Owning real estate in Germany is one of the safest long-term investments you can make. This is probably one of the main reasons why you bought property here, didn't you? And after many happy years in this place, it's time to let it go. It's a bit sad, sure, but you know it's the right decision to make. Especially if you'll sell your
property in Germany properly. The process isn't as simple as giving it to the buyer and having them pay you for it. There's a lot you need to know and do. So to ensure that nothing goes wrong, consider following these tips!
Free Up Some Time for The Process
The first thing you need to do is to free up some time! The process of selling your property in Germany can take a long time. Usually, it can be done in around two to three months; one month if you're lucky. But if you're not and you’re not 100% prepared on top of that, it can take as long as six months, possibly even an entire year! There's a lot you need to do, from gathering up the required documents and holding viewing sessions of the property to negotiating with the buyer for the final price. You'll need a lot of free time to do all that!
Prepare All The Important Documents First
Speaking of the required documents, you'd do well to prepare them beforehand. They include the title deed, the floor plan (
Grundriss ), the Energy Performance Certificate (
Energieausweis), the building permit (
Baugenehmigung), and the cadastral map (
Flurkarte). If you're selling a condominium or apartment, you'll also need documents that declare your co-ownership with the Association of Owners of the building (
Teilungserklärung). More often than not, it's this part of the process that prolongs the sale. If you already prepared them even before you put your real estate in Germany for sale, then it's possible to finish everything in around one to two months.
Know The Required Costs
Don't think that because you’re selling real estate in Germany, you won't have to pay for anything. On the contrary, you have to pay a number of important costs throughout this process. There's the capital gains tax, for instance, which is imposed on the difference between how much you earned from the sale to how much you spent when you acquired the property in the first place. There are also the notary fees, which pay for all the legal work done throughout the process. And if you hired a
real estate agent, you'll need to pay them their commissions too. Moreover, acquiring some of the important documents may include some fees too.
Consider Selling on Your Own
Although
selling through real estate is common and arguably easier, you should still consider putting your property in Germany for sale yourself. This isn't to say that selling it
on your own is better, but there is some merit to it. For one thing, it lessens your costs since you don't have to pay a real estate agent's commission. You get to keep more of what you earn for yourself. Secondly, selling on your own allows you to stay on top of things. You'll be aware of what's going on at all times, making it easier for you to ensure that everything goes smoothly.
Be Completely Honest About The Property
When you draw up documents about the property or you talk about it with the buyer, you need to be as honest as possible. Let them know everything about the current state of the place, as well as possible problems the buyer might encounter in the future. Why? Because misrepresenting the property can make you liable for it even when you're no longer the owner. If any problem pops up that will require urgent attention and the buyer can prove that you were aware of them yet you didn't include them in any of the documents, you'll get into legal trouble!
Draw Up a Sale & Purchase Agreement
Although it's not required, you'd do well to draw up a sale & purchase agreement and have the buyer sign it. Even when the deed of sale is the 'official' contract between both parties, the agreement will still be legally binding once it's signed and notarized. On your end, you'll be required to sell your real estate in Germany to only the buyer and no one else. And on the buyer's end, they'll be legally bound to see the sale through to the end. They'll even have to pay you a deposit of around 10% to 30% of the final property price!
Set a Move-Out Date
Nothin's more awkward and more humiliating than being thrown out of your own (well, technically former) home. Once the deed of sale is signed and the ownership is transferred to the buyer, then they'll retain all the rights to the property in Germany. And if they want (or need to), they can throw you out even when you're not yet prepared. So when you draw up the important contracts, make sure to set a move-out date. Let the buyer know when you can vacate the premises so you can avoid a humiliating situation!
Selling your own property in Germany is no walk in the park. There's a lot to do on your end as the current owner and seller. So to ensure that everything goes smoothly, follow these helpful tips. One might even save you from getting into serious trouble!
