Questions about buying a property

Here you will find our answers to important questions such as commission regulations, capital resources, purchase contract and ancillary purchase costs. We explain the terms heritable building right, land register and declaration of partition and describe the procedure if you are interested in a property. Contact us today. We look forward to hearing from you.

FAQ for buyers

  • Is a new building generally more expensive than a pre-owned property?

    No, determining the value of a property requires several factors, such as the rentability of the property or the current rental price, the condition of the property and also the renovation issue plays a decisive role. For instance, renovation backlogs reduce the value of the property. Accordingly, a proper consultation and a professional value assessment are required. If these quality differences are also considered, a new building can be valued at about 10% more than an existing property, since the buyer also acquires a great deal of creative freedom. Listed old buildings, on the other hand, can sometimes be more expensive than new-build properties. These offer tax advantages, but may be subject to conditions imposed by the authorities.

  • How much equity is required to purchase a property?

    The exact amount of equity to be contributed depends on the potential buyer's net worth and income situation as well as the location of the property. As a rule, between 20% and 30% of the purchase price is required as equity capital in order to be able to cover the 8-10% ancillary acquisition costs. Lower equity ratios are possible depending on the purchaser's income and other assets, but usually mean an interest surcharge. The banks' lending policy depends on the creditworthiness of the borrowers and their collateral. If the loan-to-value ratio is below 60%, the financing costs are most favorable.

  • What does leasehold mean?

    A "leasehold" is the term used to describe a right equivalent to real property that is formed in a separate "leasehold land register".

    A plot of land can be leased as a "ground lease" for a fixed period of 60 to 99 years in return for a monthly ground rent. However, ownership of the land remains with the ground lease provider during this period. As a rule, the leaseholder has the right to build on and use the land during the term of the contract. The leasehold can be sold by the leaseholder during this period, but this requires the consent of the ground lease owner.

    At the end of the leasehold contract, the land reverts to the ground lease owner or is extended. In the case of residential building plots, compensation is often paid to the leaseholder for the material value of the building structures (often referred to as the common value). The ground lease contract specifies what the ground lease provider still has to pay at the end of the period.

  • What is a land register?

    Land and rights equivalent to land (e.g. leasehold) are a delimited part of the earth's surface (Section 905 of the German Civil Code) and are registered in the land register. The land register is an official, conditionally public register of real estate in which, for example, the ownership structure and any rights associated with the real estate and any encumbrances on it are recorded. Pursuant to Section 3 of the Land Register Ordinance (GBO), each plot of land is given its own place in the land register (land register page).

  • What is a declaration of division?

    Section 8 of the German Condominium Act (WEG) regulates the declaration of division. A declaration of division is drawn up in the case of a divided property and all essential rights and obligations of the co-owners are established in it.

    The original owner of a property can thereby divide a building into co-ownership shares in the property, so that each share is associated with the separate ownership of a specific apartment or of rooms not used for residential purposes.

    Furthermore, it is regulated which parts of the building are in special ownership or are used as common property. In addition, special rights of use (e.g., garden areas) can be assigned to certain units and community rules can be issued. The declaration of division must be notarized. In the process, the partition plan of the building must be checked by the responsible approval authority (Section 7 WEG) and the seclusion confirmed before the land register pages are formed.

Questions about the purchase contract
  • How will the purchase contract be concluded?

    In cooperation with the notary's office, we prepare the notarial purchase contract for you. We assist both the seller and the buyer so that all details of the contract can be settled to the satisfaction of both parties. Of course, we will accompany you to the notary appointment. Even after the notarization of the purchase contract, we are at your disposal and will - if requested - carry out the handing over of the apartment or house.

  • What are the ancillary purchase costs for me as a buyer?

    Every purchase of land or real estate in Germany is taxed with a land transfer tax. The amount varies from state to state and is currently 3.5% of the purchase price in Bavaria. There are also notary fees of about 1.0% to 1.5% of the purchase price for the notarization of the purchase contract and the possible registration of a land charge in the land register.

    In addition, there is the broker's commission, possible processing fees for the bank in the case of financing a property, or commitment interest rates to be determined.

    The current commission regulation in Germany states that the commission for buyers and sellers must be the same amount for apartments and single-family houses if the broker acts for both parties and the buyers are consumers. For other types of real estate (multi-family houses, land, commercial units) or if the real estate agent acts exclusively for the seller (so-called "pure internal commission"), or if the buyers are not consumers, the exact structure of the commission is still not prescribed by law and thus freely agreed upon on the market.

Questions about the viewing
  • How can the property be viewed?

    You can view all our offers online in advance at any time. You will find high-quality photos and videos of the property, the surroundings and additional detailed information for each property. Please let the responsible real estate consultant know if you would like to visit the property. If the apartment is still rented, the appointment will be arranged with the current tenant. If the apartment is already vacant, flexible appointments are usually possible.

Questions about the Mr. Lodge service offers
  • What does the service of Mr. Lodge cost?

    You will find the respective percentage for the commission to be paid by the buyer in our exposés. This is calculated from the notarial purchase price when a notarial purchase contract is concluded.

    The current commission regulations in Germany stipulate that buyers and sellers of apartments and single-family homes must pay the same amount of commission if the estate agent works for both parties and the buyers are consumers. In these cases, the commission at Mr. Lodge is usually 2.5% plus 19% VAT (= 2.975% incl. VAT).
    For other types of property (multi-family houses, land, commercial units), or if the estate agent works exclusively for the seller (so-called "pure internal commission", i.e. no brokerage contract with the buyers), or if the buyers are not consumers, the commission is still not prescribed by law and can therefore be freely agreed on the market.

  • How can I find a suitable property through Mr. Lodge?

    If you have found a suitable offer on our website, please contact us via the button "Inquiries". Your real estate consultant will contact you as soon as possible to discuss the next steps. We would be happy to organize an on-site visit. Alternatively, you can also call us. The office is open Monday to Friday from 9 am to 5 pm. We look forward to hearing from you!

Please contact us:

Feel free to contact us with any questions you may have regarding the sale of your property.

Tel.: +49 89 340 823-540 |

Jacqueline Sauren
Office Management Real Estate Sales

Contact person
Jacqueline Sauren
Office Management Real Estate Sales
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