How do I proceed to choose and reserve the property?
First you must choose the property, preferably after an onsite visit here in Berlin. If the property is empty, an interior inspection is available. For all leased properties, we must be notified in advance, in order to make an appointment with the tenant. In general, we recommend that you contact us in advance, in order to schedule your visits in a timely way.
Once you have chosen your property, we will begin with the reservation procedures.
To reserve the property we will need the following:
- A copy of your passport,
- Down payment of 7.14% of the purchase price (minimum of 4,000€ VAT 19% included).
Please note this amount is equivalent to BRICKBeRLIN’s brokerage and advisory fees which will be made effective when the contract has been signed.
How is the process to register and sign the Purchase Agreement like?
BRICKBeRLIN manages the whole purchase process with a Notary Public (English speaking) and we also deliver a draft contract in both (German and English) for your revision and approval. In Germany, it is required to register with a Notary Public before the purchase of any properties.
There are three options for signing the Purchase Agreement:
- You can sign in person.
- If you do not want to travel to Berlin, you could authorize a person with a written power of attorney to represent you on the day of signing. The Notary Public will provide you a copy of the Power of Attorney via email. Print and sign the document at your nearest German consulate where you will be asked to present your passport. Once it is signed, the document must be sent back by mail to the Notary Public.
- If for any reason you cannot prepare a written power of attorney before the signing date, the third option would be to grant a Verbal Power of Attorney to a person to represent you on the day of the igning and, later on, confirm that Power of Attorney by writing following the same process as in 2 above.
The Purchase Agreement will never be registered unless you have reviewed the conditions and provided us with your written consent.
Which are the notarial requirements and when do I have to pay the price?
Once the contract has been signed, the Notary Public will make a provisional filing in the registry of property and will begin to verify all requirements to make the final deed recording and the transfer of ownership. The Notary will then send all documents and invoices to our offices. We will keep you informed at all times of the procedures and payments to be made:
- Notary Public payment fees: 2% of the purchase price (1 week after the signature),
- Payment of Purchase Price: (subject to the terms of the contract),
- Payment of Purchase Tax (paid with the payment of the purchase price): 6% in Berlin.
In Germany, unlike Spain and other countries, usually you shall not pay the purchase price until several days after the signing of the contract.
Once you make the first payment of the purchase price, you will be the economic owner of the property. You will become the official owner only after the Notary Public has confirmed all official registrations in the Registry of Properties office. The Notary Public will also provide you with a copy of the official registration.
If I’m a non-resident in Germany, should I open a German bank account?
If you have purchased a property in Germany, we advise you to open a bank account for property management expenses (Property Owners Association Administration), payment of quarterly property taxes and rental payments by the tenant. You do not need to personally open your account in Berlin. You could easily and conveniently open your account from your country of residence.
Which type of services do the Special Property Administrations offer?
The services provided by these companies are different from traditional property management services. They are very helpful to foreign owners, who do not speak German and do not have permanent residence in Germany.
The services offered by these companies are:
- Registering for electricity,
- Relationship with property management administrator,
- Communication with Tax Administration,
- Management of the housing finance,
- Owner's representation at annual meetings,
- Managing all written correspondence (usually in German),
- Finding a tenant for your apartment (long /short term),
- Managing tenants currently living in housing
- Control of the rent paid by the tenant,
- Payment of property administration fees and credits to the balance of your account,
- Payment of quarterly Property Taxes,
- Notification when to issue the income tax statement.