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Expenses involved in the purchase of real estate in Berlin
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The Expenses Involved in the Purchase of Real Estate in Germany
The purchase of real estate in Berlin requires you to know a few facts about German law. For example, you should be aware of how the transfer of rented properties is treated. You should also understand the differences in assessments between regions and municipalities. In some cases, you may be asked to pay more taxes on assets that are on rent. If you’re an investor, it’s wise to review your assets and assess whether you qualify for an extend real estate tax deduction.
The law defines the real property rights with most legal systems. These include property ownership, possession and occupancy, and lease. However, the legal requirements are quite varied and often depend on the case.
All real estate in Germany is registered in a land register. The local district courts in each municipality maintain it. They are computerized and can be viewed by anyone with a legitimate interest. This information is essential to understanding the legal position of the parties involved in the transaction.
In Germany, the notary public plays a key role in the process of buying and selling real estate. It acts as a mediator and guides the parties through the transaction. The notary reads out the contract, provides advice on the law, and coordinates the process. There are also several advantages to hiring a notary. He can help to ensure the integrity of the transaction and the smooth progression of the legal proceedings. The notary cost is about 1.5%-2% from the purchase price .
In Germany, a land charge is a supplementary form of security, which is used to protect both the lender and the borrower. The land charge is a binding agreement between the parties to the transaction and serves as real security for the loan. Land charges have proven to be an effective way to secure the loan without having to use a mortgage. The land charges are approximately 0.25%-0.50% from the purchase price.
The purchase of real estate in Berlin requires you as the buyer to pay a real estate transfer tax. Depending on the size of the transaction, the amount of the transfer tax can range from three to six percent. In berlin now is 6%. Transfers of business property are also subject to a tax. Moreover, you may be required to pay VAT on the purchase price, especially if the purchase is from a company. Alternatively, you can avoid VAT by claiming an exemption from the tax.
If you are using a broker service, you have to pay 6%+VAT as brokerage fee. the broker in Germany has a major role in your real estate transaction and his involvement will help you to find the right property and finalize the purchase transaction.
Real estate rights are subject to various regulations, including the Law of Property, the Law of Obligations, and the Law of Succession. Aside from these laws, the German Civil Code regulates a number of aspects of civil law for real estate. In the civil code, rent increases are regulate in detail. You can only increase the rent by a certain percentage.