When buying a property, there is no way around the notary: in Germany the purchase contract must, by law, be recorded by a notary (notarial deed). For many buyers, the notary's bill nevertheless remains a closed book. We explain to you clearly and without glossing over anything how high the notary costs are when buying a house, what they are made up of, who bears them and why they cannot be negotiated. That way, you will know before the notary appointment exactly what to expect.
Why the notary is mandatory when buying a house
In Germany you cannot acquire a house or flat with a handshake or a private agreement. Under § 311b paragraph 1 BGB (the German Civil Code), every contract by which a person undertakes to transfer or acquire ownership of a plot of land must be recorded by a notary. If this form is not observed, the contract is void under § 125 BGB, that is, legally without effect.
This notarial recording is by no means a mere formality. The notary is bound to neutrality, advises both sides, checks the entries in the land register (Grundbuch) and ensures that neither buyer nor seller has to perform in advance without being protected. It is precisely this protection that is the reason the legislator requires the notarial deed.
How high are the notary costs when buying a house?
As a rough rule of thumb, notary and land-register costs together come to around 1.5 to 2 per cent of the purchase price. Of this, the larger share goes to the notary and the smaller to the land registry:
- Notary costs: around 1.0 to 1.5 per cent of the purchase price
- Land-register costs: around 0.3 to 0.5 per cent of the purchase price
The precise amount depends on what is known as the transaction value (Geschäftswert), which is generally based on the purchase price, as well as on which activities are required in the individual case, for example whether a land charge (Grundschuld) is additionally registered for the financing bank. Incidentally, the notary costs are to be viewed separately from the real-property transfer tax (Grunderwerbsteuer) and the estate agent's commission, which together with the notary and land-register costs make up the incidental purchase costs.
Set by law: the fees under the GNotKG
Unlike with many services, with notary costs you cannot compare quotes or negotiate a discount. The fees are governed by the Act on Court and Notary Costs (Gesetz über Kosten der freiwilligen Gerichtsbarkeit für Gerichte und Notare, GNotKG). The fee rates and the associated value-based fee table are bindingly laid down there.
In very concrete terms, this means: every notary charges the same fee for the same procedure where the transaction value is the same. Discounts are not permitted, and comparing prices between several notary's offices serves no purpose. At first glance this may seem inflexible, but at the same time it protects you from excessive demands, because the notary is the holder of a public office and not a freely calculating provider.
Who pays the notary costs?
As a general rule, the buyer's side bears the notary and land-register costs. This follows from § 448 paragraph 2 BGB: the buyer bears the costs of recording the purchase contract, of the conveyance (Auflassung) and of the entry in the land register.
There is one important exception: if an old land charge of the seller still encumbers the property and has to be deleted, the seller's side usually bears the costs of that deletion. Who ultimately takes on which item is clearly settled in the purchase contract, so that there are no surprises later on.
These items typically appear on the bill
The notary's bill when buying a house is made up of several building blocks. The usual ones are:
- Recording the purchase contract: the central main fee; it covers advice, drafting and the notarial recording.
- Priority notice of conveyance (Auflassungsvormerkung): secures your claim to ownership even before you officially appear in the land register.
- Execution and supervisory activity: the notary obtains approvals, monitors when the purchase price falls due and arranges the transfer of title, so that neither side has to perform in advance without protection.
- Registration of the land charge (Grundschuld): arises if you finance the purchase and the bank has a land charge registered as security.
- Land-register fees: for the entry of the priority notice of conveyance, the transfer of title and, where applicable, the land charge.
In addition there are flat-rate disbursements for postage, documents and electronic data transmission, as well as the statutory value-added tax of 19 per cent on the notary's fees.
A worked example for a purchase price of 500,000 euros
A concrete figure makes it more tangible. We assume a purchase price of 500,000 euros, a financed land charge of the same amount and a normal procedure without a notary's escrow account (Notaranderkonto):
- Recording the purchase contract including the conveyance
- The notary's execution and supervisory activity
- Recording the land charge for the bank
- Land-register entries (priority notice of conveyance, transfer of title, land charge)
In this constellation you should allow around 6,000 to 6,500 euros for notary costs and around 2,500 to 3,000 euros for land-register costs. Together that comes to about 9,000 to 9,500 euros, so roughly 1.8 to 1.9 per cent of the purchase price. By way of comparison of the order of magnitude of individual items: the Bundesnotarkammer (Federal Chamber of Notaries) quotes a fee of 327 euros for recording a land charge of 130,000 euros, and around 190 euros each for an execution or supervisory activity. The exact amounts always result from the fee table of the GNotKG and the specific individual case.
How we support you with your purchase in Düsseldorf and NRW
The notary costs themselves are fixed by law, yet the path to get there determines whether a house purchase runs smoothly. At Richter Immobilien-Transaktionen we accompany you through the entire process: from reviewing the documents through preparing the purchase contract to the notary appointment and the handover. That way, at every point you know which steps lie ahead, what costs you can expect and what matters in detail.
For more than 60 years, Wolfgang Richter GmbH has been rooted in Düsseldorf and North Rhine-Westphalia (NRW). This experience and our network give you the assurance of approaching a property purchase well prepared and without nasty surprises.
