Many people like investing in real estate, especially in turbulent economic conditions. "Concrete gold" does not only a safe investment but also a way to support oneself after retirement. However, this supposedly wise investment harbors risks—such as the property’s value being overestimated and the real estate being bought for too much; hidden construction defects and related costly repairs; and construction financing that was not realistically calculated beforehand. To know what to look for in terms of location and condition when buying a house or apartment, how to determine the value of a property, what costs are incurred during the purchase, and, afterward, what insurance you need, a guide will be helpful. 
Check the property
Before buying or building real estate, take a look at the building load register of the responsible building authority. You might not be able to build in certain areas. The land register at the responsible land registry could record a so-called easement, which regulates the rights that the owner of another property has with regard to your desired property—such as a right of way or the possibility of objecting to certain building projects.If possible, lower the ancillary purchase costs
Fitted kitchens, living room furnishings, garden tools: If the previous owner also offers high-quality movable inventory, it could be worthwhile to separate this from the acquisition of the real estate. Otherwise, the purchase price will increase, as will the incidental purchase costs, such as the real estate transfer tax, notary fees, and, if applicable, broker's fee.Insist on a specific and complete scope of services
Nine out of ten builders choose a provider of turnkey houses. Note: In 97 percent of all contracts, essential construction work is missing. This has been determined by the Association of Private Builders. For example, the installation of the house connections can go unmentioned. The only thing that must be delivered is what the construction contract and description of services contain. You should therefore insist on complete documentation of what is being done. Do not accept ambiguous descriptions of interior fittings, either. If certain services are not included in the fixed price, these should be expressly mentioned.Don't let yourself be rushed
No later than two weeks before the notary's appointment, insist on receiving all contract documents—the construction and service description for a new building, the declaration of division when buying a property. If new facts are suddenly presented at the notary appointment, do not sign the contract prematurely, especially if the seller urges you to hurry.Be clear before you buy an apartment
The notarial deed of division states what belongs to the apartment and whether you acquire a garden, terrace, cellar, garage, or bicycle parking space. It also defines what counts as common property, such as balconies, corridors, and elevators, as well as windows, doors, and outdoor facilities. In addition, you will want to clarify how the common property may be used. A complete declaration of division also includes the community order with any payment obligations.Do not pay in advance
In Germany, a purchase contract for land and real estate must be concluded with a notary. However, the notary does not have to ensure that the contract has been drafted in the buyer’s interests. Advice from external experts is therefore recommended before the contract is concluded. Under no circumstances should you pay before the purchase contract has been notarized.Bring in an expert
Pitfalls in sales contracts are not always easy to spot. A property developer may have shortened statutory limitation periods. Contract drafts pre-formulated by construction companies with the note “notarial contract model” also offer no security. It is therefore worthwhile to have an expert check all the contract documents, including any soil appraisals, building application and implementation plans, and thermal insulation certificates. Such an expert could be a lawyer specializing in construction law. Advice is also available, for example, from the Association of Private Builders and the Builders Protection Association.Check the land register
If you want to buy a plot of land, an apartment, or a house, always obtain a certified copy of the entry in the land register. This also shows whether you are taking over the property free of debt.Withdraw from the contract as a last resort
If the property purchase is notarized, withdrawal is possible only in exceptional cases—for example, if it was expressly agreed in the absence of a financing commitment by the bank or if the seller has deliberately concealed serious defects.Perform a final ascent
The warranty claim, which exists for up to five years, is regulated by law or by the awarding and contract regulations for construction work. Information is provided by consumer protection organizations such as the Association of Private Builders and the Builders Protection Association. In the case of turnkey houses acquired, to assert any defects in good time, you should carry out a final inspection of the property with a building expert at least six months before the end of the warranty obligation. The warranty is partially limited for old buildings. If in doubt, a building surveyor will help. A handover protocol is also recommended for the keys. Make sure all keys are in place and working. The last details, such as the current meter readings and the nameplate on the doorbell and mailbox, are up to you. You can move in a short time later. We hope this blog post has been helpful for you!
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