying into a project, the purchaser is protected against bankruptcy and halts to building, as payments are made in accordance with the progress of the building or renovation. The bank financing the project is normally insured to guarantee the completion of the project or a refund in case of bankruptcy.
    • Many construction companies also operate under bank guarantees against the received payments from the purchaser.

    BoligBerlin primarily acts as an agent for properties undergoing refurbishment or new constructions where you can be assured of the highest standard, fully guaranteed. When we act as agents for existing properties, we ensure that the property has been modernized. In many cases our properties have never before been occupied.

    A typical renovation
    BoligBerlin acts predominantly in the sale of properties that have undergone renovation.
    See how a typical renovation is done: A typical renovation in Berlin

    Watch video about buying property in Berlin
    BoligBerlin has produced a video showing a typical tour of properties in Berlin.